State Vocational Rehabilitation Unit In-Service Training; Final Rule DEPARTMENT OF EDUCATION

SUMMARY: The Secretary amends the regulations governing the State

Vocational Rehabilitation Unit In-Service Training program. The

regulations are needed to implement changes made by the Rehabilitation

Act Amendments of 1992. These final regulations incorporate new

statutory requirements, reference changes in Education Department

General Administrative Regulations, incorporate new phraseology from

the Act, limit eligibility to designated State agencies, and provide

funding allocation information.

EFFECTIVE DATE: These regulations take effect either 45 days after

publication in the Federal Register or later if the Congress takes

certain adjournments. If you want to know the effective date of these

regulations, call or write the Department of Education contact person.

A document announcing the effective date will be published in the

Federal Register.

FOR FURTHER INFORMATION CONTACT: Richard Melia, U.S. Department of

Education, 400 Maryland Avenue, S.W., Room 3422 Switzer Building,

Washington, D.C. 20202-2649. Telephone (202) 205-9400. Individuals who

use a telecommunications device for the deaf (TDD) may call the Federal

Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8

p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION: These regulations implement changes to the

State Vocational Rehabilitation Unit In-Service Training program made

to the Rehabilitation Act of 1973 (the Act) by the Rehabilitation Act

Amendments of 1992 (the Amendments), Pub. L. 102-569, enacted October

29, 1992.

This program supports the National Education Goal that, by the year

2000, every adult American will be literate and will possess the

knowledge and skills necessary to compete in a global economy and

exercise the rights and responsibilities of citizenship. The Department

supports a variety of training activities for vocational rehabilitation

personnel so that they may assist individuals with disabilities in

gaining the knowledge and skills to obtain employment and compete in a

global economy.

On May 9, 1994, the Secretary published a notice of proposed

rulemaking (NPRM) for the State Vocational Rehabilitation Unit In-

Service Training program in the Federal Register (59 FR 24000). The

major issues related to this program are discussed in the preamble to

the NPRM. Significant changes resulting from public comment since

publication of the NPRM include-- (1) eliminating the separate minimum

share for Guam, American Samoa, the Virgin Islands, the Commonwealth of

the Northern Mariana Islands, and the Republic of Palau; (2) removing

the requirement for an annual comprehensive needs assessment; (3)

deleting the requirement that distance learning be in connection with a

training course; and (4) deleting the requirement that distance

education for rehabilitation workers occur at individual job sites.

Analysis of Comments and Changes

In response to the Secretary's invitation in the NPRM, 16 parties

submitted comments on the proposed regulations. An analysis of the

comments and of the changes in the regulations since publication of the

NPRM follows.

Major issues are grouped according to subject, with appropriate

sections of the regulations referenced in parentheses. Other

substantive issues are discussed under the section of the regulations

to which they pertain. Technical and other minor changes are not

addressed.

Minimum Share and Matching Considerations (Secs. 388.21(a) and 388.30)

Comments: Five commenters suggested deleting Sec. 388.21(a)(4),

which provides a minimum share of not less than one-eighth of one

percent of the amounts made available for in-service training to Guam,

American Samoa, the Virgin Islands, the Commonwealth of the Northern

Mariana Islands, and the Republic of Palau. The commenters believe

agencies in the territories, some of which have as many employees as

small designated State agencies, should receive the same minimum share

of not less than one-third of one percent of the amounts made available

for the fiscal year as provided in Sec. 388.21(a)(3) to small agencies.

Discussion: The Secretary agrees that the same minimum share

provided to small designated State agencies is appropriate for the

specified territories. The Secretary also notes that the territories

are eligible to compete for the remaining funds to be allocated based

on the quality of the application as determined by competitive reviews

conducted by the Department using the selection criteria in Sec. 388.20

and the priorities in Sec. 388.22.

Changes: A revision has been made to Sec. 388.21(a) by deleting

paragraph (4) so that all grant recipients receive the same minimum

share of the sums made available for in-service training for the fiscal

year. A revision of Sec. 388.30, deleting paragraph (c), which provides

special matching considerations for the territories, also has been made

in the final regulations.

Program Purpose (Sec. 388.1)

Comments: Two commenters requested definitions for the terms

``succession planning'' and ``capacity building'' used in Sec. 388.1.

Discussion: The Secretary notes that these terms are found in the

statute, but are optional for State agencies to address in their in-

service training. There are alternative ways to address these concepts,

and the Secretary prefers not to define them, thus leaving the widest

possible discretion to State agencies.

Changes: None.

Comment: A commenter observed that Sec. 388.1 should be revised,

and the regulations changed throughout, to emphasize human resource

development in place of training. Peer reviewers should be oriented to

human resource development prior to their service as reviewers.

Discussion: The Secretary agrees that the term human resource

development is descriptive of many appropriate activities under this

program. However, the Rehabilitation Act of 1973, as amended, uses the

term ``in-service training,'' so that term is used in the regulations.

Changes: None.

Annual Needs Assessment (Sec. 388.20(a)(2)(iii))

Comments: Three commenters addressed the requirement in

Sec. 388.20(a)(2)(iii) for an annual needs assessment of in-service

training needs. The commenters believe an annual assessment is not

necessary and recommend a comprehensive needs assessment every three

years and a less comprehensive review annually.

Discussion: Although an assessment must be conducted during the

course of the project period, the Secretary agrees that a comprehensive

assessment is not needed annually.

Changes: A revision, deleting the word ``annual,'' has been made to

Sec. 388.20(a)(2)(iii) in the final regulations.

Project Length

Comments: Three commenters noted that the regulations do not

specify the length of projects. Recommendations of project periods of

36 and 60 months were made.

Discussion: The Secretary notes that regulations usually do not

specify project duration and instead leave flexibility for the

Secretary to determine an appropriate project period each time a

competition is announced.

Changes: None.

Allowable Costs (Sec. 388.31(d))

Comment: A commenter asked that the phrase ``in connection with a

distance learning training course'' be dropped from the description of

allowable telecommunications and technology fees in Sec. 388.31(d).

Discussion: The Secretary agrees that distance learning may include

valuable in-service training activities, such as a lecture or

technology demonstration, that are not part of a training course.

Changes: Section 388.31(d) has been revised by deleting the words

``in connection with a distance learning training course.''

Distance Education Priority (Sec. 388.22(b)(2))

Comment: A commenter noted that it was an unnecessary limitation to

require that distance education for rehabilitation workers be at their

job sites as stated in Sec. 388.22(b)(2). The commenter noted that it

may be necessary or efficient for an agency to gather a group of

employees at a central location removed from individual offices for

distance education.

Discussion: The Secretary agrees that there is no compelling reason

to require in this priority that training occur at an individual job

site.

Changes: Section 388.22(b)(2) has been revised by deleting the

words ``at their job sites.''

Comment: A commenter recommended dropping the priority in

Sec. 388.22(b)(2) for distance education on the grounds that there is

no evidence that distance education produces better results at less

cost.

Discussion: The Secretary believes that distance education is

needed in some States and wants to ensure that a mechanism exists to

demonstrate innovative approaches to learning.

Changes: None.

Enhanced Employment Outcomes for Specific Populations Priority

(Sec. 388.22(b)(3))

Comment: A commenter requested clarification of the heading for

Sec. 388.22(b)(3), which refers to ``specific populations'' although

the text that follows refers to ``all individuals or specified

groups.''

Discussion: The Secretary believes that it is up to the State

agency to determine whether in-service training to improve employment

outcomes will be targeted narrowly or broadly. Activities directed to

improving employment outcomes for all population groups or for a

specific target group are permitted under this priority.

Changes: None.

General

Comment: A commenter observed that the NPRM retains most of the

language in the current regulations and does not accurately reflect the

Rehabilitation Act Amendments of 1992 (the 1992 Amendments),

particularly provisions related to State and strategic plans.

Discussion: The Secretary believes that extensive changes have been

proposed in the current regulations and is confident that all

requirements in the 1992 Amendments have been implemented.

Changes: None.

Priorities (Sec. 388.22)

Comments: Two commenters supported reserving a portion of funds for

priorities, but believe this reserve should be divided between

priorities based on need and priorities based on responsiveness or

quality of the application and innovative approaches.

Discussion: The Secretary believes that the three priorities listed

in the proposed regulations address significant needs of State agencies

and that no further division of the priorities into categories is

needed.

Changes: None.

Comment: Regarding Sec. 388.22, which sets the Secretary's

priorities, a commenter asked if an application that addresses issues

or activities other than the three priorities listed can be eligible

for quality funds.

Discussion: The Secretary responds that only applications that

respond to the priorities already identified by the Secretary in the

regulations for this program or priorities established through future

rulemaking will be considered when allocating the quality funds.

Changes: None.

Basic State Agency Award Formula (Sec. 388.21)

Comments: Four commenters objected to the proposed formula in

Sec. 388.21 whereby 80 percent of the funds available would be

distributed based on the number of staff and 20 percent of the funds

available would be distributed based on quality. They believe that the

split penalizes States with small populations with limited capacity to

write grants. In the commenters' view, the distribution does not take

into account extra travel costs in a State with a large geographic

area, and a commenter suggested increasing the small State agency

minimum share.

Discussion: The Secretary believes that the proposed formula

maximizes the amount of funds available for basic awards while ensuring

that a reasonable amount is available for small agencies and for the

Secretary's priorities.

Changes: None.

Comment: A commenter noted that Sec. 388.21 does not state what the

minimum score is that an applicant must receive in order for its

application to be approved by the Secretary or how it is to be

computed.

Discussion: In order to make funding decisions, the Secretary sets

a minimum score for each competition after all applications have been

reviewed. The minimum score will be computed through an analysis of all

reviewed applications to determine those that are in the fundable

range.

Changes: None.

Selection Criteria (Sec. 388.20)

Comments: Two commenters recommended deleting Sec. 388.20(f)(1)(ii)

of the evaluation selection criteria that would judge in-service

training outcomes by the extent to which training results in improved

individual competency through licensure, certification, or award of

academic degrees or certificates. The commenters believe in-service

training to be short-term and job-based; therefore, reference to

improved individual competency through degree-based programs should be

dropped.

Discussion: The Secretary believes that, in response to the need to

increase the number of qualified rehabilitation personnel, academic

outcomes must be included among the measures of in-service training

programs.

Changes: None.

Reviewers' Qualifications

Comments: Three commenters observed that reviewers for in-service

proposals should be well qualified, represent diverse populations, and

be identified by name and program affiliation after the review is

completed. They commented that all applicants should receive reviewer

comments.

Discussion: The Secretary agrees that reviewers must be qualified

and representative of the diverse populations and agencies assisted

through in-service training. The Secretary does make summary

information available on characteristics of reviewers but believes the

specific reviewers of proposals should remain anonymous. All applicants

are provided with the reviewer comments on their applications when the

review is completed.

Changes: None.

Intergovernmental Review

This program is subject to the requirements of Executive Order

12372 and the regulations in 34 CFR Part 79. The objective of the

Executive Order is to foster an intergovernmental partnership and

strengthened federalism by relying on processes developed by State and

local governments for coordination and review of proposed Federal

financial assistance.

In accordance with the order, this document is intended to provide

early notification of the Department's specific plans and actions for

this program.

List of Subjects in 34 CFR Part 388

Grant programs--education, In-service training, Reporting and

recordkeeping requirements, Vocational rehabilitation.

(Catalog of Federal Domestic Assistance Number 84.265, State

Vocational Rehabilitation Unit In-Service Training)

Dated: August 2, 1994.

Judith E. Heumann,

Assistant Secretary for Special Education and Rehabilitative Services.

The Secretary amends Title 34 of the Code of Federal Regulations by

revising Part 388 to read as follows:

PART 388--STATE VOCATIONAL REHABILITATION UNIT IN-SERVICE TRAINING

Subpart A--General

Sec.

388.1 What is the State Vocational Rehabilitation Unit In-Service

Training program?

388.2 Who is eligible for an award?

388.3 What types of projects are authorized?

388.4 What activities may the Secretary fund?

388.5 What regulations apply?

388.6 What definitions apply?

Subpart B--[Reserved]

Subpart C--How Does the Secretary Make an Award?

388.20 What selection criteria does the Secretary use?

388.21 How does the Secretary determine the amount of a basic State

award?

388.22 What priorities does the Secretary consider in making an

award?

Subpart D--What Conditions Must be Met After an Award?

388.30 What are the matching requirements?

388.31 What are the allowable costs?

Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.

Subpart A--General

Sec. 388.1 What is the State Vocational Rehabilitation Unit In-Service

Training program?

This program is designed to support projects for training State

vocational rehabilitation unit personnel in program areas essential to

the effective management of the unit's program of vocational

rehabilitation services or in skill areas that will enable staff

personnel to improve their ability to provide vocational rehabilitation

services leading to employment outcomes for individuals with

disabilities. The State Vocational Rehabilitation Unit In-Service

Training program responds to needs identified in the comprehensive

system of personnel development in section 101(a)(7) of the Act. The

program may include training designed--

(a) To address recruitment and retention of qualified

rehabilitation professionals;

(b) To provide for succession planning;

(c) To provide for leadership development and capacity building;

and

(d) For fiscal year 1994, to provide training on the amendments to

the Rehabilitation Act of 1973 made by the Rehabilitation Act

Amendments of 1992.

(Authority: 29 U.S.C. 771a(g)(3))

Sec. 388.2 Who is eligible for an award?

Each designated State agency is eligible to receive an award under

the basic State award program described in Sec. 388.21. If a designated

State agency does not apply for an award during an announced

competition, no funds may be made available for in-service training of

the staff of that designated State agency under this program until

there is a new competition for funding. At least 15 percent of the sums

appropriated to carry out section 302 of the Act must be allocated to

designated State agencies to be used, directly or indirectly, for

projects for in-service training of rehabilitation personnel.

(Authority: 29 U.S.C. 771a(g)(3))

Sec. 388.3 What types of projects are authorized?

State vocational rehabilitation unit in-service training projects

are concerned with the staff development and training of State

vocational rehabilitation unit personnel in order to ensure an improved

level of competence in serving State unit clients and to assist in

expanding and improving vocational rehabilitation services for

individuals with disabilities, especially those with severe

disabilities, to ensure employment outcomes.

(Authority: 29 U.S.C. 770 and 771a)

Sec. 388.4 What activities may the Secretary fund?

(a) Training activities supported under a State vocational

rehabilitation unit in-service training grant focus primarily on

program areas that are essential to the State unit's operation or on

skill areas that will enable staff personnel to improve their ability

to function on their job, or prepare for positions of greater

responsibility within the unit, or to correct deficiencies identified

in the State program. Projects may--

(1) Address recruitment and retention of qualified rehabilitation

professionals;

(2) Provide for succession planning;

(3) Provide for leadership development and capacity building; and

(4) For fiscal year 1994, provide training on the amendments to the

Rehabilitation Act of 1973 made by the Rehabilitation Act Amendments of

1992.

(b) Training methods may include--

(1) The development of State unit training institutes related to

the specific aspects of State unit administration or service provision;

(2) Group employee training at courses conducted in cooperation

with or by an educational institution;

(3) Individualized directed study in priority areas of State unit

service or practice;

(4) Employee access to current agency instructional resources for

books, films, videos, tapes, and other human resource development

resources;

(5) Distance learning through telecommunications; and

(6) Dissemination and information sharing with other designated

State agencies.

(Authority: 29 U.S.C. 770 and 771a)

Sec. 388.5 What regulations apply?

The following regulations apply to the State Vocational

Rehabilitation Unit In-Service Training program:

(a) The regulations in this Part 388.

(b) The regulations in 34 CFR Part 385.

(Authority: 29 U.S.C. 770 and 771a)

Sec. 388.6 What definitions apply?

The definitions in 34 CFR Part 385 apply to this program.

(Authority: 29 U.S.C. 711(c) and 771(a)(g)(3))

Subpart B--[Reserved]

Subpart C--How Does the Secretary Make an Award?

Sec. 388.20 What selection criteria does the Secretary use?

The Secretary uses the following criteria to evaluate an

application:

(a) Evidence of need. (20 points) (1) The Secretary reviews each

application for information that shows that the need for the in-service

training has been adequately justified.

(2) The Secretary looks for information that shows--

(i) The need for the in-service training project has been

adequately justified and relates to the mission of the State-Federal

rehabilitation service program and can be expected to improve the

competence of all State vocational rehabilitation personnel in

providing vocational rehabilitation services to individuals with

disabilities that will result in employment outcomes or otherwise

contribute to more effective management of the State unit program;

(ii) The State unit in-service training plan responds to needs

identified in the training needs assessment and the proposed training

relates to the unit's State plan, particularly the requirements in

section 101(a)(7) of the Act for each designated State unit to develop

a comprehensive system of personnel development; and

(iii) The State has conducted a needs assessment of the in-service

training needs for all of the State unit employees.

(b) Nature and scope of training program. (20 points) (1) The

Secretary reviews each application for information that demonstrates

the adequacy and scope of the proposed training program content.

(2) The Secretary looks for information that shows--

(i) The objectives to be achieved by the project will address the

needs as determined by the assessment;

(ii) The scope and nature of the training activities will

accomplish the project objectives;

(iii) The training conducted can be measured and evaluated as to

how it accomplished the project objectives; and

(iv) The program primarily includes an integrated sequence of--

(A) Workshops, seminars, distance education, and other special

courses for new counselors and other classes of State unit personnel

concerned with State unit procedures and policies;

(B) Concentrated training activities focusing on improving State

unit staff skills in working with specific groups of individuals with

disabilities; and

(C) Directed individualized or group staff development activities

designed to enable selected staff to acquire special skills.

(c) Plan of operation. (25 points) (1) The Secretary reviews each

application for information that shows the quality of the plan of

operation for the project.

(2) The Secretary looks for information that shows--

(i) A clear description of how the project will achieve each

objective;

(ii) The way the applicant plans to use its resources and personnel

to achieve each objective;

(iii) An effective plan of management that ensures proper and

efficient administration of the project;

(iv) A clear description of how the applicant will provide equal

access and treatment for State agency personnel who are members of

groups that have been traditionally underrepresented, such as

individuals with disabilities, the elderly, women, and members of

racial or ethnic minority groups; and

(v) For FY 1994, a clear description of how the applicant will

provide training regarding the 1992 amendments to the Rehabilitation

Act of 1973.

(d) Quality of key personnel. (10 points) (1) The Secretary reviews

each application for information that shows the quality of key

personnel proposed for the project.

(2) The Secretary looks for information that shows--

(i) The qualifications of the project director;

(ii) The qualifications of each of the other key personnel,

including consultants, to be used in the project;

(iii) The time that each person referred to in paragraphs (d)(2)(i)

and (ii) of this section will commit to the project; and

(iv) The applicant, as part of its nondiscriminatory employment

practices, encourages applications for employment from persons who are

members of groups that have been traditionally underrepresented, such

as individuals with disabilities, the elderly, women, and members of

minority groups.

(e) Budget and cost effectiveness. (10 points) (1) The Secretary

reviews each application for information that shows that the project

has an adequate budget and is cost effective.

(2) The Secretary looks for information that shows--

(i) The budget for the project is adequate to support the project

activities;

(ii) Costs are reasonable in relation to the objectives of the

project; and

(iii) The budget clearly identifies activities to be conducted

under Sec. 388.21(a), as well as activities conducted under

Sec. 388.21(b), if applicable.

(f) Evaluation. (15 points) (1) The Secretary reviews each

application to determine the usefulness of the proposed project

training in improving services to individuals with disabilities to

ensure employment outcomes, including--

(i) The extent to which training outcomes are objective; and

(ii) The extent to which the training will result in improved

individual competency recognized through licensure, certification, or

award of academic degrees or certificates.

(2) The Secretary looks for qualitative and quantitative measures

that show training methods and materials are appropriate for the

project and, to the extent possible, will be useful in determining how

in-service training improves the impact and effectiveness of services

to individuals with disabilities assisted under the Rehabilitation Act

to ensure employment outcomes.

(Approved by the Office of Management and Budget under control

number 1820-0018.)

(Authority: 29 U.S.C. 711(c), 770, and 771a)

Sec. 388.21 How does the Secretary determine the amount of a basic

State award?

(a) The Secretary distributes no more than 80 percent of the funds

available for these awards as follows:

(1) For each competition the Secretary will determine a minimum

score based upon the selection criteria in Sec. 388.20 that an

applicant must receive in order for its application to be approved by

the Secretary.

(2) Each designated State agency that submits an approved

application receives an amount based upon a formula that provides each

approved project an amount equal to the percentage that the designated

State agency's staff, as reported by total person years to the

Secretary on Form RSA-2, represents of all staff of all designated

State agencies, as reported to the Secretary on Form RSA-2 for the most

recent reporting period. A copy of Form RSA-2 may be obtained from the

Department of Education, 400 Maryland Avenue, S.W., 3211 Switzer

Building, Washington, D.C. 22204-2735.

(3) No designated State agency with an approved project receives

less than one-third of one percent of the sums made available for the

fiscal year.

(b) After determining a designated State agency's award under

paragraph (a) of this section, the Secretary reserves the remaining

funds to be allocated based on the quality of the application as

determined by competitive reviews conducted by the Department using the

criteria in Sec. 388.20 and the priorities in Sec. 388.22.

(c) Prior to award, negotiations may be conducted with applicants

to resolve any problems or weaknesses in the application identified by

the review process.

(Authority: 29 U.S.C. 711(c), 770, and 771a)

Sec. 388.22 What priorities does the Secretary consider in making an

award?

(a) The Secretary reserves funds to support some or all of the

proposals that have been awarded a rating of 80 points or more under

the criteria described in Sec. 388.20.

(b) In making a final selection of proposals to support under this

program, the Secretary considers the extent to which proposals have

exceeded a rating of 80 points and address one or more of the following

priorities announced in the application notice:

(1) Development and dissemination of model in-service training

materials and practices. The proposed project demonstrates an effective

plan to develop and disseminate information on its State Vocational

Rehabilitation In-Service Training program, including the

identification of training approaches and successful practices, in

order to permit the replication of these programs by other State

vocational rehabilitation units.

(2) Distance education. The proposed project demonstrates

innovative strategies for training State vocational rehabilitation unit

personnel through distance education methods, such as interactive

audio, video, computer technologies, or existing telecommunications

networks.

(3) Enhanced employment outcomes for specific populations. The

proposed project supports specialized training in the provision of

vocational rehabilitation or related services to individuals with

disabilities to increase the rehabilitation rate into competitive

employment for all individuals or specified target groups.

(Authority: 29 U.S.C. 711(c), 770, and 771a)

Subpart D--What Conditions Must be Met After an Award?

Sec. 388.30 What are the matching requirements?

(a) The Secretary may make grants for paying part of the costs of

projects under this program. Except as provided for in paragraphs (b)

and (c) of this section, the grantee shall provide at least 10 percent

of the total costs of the project.

(b) Grantees designated in Sec. 388.21(a)(3) to receive a minimum

share of one third of one percent of the sums made available for the

fiscal year shall provide at least four percent of the total costs of

the project.

(Authority: 29 U.S.C. 711(c), 770, and 771a)

Sec. 388.31 What are the allowable costs?

In addition to those allowable costs established in 34 CFR 75.530

through 75.562 (Education Department General Administrative

Regulations), the following items are allowable under State vocational

rehabilitation unit in-service training projects:

(a) Trainee per diem costs.

(b) Trainee travel in connection with a training course.

(c) Trainee tuition and fees.

(d) Telecommunications and technology fees.

(Authority: 29 U.S.C. 711(c), 770, and 771a)

[FR Doc. 94-19155 Filed 8-4-94; 8:45 am]

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