Projects With Industry

SUMMARY: The Secretary proposes to amend the regulations governing the

performance indicators for the Projects With Industry (PWI) program (34

CFR Part 379). The PWI program is authorized by section 621 of the

Rehabilitation Act of 1973, as amended (the Act). The purpose of the

PWI program is to create and expand job and career opportunities for

individuals with disabilities in the competitive labor market by

engaging the talent and leadership of private industry as partners in

the rehabilitation process, to identify competitive job and career

opportunities and the skills needed to perform those jobs, to create

practical job and career readiness and training programs, and to

provide job placements and career advancement. The Secretary is

proposing to change the performance indicators for this program in

order to improve project performance, enhance project accountability,

better reflect statutory intent, and reduce grantee burden.

DATES: Comments must be received by the Department on or before August

24, 1998.

ADDRESSES: All comments concerning these proposed regulations should be

addressed to Fredric K. Schroeder, Commissioner, Rehabilitation

Services Administration, U.S. Department of Education, 600 Independence

Avenue, S.W., Room 3028, Mary E. Switzer Building, Washington, D.C.

20202-2531. Comments may also be sent through the Internet to:

C[email protected]. You must include the term ``PWI'' in the subject line

of the electronic comment.

To ensure that public comments have maximum effect in developing

the final regulations, the Department urges commenters to identify

clearly the specific section or sections of the proposed regulations

that each comment addresses and to arrange comments in the same order

as the proposed regulations.

Comments that concern information collection requirements must be

sent to the Office of Management and Budget at the address listed in

the Paperwork Reduction Act section of this preamble. A copy of those

comments may also be sent to the Department representative named in

this section.

FOR FURTHER INFORMATION CONTACT: Thomas E. Finch, U.S. Department of

Education, 600 Independence Avenue, S.W., Room 3038, Mary E. Switzer

Building, Washington, D.C. 20202-2575. Telephone: (202) 205-8292.

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.

Individuals with disabilities may obtain this document in an

alternate format (e.g. Braille, large print, audiotape, or computer

diskette) on request to the contact person listed in the preceding

paragraph.

SUPPLEMENTARY INFORMATION:

Overview of Proposed Changes

The Secretary proposes to amend the regulations governing the

application content requirements and performance indicators for the PWI

program in order to clarify statutory intent, enhance project

accountability, and reduce grantee burden.

In a notice of proposed rulemaking (NPRM) published in the Federal

Register on January 22, 1996 (61 FR 1672), the Secretary invited

comments on changes needed to improve the compliance indicators. The

comments received in response to this solicitation, as well as comments

provided by participants in focus group meetings held by the

Rehabilitation Services Administration (RSA), were used to develop

these proposed changes. In addition, the Secretary used a June 1994

report on the PWI program entitled ``Assessment of Performance

Indicators for the Projects With Industry Program,'' prepared for the

Department by Research Triangle Institute (RTI), which identifies

needed changes in the PWI performance indicators and scoring system. To

assist in revising the compliance indicators and determining the

proposed minimum performance levels, the Secretary also analyzed

grantee performance on the current PWI compliance indicators.

Based on information from public comments, the 1994 report prepared

by RTI, and experience in the implementation of the program, the

Secretary is proposing one addition to the application content

requirements and a number of changes in the compliance indicators. The

Secretary believes that the additional application content requirement

regarding the proposed cost per placement is needed in light of the

proposed changes to the compliance indicators and to ensure that cost-

effective projects are selected for funding. The Secretary proposes to

reduce the number of indicators from nine to five, with an additional

indicator to be established at a later date. These compliance

indicators establish minimum performance levels in areas that the

Secretary believes are the most critical and most closely related to

the program's purpose and evaluation standards. To be eligible for

continued funding under the proposed system, projects must meet or

exceed the minimum performance level for each compliance indicator.

However, projects have two opportunities to meet these criteria before

funding is terminated. If, based upon the end-of-year data submission,

a project fails any compliance indicator, the project may request that

funding be continued for the first six months of the subsequent project

year and agree to submit additional data. At the end of the six-month

period the project must submit the data collected for those six months

to demonstrate that it has passed all the compliance indicators. If the

project passes all the indicators, funding will continue for the

remainder of the project year.

In this NPRM, the Secretary proposes minimum performance levels for

five indicators. The proposed compliance indicators measure a project's

(a) placement rate; (b) average change in weekly earnings; (c)

percentage of individuals placed who have severe disabilities; (d)

percentage of individuals placed who were unemployed at least six

months at project entry; and (e) variation between projected and actual

average cost per placement. In addition, the Secretary proposes to

collect data from projects on change in earnings and job retention. The

Secretary will use these data to determine the need, and appropriate

performance levels, for new indicators on change in earnings and job

retention.

Section-by-Section Summary of the Proposed Changes

The following is a summary of the proposed changes contained in

this NPRM.

In Sec. 379.21(a)(4), the Secretary proposes to add an

application content requirement that would require a description of the

factors that justify a project's projected cost per placement. These

factors may include the objectives of the project, the types of

services that will be provided, the population that is being targeted,

and the proposed geographicservice area. This is the only proposed

addition to the current application content requirements.

[[Page 34219]]

In Sec. 379.50, the Secretary proposes to remove the

reference to minimum composite score and replace it with a reference to

minimum performance levels on all compliance indicators. Under the

proposed system, grantees must attain a minimum performance level on

each of the indicators rather than achieve an overall composite score.

Grantees must pass every indicator in order to receive continuation

funding.

In Secs. 379.51 and 379.52, the Secretary proposes to

delete all references to performance ranges in accordance with the

proposed change to a system in which grantees must pass all compliance

indicators. The proposed change deletes the reference to composite

scores and requires grantees to pass each indicator by demonstrating

performance at or above the established minimum levels.

In Sec. 379.53, the Secretary proposes to replace the

current nine performance indicators with five compliance indicators.

The major areas of change are outlined in the following sections

entitled ``Compliance Indicators to be Eliminated'' and ``Proposed

Compliance Indicators and Performance Levels.''

In Sec. 379.54, the Secretary proposes to make conforming

changes to reflect the change from composite scoring to a pass/fail

system. As under the current regulations, projects must submit data

from the most recent complete project year to demonstrate compliance,

but (if project performance during the most recent complete year does

not meet minimum performance levels) may opt to submit data from the

first six months of the current project year. In either case, projects

must submit data to demonstrate compliance with minimum performance

levels on all of the indicators.

Compliance Indicators To Be Eliminated

The Secretary proposes to replace the current nine indicators with

five compliance indicators. In addition, the Secretary proposes to

collect data that may lead to a modified indicator on change in

earnings and data that may form the basis of a future indicator on job

retention. Four compliance indicators would be eliminated, including

cost per placement, projected placement rate, percent of persons served

whose disabilities are severe, and percent of persons served who have

been unemployed at least six months prior to project entry. The

Secretary believes the proposed indicators better reflect the goals of

the PWI program, place a greater emphasis on project outcomes, and

reduce grantee information collection and reporting burden.

The Secretary proposes to eliminate the cost per placement

indicator and modify the projected cost per placement indicator. The

Secretary maintains the importance of serving and placing individuals

at the lowest possible cost to the Federal Government, but believes it

is not feasible to establish a cost per placement standard that is

reasonable for all projects supported under the PWI program. The

Secretary recognizes that some projects may not be able to achieve a

low cost per placement, particularly projects that serve a high

percentage of individuals with severe disabilities, provide extensive

services, or serve rural areas. In addition, the Secretary is concerned

that a uniform cost per placement standard may discourage projects from

serving individuals who require extensive support services, job

training, and other resources. Therefore, the Secretary believes it is

more appropriate for grantees to determine an appropriate cost per

placement and justify the proposed cost, based on the proposed project

design and objectives, service population, and services to be provided.

The proposed indicator would require that a project's actual cost per

placement not exceed the projected cost per placement, as specified in

the approved grant application, by more than 10 percent.

The Secretary also proposes to eliminate the indicator on projected

placement rate. The Secretary believes it is more appropriate to focus

on a project's actual, rather than projected, success in placing

individuals in competitive employment.

Finally, the Secretary proposes to eliminate the two indicators

that measure the extent to which projects serve individuals with severe

disabilities and individuals who have been unemployed at least six

months prior to project entry. While the Secretary believes that it is

important to preserve the program's focus on individuals with severe

disabilities and individuals who are unemployed, the Secretary believes

it is more appropriate to judge projects based on the extent to which

they are successful in assisting these individuals to achieve

competitive employment. The Secretary therefore proposes to retain the

two compliance indicators that measure the percentage of these

individuals who are placed into competitive employment.

Proposed Compliance Indicators and Performance Levels

The proposed compliance indicators would measure grantee

performance in five areas. The Secretary believes that the proposed

indicators represent the most critical quantifiable aspects of project

performance. In establishing minimum performance levels on each

indicator, the Secretary reviewed project performance data, public

comment in response to the NPRM published in the Federal Register on

January 22, 1996, focus group discussions, and the RTI report.

Placement rate. The Secretary proposes to retain the current

placement rate indicator and raise the minimum performance level. The

primary goal of the PWI program is to place individuals into

competitive employment. Therefore, the Secretary views placement rate

as a critical indicator of project success. Under the proposed

indicator, projects would be required to place a minimum of 55 percent

of individuals served into competitive employment.

While higher than the current minimum placement rate of 40 percent,

the Secretary believes the proposed performance level is both

appropriate and realistic. Between 1990 and 1995, PWI projects reported

an average placement rate of 61.2 percent. In comparison, in 1996

approximately 60.7 percent of individuals served by The State

Vocational Rehabilitation Services Program achieved an employment

outcome. The Secretary believes the partnerships with private industry

and collaboration with State vocational rehabilitation agencies will

enable every PWI project to achieve, at a minimum, the proposed

placement rate of 55 percent. In addition, given the proposal to give

more flexibility to projects on cost per placement (discussed in the

following sections), the Secretary believes it is appropriate to raise

performance expectations, particularly on this critical indicator.

Average change in earnings. The Secretary proposes to modify the

current indicator that measures average change in earnings by raising

the minimum performance level. The current minimum performance level

requires an average increase of $75 per week. The proposed regulations

would change the required minimum performance level to $150 per week

for projects that do not use a school-to-work or supported employment

service delivery model. That is, the earnings of individuals who are

placed into competitive employment by the project must increase by an

average of at least $150 a week over earnings at the time of project

entry. Concurrently, the Secretary proposes to collect data to

determine the need for additional changes to this indicator.

[[Page 34220]]

The Secretary believes that the proposed increase in the minimum

performance level is appropriate given both inflation and increases in

the minimum wage since the original performance level for this

indicator was set in 1989. In addition, the Secretary believes this

proposed performance level is realistic based on project performance

data that demonstrate an overall average change in earnings of $183 and

$195 per week in fiscal years 1993 and 1994, respectively.

The Secretary proposes to establish a lower performance level on

this indicator for PWI projects that primarily serve secondary school

students transitioning to work or that use a supported employment

model. Based on a review of these types of projects, the Secretary has

concluded that, by virtue of the individuals they serve and place,

these projects might have difficulty meeting the change in earnings

standard. The Secretary does not want to exclude these types of

projects from the PWI program and, therefore, proposes a lower minimum

performance level of $100 per week for these projects. Specifically,

the Secretary proposes this lower standard for projects in which 75

percent or more of the individuals placed into competitive employment

are students who are enrolled in secondary schools and who are working

fewer than 30 hours per week and for projects in which at least 75

percent of individuals are placed into supported employment, as defined

in 34 CFR 361(b)(45) and (46). All other projects will be subject to

the higher standard.

In addition to these changes, the Secretary is proposing to collect

data to assess the need to modify the change in earnings indicator to

measure change in earnings for two groups: (1) individuals who entered

a project without earnings and (2) individuals who entered a project

with earnings. The Secretary believes such a two-tiered indicator may

be a more accurate means of measuring a project's impact on individual

earnings. This proposed data collection is discussed in more detail in

the section entitled ``Proposed Data Collection on Change in Earnings

and Job Retention.''

Percent of individuals placed who are individuals with severe

disabilities and percent of persons placed who have been unemployed for

six months prior to project entry. The Secretary proposes to retain

these two indicators at the current minimum performance level, which

requires that 50 percent of those placed into competitive employment

are individuals with severe disabilities and 50 percent are individuals

who have been unemployed continuously for six months prior to project

entry. The Secretary believes that it is appropriate to preserve the

program's emphasis on placing into competitive employment individuals

with severe disabilities and individuals who are unemployed for at

least six months prior to program entry.

Actual versus projected cost per placement. The Secretary proposes

to revise the current indicator on projected cost per placement. The

proposed indicator would require that a project's actual cost per

placement not exceed the projected cost per placement, as specified in

the approved grant application, by more than 10 percent. That is, the

actual average cost per placement does not exceed 110 percent of the

projected cost per placement.

The Secretary proposes to allow each project to determine what is a

reasonable cost per placement, based on factors such as project

objectives, population and geographic area to be served, and services

to be provided. As part of its grant application, a project would be

required to provide a description of those factors that justify its

projected cost per placement, including, but not limited to, the

project's objectives, types of services, target population, and service

area. A project chosen for funding would not be permitted to exceed by

more than 10 percent, the projected cost per placement in its approved

grant application. The Secretary believes that this revised approach to

cost per placement allows flexibility in project design while

encouraging each project to consider cost effectiveness in the

development of its grant application.

Proposed Data Collection on Change in Earnings and Job Retention

In addition to the five compliance indicators, the Secretary is

concurrently proposing to collect data to determine the need to modify

the change in earnings indicator and to add an additional indicator on

job retention.

Change in earnings. While the current change in earnings indicator

may demonstrate the average economic benefit of a project, the

Secretary believes it does not measure the true extent to which the

project improved the earnings of individual participants. The change in

earnings as a result of project participation is likely to be

significantly different for individuals who were unemployed at the time

of project entry and who came to the project for job training and

placement services than it is for individuals who held a wage-earning

job at the time of project entry and who required career advancement

services. The Secretary is considering the establishment of a two-

tiered indicator to measure more adequately the effect of project

services on the earnings of these two populations. However, the

Secretary does not have sufficient data on which to base such a

decision.

Concurrent with the proposed application content and compliance

indicator changes, the Secretary proposes to collect data to determine

the need for a modification to the change in earnings indicator to

measure project performance for two groups: individuals who entered the

project without earnings and individuals who entered with earnings. The

Secretary proposes to require projects to report the following data for

the next three years:

(1) For individuals with no earnings at the time of project entry,

average hourly wage and average hours worked per week at placement.

(2) For individuals with earnings at the time of project entry, the

average hourly wage and average hours worked per week, both at the time

of project entry and at placement.

The Secretary plans to use these data to decide whether a two-

tiered indicator would be a more accurate means of gauging the earnings

impact of the job training and career advancement services provided

through the PWI program, and what performance levels would be

appropriate for such an indicator.

Job retention. The Secretary is concurrently proposing to collect

data to determine the need to modify the change in earnings indicator

and whether to add an additional indicator on job retention. The

Secretary believes job retention is a critical indicator of project

success because it demonstrates the quality of placements achieved by

projects. A high job retention rate may indicate consumer satisfaction

with the placement, appropriate job matching, and effective follow-up

services.

In order to sample projects' job retention rates, the Secretary

proposes that projects report the number of individuals who become

unemployed within three months after placement, within six months after

placement, and within nine months after placement.

In accordance with Sec. 379.5(b)(7), placement occurs after the

individual has held the job for 90 days. The intent of the 90-day

period is to ensure that an individual is at least initially stabilized

on a job. The proposed data collection would require projects to track

each individual for up to nine months after placement or up to one year

after the individual's initial job entry. At the end of the year, the

project must report three separate figures:

[[Page 34221]]

The number of individuals who were unable to maintain

employment during the first three-month period after placement (the

fourth through sixth months of employment).

The number of individuals who were unable to maintain

employment during the second three-month period after placement (the

seventh through ninth month of employment).

The number of individuals who were unable to maintain

employment during the third three-month period after placement (the

tenth through twelfth month of employment).

For the purpose of this data collection, an individual can change

jobs and still be considered to be employed as long as there is no gap

in employment.

In order to include all placements, projects may have to include

individuals who were unable to maintain employment during the reporting

year but who obtained placements in the previous reporting year. For

example, if the reporting year is from October 1997 to September 1998,

an individual who was placed in August 1997 but left the job in

December 1997 would be reported as someone who was unable to maintain

employment during the second three-month period after placement.

The Secretary does not believe this will be a significant burden to

projects, since under section 621(a)(2)(E) projects are required to

provide, as necessary, support and career advancement services to

individuals after they are placed. In addition, as part of the annual

evaluation plan, projects must provide information on the number of

project participants who were terminated from project placements and

the duration of those placements. The Secretary thus believes projects

already track individuals after they are placed.

The job retention indicator would be established after the

Secretary has collected and evaluated data for at least three years.

Once collection and analysis of the data are completed, the Secretary

would determine whether to establish a new indicator to measure job

retention.

Goals 2000: Educate America Act

The Goals 2000: Educate America Act (Goals 2000) focuses the

Nation's education reform efforts on eight National Education Goals and

provides a framework for meeting them. Goals 2000 promotes new

partnerships to strengthen schools and expands the Department's

capacities for helping communities to exchange ideas and obtain

information needed to achieve the goals.

These proposed regulations would address the National Education

Goals that 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 proposed

regulations would further the objectives of this Goal by ensuring that

only those projects that are successful in making persons with

disabilities part of the global economy and in allowing them to

exercise their rights as citizens to participate in the national labor

market continue to receive Federal funding.

Executive Order 12866

1. Potential Costs and Benefits

These proposed regulations have been reviewed in accordance with

Executive Order 12866. Under the terms of the order the Secretary has

assessed the potential costs and benefits of this regulatory action.

The potential costs associated with the proposed regulations are

those resulting from statutory requirements and those determined by the

Secretary to be necessary for administering this program effectively

and efficiently. Burdens specifically associated with information

collection requirements are identified and explained elsewhere in this

preamble under the heading Paperwork Reduction Act of 1995.

In assessing the potential costs and benefits--both quantitative

and qualitative--of these proposed regulations, the Secretary has

determined that the benefits of the proposed regulations justify the

costs.

The Secretary has also determined that this regulatory action does

not unduly interfere with State, local, and tribal governments in the

exercise of their governmental functions.

To assist the Department in complying with the specific

requirements of Executive Order 12866, the Secretary invites comment on

whether there may be further opportunities to reduce any potential

costs or increase potential benefits resulting from these proposed

regulations without impeding the effective and efficient administration

of the program.

Summary of Potential Costs and Benefits

The potential costs and benefits of these proposed regulations are

discussed elsewhere in this preamble under the following headings:

Overview of proposed changes, and Potential costs and benefits.

The Secretary believes the changes proposed in this NPRM would

improve the PWI program regulations and would yield substantial

benefits in terms of improved accountability and performance and

reduced burden. As stated in the supplementary information section of

this preamble, the Secretary believes the proposed regulations reduce

grantee burden by reducing the number and complexity of the compliance

indicators and improve accountability by focusing on the most critical

areas of project performance. The Secretary has determined that the

potential benefits of these proposed changes justify the potential

costs to grantees.

2. Clarity of the Regulations

Executive Order 12866 requires each agency to write regulations

that are easy to understand.

The Secretary invites comments on how to make these proposed

regulations easier to understand, including answers to questions such

as the following: (1) Are the requirements in the proposed regulations

clearly stated? (2) Do the proposed regulations contain technical terms

or other wording that interferes with their clarity? (3) Does the

format of the proposed regulations (grouping and order of sections, use

of headings, paragraphing, etc.) aid or reduce their clarity? Would the

proposed regulations be easier to understand if they were divided into

more (but shorter) sections? (A ``section'' is preceded by the symbol

``Sec. '' and a numbered heading; for example, Sec. 379.51 What are

program compliance indicators?). (4) Is the description of the proposed

regulations in the ``Supplementary Information'' section of this

preamble helpful in understanding the proposed regulations? How could

this description be more helpful in making the proposed regulations

easier to understand? (5) What else could the Department do to make the

proposed regulations easier to understand?

A copy of any comments that concern how the Department could make

these proposed regulations easier to understand should be sent to

Stanley M. Cohen, Regulations Quality Officer, U.S. Department of

Education, 600 Independence Avenue, S.W. (Room 5121, FB-10B),

Washington, D.C. 20202-2241.

Regulatory Flexibility Act Certification

The Secretary certifies that these proposed regulations would not

have a significant economic impact on a substantial number of small

entities.

The small entities that would be affected by these proposed

regulations are government, nonprofit, and for-profit organizations

that receive Federal

[[Page 34222]]

funds under this program. However, the regulations would not have a

significant economic impact on these entities because the regulations

would not impose excessive regulatory burdens or require unnecessary

Federal supervision. These regulations would impose minimal

requirements to ensure the proper expenditure of program funds.

Paperwork Reduction Act of 1995

Sections 379.21 and 379.54 contain information collection

requirements. As required by the Paperwork Reduction Act of 1995 (44

U.S.C. 3507(d)), the Department of Education has submitted a copy of

these sections to the Office of Management and Budget (OMB) for its

review.

Collection of Information: Projects With Industry

These proposed regulations would affect entities eligible to apply

for and receive grants under the PWI program, including for-profit and

nonprofit agencies or organizations with the capacity to create and

expand job and career opportunities for individuals with disabilities,

designated State units, labor unions, employers, community

rehabilitation program providers, trade associations, and Indian tribes

and tribal organizations. These information collection requirements

would affect applicants for new awards and organizations and entities

already receiving assistance under the PWI program.

The Department needs to collect this information in order to

fulfill statutory requirements regarding the compliance indicators (in

section 621(f) of the Act). All information is to be collected and

reported once a year, with the exception of that which is required of

all applicants for new awards in Sec. 379.21(a). This section requires

responses from every organization or entity that applies for a new

award under the PWI program. Annual reporting and recordkeeping burden

for these collections of information is estimated to average 30 hours

for each response for 105 respondents, including the time for reviewing

instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the

collection of information. Thus, the total annual reporting and

recordkeeping burden for these collections is estimated to be 3,150

hours.

Organizations and individuals desiring to submit comments on the

information collection requirements should direct them to the Office of

Information and Regulatory Affairs, OMB, Room 10235, New Executive

Office Building, Washington, D.C. 20503; Attention: Desk Officer for

the U.S. Department of Education.

The Department considers comments by the public on these proposed

collections of information in--

Evaluating whether the proposed collections of information

are necessary for the proper performance of the functions of the

Department, including whether the information will have practical

utility;

Evaluating the accuracy of the Department's estimate of

the burden of the proposed collections of information, including the

validity of the methodology and assumptions used;

Enhancing the quality, usefulness, and clarity of the

information to be collected; and

Minimizing the burden of the collection of information on

those who are to respond, including through the use of appropriate

automated, electronic, mechanical, or other technological collection

techniques or other forms of information technology; e.g., permitting

electronic submission of responses.

OMB is required to make a decision concerning the collections of

information contained in these proposed regulations between 30 and 60

days after publication of this document in the Federal Register.

Therefore, a comment to OMB is best assured of having its full effect

if OMB receives it within 30 days of publication. This does not affect

the deadline for the public to comment to the Department on the

proposed regulations.

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 a

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.

Invitation to Comment

Interested persons are invited to submit comments and

recommendations regarding these proposed regulations. All comments

submitted in response to these proposed regulations will be available

for public inspection, during and after the comment period, in Room

3330, Mary E. Switzer Building, 330 C Street, S.W., Washington, D.C.,

between the hours of 8:30 a.m. and 4:00 p.m., Eastern time, Monday

through Friday of each week except Federal holidays.

On request, the Department supplies an appropriate aid, such as a

reader or print magnifier, to an individual with a disability who needs

assistance to review the comments or other documents in the public

rulemaking docket for these proposed regulations. An individual with a

disability who wants to schedule an appointment for this type of aid

may call (202) 205-8113 or (202) 260-9895. An individual who uses a TDD

may call the Federal Information Relay Service at 1-800-877-8339,

between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

To assist the Department in complying with the specific

requirements of Executive Order 12866 and its overall requirement of

reducing regulatory burden, the Secretary invites comments on whether

there may be further opportunities to reduce any regulatory burdens

found in these proposed regulations.

Assessment of Educational Impact

The Secretary particularly requests comments on whether the

proposed regulations in this document would require transmission of

information that is being gathered by or is available from any other

agency or authority of the United States.

Electronic Access to This Document

Anyone may view this document, as well as all other Department of

Education documents published in the Federal Register, in text or

portable document format (pdf) on the World Wide Web at either of the

following sites:

http://ocfo.ed.gov/fedreg.htm

http://www.ed.gov/news.html

To use the PDF you must have the Adobe Acrobat Reader Program with

Search, which is available free at either of the previous sites. If you

have questions about using the pdf, call the U.S. Government Printing

Office toll free at 1-888-293-6498.

Anyone may also view these documents in text copy only on an

electronic bulletin board of the Department. Telephone: (202) 219-1511

or, toll free, 1-800-222-4922. The documents are located under Option

G--Files/Announcements, Bulletins and Press Releases.

Note: The official version of this document is the document

published in the Federal Register.

[[Page 34223]]

List of Subjects in 34 CFR Part 379

Education, Grant programs--education, Grant programs--social

programs, Reporting and recordkeeping requirements, Vocational

rehabilitation.

Dated: February 5, 1998.

Judith E. Heumann,

Assistant Secretary for Special Education and Rehabilitative Services.

(Catalog of Federal Domestic Assistance Number 84.234 Projects With

Industry)

The Secretary proposes to amend Part 379 of Title 34 of the Code of

Federal Regulations as follows:

PART 379--PROJECTS WITH INDUSTRY

1. The authority citation for part 379 continues to read as

follows:

Authority: Sections 12(c) and 621 of the Act; 29 U.S.C. 711(c)

and 795(g), unless otherwise noted.

2. Section 379.21 is revised to read as follows:

Sec. 379.21 What is the content of an application for an award?

(a) The grant application must include a description of--

(1) The proposed job training to prepare project participants for

specific jobs in the competitive labor market for which there is a need

in the geographic area to be served by the project, as identified by an

existing current labor market analysis or other needs assessment or one

conducted by the applicant in collaboration with private industry;

(2) The involvement of private industry in the design of the

proposed project and the manner in which the project will collaborate

with private industry in planning, implementing, and evaluating job

training, job placement, and career advancement activities;

(3) The responsibilities of the BAC and how it will interact with

the project in carrying out grant activities;

(4) The justification of the project's proposed cost per placement,

including factors such as the project's objectives, types of services,

target population, and service area;

(5) The geographic area to be served by the project, including an

explanation of how the area is currently unserved or underserved by the

PWI program;

(6) A plan for evaluating annually the operation of the proposed

project, which, at a minimum, provides for collecting and submitting to

the Secretary the following information and any additional data needed

to determine compliance with the program compliance indicators

established in subpart F:

(i) The numbers and types of individuals with disabilities served.

(ii) The types of services provided.

(iii) The sources of funding.

(iv) The percentage of resources committed to each type of service

provided.

(v) The extent to which the employment status and earning power of

individuals with disabilities changed following services.

(vi) The extent of capacity building activities, including

collaboration with business and industry and other organizations,

institutions, and agencies, including the State vocational

rehabilitation unit.

(vii) A comparison, if appropriate, of activities in prior years

with activities in the most recent year.

(viii) The number of project participants who were terminated from

project placements and the duration of those placements;

(7) A description of the manner in which the project will address

the needs of individuals with disabilities from minority backgrounds,

as required by 34 CFR 369.21; and

(8) A description of how career advancement services will be

provided to project participants.

(b) The grant application also must include assurances from the

applicant that--

(1) The project will carry out all activities required by

Sec. 379.10;

(2) Individuals with disabilities who are placed by the project

will receive compensation at or above the minimum wage, but not less

than the customary or usual wage paid by the employer for the same or

similar work performed by individuals who are not disabled;

(3) Individuals with disabilities who are placed by the project

will be given terms and benefits of employment equal to those that are

given to similarly situated co-workers and will not be segregated from

their co-workers; and

(4) The project will maintain any records required by the Secretary

and make those records available for monitoring and audit purposes.

(Authority: Sections 621(a)(4), 621(a)(5), 621(b), and 621(e)(1)(B)

of the Act; 29 U.S.C. 795g(a)(4), 795g(a)(5), 795g(b), and

795g(e)(1)(B))

3. Subpart F of Part 379 is revised to read as follows:

Subpart F--What Compliance Indicator Requirements Must a Grantee Meet

to Receive Continuation Funding?

379.50 What are the requirements for continuation funding?

379.51 What are the program compliance indicators?

379.52 How is grantee performance measured using the compliance

indicators?

379.53 What are the minimum performance levels for each compliance

indicator?

379.54 What are the reporting requirements for the compliance

indicators?

Subpart F--What Compliance Indicator Requirements Must a Grantee

Meet to Receive Continuation Funding?

Sec. 379.50 What are the requirements for continuation funding?

Beginning with fiscal year 1998, in order to receive a continuation

award for the third or any subsequent year of a PWI grant, a grantee

must adhere to the provisions of its approved application and must meet

the minimum performance levels on the program compliance indicators

contained in Sec. 379.53.

(Authority: Section 621(f)(1)of the Act; 29 U.S.C. 795g(f)(1))

Sec. 379.51 What are the program compliance indicators?

The program compliance indicators implement program evaluation

standards, which are contained in an appendix to this part, by

establishing minimum performance levels in essential project areas to

measure the effectiveness of individual grantees.

(Authority: Sections 621(d)(1) and 621(f)(1) of the Act; 29 U.S.C.

795g(d)(1) and 795g(f)(1))

Sec. 379.52 How is grantee performance measured using the compliance

indicators?

(a) Each compliance indicator establishes a minimum performance

level.

(b) If a grantee does not achieve the minimum performance level for

a compliance indicator, the grantee does not pass the compliance

indicator.

(c) A grantee must pass all the compliance indicators to meet the

evaluation standards and qualify for continuation funding.

(Authority: Section 621(f)(1) of the Act; 29 U.S.C. 795g(f)(1))

Sec. 379.53 What are the minimum performance levels for each

compliance indicator?

(a) Placement rate. A minimum of 55 percent of individuals served

by the project are placed into competitive employment.

(b) Change in earnings. (1) For projects in which at least 75

percent of individuals placed are placed into supported employment, as

defined in 34 CFR 361.5(b)(45) and (46), the earnings of individuals

placed by the project increase by an average of at least $100.00 a week

over earnings at the time of project entry.

[[Page 34224]]

(2) For projects in which at least 75 percent of individuals placed

into competitive employment are students enrolled in secondary schools

working fewer than 30 hours per week, the earnings of individuals

placed by the project increase by an average of at least $100.00 a week

over earnings at the time of project entry.

(3) For all projects not covered under Sec. 379.53(b)(1) or (2),

the earnings of individuals who are placed into competitive employment

by the project increase by an average of at least $150.00 a week over

earnings at the time of project entry.

(c) Percent placed who have severe disabilities. At least 50

percent of individuals who are placed into competitive employment are

individuals with severe disabilities.

(d) Percent placed who were previously unemployed. At least 50

percent of individuals who are placed into competitive employment are

individuals who were continuously unemployed for at least six months at

the time of project entry.

(e) Cost per placement. The actual average cost per placement does

not exceed 110 percent of the projected average cost per placement in

the grantee's application.

(Authority: Section 621(f)(1) of the Act; 29 U.S.C. 795g(f)(1))

Sec. 379.54 What are the reporting requirements for the compliance

indicators?

(a) In order to receive continuation funding for the third or any

subsequent year of a PWI grant, each grantee must submit data for the

most recent complete project year no later than 60 days after the end

of that project year, unless the Secretary authorizes a later

submission date, in order for the Secretary to determine if the grantee

has met the program compliance indicators established in this Subpart

F.

(b) If the data for the most recent complete project year provided

under paragraph (a) of this section shows that a grantee has failed to

achieve the minimum performance required in Sec. 379.53 to meet the

program compliance indicators, the grantee may, at its option, submit

data from the first 6 months of the current project year no later than

60 days after the end of that 6-month period, unless the Secretary

authorizes a later submission date, to demonstrate that its project

performance has improved sufficiently to meet the minimum performance

levels for all compliance indicators.

(Authority: Section 621(f)(2) of the Act; 29 U.S.C. 795g(f)(2))

Note: A grantee receives its second year of funding (or the

first continuation award) under this program before data from the

first complete project year is available. Data from the first

project year, however, must be submitted and is used (unless the

grantee exercises the option in paragraph (b) of this section) to

determine eligibility for the third year of funding (or the second

continuation award).

[FR Doc. 98-16590 Filed 6-22-98; 8:45 am]

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