For purposes of this subpart, the terms "act," "Commissioner," "demonstration," "handicapped individual," "Secretary," "State," "State agency," "State vocational rehabilitation agency," and "vocational rehabilitation services" shall, except where the context indicates otherwise, have the same meanings as set forth in § 401.1 of this chapter. § 403.2 Non-Federal funds.

In the case of any project under this part for which Federal funds are granted to pay part of the cost, the matching grantee funds may not consist of other

Federal funds or of non-Federal funds that are applied to match other Federal funds. No Federal financial assistance may be furnished under this part for activities for which payment is made under Part 401 of this chapter, part 402 of this chapter, or other authority.

§ 403.3 Consultant fees.

Fees or honoraria for special consultants may not be paid in connection with activities under this part to individuals who are regular full-time employees of the State or the Federal Government or of federally sponsored projects, except that such full-time employees of institutions of higher learning may receive fees or honoraria in accordance with generally applicable policies of the institution and within limits specified by the Vocational Rehabilitation Administration. This section shall be applicable to awards of funds made after the publication of these regulations.

§ 403.4 Audit and review.

(a) All fiscal transactions relating to Federal financial assistance under this part are subject to audit by the Department of Health, Education, and Welfare to determine whether or not expenditures have been made in accordance with the act, the regulations, and other requirements.

(b) From time to time members of the staff of the Vocational Rehabilitation Administration review administrative, fiscal and program methods and practices in connection with activities under this part, and make constructive suggestions for the improvement of such methods and practices.

Subpart B-Grants for Special Projects Under Section 4(a)(1) of the Act § 403.10

Purpose.

Special project grants authorized in section 4(a) (1) of the act shall be made for the purpose of paying part of the cost of organized, identifiable activities which are undertaken to seek solutions to vocational rehabilitation problems common to all or several States, or to contribute to the development of more effective vocational rehabilitation services in all or several States. Types of proj

ects for which such grants may be made are: (a) Research in vocational rehabilitation; (b) demonstration programs in rehabilitation; (c) training, including education of personnel in all fields or disciplines which contribute to vocational rehabilitation, through provision of training, teaching or traineeship grants. Grants for training and traineeships may include training and traineeships in physical medicine and rehabilitation, physical therapy, occupational therapy, speech pathology and audiology, rehabilitation nursing, rehabilitation social work, prosthetics and orthotics, rehabilitation psychology, rehabilitation counseling, recreation for the ill and handicapped, and other specialized fields contributing to vocational rehabilitation; and (d) establishment of special rehabilitation facilities or services meeting the purpose specified in section 4(a) (1) of the act. See also §§ 403.25 and 403.26 regarding rehabilitation research and training centers program.

The

Applications for special project grants may be made at any time by State vocational rehabilitation agencies and by other public or nonprofit agencies and institutions, including universities and other educational institutions. Applications shall be made in the form and detail required by the Commissioner. project application shall cover (a) a statement of the purpose of the project; (b) designation of an individual as director-in-charge; (c) a description of the nature and scope of the activities to be undertaken and methods to be used in accomplishing the purpose; (d) a proposed budget; (e) an agreement to safeguard personal information pertaining to individuals served or studied under the project; (f) an agreement to make such reports and to keep such records and accounts including property and financial controls, as the Commissioner may require, and to make such records available for audit purposes; and (g) such other information as the Commissioner may require. See also §§ 403.23 and 403.24.

§ 403.12 Approval of applications for special projects for research, demonstration, or establishment of special facilities or services.

Application for grants for paying part of the cost for a special project for research, demonstration, or establishment

of special facilities or services may be made only upon an official application form which may be obtained from the Assistant Commissioner for Research and Training, Vocational Rehabilitation Administration, Department of Health, Education, and Welfare, Washington, D.C., 20201. Completed applications are submitted to the Assistant Commissioner for Research and Training, who processes them with the assistance of advisory groups for submission to the National Advisory Council on Vocational Rehabilitation. (See Subpart C of this part.) The applicant may be requested to submit further information either before or after consideration of a project by the National Advisory Council on Vocational Rehabilitation. All projects which meet the requirements for a grant are submitted to the Council which makes recommendations to the Commissioner. The Commissioner then determines the action to be taken with respect to each project and informs the applicant accordingly.

§ 403.13 Approval of applications for training or traineeships.

Application for grants for paying a part of the cost of a special project for training or traineeships may be made only upon an official application form which may be obtained from the Assistant Commissioner for Research and Training, Vocational Rehabilitation Administration, Department of Health, Education, and Welfare, Washington, D.C., 20201. Completed applications are submitted to the Assistant Commissioner for Research and Training who processes and evaluates them with the assistance of advisory groups. The applicant may be requested to submit further information. When all pertinent information has been obtained, a determination of the action to be taken is made by the Assistant Commissioner for Research and Training who notifies the applicant accordingly.

§ 403.14 Approval of State agency.

The approval of the appropriate State vocational rehabilitation agency shall be secured by the applicant, if other than the State agency, for any special project which involves either direct services to handicapped individuals or the establishment of facilities which will render direct services to handicapped individuals of that State.

§ 403.15 Federal financial participation.

Federal financial participation will be available for the following types of expenditures under projects approved by the Commissioner: (a) Salaries, cost of travel, and related expenses of project personnel; (b) necessary supplies, equipment, and related expenses; (c) purchase or provision of vocational rehabilitation services to individuals served by the project; and (d) costs of administration and other indirect costs of the project, subject to such limitations as the Commissioner may establish. Expenditures under the project shall be in connection with the conduct of the project as approved. Federal funds may not be used to provide training to any individual in any one course of study extending for more than 4 years. Federal funds may be used for traineeships only for individuals who are citizens of the United States or who have been lawfully admitted for permanent residence to the United States.

All grant awards shall be in writing, shall set forth the amount of funds granted, and shall constitute for such amounts the encumbrance of Federal funds available for such purpose on the date of the award. The initial award shall also specify the project period for which support is contemplated if the activity is satisfactorily carried out and Federal funds are available. For continuation support, grantees must make separate application in the form and detail required by the Commissioner.

§ 403.17 Payments.

Payment of the Federal share of an approved special project may be made in advance for estimated costs of operation, or as reimbursement to the grantee and shall be subject to such requirements as the Commissioner may establish. § 403.18

Revisions.

A project grantee shall request that the project be revised whenever the approved plan of operation or method of financing is materially changed. Revisions originating with the grantee shall be submitted in writing and will be given appropriate review. Project revisions may be initiated by the Commissioner if, on the basis of reports, it appears that Federal funds are not being used effectively, or if changes are made in Federal

appropriations, laws, regulations, or policies governing special projects.

§ 403.19 Confidential information.

(a) All information as to personal facts given or made available to any organization, its representatives or its employees under a special project grant authorized under this part, including lists of names and addresses and records of evaluation, shall be held to be confidential.

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

§ 403.20 Termination.

If for any reason the grantee discontinues an approved project, the grantee shall notify the Commissioner in writing, giving the reasons for termination, an accounting of funds granted for the project, and other pertinent information. The grant may be terminated, in whole or in part, at any time at the discretion of the Commissioner. The grantee and the State agency will be given prompt notice of the termination, including the reasons therefor. Such termination shall not affect obligations incurred prior to the termination of the grant. Upon termination of completion of a project, the proportion of unexpended funds attributable to the Federal grant shall be refunded.

or condition which would or could be an obstacle to the applicant's (or grantee's) fulfillment of this requirement.

§ 403.22 Publications and copyright policy.

Grantees may publish results of any activity assisted by the grant without prior review by the Vocational Rehabilitation Administration: Provided, That such publications carry a footnote acknowledging the assistance received under the grant, and that copies of the publications are furnished to the Vocational Rehabilitation Administration. Where a grant results in a book or other copyrightable material, the author is free to copyright the work, but the Vocational Rehabilitation Administration reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, all copyrightable or copyrighted material resulting from the grant-supported activity.

§ 403.23 Wage and hour standards for workshops.

Applications for grants for workshops under this subpart shall, in the case of a private, nonprofit workshop, specify that applicable Federal and State wage and hour standards will be observed or, in the case of a workshop operated by a State, county, or municipal government, give assurance that the workshop will comply with wage and hour standards specified by the Commissioner, which will be at least equal to those imposed by the Federal Fair Labor Standards Act.

§ 403.24 Nondiscrimination in employ. ment under construction contracts. Applications for grants under this subpart which provide for construction shall specify that the grantee will incorporate, or cause to be incorporated, into construction contracts paid for in whole or in part with funds obtained from the Federal Government under this subpart, such provisions on nondiscrimination in employment as are required by and pursuant to Executive Order No. 11246 and will otherwise comply with requirements prescribed by and pursuant to such order. § 403.25 Rehabilitation research and training centers program; scope.

(a) Special project grants under section 4(a) (1) of the act are also made for paying part of the cost of identified research and training activities carried on through rehabilitation research and

training centers. Such activities must be part of a continuing program of coordinated, scientific research and professional and technical training designed to solve complex problems regarding management of disabling conditions and preparation of the handicapped for employment.

(b) Support may be given for center programs which emphasize the medical management of disabling conditions, the adjustment to limitations to function, the individual and environmental preparation necessary for the employment of the handicapped, or combinations of these activities. In carrying out program objectives, centers may serve populations that are mixed or that derive from a categorical disability group requiring specialized knowledge and techniques. § 403.26 Rehabilitation research and training centers program: applicable rules.

(a) Grantees. Universities having well-recognized programs of research and training and State vocational rehabilitation agencies or public or private nonprofit comprehensive rehabilitation centers or institutions associated with such universities, may apply for center grants. The center program must have a separate organizational identity.

(b) Applications. The application shall cover the proposed research, training and service activities, specify how these functions will form a unified center program, and contain such other information as the Commissioner may require.

(c) Other provisions. The provisions of §§ 403.10-403.24 shall apply to grants for rehabilitation research and training centers.

Subpart C-National Advisory Council on Vocational Rehabilitation § 403.28 National Advisory Council on Vocational Rehabilitation.

(a) Appointment and composition. The National Advisory Council on Vocational Rehabilitation shall consist of the Secretary (or his designee) as Chairman, and 12 members appointed by the Secretary without regard to civil service laws. The 12 appointed members shall be leaders in fields concerned with vocational rehabilitation or in public affairs, and 6 of such 12 shall be selected from leading medical, educational, or scientific authorities who are outstanding for their work in the vocational rehabilita

tion of handicapped individuals. Three of the 12 appointed members shall be persons who are themselves handicapped. (b) Term of office. Each appointed member of the Council shall hold office for a term of 4 years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor is appointed shall be appointed for the remainder of such term. None of such 12 members shall be eligible for reappointment until a year has elapsed after the end of his preceding term.

(c) Duties. The Council is authorized to review applications for special projects submitted under section 4(a)(1) of the act and recommend for grants any such project, or any project initiated by it, which it believes show promise of making valuable contributions to the vocational rehabilitation of handicapped individuals. The Secretary is authorized to utilize the services of any member or members of the Council in connection with matters relating to the administration of section 4 of the act for such periods in addition to conference periods, as he may determine.

(d) Per diem payments. Appointed members of the Council, while attending meetings or conferences thereof or otherwise serving on business of the Council or at the request of the Secretary, shall be entitled to receive compensation at rates fixed by the Secretary, but not exceeding $100 per day, including travel time, and while so serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in the Government service employed intermittently.

(e) Report to Congress. The Secretary shall transmit to the Congress annually a report concerning the special projects initiated under section 4(a) (1) of the act, the recommendations of the National Advisory Council on Vocational Rehabilitation, and any action taken with respect to such recommendations. Subpart D-Training and Research Fellowships Under Section 7 of the Act

§ 403.30 Training and instruction.

Under the authority of section 7 of the act, the Commissioner is authorized to

provide short-term training and instruction in technical matters relating to vocational rehabilitation services for the purpose of increasing the number and competence of personnel concerned with the provision of such services. Such training and instruction shall include the establishment and maintenance of traineeships and research fellowships to provide financial assistance to individuals who are (a) pursuing technical or other specialized training courses, or (b) securing advanced research training or carrying out independent research in rehabilitation problems or methods Such training, instruction, fellowships, and traineeships may be in the fields of physical medicine and rehabilitation, physical therapy, occupational therapy, speech, pathology, and audiology, rehabilitation nursing, rehabilitation social work, prosthetics, and orthotics, rehabilitation psychology, rehabilitation counseling, recreation for the ill and handicapped, and other specialized fields contributing to vocational rehabilitation. TRAINEESHIP AWARDS

Applications by prospective trainees for stipends or other allowances are made to the institution from which the applicant proposes to take instruction. Completed applications are filed with the institution to be processed under rules established by the Vocational Rehabilitation Administration.

§ 403.33 Eligibility requirements.

A candidate for a traineeship award shall meet the requirements established by the Commissioner, including:

(a) The candidate shall have filed an application in the form and manner prescribed by the Commissioner and have supplied all pertinent information requested;

(b) He shall have been accepted by the educational institution or other sponsoring agency for admission to a