ment is consistent with the State rehabilitation facilities plan; (b) Set forth the standards and criteria applicable to such rehabilitation facilities with respect to physical plant, equipment, personnel, administration and management, safety and other pertinent conditions and insofar as rehabilitation facilities which are or which include workshops are concerned, shall also set forth criteria and standards applicable with respect to health conditions, wages, hours, working conditions, workmen's compensation or liability insurance, and other pertinent conditions. In setting forth such standards and criteria, the State plan may incorporate, insofar as applicable, those standards and criteria developed by the Administrator with the advice of the National Policy and Performance Council, the regulations of the Secretary of Labor relating to safety standards for rehabilitation facilities, and the standards for the design, construction, and alteration of buildings issued by the Administrator of General Services or the Secretary of Housing and Urban Development pursuant to the act approved August 12, 1968 (Public Law 90-480) and prior to the issuance of these standards, the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," No. A117.1, 1961, as modified from time to time. (c) Provide that the primary purpose of the establishment of any rehabilitation facility is to provide vocational rehabilitation services or gainful employment to handicapped individuals, or to provide evaluation and work adjustment services to disadvantaged individuals under Part 402 of this chapter; (d) Provide that, in cases where initial staffing assistance is provided, such assistance will be available only for personnel who are engaged in new or expanded program activities of the rehabilitation facility; and (e) Provide that reports concerning the establishment of rehabilitation facilities shall be submitted in such form and shall contain such information as the Administrator may require. § 401.59 Construction of rehabilitation facilities. (a) General provisions. The State plan may provide for the construction of public or other nonprofit rehabilitation facilities. If the State plan so provides, it shall: (1) Provide that the State agency will determine that needs for individual rehabilitation facilities exist prior to their construction and that such construction is consistent with the State rehabilitation facilities plan; (2) set forth the standards and criteria applicable to such rehabilitation facilities with respect to physical plant, equipment, personnel, administration and management, safety, and other pertinent conditions and insofar as rehabilitation facilities which are or which include workshops are concerned, shall also set forth criteria and standards applicable with respect to health conditions, wages, hours, working conditions, workmen's compensation or liability insurance, and other pertinent conditions. In setting forth such standards and criteria, the State plan may incorporate, insofar as applicable, those standards and criteria developed by the Administrator with the advice of the National Policy and Performance Council, the regulations of the Secretary of Labor relating to safety standards for rehabilitation facilities, and the standards for the design, construction, and alteration of buildings issued by the Administrator of General Services or the Secretary of Housing and Urban Development pursuant to the act approved August 12, 1968 (Public Law 90-480), and prior to the issuance of these standards, the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," No. A 117.1, 1961, as modified from time to time; (3) provide that the primary purpose of the construction of any rehabilitation facility is to provide vocational rehabilitation services or gainful employment to handicapped individuals, or to provide evaluation and work adjustment services to disadvantaged individuals under Part 402 of this chapter; (4) provide that, in cases where initial staffing assistance is provided, such assistance will be available only for personnel who are engaged in either new or expanded program activities of the rehabilitation facility; (5) provide that the total Federal financial participation in the expenditures for the construction of rehabilitation facilities for a fiscal year shall not exceed 10 per centum of the State's allotment for such year under section 2 of the act; (6) provide that the amount of the State's share of expenditures for vocational rehabilitation services under the plan, other than for the construction of rehabilitation fa cilities, shall be at least equal to the average of its expenditures for such other Vocational rehabilitation services for the preceding three fiscal years; and (7) provide that reports concerning the construction of rehabilitation facilities shall be submitted in such form and shall contain such information as the Administrator may require. (b) Assurances. The State plan shall provide that any proposal, relating to the construction of a rehabilitation facility, will be accompanied by assurances: (1) That for a period of time not less than 20 years after completion of construction of the rehabilitation facility, it will be used as a public or other nonprofit rehabilitation facility, and that such assurance runs to the Federal Government, to the extent of the Federal interest. (See paragraph (d) of this section); (2) that sufficient funds will be available to meet the non-Federal share of the cost of construction of the rehabilitation facility in terms of funds immediately available, placed in escrow, or acceptably pledged, or funds or fund sources specifically earmarked in a sum sufficient for that purpose, or other assurances which are acceptable to the State agency, or, in cases where the State agency is constructing the rehabilitation facility for its own use, such assurances as are acceptable to the Administrator; (3) that sufficient funds will be available when construction of the rehabilitation facility is completed, for its effective used as a rehabilitation facility, as evidenced by a proposed operating budget for the 2-year period immediately following completion of the construction or by such other evidence acceptable to the State agency or, in cases where the State agency is constructing the rehabilitation facility for its own use, such evidence as is acceptable to the Administrator; (4) that, as evidenced in the plans and specifications which accompany or supplement the construction proposal, all rehabilitation facilities will be constructed according to minimum standards of construction and equipment for rehabilitation facilities prescribed by the Administrator for the construction of rehabilitation facilities as provided for in Part 404 of this chapter, and according to regulations of the Secretary of Labor relating to safety standards for rehabilitation facilities; (5) that any laborer or mechanic employed by any contractor or subcontractor in the performance of work on the construction of the rehabilitation facility will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a et seq.) and will receive compensation at a rate not less than one and one-half times his basic rate of pay for all hours worked in any workweek in excess of 8 hours in any calendar day or 40 hours in the workweek (40 U.S.C. 327-332); and (6) that the State agency shall furnish such other assurances as the Administrator may require to insure that standards and procedures for the construction of rehabilitation facilities under this part will, to the extent possible, be consistent with standards and procedures for the construction of rehabilitation facilities in Part 404 of this chapter; (c) Procedures. The State plan shall provide that the State agency shall forward each proposal for the construction of a rehabilitation facility to the Regional Commissioner for review and recommendation prior to approval of the proposal by the State agency. Such proposals shall contain or be accompanied by a statement indicating the relationship of the proposal to the purposes and priorities established in the State rehabilitation facilities plan and the manner and extent to which the proposed rehabilitation facility will increase the scope and effectiveness of rehabilitation programs within the State with specific reference to the program of the State agency. The Regional Commissioner shall notify the State agency in writing of his recommendations on the proposal. When proposals do not meet the requirements of this construction program, the Regional Commissioner shall consult with the State agency concerning necessary revision. The Administrator may require that, where appropriate, a technical assistance consultation (see § 404.4) precede the construction of rehabilitation facility; (d) Recovery. If, within 20 years after completion of any construction of a Rehabilitation facility under this section, the rehabilitation facility ceases to be a public or other nonprofit rehabilitation facility, the United States shall be entitled to recover from the applicant or other owner of the facility the amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the U.S. district court for the district in which such facility is situated) of the facility, as the amount of the Federal financial participation bore to the total cost of construction of such facility. § 401.60 Facilities and services for groups of handicapped individuals. The State plan shall set forth the policies that the State agency will follow in providing facilities and services which may be expected to contribute substantially to the rehabilitation of a group of individuals, but which are not related directly to the rehabilitation plan of any one handicapped individual. Facilities and services of this type may include, but are not limited to, the removal of architectural barriers from buildings to be used for the training or employment of handicapped individuals, the development or provision of instructional materials or services for a group of handicapped individuals, or the provision of a special bus or other vehicle for the transportation of handicapped individuals. § 401.61 Services to civil employees of the United States. The State plan shall provide that vocational rehabilitation services will be made available to civil employees of the U.S. Government who are disabled in line of duty, under the same conditions as are applied to other handicapped individuals. § 401.62 Authorization of services. The State plan shall set forth the State agency's policies with respect to authorization of services and shall provide that authorization will be made either simultaneously with or prior to the purchase of services, and that a written record of such authorization will be retained. Where agency policy permits that oral authorization may be made in an emergency situation by an employee of the State or local rehabilitation agency, the State plan shall provide for documentation of such oral authorization in the client's case record. Subpart C-Financing of State Voca tional Rehabilitation Programs § 401.70 Effect of State rules. Subject to the provision and limitations of the act and this part, Federal financial participation will be available in expenditures made under the State plan (including the administration thereof) in accordance with applicable State laws, rules, regulations, and standards governing expenditures by State and local rehabilitation agencies. § 401.71 Vocational rehabilitation serv. ices to individuals. (a) Federal financial participation will be available in expenditures made under the State plan for providing evaluation, including diagnostic and related services, incidental to the determination of eligibility for and the nature and scope of services to be provided, including the determination of the need for an extended evaluation of rehabilitation potential. (b) Federal financial participation will also be available in expenditures made under the State plan for providing the following vocational rehabilitation services to handicapped individuals (see § 401.1(1)): (1) Counseling and guidance. (2) Training services, including personal and vocational adjustment. (3) Books and training materials, including tools necessary for training. (4) Physical restoration services. (5) Maintenance. (6) Transportation. (7) Reader services for the blind. (8) Interpreter services for the deaf. (9) Services to members of the handicapped individual's family when such services will contribute substantially to the determination of rehabilitation potential or the rehabilitation of the handicapped individual. (10) Other goods and services (such as attendant services) not contraindicated by the act and this part, necessary to determine the rehabilitation potential of a handicapped individual or to render him fit to engage in a gainful occupation. This may include expenditures for short periods of medical care for acute conditions arising during the course of rehabilitation, which, if not cared for, would constitute a hazard to the determination of the rehabilitation potential or to the achievement of the vocational objective. (c) Federal financial participation will also be available in expenditures for the following additional vocational rehabilitation services provided to individuals found eligible under § 401.30 (b): (1) Business and occupational licenses. (2) Tools, equipment, and initial stocks (including livestock) and supplies; equipment and initial stocks and supplies for vending stands. "Equipment" as used herein includes shelters. Shelters are only those facilities for a business undertaking which are customarily furnished by the operator of a like undertaking occupying premises under a short-term lease. (3) Recruitment and training services for new employment opportunities in the fields of rehabilitation, health, welfare, public safety, law enforcement, and other appropriate service employment. (4) Placement. (5) Followup services. (d) Federal financial participation will not be available in any expenditure made, either directly or indirectly, for the purchase of any land, or for the purchase or erection of any building for any one handicapped individual. This exclusion with respect to buildings does not apply to shelters as described in paragraph (c) (2) of this section. § 401.72 Small business enterprises for the severely handicapped. (a) Federal financial participation will be available in expenditures made under the State plan for the acquisition of equipment, and initial stocks (including livestock) and supplies for small business enterprises (including vending stands) for the severely handicapped and management services and supervision provided to such small business enterprises. "Equipment" as used herein includes shelters. Shelters are only those facilities for a business undertaking which are customarily furnished by the operator of a like undertaking occupying premises under a short-term lease. Federal financial participation will not be available in any expenditure for the purchase of any land, nor for the purchase, or erection of any building. This exclusion with respect to buildings does not apply to shelters as described in the third sentence of this section. (b) Federal financial participation is available for expenditures specified under paragraph (a) of this section, which are made from funds set-aside by the State agency from the proceeds of the operation of small business enterprises for the severely handicapped under its management and supervision. the State plan for the establishment of public and other nonprofit rehabilitation facilities for the following types of expenditures: (1) Costs of remodeling and alteration of existing buildings; (2) costs of expansion of existing buildings, except as provided in paragraph (b) of this section; (3) initial equipment of existing buildings; and (4) initial staffing of rehabilitation facilities. (b) Federal financial participation will not be available in any expenditures (1) for the purchase or rental of any land or buildings in connection with the establishment of rehabilitation facilities; (2) for the expansion of an existing building which has not been completed in all respects; (3) for the expansion of an existing building to the extent that the total size of the resultant expanded building, determined in square footage of usable space, will be greater than twice the size of the original existing building; or (4) for the expansion of an existing building if the method of joining the expanded portion to the existing building indicates that, in effect, a separate structure is involved. (c) The amount of Federal financial participation in the establishment of a rehabilitation facility, including initial equipment, and initial staffing for a period not to exceed 4 years and 3 months, shall be 75 per centum for the fiscal year ending June 30, 1969, and 80 per centum for each subsequent fiscal year. (a) Federal financial participation will be available in expenditures made under the State plan for the construction of public or other nonprofit rehabilitation facilities for the following types of expenditures: (1) Costs of construction of new buildings and expansion of existing buildings when the expansion is extensive enough to be tantamount to new construction; (2) architect's fees; (3) acquisition of existing buildings; (4) acquisition of land in connection with the construction or acquisition of a rehabilitation facility; (5) site survey and soil investigations; (6) supervision and inspection at the site; (7) initial equipment of such new, expanded, or newly acquired buildings; (8) initial staffing thereof; and (9) such other costs as are appropriate to the construction project: Provided, however, that Federal financial participation will not be available for the costs of offsite improvements. (b) The amount of Federal financial participation in the construction of a rehabilitation facility, including initial equipment, and initial staffing for a period not to exceed 4 years and 3 months, shall be equal to the same percentage as the Federal share which would be applicable in a project in the case of a rehabilitation facility (as defined in section 625(g) of the Public Health Service Act, 42 U.S.C. 2910(g)) in the same location. § 401.75 Facilities and services for groups of handicapped individuals. Federal financial participation will be available in expenditures made under a State plan for the provision of other facilities and services which may be expected to contribute substantially to the rehabilitation of a group of handicapped individuals but which are not related directly to the rehabilitation plan of any one handicapped individual. § 401.76 Administration. Federal financial participation will be available in expenditures under the State plan for administration, Administration includes, among other things: Annual and long-range program planning, development, evaluation, and control; research; interpretation of the program to the public; personnel administration; use of advisory committees; and staff development, including educational leave. All expenditures for administration in which Federal financial participation is claimed must be subject to the administrative or supervisory control of the State agency, or, if performed by some other agency of the State, must be subject to such terms of a cooperative arrangement as will serve to assure consistency with the State agency's policies and objectives. § 401.77 Purchase of goods, facilities, or services from other agencies of the State. (a) Federal financial participation will be available in expenditures under the State plan for payment of the costs incurred by other agencies of the State furnishing goods, facilities, or services to the State agency: Provided, That (1) such payments are permissible under State law; (2) such costs are incurred to meet the needs of the State agency, and are not costs attributable to the general ex pense of the State in carrying out the overall coordinating, fiscal, and administrative functions of the State government; and (3) such costs are extra, identifiable, and readily ascertainable either by segregation or as a pro rata share of the cost of such goods, facilities, or services. (b) Federal financial participation will be available in expenditures under the State plan for payment of costs of other public agencies pursuant to the principles and procedures set forth in "A Guide for State and Local Government Agencies-Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the Department of Health, Education, and Welfare," January 1969, implementing Bureau of the Budget Circular No. A-87, and subsequent issuances. § 401.78 Insurance and taxes. Federal financial participation will be available in expenditures made under the State plan for (a) the State or local rehabilitation agency's share of costs in employee benefit programs, such as retirement, group life and hospitalization insurance; (b) workmen's compensation; (c) burglary, robbery, and fire insurance, if permitted by the State, and reasonably necessary to protect funds in transit or in the custody of State or local agency personnel; (d) motor vehicle liability costs, where the State accepts responsibility for such loss; and (e) Federal, State, and local taxes, if the State or local rehabilitation agency is legally obligated to pay such taxes, and provided that all comparable agencies in the State are uniformly treated. § 401.79 Cost of space. (a) Federal financial participation will be available in expenditures made under the State plan for costs of space for State or local rehabilitation agencies that are incurred (1) for paying rent and service and maintenance costs in privately owned buildings; (2) in meeting the costs of service and maintenance in lieu of rent in publicly owned buildings; (3) in meeting rental charges in federally and municipally owned buildings, where the municipality is not administering the vocational rehabilitation program locally; (4) in making necessary repairs and alterations to either privately or publicly owned buildings; and (5) for monthly rental charges, based on the cost of initial construction |