those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5); with the Secretary of Labor having, with respect to the labor standards specified in this paragraph, the authority and functions set forth in Reorganization Plan Number 14 of 1950 (15 F.R. 3176) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c);

(d) Include such other terms and conditions as the Administrator may deem necessary to carry out the purposes of section 16 of the Act.

(a) If within 20 years after the completion of any construction (except minor remodeling or alteration) for which funds have been paid pursuant to the agreement the facility constructed ceases to be used for the purposes for which it was constructed or the agreement is terminated, the United States, unless the Administrator determines that there is good cause for releasing the grantee from its obligation, shall be entitled to recover from the grantee or other owner of the facility an amount which bears the same ratio to the then value of the facility as the amount of such Federal funds bore to the cost of the portion of the facility financed with such funds. Such value shall be determined by agreement of the parties or by action brought in the U.S. district court for the district in which the facility is situated.

(b) In determining whether there is good cause for releasing the grantee or other owner of the facility from its obligation, the Administrator shall take into consideration the extent to which:

(1) The facility will be devoted by the grantee or other owner to use for another public or nonprofit purpose which will promote the purposes of section 16(a) of the Act; or

(2) There are reasonable assurances that for the remainder of the 20-year period other public or nonprofit facilities not previously utilized for the purpose for which the facility was constructed will be so utilized and are substantially equivalent in nature and extent for such purposes. § 407.6

Selection of grantee.

Fully developed proposals submitted to the Administrator will be presented to

the Study Section on the National Center for Deaf-Blind Youths and Adults for advice and recommendation. Final selection of the grantee will be made by the Administrator. In evaluating proposals, preference will be given to those which:

(a) Give promise of maximum effectiveness in the organization and operation of the Center, and

(b) Give promise of offering the most substantial skill, experience and capability in providing a broad program of service, research, training, and related activities in the field of rehabilitation of the deaf-blind.

PART 408-PROJECT GRANTS FOR REHABILITATION OF THE MENTALLY RETARDED

Sec.

For purposes of this part

(a) The terms "act," "Administrator," "eligible," "nonprofit," "Regional Commissioner," and "vocational rehabilitation services," shall, except where the context indicates otherwise, have the same meaning as set forth in § 401.1 of this chapter.

(b) "Establishment of special facilities and services" means the development, improvement, expansion, or coordination of any programs contributing to the rehabilitation of mentally retarded individuals.

(c) "State" means the several States, the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and the Trust Territory of the Pacific Islands.

§ 408.2 Purpose.

Project grants for rehabilitation of the mentally retarded 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 contribute to the rehabilitation of those mentally retarded individuals generally not eligible for vocational rehabilitation services. Types of projects for which such grants may be made include: (a) Establishment of special facilities or services for the diagnosis, treatment, training, or care of the mentally retarded; (b) training, including in-service training and education of personnel in all fields or disciplines which contribute to the rehabilitation of the mentally retarded, through provision of training, teaching, or traineeship grants; (c) demonstration projects in rehabilitation of the mentally retarded.

§ 408.3 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, except as may be specifically authorized by Congress. No Federal financial assistance may be furnished under this part for activities for which payment is made under another part of this chapter, or other authority.

§ 408.4 Application procedure.

(a) Applications for project grants for the rehabilitation of the mentally retarded may be made at any time by States and public or other nonprofit organizations, agencies, and institutions, including universities and other educational institutions. Applications shall be made in the form and detail required by the Administrator. Applicants shall secure prior consultation and assistance from the Regional Commissioner in the development of their proposals and the preparation of their applications. Completed applications are submitted to the Administrator who processes and evaluates them with the assistance of advisory groups. The applicant may be requested to submit further information either before or after consideration of a project. The Administrator determines the action to be taken with respect to each project and informs the applicant accordingly.

(b) In the case of a project which includes provision of direct vocational re

habilitation services to mentally retarded persons who are eligible for vocational rehabilitation services, the approval of the State vocational rehabilitation agency (see § 403.1(c)) shall be secured by the applicant.

§ 408.5 Application content.

The project application shall include_ (a) A statement of the purpose of the project; (b) provision for qualified and adequate staff, including a project director, to accomplish the purpose of the project; (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 the individuals served or studied under the project; (f) an assurance that, where appropriate, project activities will be coordinated with programs and activities of other related public and private agencies serving mentally retarded persons in the community, such as health, education, welfare, and vocational rehabilitation agencies; (g) an agreement to make such reports and to keep such records and accounts, including property and financial controls, as the Administrator may require, and to make such records available for audit purposes; and (h) such other information as the Administrator may require.

§ 408.6 Project activities.

Projects for rehabilitation of the mentally retarded may include, but are not limited to, such activities as the following: (a) The expansion and extension of present services in order to serve additional numbers of mentally retarded persons; (b) the demonstration of newly developed techniques and methods that have been found to be effective in the rehabilitation of the mentally retarded; (c) the initiation of new rehabilitation services or activities for the mentally retarded; (d) the initiation or expansion of rehabilitation programs for mentally retarded individuals with special problems, such as the multiply handicapped adolescent or adult mentally retarded, who might not be eligible for vocational rehabilitation services, or mentally retarded children who cannot profit from available educational or vocational rehabilitation programs; (e) training of personnel in disciplines or occupations contributing to the rehabili

tation of the mentally retarded; and (f) the extension of mental retardation programs and activities to areas of urban or rural poverty.

§ 408.7

Federal financial participation. Federal financial participation will be available for the following types of expenditures under projects approved by the Administrator: (a) Salaries, cost of travel, and related expenses of project personnel; (b) necessary supplies, equipment, and related expenses; (c) purchase or provision of rehabilitative services to individuals served by the project; (d) cost of administration and other indirect costs of the project, subject to such limitations as the Administrator may establish; and (e) such other costs as are approved by the Administrator. 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 program 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.

Pursuant to section 203 of the Intergovernmental Cooperation Act of 1968 (Public Law 90-577), a State, as defined in section 102 of that Act, will not be held accountable for interest earned on grant funds, pending their disbursement for program purposes. A State, as defined in the Intergovernmental Cooperation Act, section 102, means any one of the several States, the District of Columbia, Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of the State. All other grantees must return to the Social and Rehabilitation Service all interest earned on grant funds.

effectively, or if changes are made in Federal appropriations, laws, regulations, or policies governing projects for rehabilitation of the mentally retarded. § 408.10 Termination.

If for any reason the grantee discontinues an approved project, the grantee shall notify the Regional 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 Administrator. The grantee 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 or completion of a project, the proportion of unexpended funds attributable to the Federal grant shall be refunded.

§ 408.14 Confidential information.

(a) All information obtained by a grantee as to personal facts about individuals served by the project, 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, or his representative, 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, or the written consent of his representative.

Grantees may publish results of any activity assisted by the grant without prior review by the Social and Rehabilitation Service: Provided that such publications carry a footnote acknowledging the assistance received under the grant, and that copies of the publications are furnished to the Social and Rehabilitation Service. Where a grant results in a book or other copyrightable material, the author is free to copyright the work, but the Social and Rehabilitation Service 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.

Unless otherwise indicated in this part, the terms below are defined as follows: (a) "Act" means the Randolph-Sheppard Vending Stand Act (Public Law 732, 74th Cong., 49 Stat. 1559, as amended by section 4 of Public Law 565, 83d Cong., 68 Stat. 663; 20 U.S.C. 107, chapter 6A). (b) "Secretary" means the Secretary of Health, Education, and Welfare.

(c) "Administrator" means the Administrator of the Social and Rehabilitation Service in the Department of Health, Education, and Welfare.

(d) "Licensing agency" means the State agency designated by the Administrator pursuant to the act and this part, to issue licenses to blind persons for the operation of vending stands on Federal and other property.

(e) "Commission for the Blind" means a State agency which provides services exclusively for the blind and other visually handicapped individuals.

(f) "Program" means all the activities of the licensing agency, pursuant to the act and this part related to vending stands on Federal and other property.

(g) "Federal property" means any building, land, or other real property, owned, leased, or occupied by any department or agency of the United States or any instrumentality wholly owned by the United States, or by any department or agency of the District of Columbia or any Territory or possession of the United States.

(h) "Other property" means property which is not Federal property and on which vending stands are established or operated by the use of any funds derived in whole or in part, directly or indirectly,

from the operation of vending stands on any Federal property.

(1) "License" means a written instrument issued by the licensing agency to a blind person, pursuant to the act and this part, authorizing such person to operate a vending stand on Federal or other property.

(j) "Operator" means a blind person licensed to operate a vending stand on Federal or other property under the act.

(k) "Permit" means the official authorization given a licensing agency by a department or agency in control of the maintenance, operation, and protection of Federal property, or person in control of other property, whereby the licensing agency is authorized to establish a vending stand.

(1) "Vocational Rehabilitation Act" means that act, as amended (29 U.S.C. ch. 4).

(m) "Vocational rehabilitation services" means those services necessary to render a blind person fit to engage in remunerative employment.

(n) "State vocational rehabilitation agency" or "State agency" means that agency in the State providing vocational rehabilitation services to the blind as the sole State agency under a State plan approved pursuant to the provisions of the Vocational Rehabilitation Act.

(o) "Vending stand" means:

(1) Such shelters, counters, shelving, display and wall cases, refrigerating apparatus, and other appropriate auxiliary equipment as are necessary for the vending of such articles as may be approved by the licensing agency and the Federal department or agency having control of the maintenance, operation and protection of Federal property or person in the control of other property; and

(2) Manual or coin-operated vending machines or similar devices for vending such articles.

(p) "Blind person" means a person having not more than 10 per centum visual acuity in the better eye with correction. This means a person who has

(1) Not more than 20/200 central visual acuity in the better eye after correction; or

(2) An equally disabling loss of the visual field; i.e., a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20°. Such blindness shall

be certified by a duly licensed ophthal mologist.

(q) "State" means a State, territory, possession, or the District of Columbia § 409.2 Application for designation licensing agency; general.

(a) Applications for designation a licensing agency may be submitted only by a State vocational rehabilitation agency.

(b) The application shall:

(1) Be submitted in writing to th Administrator;

(2) Be approved by the chief execu tive of the State; and

(3) Be transmitted over the signa ture of the executive officer of the Stat agency making application.

§ 409.3 Application for designation a licensing agency; content.

The application shall indicate:

(a) The licensing agency's legal au thority to perform the functions neces sary for the administration of the pro gram, including its authority to issu regulations to govern the program which would have the force and effect of lav within the State, and that such regula tions will be issued in accordance with the provisions of State law.

(b) The licensing agency's organiza tion for carrying out the program, in cluding the methods of coordinating th vending stand program and the voca tional rehabilitation program.

(c) The broad policies and standard to be employed in the selection of suit able locations for vending stands.

(d) The policies to be followed ir making suitable vending stand equip. ment and adequate initial stocks of mer chandise available and the sources of funds to be used therefor.

(e) The sources of funds for the management of the program and the amount of funds, if any, to be set aside from the proceeds of the operation of vending stands.

(f) The policies and standards gov. erning the relationship of the licensing agency to the operators, including their selection, duties, supervision, transfer, and financial participation.

(g) The methods to be followed in providing suitable training to blind persons selected for licensing under the program.

(h) The arrangements made or contemplated, if any, for the utilization of the services of any agency or organization; the agreements therefor and the