UNITED STATES DEPARTMENT OF EDUCATION
OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES
REHABILITATION SERVICES ADMINISTRATION
WASHINGTON, DC 20202

                                   INFORMATION MEMORANDUM
                                   RSA-IM-98-23
                                   DATE:  AUGUST 21, 1998

ADDRESSEES:    STATE VOCATIONAL REHABILITATION AGENCIES
(GENERAL)STATE VOCATIONAL REHABILITATION AGENCIES (BLIND)
               STATE REHABILITATION ADVISORY COUNCILS
               CLIENT ASSISTANCE PROGRAMS
               REGIONAL REHABILITATION CONTINUING EDUCATION       
 PROGRAMS
               AMERICAN INDIAN VOCATIONAL REHABILITATION PROGRAMS
               RSA SENIOR MANAGEMENT TEAM

SUBJECT:       IMPLEMENTATION OF THE PROVISIONS OF THE
REHABILITATION ACT AMENDMENTS OF 1998

CONTENT:       This provides information and guidance to
designated State vocational rehabilitation (VR) agencies on the
implementation of the provisions of the Rehabilitation Act
Amendments of 1998 for the State VR Services Program authorized
under title I of the Rehabilitation Act (the Act).

               Consistent with section 507 of the Workforce
Investment Act (WIA), the new statutory provisions governing the
VR program took effective on the date of the enactment of WIA
which was August 7, 1998.  State VR agencies are required to move
forward immediately with their implementation of the new
statutory provisions related to the VR program and should not
wait for the publication of implementing regulations.

               The Rehabilitation Services Administration (RSA)
plans to publish a Notice of Proposed Rulemaking for the VR
program in early 1999.  In addition, the Department of Labor has
provided us preliminary information that the Department plans to
have a WIA State plan guide and information available to the
States by April of 1999.  In this regard, RSA will address the
title I State plan issues created by the 1998 Amendments and will
develop title I State plan materials, including a preprint and
instructions, that meet the requirements of the Act, streamline
the State plan development and approval processes, and reduce
burden on  the States.   

               The following reflects the new major statutory
provisions that VR agencies need to address immediately in their
administration of the VR program.  State VR agencies may find the
information provided in RSA- IM 98-20, dated August 17, 1998,
entitled  The Rehabilitation Act Amendments of 1998" to be
helpful in their efforts to implement these new statutory
provisions.

               Presumptive Eligibility for SSDI Beneficiaries and
SSI Recipients

               Section 102(a)(3)(A)(ii) of the Act stipulates
that an individual who has a disability or is blind and is
determined to be an allowed Social Security Disability Income
(SSDI) beneficiary or an allowed Supplemental Security Income
(SSI) recipient under the provisions of the Social Security Act
is to be presumed to meet both eligibility criteria identified in
section 102(a)(1)(A) and (B) of the Act provided that the
individual intends to achieve an employment outcome that is
consistent with the unique strengths, resources, priorities,
concerns, abilities, capabilities, interests, and informed choice
of the individual.

               The statutory presumption that a SSDI beneficiary
or SSI recipient meets the second element in the definition of
the term  individual with a disability  in section 7(20)(A) of
the Act, i.e., the individual can benefit from VR services in
terms of an employment outcome, however, can be rebutted by the
State VR agency demonstrating, through clear and convincing
evidence produced by the exploration of the individual s
abilities, capabilities, and capacity to perform in work
situations (which replaces the former provisions related to
"extended evaluation") consistent with the requirements of
section 102(a)(2)(B) of the Act, that the SSDI beneficiary or SSI
recipient is incapable of benefiting in terms of an employment
outcome from VR services due to severity of the disability.

               Automatic Determination of SSDI Beneficiaries and
SSI Recipients as Individuals with Significant Disabilities

               Section 102(a)(3)(A)(i) of the Act stipulates that
a SSDI beneficiary or SSI recipient is to be considered an
individual who meets all of the elements of the definition of the
term  individual with a significant disability  in section
7(21)(A) of the Act.  Such individuals are to be automatically
considered to be individuals with significant disabilities.




               Individualized Plan for Employment

               One of the major modifications that State agencies
must immediately address in their administration of the VR
program relates to the implementation of the new statutory
requirements for the Individualized Plan for Employment (IPE) as
identified in section 102(b) of the Act.  The IPE provisions
delete some of the former content and process requirements for
the Individualized Written Rehabilitation Program (IWRP) and add
new provisions to both enhance the collaborative relationships
between the eligible individual and the qualified vocational
rehabilitation counselor with respect to the development,
implementation and evaluation of the IPE and to support the
exercise of informed choice of the individual in the selection of
the IPE s employment outcome, specific services, service
providers, and the methods to procure the services.

               State VR agencies need to be particularly focused
on moving forward with respect to the development and
implementation of policies, procedures and practices that relate
to the options that the Act provides in section 102(b)(1) for the
development of the IPE.  While many of the statutory requirements
related to the mandatory IPE procedures identified in section
102(b)(2) and the IPE components identified in section 102(b)(3)
are similar to the former IWRP requirements, State agencies will
need to be careful in their implementation of the IPE provisions
to ensure that they are faithfully expressed in the agencies  IPE
policies, procedures and practices.

               Due Process and Mediation Procedures

               The Act in section 102 (c) now requires States to
have procedures both for mediation of and review through an
impartial due process hearing of determinations made by personnel
of the designated State VR unit that affect the provision of VR
services to both applicants and individuals determined eligible
for VR services.  The Amendments also provide the State the
option of establishing procedures for the review of decisions of
the impartial hearing officer.  If the State chooses to implement
this option, the reviewing official can either be the director of
the designated State VR agency when there is a designated VR
State unit or an official in the Governor s office.

               The State VR agency should use the detailed
provisions in section 102 (c) to immediately undertake the
modification of its current due process procedures to accommodate
the new statutory provisions without waiting for the publication
of implementing regulations.

               Composition and Appointment of State
Rehabilitation Council Members

               Membership of the Council has been expanded to now
include at least one representative of the directors of the
projects funded under section 121 of the Act related to the
American Indians VR program, if there is one or more of these
projects in the State; at least one representative of the State
workforce investment board; and at least one representative of
the State educational agency responsible for the public education
of students with disabilities eligible to receive services under
title I of the Act and part B of the Individuals with
Disabilities Education Act.  The new statutory provision relating
to the authority to appoint Council members now reserves this
authority solely to the Governor, although for filling Council
vacancies, the Governor can delegate this authority to the
remaining members of the Council.  States need to move forward
without delay in the implementation of these new statutory
requirements.

               Expanded Functions of the Council

               While the Council maintains an advisory function
to the designated State unit, its functions have been expanded
beyond those of an advisory nature as evidenced by the name
change introduced by the 1998 Amendments from the State
Rehabilitation Advisory Council to the State Rehabilitation
Council.  Within this context, the Council must in partnership
with the State VR unit develop, agree to, and review State goals
and priorities consistent with section 101(a)(15)(C) of the Act
that must be described in the title I State plan to be submitted
to RSA.  Both the Council and the designated State VR unit need
to begin to address these requirements so that the designated
State unit can comprehensively describe the State s goals and
priorities in its State plan when the new title I State plan
materials are made available to the States.  In addition, the
Council needs to expand the scope of its consumer satisfaction
surveys to encompass employment outcomes achieved by eligible
individuals receiving VR services from the designated VR unit.

               Scope of VR Services to Individuals and Groups of
Individuals

               The 1998 Amendments revised section 103(a) of the
Act and expanded the scope of services to individuals by
broadening the provision of maintenance services to now encompass
both assessment services and services provided under an IPE.  The
Amendments  also introduced a new category of service, namely,
the provision of technical assistance and consultation to
individuals to pursue self-employment, telecommuting or a small
business operation which are now identified as examples of
employment outcomes in the definition of the term "employment
outcome" in section 7(11) of the Act.  The Amendments also
specify that in the provision of counseling and guidance to an
individual, the designated State unit can also provide
information and support services to assist an individual in the
exercise of informed choice.  State VR agencies need to begin
providing such services as appropriate to the needs of the
applicant or eligible individual.

               In addition to the expanded scope of VR services
to individuals, the Amendments in section 103(b) add to the
authorized services to groups of individuals with disabilities
the provision of technical assistance and consultation services
to assist schools in their transition planning for students with
disabilities.  State VR agencies are now authorized to provide
this service to facilitate the transition of students with
disabilities from school to post-school activities, including
employment. 

               Policies and Procedures Related to the Exercise of
Informed Choice

               The Amendments consolidate in new section 102(d)
of the Act the key provisions on the exercise of informed choice
by the individual throughout the entire rehabilitation process. 
To a large extent, these statutory provisions are modeled on the
current regulatory requirements in 34 CFR 361.52 thus the
designated State unit should already have in place most of the
new requirements; however, the statute does introduce a
requirement for the designated State agency to develop and
implement flexible procurement policies and methods to facilitate
the provision of services and afford individuals meaningful
choices among the methods used to procure services.  Agencies
will need to examine their procurement policies and procedures in
this regard to ensure that individuals have meaningful choices
from which to choose in terms of how to procure VR services.

               Comparable Services and Benefits

               The Amendments introduce some new requirements in
section 101(a)(8) of the Act related to the determination of the
availability of comparable services and benefits under any other
program to be used in the provision of VR services.  One of the
requirements clarifies that awards and scholarships based on
merit are not to be considered a comparable benefit. Another,
more complex, provision requires the Governor in consultation
with the designated State VR agency and other appropriate
agencies to effect an interagency agreement or other mechanism
for interagency coordination between the designated State VR unit
and any public entity, such as the State medicaid program, a
public institution of higher learning, or a component of the
State workforce investment system to ensure the provision of VR
services not exempted by the Act from the determination that
comparable services and benefits exist.  Since the statute in
section 101(a)(8)(B) provides detailed guidance on these
interagency agreements, each designated State VR agency should
begin to work with its Governor's office to begin the process to
develop the required interagency agreements.

               Reporting Requirements

               Section 101(a)(10) of the Act identifies reporting
requirements for the VR program.  While some of the data are
already being collected and/or reported by State agencies through
the various RSA reporting instruments, the Act now identifies
some data elements, such as the number of individuals with
disabilities and the number with significant disabilities who
have maintained employment 6 and 12 months after achieving,
regaining, or advancing in employment, that will require State
agencies to determine how best to gather and report these and the
other data mandated by the statute.  Although reporting
mechanisms and instructions will need to be developed by RSA,
State agencies need now to examine the mandated data elements to
determine the most effective and efficient procedures it will
need to develop to gather the data.
    
               Cooperation, Collaboration and Coordination with
Other Programs

               The Act in section 101(a)(11) consolidates many
former statutory requirements related to the State VR unit
cooperating with other agencies for the provision of services to
individuals.  Some of the requirements are carried over from
former statutory provisions thus State VR agencies will need to
assess their collaboration activities, including formal
interagency agreements such as those with education programs
responsible for the public education of students with
disabilities, to ensure that the already implemented activities
are consistent with new statutory provisions.  In addition, the
statute now requires the designated State unit to enter into
cooperative agreements with other components of the statewide
workforce investment system and to replicate the statewide
agreements at the local level between individual offices of the
designated State unit and local entities carrying out activities
through the statewide workforce investment system.  Since States
are at various stages in their implementation of the statewide
workforce investment system, VR agencies need to determine when
conditions are appropriate to develop such agreements; however,
agencies need to be preparing now to fulfill this new
requirement.

               Innovation and Expansion Activities

               While the Amendments delete the requirement for a
designated State VR unit to develop a strategic plan to expand
and improve VR services to individuals with disabilities with the
use of at least 1.5% of title I funds allotted to the State unit
under section 110 of the Act, the 1998 Amendments introduce the
requirement for the designated State unit to reserve an
unspecified amount of the section 110 allotment for the
development and implementation of innovative approaches to expand
and improve VR services to individuals with disabilities,
particularly individuals with the most significant disabilities. 
Agencies need to consider how they will address this requirement
in terms of the activities already initiated under the previous
strategic plan requirements and what new innovation and expansion
activities they may want to undertake in the coming year.

               Annual State Goals and Reports of Progress

               The 1998 Amendments consolidate many of the
evaluation and goal planning provisions of the former statutory
requirements into section 101(a)(15) of the Act.  State agencies
will need to study carefully the various components of this new
statutory provision and begin now to plan, in collaboration with
the Council, if the agency has one, how best to address the
requirements related to conducting the various assessments and
evaluations and submitting annual estimates to RSA based on the
assessments in terms of the number of individuals to be served
under the VR and supported employment programs (including the
number of individuals to be served in the priority categories of
the agency's order of selection if the agency is operating under
an order) and the estimated costs of the services.  The
designated State unit and the Council, if the unit has a Council,
also need to begin planning how they will develop the goals and
priorities for the VR program which will need to be included as
part of the title I State plan submission to RSA.  To achieve the
goals and priorities agencies will need to articulate in their
State plans their strategies to address the findings of the
assessment of rehabilitation needs of individuals with
disabilities and achieve the agency's goals and priorities. To
address adequately all of these requirements, the designated
State unit will need to carry out careful planning so that when
title I State plan materials are made available agencies will be
in the position of articulating a focused, integrated and
approvable State plan description.



               As State VR agencies begin their activities to
implement the 1998 Amendments, RSA Regional Offices will provide
technical assistance and guidance.   The Amendments provide us
with the tools to improve and expand the exercise of informed
choice of individuals throughout the entire rehabilitation
process; streamline our policies and processes to facilitate the
access of individuals with disabilities to the VR system; protect
the rights of individuals through mediation and impartial due
process hearings; and link the VR program to the statewide
workforce investment system to better meet the rehabilitation
needs of individuals with disabilities.  All of these tools,
however, exist for only one reason - to assist individuals with
disabilities, particularly individuals with significant
disabilities, to achieve the high quality employment outcomes to
which they aspire and which are consistent with their strengths,
resources, priorities, concerns, abilities, capabilities,
interests, and informed choice.

                                                                  
                       
                                             Fredric K.
Schroeder, Ph.D.

cc:  CSAVR
     NAPAS
     NCIL
     RSA Regional Offices
     Regions II, IV, V, VIII and X

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