[Federal Register Volume 63, Number 120 (Tuesday, June 23, 1998)]
[Proposed Rules]
[Pages 34218-34224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16590]
[[Page 34217]]
_______________________________________________________________________
Part II
Department of Education
_______________________________________________________________________
34 CFR Part 379
Projects With Industry; Proposed Rule
Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 /
Proposed Rules
[[Page 34218]]
DEPARTMENT OF EDUCATION
34 CFR Part 379
RIN 1820-AB45
Projects With Industry
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Notice of proposed rulemaking.
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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:
Comments@ed.gov. 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]
BILLING CODE 4000-01-P
