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federal register

Tuesday
June 23, 1998

Part II

Department of
Education
34 CFR Part 379
Projects With Industry; Proposed Rule

34217
34218 Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 / Proposed Rules

DEPARTMENT OF EDUCATION sent to the Department representative compliance indicators and to ensure
named in this section. that cost-effective projects are selected
34 CFR Part 379 FOR FURTHER INFORMATION CONTACT: for funding. The Secretary proposes to
Thomas E. Finch, U.S. Department of reduce the number of indicators from
RIN 1820–AB45
Education, 600 Independence Avenue, nine to five, with an additional
Projects With Industry S.W., Room 3038, Mary E. Switzer indicator to be established at a later
Building, Washington, D.C. 20202–2575. date. These compliance indicators
AGENCY: Office of Special Education and Telephone: (202) 205–8292. Individuals establish minimum performance levels
Rehabilitative Services, Department of who use a telecommunications device in areas that the Secretary believes are
Education. for the deaf (TDD) may call the Federal the most critical and most closely
ACTION: Notice of proposed rulemaking. Information Relay Service (FIRS) at 1– related to the program’s purpose and
800–877–8339 between 8 a.m. and 8 evaluation standards. To be eligible for
SUMMARY: The Secretary proposes to p.m., Eastern time, Monday through continued funding under the proposed
amend the regulations governing the Friday. system, projects must meet or exceed
performance indicators for the Projects Individuals with disabilities may the minimum performance level for
With Industry (PWI) program (34 CFR obtain this document in an alternate each compliance indicator. However,
Part 379). The PWI program is format (e.g. Braille, large print, projects have two opportunities to meet
authorized by section 621 of the audiotape, or computer diskette) on these criteria before funding is
Rehabilitation Act of 1973, as amended request to the contact person listed in terminated. If, based upon the end-of-
(the Act). The purpose of the PWI the preceding paragraph. year data submission, a project fails any
program is to create and expand job and compliance indicator, the project may
SUPPLEMENTARY INFORMATION: request that funding be continued for
career opportunities for individuals
with disabilities in the competitive Overview of Proposed Changes the first six months of the subsequent
labor market by engaging the talent and project year and agree to submit
The Secretary proposes to amend the
leadership of private industry as additional data. At the end of the six-
regulations governing the application month period the project must submit
partners in the rehabilitation process, to
content requirements and performance the data collected for those six months
identify competitive job and career
indicators for the PWI program in order to demonstrate that it has passed all the
opportunities and the skills needed to
to clarify statutory intent, enhance compliance indicators. If the project
perform those jobs, to create practical
project accountability, and reduce passes all the indicators, funding will
job and career readiness and training
grantee burden. continue for the remainder of the project
programs, and to provide job In a notice of proposed rulemaking
placements and career advancement. year.
(NPRM) published in the Federal In this NPRM, the Secretary proposes
The Secretary is proposing to change the Register on January 22, 1996 (61 FR
performance indicators for this program minimum performance levels for five
1672), the Secretary invited comments indicators. The proposed compliance
in order to improve project on changes needed to improve the
performance, enhance project indicators measure a project’s (a)
compliance indicators. The comments placement rate; (b) average change in
accountability, better reflect statutory received in response to this solicitation,
intent, and reduce grantee burden. weekly earnings; (c) percentage of
as well as comments provided by individuals placed who have severe
DATES: Comments must be received by participants in focus group meetings disabilities; (d) percentage of
the Department on or before August 24, held by the Rehabilitation Services individuals placed who were
1998. Administration (RSA), were used to unemployed at least six months at
ADDRESSES: All comments concerning develop these proposed changes. In project entry; and (e) variation between
these proposed regulations should be addition, the Secretary used a June 1994 projected and actual average cost per
addressed to Fredric K. Schroeder, report on the PWI program entitled placement. In addition, the Secretary
Commissioner, Rehabilitation Services ‘‘Assessment of Performance Indicators proposes to collect data from projects on
Administration, U.S. Department of for the Projects With Industry Program,’’ change in earnings and job retention.
Education, 600 Independence Avenue, prepared for the Department by The Secretary will use these data to
S.W., Room 3028, Mary E. Switzer Research Triangle Institute (RTI), which determine the need, and appropriate
Building, Washington, D.C. 20202–2531. identifies needed changes in the PWI performance levels, for new indicators
Comments may also be sent through the performance indicators and scoring on change in earnings and job retention.
Internet to: Comments@ed.gov. You system. To assist in revising the
must include the term ‘‘PWI’’ in the compliance indicators and determining Section-by-Section Summary of the
subject line of the electronic comment. the proposed minimum performance Proposed Changes
To ensure that public comments have levels, the Secretary also analyzed The following is a summary of the
maximum effect in developing the final grantee performance on the current PWI proposed changes contained in this
regulations, the Department urges compliance indicators. NPRM.
commenters to identify clearly the Based on information from public • In § 379.21(a)(4), the Secretary
specific section or sections of the comments, the 1994 report prepared by proposes to add an application content
proposed regulations that each comment RTI, and experience in the requirement that would require a
addresses and to arrange comments in implementation of the program, the description of the factors that justify a
the same order as the proposed Secretary is proposing one addition to project’s projected cost per placement.
regulations. the application content requirements These factors may include the objectives
Comments that concern information and a number of changes in the of the project, the types of services that
collection requirements must be sent to compliance indicators. The Secretary will be provided, the population that is
the Office of Management and Budget at believes that the additional application being targeted, and the proposed
the address listed in the Paperwork content requirement regarding the geographicservice area. This is the only
Reduction Act section of this preamble. proposed cost per placement is needed proposed addition to the current
A copy of those comments may also be in light of the proposed changes to the application content requirements.
Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 / Proposed Rules 34219

• In § 379.50, the Secretary proposes information collection and reporting five areas. The Secretary believes that
to remove the reference to minimum burden. the proposed indicators represent the
composite score and replace it with a The Secretary proposes to eliminate most critical quantifiable aspects of
reference to minimum performance the cost per placement indicator and project performance. In establishing
levels on all compliance indicators. modify the projected cost per placement minimum performance levels on each
Under the proposed system, grantees indicator. The Secretary maintains the indicator, the Secretary reviewed project
must attain a minimum performance importance of serving and placing performance data, public comment in
level on each of the indicators rather individuals at the lowest possible cost response to the NPRM published in the
than achieve an overall composite score. to the Federal Government, but believes Federal Register on January 22, 1996,
Grantees must pass every indicator in it is not feasible to establish a cost per focus group discussions, and the RTI
order to receive continuation funding. placement standard that is reasonable report.
• In §§ 379.51 and 379.52, the for all projects supported under the PWI Placement rate. The Secretary
Secretary proposes to delete all program. The Secretary recognizes that proposes to retain the current placement
references to performance ranges in some projects may not be able to rate indicator and raise the minimum
accordance with the proposed change to achieve a low cost per placement, performance level. The primary goal of
a system in which grantees must pass all particularly projects that serve a high the PWI program is to place individuals
compliance indicators. The proposed percentage of individuals with severe into competitive employment.
change deletes the reference to disabilities, provide extensive services, Therefore, the Secretary views
composite scores and requires grantees or serve rural areas. In addition, the placement rate as a critical indicator of
to pass each indicator by demonstrating Secretary is concerned that a uniform project success. Under the proposed
performance at or above the established cost per placement standard may indicator, projects would be required to
minimum levels. discourage projects from serving place a minimum of 55 percent of
individuals who require extensive individuals served into competitive
• In § 379.53, the Secretary proposes
support services, job training, and other employment.
to replace the current nine performance
resources. Therefore, the Secretary While higher than the current
indicators with five compliance minimum placement rate of 40 percent,
believes it is more appropriate for
indicators. The major areas of change the Secretary believes the proposed
grantees to determine an appropriate
are outlined in the following sections performance level is both appropriate
cost per placement and justify the
entitled ‘‘Compliance Indicators to be and realistic. Between 1990 and 1995,
proposed cost, based on the proposed
Eliminated’’ and ‘‘Proposed Compliance PWI projects reported an average
project design and objectives, service
Indicators and Performance Levels.’’ placement rate of 61.2 percent. In
population, and services to be provided.
• In § 379.54, the Secretary proposes The proposed indicator would require comparison, in 1996 approximately 60.7
to make conforming changes to reflect that a project’s actual cost per percent of individuals served by The
the change from composite scoring to a placement not exceed the projected cost State Vocational Rehabilitation Services
pass/fail system. As under the current per placement, as specified in the Program achieved an employment
regulations, projects must submit data approved grant application, by more outcome. The Secretary believes the
from the most recent complete project than 10 percent. partnerships with private industry and
year to demonstrate compliance, but (if The Secretary also proposes to collaboration with State vocational
project performance during the most eliminate the indicator on projected rehabilitation agencies will enable every
recent complete year does not meet placement rate. The Secretary believes it PWI project to achieve, at a minimum,
minimum performance levels) may opt is more appropriate to focus on a the proposed placement rate of 55
to submit data from the first six months project’s actual, rather than projected, percent. In addition, given the proposal
of the current project year. In either success in placing individuals in to give more flexibility to projects on
case, projects must submit data to competitive employment. cost per placement (discussed in the
demonstrate compliance with minimum Finally, the Secretary proposes to following sections), the Secretary
performance levels on all of the eliminate the two indicators that believes it is appropriate to raise
indicators. measure the extent to which projects performance expectations, particularly
Compliance Indicators To Be serve individuals with severe on this critical indicator.
Eliminated disabilities and individuals who have Average change in earnings. The
been unemployed at least six months Secretary proposes to modify the
The Secretary proposes to replace the prior to project entry. While the current indicator that measures average
current nine indicators with five Secretary believes that it is important to change in earnings by raising the
compliance indicators. In addition, the preserve the program’s focus on minimum performance level. The
Secretary proposes to collect data that individuals with severe disabilities and current minimum performance level
may lead to a modified indicator on individuals who are unemployed, the requires an average increase of $75 per
change in earnings and data that may Secretary believes it is more appropriate week. The proposed regulations would
form the basis of a future indicator on to judge projects based on the extent to change the required minimum
job retention. Four compliance which they are successful in assisting performance level to $150 per week for
indicators would be eliminated, these individuals to achieve competitive projects that do not use a school-to-work
including cost per placement, projected employment. The Secretary therefore or supported employment service
placement rate, percent of persons proposes to retain the two compliance delivery model. That is, the earnings of
served whose disabilities are severe, and indicators that measure the percentage individuals who are placed into
percent of persons served who have of these individuals who are placed into competitive employment by the project
been unemployed at least six months competitive employment. must increase by an average of at least
prior to project entry. The Secretary $150 a week over earnings at the time
believes the proposed indicators better Proposed Compliance Indicators and of project entry. Concurrently, the
reflect the goals of the PWI program, Performance Levels Secretary proposes to collect data to
place a greater emphasis on project The proposed compliance indicators determine the need for additional
outcomes, and reduce grantee would measure grantee performance in changes to this indicator.
34220 Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 / Proposed Rules

The Secretary believes that the been unemployed continuously for six considering the establishment of a two-
proposed increase in the minimum months prior to project entry. The tiered indicator to measure more
performance level is appropriate given Secretary believes that it is appropriate adequately the effect of project services
both inflation and increases in the to preserve the program’s emphasis on on the earnings of these two
minimum wage since the original placing into competitive employment populations. However, the Secretary
performance level for this indicator was individuals with severe disabilities and does not have sufficient data on which
set in 1989. In addition, the Secretary individuals who are unemployed for at to base such a decision.
believes this proposed performance least six months prior to program entry. Concurrent with the proposed
level is realistic based on project Actual versus projected cost per application content and compliance
performance data that demonstrate an placement. The Secretary proposes to indicator changes, the Secretary
overall average change in earnings of revise the current indicator on projected proposes to collect data to determine the
$183 and $195 per week in fiscal years cost per placement. The proposed need for a modification to the change in
1993 and 1994, respectively. indicator would require that a project’s earnings indicator to measure project
The Secretary proposes to establish a actual cost per placement not exceed the performance for two groups: individuals
lower performance level on this projected cost per placement, as who entered the project without
indicator for PWI projects that primarily specified in the approved grant earnings and individuals who entered
serve secondary school students application, by more than 10 percent. with earnings. The Secretary proposes
transitioning to work or that use a That is, the actual average cost per to require projects to report the
supported employment model. Based on placement does not exceed 110 percent following data for the next three years:
a review of these types of projects, the of the projected cost per placement. (1) For individuals with no earnings
Secretary has concluded that, by virtue The Secretary proposes to allow each at the time of project entry, average
of the individuals they serve and place, project to determine what is a hourly wage and average hours worked
these projects might have difficulty reasonable cost per placement, based on per week at placement.
meeting the change in earnings factors such as project objectives, (2) For individuals with earnings at
standard. The Secretary does not want population and geographic area to be the time of project entry, the average
to exclude these types of projects from served, and services to be provided. As hourly wage and average hours worked
the PWI program and, therefore, part of its grant application, a project per week, both at the time of project
proposes a lower minimum performance would be required to provide a entry and at placement.
level of $100 per week for these description of those factors that justify The Secretary plans to use these data
projects. Specifically, the Secretary its projected cost per placement, to decide whether a two-tiered indicator
proposes this lower standard for including, but not limited to, the would be a more accurate means of
projects in which 75 percent or more of project’s objectives, types of services, gauging the earnings impact of the job
the individuals placed into competitive target population, and service area. A training and career advancement
employment are students who are project chosen for funding would not be services provided through the PWI
enrolled in secondary schools and who permitted to exceed by more than 10 program, and what performance levels
are working fewer than 30 hours per percent, the projected cost per would be appropriate for such an
week and for projects in which at least placement in its approved grant indicator.
75 percent of individuals are placed into application. The Secretary believes that Job retention. The Secretary is
supported employment, as defined in 34 this revised approach to cost per concurrently proposing to collect data to
CFR 361(b)(45) and (46). All other placement allows flexibility in project determine the need to modify the
projects will be subject to the higher design while encouraging each project change in earnings indicator and
standard. to consider cost effectiveness in the whether to add an additional indicator
In addition to these changes, the development of its grant application. on job retention. The Secretary believes
Secretary is proposing to collect data to job retention is a critical indicator of
Proposed Data Collection on Change in project success because it demonstrates
assess the need to modify the change in
Earnings and Job Retention the quality of placements achieved by
earnings indicator to measure change in
earnings for two groups: (1) individuals In addition to the five compliance projects. A high job retention rate may
who entered a project without earnings indicators, the Secretary is concurrently indicate consumer satisfaction with the
and (2) individuals who entered a proposing to collect data to determine placement, appropriate job matching,
project with earnings. The Secretary the need to modify the change in and effective follow-up services.
believes such a two-tiered indicator may earnings indicator and to add an In order to sample projects’ job
be a more accurate means of measuring additional indicator on job retention. retention rates, the Secretary proposes
a project’s impact on individual Change in earnings. While the current that projects report the number of
earnings. This proposed data collection change in earnings indicator may individuals who become unemployed
is discussed in more detail in the demonstrate the average economic within three months after placement,
section entitled ‘‘Proposed Data benefit of a project, the Secretary within six months after placement, and
Collection on Change in Earnings and believes it does not measure the true within nine months after placement.
Job Retention.’’ extent to which the project improved In accordance with § 379.5(b)(7),
Percent of individuals placed who are the earnings of individual participants. placement occurs after the individual
individuals with severe disabilities and The change in earnings as a result of has held the job for 90 days. The intent
percent of persons placed who have project participation is likely to be of the 90-day period is to ensure that an
been unemployed for six months prior significantly different for individuals individual is at least initially stabilized
to project entry. The Secretary proposes who were unemployed at the time of on a job. The proposed data collection
to retain these two indicators at the project entry and who came to the would require projects to track each
current minimum performance level, project for job training and placement individual for up to nine months after
which requires that 50 percent of those services than it is for individuals who placement or up to one year after the
placed into competitive employment are held a wage-earning job at the time of individual’s initial job entry. At the end
individuals with severe disabilities and project entry and who required career of the year, the project must report three
50 percent are individuals who have advancement services. The Secretary is separate figures:
Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 / Proposed Rules 34221

• The number of individuals who These proposed regulations would the PWI program regulations and would
were unable to maintain employment address the National Education Goals yield substantial benefits in terms of
during the first three-month period after that every adult American will be improved accountability and
placement (the fourth through sixth literate and will possess the knowledge performance and reduced burden. As
months of employment). and skills necessary to compete in a stated in the supplementary information
• The number of individuals who global economy and exercise the rights section of this preamble, the Secretary
were unable to maintain employment and responsibilities of citizenship. The believes the proposed regulations
during the second three-month period proposed regulations would further the reduce grantee burden by reducing the
after placement (the seventh through objectives of this Goal by ensuring that number and complexity of the
ninth month of employment). only those projects that are successful in compliance indicators and improve
• The number of individuals who making persons with disabilities part of accountability by focusing on the most
were unable to maintain employment the global economy and in allowing critical areas of project performance.
during the third three-month period them to exercise their rights as citizens The Secretary has determined that the
after placement (the tenth through to participate in the national labor potential benefits of these proposed
twelfth month of employment). market continue to receive Federal changes justify the potential costs to
For the purpose of this data funding. grantees.
collection, an individual can change
jobs and still be considered to be Executive Order 12866 2. Clarity of the Regulations
employed as long as there is no gap in 1. Potential Costs and Benefits Executive Order 12866 requires each
employment. agency to write regulations that are easy
In order to include all placements, These proposed regulations have been
to understand.
projects may have to include reviewed in accordance with Executive The Secretary invites comments on
Order 12866. Under the terms of the
individuals who were unable to how to make these proposed regulations
order the Secretary has assessed the
maintain employment during the easier to understand, including answers
potential costs and benefits of this
reporting year but who obtained to questions such as the following: (1)
regulatory action.
placements in the previous reporting The potential costs associated with Are the requirements in the proposed
year. For example, if the reporting year the proposed regulations are those regulations clearly stated? (2) Do the
is from October 1997 to September resulting from statutory requirements proposed regulations contain technical
1998, an individual who was placed in and those determined by the Secretary terms or other wording that interferes
August 1997 but left the job in to be necessary for administering this with their clarity? (3) Does the format of
December 1997 would be reported as program effectively and efficiently. the proposed regulations (grouping and
someone who was unable to maintain Burdens specifically associated with order of sections, use of headings,
employment during the second three- information collection requirements are paragraphing, etc.) aid or reduce their
month period after placement. identified and explained elsewhere in clarity? Would the proposed regulations
The Secretary does not believe this this preamble under the heading be easier to understand if they were
will be a significant burden to projects, Paperwork Reduction Act of 1995. divided into more (but shorter) sections?
since under section 621(a)(2)(E) projects In assessing the potential costs and (A ‘‘section’’ is preceded by the symbol
are required to provide, as necessary, benefits—both quantitative and ‘‘§ ’’ and a numbered heading; for
support and career advancement qualitative—of these proposed example, § 379.51 What are program
services to individuals after they are regulations, the Secretary has compliance indicators?). (4) Is the
placed. In addition, as part of the annual determined that the benefits of the description of the proposed regulations
evaluation plan, projects must provide proposed regulations justify the costs. in the ‘‘Supplementary Information’’
information on the number of project The Secretary has also determined section of this preamble helpful in
participants who were terminated from that this regulatory action does not understanding the proposed
project placements and the duration of unduly interfere with State, local, and regulations? How could this description
those placements. The Secretary thus tribal governments in the exercise of be more helpful in making the proposed
believes projects already track their governmental functions. regulations easier to understand? (5)
individuals after they are placed. To assist the Department in What else could the Department do to
The job retention indicator would be complying with the specific make the proposed regulations easier to
established after the Secretary has requirements of Executive Order 12866, understand?
collected and evaluated data for at least the Secretary invites comment on A copy of any comments that concern
three years. Once collection and whether there may be further how the Department could make these
analysis of the data are completed, the opportunities to reduce any potential proposed regulations easier to
Secretary would determine whether to costs or increase potential benefits understand should be sent to Stanley M.
establish a new indicator to measure job resulting from these proposed Cohen, Regulations Quality Officer, U.S.
retention. regulations without impeding the Department of Education, 600
Goals 2000: Educate America Act effective and efficient administration of Independence Avenue, S.W. (Room
the program. 5121, FB–10B), Washington, D.C.
The Goals 2000: Educate America Act 20202–2241.
(Goals 2000) focuses the Nation’s Summary of Potential Costs and
education reform efforts on eight Benefits Regulatory Flexibility Act Certification
National Education Goals and provides The potential costs and benefits of The Secretary certifies that these
a framework for meeting them. Goals these proposed regulations are proposed regulations would not have a
2000 promotes new partnerships to discussed elsewhere in this preamble significant economic impact on a
strengthen schools and expands the under the following headings: Overview substantial number of small entities.
Department’s capacities for helping of proposed changes, and Potential costs The small entities that would be
communities to exchange ideas and and benefits. affected by these proposed regulations
obtain information needed to achieve The Secretary believes the changes are government, nonprofit, and for-
the goals. proposed in this NPRM would improve profit organizations that receive Federal
34222 Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 / Proposed Rules

funds under this program. However, the Information and Regulatory Affairs, 3330, Mary E. Switzer Building, 330 C
regulations would not have a significant OMB, Room 10235, New Executive Street, S.W., Washington, D.C., between
economic impact on these entities Office Building, Washington, D.C. the hours of 8:30 a.m. and 4:00 p.m.,
because the regulations would not 20503; Attention: Desk Officer for the Eastern time, Monday through Friday of
impose excessive regulatory burdens or U.S. Department of Education. each week except Federal holidays.
require unnecessary Federal The Department considers comments On request, the Department supplies
supervision. These regulations would by the public on these proposed an appropriate aid, such as a reader or
impose minimal requirements to ensure collections of information in— print magnifier, to an individual with a
the proper expenditure of program • Evaluating whether the proposed disability who needs assistance to
funds. collections of information are necessary review the comments or other
for the proper performance of the documents in the public rulemaking
Paperwork Reduction Act of 1995
functions of the Department, including docket for these proposed regulations.
Sections 379.21 and 379.54 contain whether the information will have An individual with a disability who
information collection requirements. As practical utility; wants to schedule an appointment for
required by the Paperwork Reduction • Evaluating the accuracy of the this type of aid may call (202) 205–8113
Act of 1995 (44 U.S.C. 3507(d)), the Department’s estimate of the burden of or (202) 260–9895. An individual who
Department of Education has submitted the proposed collections of information, uses a TDD may call the Federal
a copy of these sections to the Office of including the validity of the Information Relay Service at 1–800–
Management and Budget (OMB) for its methodology and assumptions used; 877–8339, between 8 a.m. and 8 p.m.,
review. • Enhancing the quality, usefulness, Eastern time, Monday through Friday.
Collection of Information: Projects With and clarity of the information to be
To assist the Department in
Industry collected; and
• Minimizing the burden of the complying with the specific
These proposed regulations would collection of information on those who requirements of Executive Order 12866
affect entities eligible to apply for and are to respond, including through the and its overall requirement of reducing
receive grants under the PWI program, use of appropriate automated, regulatory burden, the Secretary invites
including for-profit and nonprofit electronic, mechanical, or other comments on whether there may be
agencies or organizations with the technological collection techniques or further opportunities to reduce any
capacity to create and expand job and other forms of information technology; regulatory burdens found in these
career opportunities for individuals e.g., permitting electronic submission of proposed regulations.
with disabilities, designated State units, responses. Assessment of Educational Impact
labor unions, employers, community OMB is required to make a decision
rehabilitation program providers, trade concerning the collections of The Secretary particularly requests
associations, and Indian tribes and tribal information contained in these comments on whether the proposed
organizations. These information proposed regulations between 30 and 60 regulations in this document would
collection requirements would affect days after publication of this document require transmission of information that
applicants for new awards and in the Federal Register. Therefore, a is being gathered by or is available from
organizations and entities already comment to OMB is best assured of any other agency or authority of the
receiving assistance under the PWI having its full effect if OMB receives it United States.
program. within 30 days of publication. This does Electronic Access to This Document
The Department needs to collect this not affect the deadline for the public to
information in order to fulfill statutory comment to the Department on the Anyone may view this document, as
requirements regarding the compliance proposed regulations. well as all other Department of
indicators (in section 621(f) of the Act). Education documents published in the
All information is to be collected and Intergovernmental Review Federal Register, in text or portable
reported once a year, with the exception This program is subject to the document format (pdf) on the World
of that which is required of all requirements of Executive Order 12372 Wide Web at either of the following
applicants for new awards in and the regulations in 34 CFR Part 79. sites:
§ 379.21(a). This section requires The objective of the Executive order is http://ocfo.ed.gov/fedreg.htm
responses from every organization or to foster an intergovernmental http://www.ed.gov/news.html
entity that applies for a new award partnership and a strengthened
under the PWI program. Annual federalism by relying on processes To use the PDF you must have the
reporting and recordkeeping burden for developed by State and local Adobe Acrobat Reader Program with
these collections of information is governments for coordination and Search, which is available free at either
estimated to average 30 hours for each review of proposed Federal financial of the previous sites. If you have
response for 105 respondents, including assistance. questions about using the pdf, call the
the time for reviewing instructions, In accordance with the order, this U.S. Government Printing Office toll
searching existing data sources, document is intended to provide early free at 1–888–293–6498.
gathering and maintaining the data notification of the Department’s specific Anyone may also view these
needed, and completing and reviewing plans and actions for this program. documents in text copy only on an
the collection of information. Thus, the electronic bulletin board of the
total annual reporting and Invitation to Comment Department. Telephone: (202) 219–1511
recordkeeping burden for these Interested persons are invited to or, toll free, 1–800–222–4922. The
collections is estimated to be 3,150 submit comments and recommendations documents are located under Option
hours. regarding these proposed regulations. G—Files/Announcements, Bulletins and
Organizations and individuals All comments submitted in response to Press Releases.
desiring to submit comments on the these proposed regulations will be Note: The official version of this document
information collection requirements available for public inspection, during is the document published in the Federal
should direct them to the Office of and after the comment period, in Room Register.
Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 / Proposed Rules 34223

List of Subjects in 34 CFR Part 379 compliance indicators established in 379.52 How is grantee performance
subpart F: measured using the compliance
Education, Grant programs— indicators?
(i) The numbers and types of
education, Grant programs—social 379.53 What are the minimum performance
individuals with disabilities served.
programs, Reporting and recordkeeping (ii) The types of services provided. levels for each compliance indicator?
requirements, Vocational rehabilitation. 379.54 What are the reporting requirements
(iii) The sources of funding.
for the compliance indicators?
Dated: February 5, 1998. (iv) The percentage of resources
Judith E. Heumann, committed to each type of service Subpart F—What Compliance Indicator
Assistant Secretary for Special Education and provided. Requirements Must a Grantee Meet to
Rehabilitative Services. (v) The extent to which the Receive Continuation Funding?
(Catalog of Federal Domestic Assistance employment status and earning power
Number 84.234 Projects With Industry) of individuals with disabilities changed § 379.50 What are the requirements for
following services. continuation funding?
The Secretary proposes to amend Part (vi) The extent of capacity building Beginning with fiscal year 1998, in
379 of Title 34 of the Code of Federal activities, including collaboration with order to receive a continuation award
Regulations as follows: business and industry and other for the third or any subsequent year of
organizations, institutions, and a PWI grant, a grantee must adhere to
PART 379—PROJECTS WITH
agencies, including the State vocational the provisions of its approved
INDUSTRY
rehabilitation unit. application and must meet the
1. The authority citation for part 379 (vii) A comparison, if appropriate, of minimum performance levels on the
continues to read as follows: activities in prior years with activities in program compliance indicators
the most recent year. contained in § 379.53.
Authority: Sections 12(c) and 621 of the
(viii) The number of project (Authority: Section 621(f)(1)of the Act; 29
Act; 29 U.S.C. 711(c) and 795(g), unless
otherwise noted. participants who were terminated from U.S.C. 795g(f)(1))
project placements and the duration of
2. Section 379.21 is revised to read as those placements; § 379.51 What are the program compliance
follows: (7) A description of the manner in indicators?
which the project will address the needs The program compliance indicators
§ 379.21 What is the content of an
of individuals with disabilities from implement program evaluation
application for an award?
minority backgrounds, as required by 34 standards, which are contained in an
(a) The grant application must include CFR 369.21; and appendix to this part, by establishing
a description of— (8) A description of how career minimum performance levels in
(1) The proposed job training to advancement services will be provided essential project areas to measure the
prepare project participants for specific to project participants. effectiveness of individual grantees.
jobs in the competitive labor market for (b) The grant application also must (Authority: Sections 621(d)(1) and 621(f)(1)
which there is a need in the geographic include assurances from the applicant of the Act; 29 U.S.C. 795g(d)(1) and
area to be served by the project, as that— 795g(f)(1))
identified by an existing current labor (1) The project will carry out all
market analysis or other needs activities required by § 379.10; § 379.52 How is grantee performance
assessment or one conducted by the (2) Individuals with disabilities who measured using the compliance indicators?
applicant in collaboration with private are placed by the project will receive (a) Each compliance indicator
industry; compensation at or above the minimum establishes a minimum performance
(2) The involvement of private wage, but not less than the customary or level.
industry in the design of the proposed usual wage paid by the employer for the (b) If a grantee does not achieve the
project and the manner in which the same or similar work performed by minimum performance level for a
project will collaborate with private individuals who are not disabled; compliance indicator, the grantee does
industry in planning, implementing, (3) Individuals with disabilities who not pass the compliance indicator.
and evaluating job training, job are placed by the project will be given (c) A grantee must pass all the
terms and benefits of employment equal compliance indicators to meet the
placement, and career advancement
to those that are given to similarly evaluation standards and qualify for
activities;
situated co-workers and will not be continuation funding.
(3) The responsibilities of the BAC
and how it will interact with the project segregated from their co-workers; and (Authority: Section 621(f)(1) of the Act; 29
in carrying out grant activities; (4) The project will maintain any U.S.C. 795g(f)(1))
(4) The justification of the project’s records required by the Secretary and § 379.53 What are the minimum
proposed cost per placement, including make those records available for performance levels for each compliance
factors such as the project’s objectives, monitoring and audit purposes. indicator?
types of services, target population, and (Authority: Sections 621(a)(4), 621(a)(5), (a) Placement rate. A minimum of 55
service area; 621(b), and 621(e)(1)(B) of the Act; 29 U.S.C. percent of individuals served by the
(5) The geographic area to be served 795g(a)(4), 795g(a)(5), 795g(b), and
project are placed into competitive
795g(e)(1)(B))
by the project, including an explanation employment.
of how the area is currently unserved or 3. Subpart F of Part 379 is revised to (b) Change in earnings. (1) For
underserved by the PWI program; read as follows: projects in which at least 75 percent of
(6) A plan for evaluating annually the Subpart F—What Compliance Indicator individuals placed are placed into
operation of the proposed project, Requirements Must a Grantee Meet to supported employment, as defined in 34
which, at a minimum, provides for Receive Continuation Funding? CFR 361.5(b)(45) and (46), the earnings
collecting and submitting to the 379.50 What are the requirements for of individuals placed by the project
Secretary the following information and continuation funding? increase by an average of at least
any additional data needed to determine 379.51 What are the program compliance $100.00 a week over earnings at the time
compliance with the program indicators? of project entry.
34224 Federal Register / Vol. 63, No. 120 / Tuesday, June 23, 1998 / Proposed Rules

(2) For projects in which at least 75 unemployed for at least six months at a grantee has failed to achieve the
percent of individuals placed into the time of project entry. minimum performance required in
competitive employment are students (e) Cost per placement. The actual § 379.53 to meet the program
enrolled in secondary schools working average cost per placement does not compliance indicators, the grantee may,
fewer than 30 hours per week, the exceed 110 percent of the projected at its option, submit data from the first
earnings of individuals placed by the average cost per placement in the 6 months of the current project year no
project increase by an average of at least grantee’s application. later than 60 days after the end of that
$100.00 a week over earnings at the time (Authority: Section 621(f)(1) of the Act; 29 6-month period, unless the Secretary
of project entry. U.S.C. 795g(f)(1)) authorizes a later submission date, to
(3) For all projects not covered under demonstrate that its project performance
§ 379.54 What are the reporting has improved sufficiently to meet the
§ 379.53(b)(1) or (2), the earnings of requirements for the compliance
individuals who are placed into minimum performance levels for all
indicators? compliance indicators.
competitive employment by the project
increase by an average of at least (a) In order to receive continuation (Authority: Section 621(f)(2) of the Act; 29
$150.00 a week over earnings at the time funding for the third or any subsequent U.S.C. 795g(f)(2))
of project entry. year of a PWI grant, each grantee must
Note: A grantee receives its second year of
submit data for the most recent
(c) Percent placed who have severe funding (or the first continuation award)
complete project year no later than 60 under this program before data from the first
disabilities. At least 50 percent of days after the end of that project year, complete project year is available. Data from
individuals who are placed into unless the Secretary authorizes a later the first project year, however, must be
competitive employment are submission date, in order for the submitted and is used (unless the grantee
individuals with severe disabilities. Secretary to determine if the grantee has exercises the option in paragraph (b) of this
(d) Percent placed who were met the program compliance indicators section) to determine eligibility for the third
previously unemployed. At least 50 established in this Subpart F. year of funding (or the second continuation
percent of individuals who are placed (b) If the data for the most recent award).
into competitive employment are complete project year provided under [FR Doc. 98–16590 Filed 6–22–98; 8:45 am]
individuals who were continuously paragraph (a) of this section shows that BILLING CODE 4000–01–P