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Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations6321conjunction with the development ofthe State plan.Section 101(a)(9)(D) of the Actrequires that the State agency annuallyprovide to the Secretary an analysis ofthe characteristics of those individualsdetermined to be ineligible for VRservices and the reasons for theineligibility determinations. Thisrequirement, however, wasmischaracterized in the proposedregulations as a statewide studycomponent and should have beenidentified as an annual reportingrequirement to be submitted in the Stateplan.The Secretary agrees that theproposed annual evaluationrequirement related to the State’sachievement of the objectives in itsstrategic plan is duplicative of therequirements in § 361.72(e) and that therequirement should be deleted fromparagraph (b) of this section.In recognition of the paperworkburden associated with includingsummaries or copies of the statewidestudies and annual evaluations asattachments to the State plan, theSecretary intends to require only thatDSUs maintain copies of the studies andevaluations and provide copies to theSecretary upon request. Copies of thestudies and evaluations, however,should be provided to the StateRehabilitation Advisory Council so thatthe Council can meaningfully fulfill itsadvisory role in connection with thedevelopment of those documents as isrequired under section 105(c) of the Act.Additionally, although this programreporting requirement has been revised,the Secretary notes that, pursuant tosection 635 of the Act, State agenciesshall submit as part of the supportedemployment supplement to their Stateplan a summary of the results of thecomprehensive, statewide assessmenton the rehabilitation and career needs ofindividuals with severe disabilities andthe need for supported employmentservices.Changes: The Secretary has amended§ 361.29 to clarify that each mandatoryassessment and review identified inparagraph (a) as part of the DSU’scontinuing statewide studies must beconducted triennially in conjunctionwith the development of the State plan.In addition, paragraph (a)(3) of thissection of the proposed regulations(annual analysis of ineligibleindividuals and ineligibilitydeterminations) has been changed to areporting requirement in the State planand relocated to paragraph (c)(3) in thefinal regulations. The Secretary also hasdeleted the analysis of the State’sprogress in achieving the objectives inthe strategic plan from the annualevaluation requirements in paragraph(b) of this section. Finally, the Secretaryhas revised paragraph (c)(3) of thissection to require that the DSU maintaincopies of its statewide studies andannual evaluations and make thosecopies available upon the request of theSecretary. This provision has beenrelocated to paragraph (c)(4) in the finalregulations.§ 361.33 Use, assessment, and supportof community rehabilitation programsComments: Some commentersopposed the requirement that vocationalrehabilitation services received throughcommunity rehabilitation programsmust be provided in the most integratedsettings possible. Other commentersrequested that this section be revised torequire the development of a plan forimproving existing communityrehabilitation programs.Discussion: Section 102(b)(1)(B) of theAct requires that vocationalrehabilitation services, including thoseprovided by community rehabilitationprograms, be provided in the mostintegrated settings possible. Thus, thestandard of integration specified in thissection is consistent with the Act andwith other sections of the regulationsgoverning the provision of services.The Secretary recognizes that theproposed regulations did not adequatelyaddress each statutory requirement insection 101(a) of the Act related tocommunity rehabilitation programs.Consequently, the Secretary believesthat this section of the final regulationsshould be reorganized, revised, andretitled in an effort to more accuratelyreflect all of these statutoryrequirements, including the requirementthat DSUs develop plans for improvingexisting programs.In addition, the Secretary believesthat DSUs should be required todescribe in the State plan the need touse Federal funds in support of new orexisting community rehabilitationprograms in light of recent programaudit findings indicating that someStates have used Federal funds receivedunder the authority for establishing,developing, or improving communityrehabilitation programs for purposesother than providing VR services toapplicants and eligible individuals. Anypaperwork burden or cost associatedwith this description, the Secretarybelieves, is significantly outweighed bythe need to ensure that program fundsused to support communityrehabilitation programs are properlyexpended.Changes: The Secretary has revised§ 361.33 to require that the State plancontain plans for improving existingcommunity rehabilitation programs. Inaddition, the Secretary has revised thissection to require States to describe inthe State plan the need to establish,develop, or improve, as appropriate, acommunity rehabilitation program toprovide VR services to applicants andeligible individuals. This requirement isconsistent with revisions made to thedefinition of ‘‘establishment,development, or improvement of apublic or nonprofit communityrehabilitation program’’ in § 361.5(b)(16)to clarify that Federal support ofcommunity rehabilitation programs islimited to the provision of services toapplicants and eligible individualsunder the VR program. Finally, thissection has been retitled ‘‘use,assessment, and support of communityrehabilitation programs’’ and has beenreorganized to reflect these three typesof requirements.§ 361.34 Supported employment planComments: One commenter opposedthe requirement in the proposedregulations that the DSU submit annualrevisions to its supported employmentplan as a supplement to its State plan.Discussion: The Secretary does notintend to require DSUs to annuallyrevise each provision of its supportedemployment plan and submit thoserevisions to RSA every year. Section635(a) of the Act requires that each Statesubmit a State plan supplement forproviding supported employmentservices and ‘‘annual revisions [to] theplan supplement as may be necessary.’’Pursuant to section 635(b)(3) of the Act,however, RSA requires that each yearthe DSU explain how it will expend itsannual allotment of supportedemployment funds received undersection 632 of the Act. Thus, at aminimum, the DSU is required tosubmit an annual revision to its Stateplan attachment that describes its plansfor distributing section 632 funds forpurposes of providing supportedemployment services to individualswith the most severe disabilities. Inaddition, the State unit shall provide, onan annual basis, any revisions to itssupported employment plan that arenecessary to reflect correspondingchanges in State policies or practicesregarding the provision of supportedemployment services.Changes: The Secretary has revised§ 361.34(b) to clarify that the DSU isrequired to submit ‘‘any needed’’ annualrevisions to its supported employmentplan.