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6340 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulationspromote or facilitate theaccomplishment of long-termrehabilitation goals and intermediaterehabilitation objectives identified inthe student’s IWRP.(Authority: Section 7(35) and 103(a)(14) ofthe Act; 29 U.S.C. 706(35) and 723(a)(14))(48) Transitional employment, as usedin the definition of ‘‘Supportedemployment,’’ means a series oftemporary job placements incompetitive work in integrated settingswith ongoing support services forindividuals with the most severedisabilities due to mental illness. Intransitional employment, the provisionof ongoing support services mustinclude continuing sequential jobplacements until job permanency isachieved.(Authority: Secs. 7(18) and 12(c) of the Act;29 U.S.C. 706(18) and 711(c))(49) Transportation means travel andrelated expenses that are necessary toenable an applicant or eligibleindividual to participate in a vocationalrehabilitation service.(Authority: Secs. 12(c) and 103(a)(10) of theAct; 29 U.S.C. 711(c) and 723(a)(10))Note: The following are examples ofexpenses that would meet the definition oftransportation. The examples are purelyillustrative, do not address all possiblecircumstances, and are not intended tosubstitute for individual counselorjudgement.Example: Travel and related expenses fora personal care attendant or aide if theservices of that person are necessary toenable the applicant or eligible individual totravel to participate in any vocationalrehabilitation service.Example: Short-term travel-relatedexpenses, such as food and shelter, incurredby an applicant participating in evaluation orassessment services that necessitates travel.Example: Relocation expenses incurred byan eligible individual in connection with ajob placement that is a significant distancefrom the eligible individual’s currentresidence.Example: The purchase and repair ofvehicles, including vans, but not themodification of these vehicles, asmodification would be considered arehabilitation technology service.(50) Vocational rehabilitationservices—(i) If provided to an individual, meansthose services listed in § 361.48; and(ii) If provided for the benefit ofgroups of individuals, also means thoseservices listed in § 361.49.(Authority: Sec. 103 (a) and (b) of the Act; 29U.S.C. 723 (a) and (b))Subpart B—State Plan for VocationalRehabilitation Services§ 361.10 Submission, approval, anddisapproval of the State plan.(a) Purpose. In order for a State toreceive a grant under this part, thedesignated State agency shall submit tothe Secretary, and obtain approval of, aState plan that contains a description ofthe State’s vocational rehabilitationservices program, the plans and policiesto be followed in carrying out theprogram, and other informationrequested by the Secretary, inaccordance with the requirements ofthis part.(b) Separate part relating torehabilitation of individuals who areblind. If a separate State agencyadministers or supervises theadministration of a separate part of theState plan relating to the rehabilitationof individuals who are blind, that partof the State plan must separatelyconform to all requirements under thispart that are applicable to a State plan.(c) Consolidated rehabilitation plan.The State may choose to submit aconsolidated rehabilitation plan thatincludes the State plan for vocationalrehabilitation services and the State’splan for its program for persons withdevelopmental disabilities. The Stateplanning and advisory council fordevelopmental disabilities and theagency administering the State’sprogram for persons withdevelopmental disabilities must concurin the submission of a consolidatedrehabilitation plan. A consolidatedrehabilitation plan must comply with,and be administered in accordancewith, the Act and the DevelopmentalDisabilities Assistance and Bill of RightsAct, as amended.(d) Public participation. The Stateshall develop the State plan with inputfrom the public, through publicmeetings, in accordance with therequirements of § 361.20.(e) Duration. The State plan mustcover a multi-year period to bedetermined by the Secretary.(f) Submission of the State plan. TheState shall submit the State plan to theSecretary for approval—(1) No later than July 1 of the yearpreceding the first fiscal year for whichthe State plan is submitted; or(2) With the prior approval of theSecretary, no later than the date onwhich the State is required to submit aState plan under another Federal law.(g) Revisions to the State plan. TheState shall submit to the Secretary forapproval revisions to the State plan inaccordance with the requirements ofthis part and 34 CFR 76.140.(h) Approval. The Secretary approvesa State plan and revisions to the Stateplan that conform to the requirements ofthis part and section 101(a) of the Act.(i) Disapproval. The Secretarydisapproves a State plan that does notconform to the requirements of this partand section 101(a) of the Act, inaccordance with the followingprocedures:(1) Informal resolution. Prior todisapproving a State plan, the Secretaryattempts to resolve disputes informallywith State officials.(2) Notice. If, after reasonable efforthas been made to resolve the dispute, noresolution has been reached, theSecretary provides notice to the Stateagency of the intention to disapprovethe State plan and of the opportunity fora hearing.(3) State plan hearing. If the Stateagency requests a hearing, the Secretarydesignates one or more individuals,either from the Department orelsewhere, not responsible for orconnected with the administration ofthis program, to conduct a hearing inaccordance with the provisions of 34CFR Part 81, Subpart A.(4) Initial decision. The hearing officerissues an initial decision in accordancewith 34 CFR 81.41.(5) Petition for review of an initialdecision. The State agency may seek theSecretary’s review of the initial decisionin accordance with 34 CFR part 81.(6) Review by the Secretary. TheSecretary reviews the initial decision inaccordance with 34 CFR 81.43.(7) Final decision of the Department.The final decision of the Department ismade in accordance with 34 CFR 81.44.(8) Judicial review. A State mayappeal the Secretary’s decision todisapprove the State plan by filing apetition for review with the UnitedStates Court of Appeals for the circuit inwhich the State is located, inaccordance with section 107(d) of theAct.(Approved by the <strong>Office</strong> of Management andBudget under control number 1820–0500.(Authority: Sec. 6, 101 (a) and (b), and 107(d)of the Act; 20 U.S.C. 1231g(a); and 29 U.S.C.705, 721 (a) and (b), and 727(d))§ 361.11 Withholding of funds.(a) Basis for withholding. TheSecretary may withhold or limitpayments under sections 111, 124, or632(a) of the Act, as provided by section107 (c) and (d) of the Act, if theSecretary determines that—(1) The State plan, including thesupported employment supplement, hasbeen so changed that it no longerconforms with the requirements of thispart or 34 CFR part 363; or

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