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6342 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations§ 361.14 Substitute State agency.(a) General provisions. (1) If theSecretary has withheld all funding froma State under § 361.11, the State maydesignate another agency to substitutefor the designated State agency incarrying out the State’s program ofvocational rehabilitation services.(2) Any public or nonprofit privateorganization or agency within the Stateor any political subdivision of the Stateis eligible to be a substitute agency.(3) The substitute agency shall submita State plan that meets the requirementsof this part.(4) The Secretary makes no grant to asubstitute agency until the Secretaryapproves its plan.(b) Substitute agency matching share.The Secretary does not make anypayment to a substitute agency unless ithas provided assurances that it willcontribute the same matching share asthe State would have been required tocontribute if the State agency werecarrying out the vocationalrehabilitation program.(Approved by the Office of Management andBudget under control number 1820–0500.)(Authority: Sec. 107(c)(3) of the Act; 29U.S.C. 727(c)(3))§ 361.15 Local administration.(a) If the State plan provides for localadministration, it must—(1) Identify each local agency;(2) Assure that each local agency isunder the supervision of the designatedState unit and is the sole local agencyas defined in § 361.5(b)(41) that isresponsible for the administration of theprogram within the political subdivisionthat it serves; and(3) Describe the methods each localagency will use to administer thevocational rehabilitation program, inaccordance with the State plan.(b) A separate local agency servingindividuals who are blind mayadminister that part of the plan relatingto vocational rehabilitation ofindividuals who are blind, under thesupervision of the designated State unitfor individuals who are blind.(Approved by the Office of Management andBudget under control number 1820–0500.)(Authority: Sec. 7(9) and 101(a)(1)(A) of theAct; 29 U.S.C. 706(9) and 721(a)(1)(A))§ 361.16 Establishment of an independentcommission or a State RehabilitationAdvisory Council.(a) General requirement. Except asprovided in paragraph (b) of thissection, the State plan must contain oneof the following two assurances:(1) An assurance that the State agencyis an independent State commissionthat—(i) Is primarily concerned withvocational rehabilitation or vocationaland other rehabilitation services, inaccordance with § 361.13(a)(1)(i);(ii) Is consumer-controlled by personswho—(A) Are individuals with physical ormental impairments that substantiallylimit major life activities; and(B) Represent individuals with abroad range of disabilities;(iii) Includes individuals representingfamily members, advocates, andauthorized representatives ofindividuals with mental impairments;and(iv) Conducts a review and analysis ofthe effectiveness of and consumersatisfaction with vocationalrehabilitation services and providers inthe State, in accordance with theprovisions in § 361.17(h)(3).(2) An assurance that—(i) The State has established a StateRehabilitation Advisory Council(Council) that meets the requirements of§ 361.17;(ii) The designated State unit seeksand seriously considers, on a regularand ongoing basis, advice from theCouncil regarding the development,implementation, and amendment of theState plan, the strategic plan, and otherpolicies and procedures of generalapplicability pertaining to the provisionof vocational rehabilitation services inthe State;(iii) The designated State unittransmits to the Council—(A) All plans, reports, and otherinformation required under the Act tobe submitted to the Secretary;(B) Copies of all written policies,practices, and procedures of generalapplicability provided to or used byrehabilitation personnel; and(C) Copies of due process hearingdecisions in a manner that preserves theconfidentiality of the participants in thehearings; and(iv) The State plan summarizesannually the advice provided by theCouncil, including recommendationsfrom the annual report of the Council,the survey of consumer satisfaction, andother reports prepared by the Council,and the State agency’s response to theadvice and recommendations, includingthe manner in which the State willmodify its policies and proceduresbased on the survey of consumersatisfaction and explanations of reasonsfor rejecting any advice orrecommendations of the Council.(b) Exception for separate Stateagency for individuals who are blind. Inthe ase of a State that designates aseparate State agency, under§ 361.13(a)(3), to administer the part ofthe State plan under which vocationalrehabilitation services are provided toindividuals who are blind, the Stateplan must contain one of the followingfour assurances:(1) An assurance that an independentcommission in accordance withparagraph (a)(1) of this section isresponsible under State law foroperating or overseeing the operation ofthe vocational rehabilitation program ofboth the State agency that administersthe part of the State plan under whichvocational rehabilitation services areprovided to individuals who are blindand the State agency that administersthe remainder of the State plan.(2) An assurance that—(i) An independent commission thatis consumer-controlled by, andrepresents the interests of, individualswho are blind and conducts a reviewand analysis of the effectiveness of andconsumer satisfaction with vocationalrehabilitation services and providers, inaccordance with the provisions of§ 361.17(h)(3), is responsible underState law for operating, or overseeingthe operation of, the vocationalrehabilitation program in the State forindividuals who are blind; and(ii) An independent commission thatis consumer-controlled in accordancewith paragraph (a)(1)(i) of this sectionand conducts a review and analysis ofthe effectiveness of and consumersatisfaction with vocationalrehabilitation services and providers, inaccordance with § 361.17(h)(3), isresponsible under State law foroperating, or overseeing the operationof, the vocational rehabilitation programin the State for all individuals withdisabilities, except individuals who areblind.(3) An assurance that—(i) An independent commission thatis consumer-controlled by, andrepresents the interests of, individualswho are blind and that conducts areview and analysis of the effectivenessof and consumer satisfaction withvocational rehabilitation services andproviders, in accordance with§ 361.17(h)(3), is responsible underState law for operating, or overseeingthe operation of, the vocationalrehabilitation program in the State forindividuals who are blind; and(ii) The State has established a StateRehabilitation Advisory Council thatmeets the criteria in § 361.17 and carriesout the duties of a Council with respectto functions for, and services providedto, individuals with disabilities, exceptfor individuals who are blind.(4) An assurance that—(i) An independent commission thatis consumer-controlled in accordance