Att_SE regulationsPart363

PART 363—THE STATE SUPPORTED EMPLOYMENT SERVICES PROGRAM

Table of Contents
Subpart A—General ...................................................................................................................................... 1
§ 363.1 What is the State Supported Employment Services Program? ....................................................... 1
§ 363.2 Who is eligible for an award? ........................................................................................................... 1
§ 363.3 Who is eligible for services? ............................................................................................................ 1
§ 363.4 What are the authorized activities under a State Supported Employment Services grant? ............ 1
§ 363.5 What regulations apply? .................................................................................................................. 2
§ 363.6 What definitions apply? .................................................................................................................... 2
Subpart B—How Does a State Apply for a Grant? ....................................................................................... 4
§ 363.10 What documents must a State submit to receive a grant? ............................................................ 4
§ 363.11 What information and assurances must be included in the State plan supplement? .................... 4
Subpart C—How Does the Secretary Make a Grant? .................................................................................. 5
§ 363.20 How does the Secretary allocate funds? ....................................................................................... 5
§ 363.21 How does the Secretary reallocate funds? .................................................................................... 5
Subparts D–E [Reserved] ............................................................................................................................. 5
Subpart F—What Post-Award Conditions Must Be Met by a State? ............................................................ 5
§ 363.50 What collaborative agreements must the State develop? ............................................................. 5
§ 363.51 What are the allowable administrative costs? ................................................................................ 5
§ 363.52 What are the information collection and reporting requirements? ................................................. 6
§ 363.53 What special conditions apply to services and activities under this program? .............................. 6
§ 363.54 What requirements must a State meet before it provides for the transition of an individual to
extended services? ....................................................................................................................................... 6
§ 363.55 What are the requirements for successfully rehabilitating an individual in supported
employment? ................................................................................................................................................. 6
§ 363.56 What notice requirements apply to this program? ......................................................................... 6

SOURCE: 59 FR 8331, Feb. 18, 1993, unless
otherwise noted.

PART 363—THE STATE
SUPPORTED EMPLOYMENT
SERVICES PROGRAM

Subpart A—General
Subpart A—General
Sec.
363.1 What is the State Supported Employment
Services Program?
363.2 Who is eligible for an award?
363.3 Who is eligible for services?
363.4 What are the authorized activities under a
State Supported Employment Services grant?
363.5 What regulations apply?
363.6 What definitions apply?

§ 363.1 What is the State Supported
Employment Services Program?
Under the State Supported Employment
Services Program, the Secretary provides grants
to assist States in developing and implementing
collaborative programs with appropriate entities
to provide programs of supported employment
services for individuals with the most severe
disabilities who require supported employment
services to enter or retain competitive
employment.
(Authority: 29 U.S.C. 795j)

Subpart B—How Does a State Apply for a
Grant?
363.10 What documents must a State submit to
receive a grant?
363.11 What information and assurances must
be included in the State plan supplement?

§ 363.2 Who is eligible for an award?
Any State is eligible for an award under this
program.
(Authority: 29 U.S.C. 795n)

Subpart C—How Does the Secretary Make a
Grant?

§ 363.3 Who is eligible for services?
A State may provide services under this
program to any individual if—
(a) The individual has been determined
eligible for vocational rehabilitation services in
accordance with the criteria in section 102(a)(1)
of the Act;
(b) The individual has been determined to be
an individual with the most severe disabilities;
and
(c) Supported employment has been identified
as the appropriate rehabilitation objective for the
individual on the basis of a comprehensive
assessment of rehabilitation needs, including an
evaluation of rehabilitation, career, and job
needs.
(Authority: 29 U.S.C. 795m)

363.20 How does the Secretary allocate funds?
363.21 How does the Secretary reallocate
funds?
Subparts D–E [Reserved]
Subpart F—What Post-Award Conditions
Must Be Met by a State?
363.50 What collaborative agreements must the
State develop?
363.51 What are the allowable administrative
costs?
363.52 What are the information collection and
reporting requirements?
363.53 What special conditions apply to services
and activities under this program?
363.54 What requirements must a State meet
before it provides for the transition of an
individual to extended services?
363.55 What are the requirements for
successfully rehabilitating an individual in
supported employment?
363.56 What notice requirements apply to this
program?
AUTHORITY: 29 U.S.C. 795j–q, unless
otherwise noted.

§ 363.4 What are the authorized
activities under a State Supported
Employment Services grant?
Under this program, the following activities are
authorized:
(a) Any particularized assessment that is
needed to supplement the comprehensive
assessment of rehabilitation needs done under
34 CFR part 361 and that is provided
subsequent to the development of the

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individualized written rehabilitation program. The
supplementary assessment may be provided
in circumstances such as the following:
(1) A reassessment of the suitability of the
placement is warranted.
(2) There is a change in the individual’s
medical condition.
(b) Development of and placement in jobs for
individuals with the most severe disabilities.
(c) Provision of supported employment
services that are needed to support individuals
with the most severe disabilities in employment,
such as—
(1) Intensive on-the-job skills training and
other training provided by skilled job trainers, coworkers, and other qualified individuals, and
other services specified in section 103(a) of the
Act in order to achieve and maintain job stability;
(2) Follow-up services, including regular
contact with employers, trainees with the most
severe disabilities, parents, guardians or other
representatives of trainees, and other suitable
professional and informed advisors in order to
reinforce and stabilize the job placement; and
(3) Discrete post-employment services
following transition that are unavailable from an
extended services provider and that are
necessary to maintain the job placement, such
as job station redesign, repair and maintenance
of assistive technology, and replacement of
prosthetic and orthotic devices.
(Authority: 29 U.S.C. 795l)

and Governmentwide Requirements for DrugFree Workplace (Grants)).
(8) 34 CFR part 86 (Drug-Free Schools and
Campuses).
(b) The regulations in this part 363.
(c) The following regulations in 34 CFR part
361 (The State Vocational Rehabilitation
Services Program):
§§ 361.31; 361.32; 361.33; 361.34; 361.35;
361.39; 361.40; 361.41; 361.42; 361.47(a);
361.48; and 361.49.
NOTE: Many of the regulatory provisions
cross-referenced in § 363.5(c) are affected by
statutory changes made by the Rehabilitation
Act Amendments of 1992. If these provisions
conflict with statutory language, they are
superseded by the statutory language.
Program regulations for part 361 are being
amended to implement statutory changes.
When final regulations for part 361 are
published, these cross-references will be
corrected, if necessary.
(Authority: 29 U.S.C. 795j and 711(c))

§ 363.6 What definitions apply?
(a) Definitions in 34 CFR part 361. The
following terms used in this part are defined in
34 CFR 369.4(b):
Act
Designated State unit
Individual with disabilities
Individual with severe disabilities
State plan
(b) Definitions in EDGAR. The following terms
used in this part are defined in 34 CFR 77.1:
Fiscal Year
Nonprofit
Private Secretary
State
(c) Other definitions. The following definitions
also apply to this part:
(1) Supported employment means—
(i) Competitive employment in an integrated
setting with ongoing support services for
individuals with the most severe disabilities—
(A) For whom competitive employment has
not traditionally occurred or for whom
competitive employment has been interrupted or
intermittent as a result of a severe disability; and
(B) Who, because of the nature and severity
of their disabilities, need intensive supported
employment services from the designated State
unit and extended services after transition in
order to perform this work; or

§ 363.5 What regulations apply?
The following regulations apply to the State
Supported Employment Services Program:
(a) The Education Department General
Administrative Regulations (EDGAR) as follows:
(1) 34 CFR part 76 (State-Administered
Programs).
(2) 34 CFR part 77 (Definitions that Apply to
Department Regulations).
(3) 34 CFR part 79 (Intergovernmental Review
of Department of Education Programs and
Activities).
(4) 34 CFR part 80 (Uniform Administrative
Requirements for Grants and Cooperative
Agreements to State and Local Governments).
(5) 34 CFR part 81 (General Education
Provisions Act—Enforcement).
(6) 34 CFR part 82 (New Restrictions on
Lobbying).
(7) 34 CFR part 85 (Governmentwide
Debarment and Suspension (Nonprocurement)

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(ii) Transitional employment for individuals
with the most severe disabilities due to mental
illness.
(2) As used in the definition of ‘‘Supported
employment’’—
(i) Competitive employment means work—
(A) In the competitive labor market that is
performed on a full-time or part-time basis in an
integrated setting; and
(B) For which an individual is compensated 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.
(ii) Integrated setting means a setting typically
found in the community in which an individual
with the most severe disabilities interacts with
non-disabled individuals, other than nondisabled individuals who are providing services
to that individual, to the same extent that nondisabled individuals in comparable positions
interact with other persons.
(iii) Supported employment services means
on-going support services provided by the
designated State unit with funds under this
part—
(A) For a period not to exceed 18 months,
unless under special circumstances a longer
period to achieve job stabilization has been
jointly agreed to by the individual and the
rehabilitation counselor and established
in the individualized written rehabilitation
program, before an individual with the most
severe disabilities makes the transition to
extended services; and
(B) As discrete post-employment services
following transition in accordance with
§363.4(c)(3);
(iv) Extended services means on-going
support services and other appropriate services
provided by a State agency, a private nonprofit
organization, employer, or any other appropriate
resource, from funds other than funds received
under this part, part 381, part 376, or part 380,
after an individual with the most severe
disabilities has made the transition from State
vocational rehabilitation agency support; and
(v) Transitional employment means a series of
temporary job placements in competitive work in
an integrated work setting with on-going support
services for individuals with the most severe
disabilities due to mental illness. In transitional
employment, the provision of on-going support
services must include continuing sequential job
placements until job permanency is achieved.

(3) On-going support services means services
that are—
(i) Needed to support and maintain an
individual with the most severe disabilities in
supported employment;
(ii) Based on a determination by the
designated State unit of the individual’s needs
as specified in an individualized written
rehabilitation program; and
(iii) Furnished by the designated State unit
from the time of job placement until transition to
extended services, except as provided in
§363.4(c)(3) and, following transition, by one or
more extended services providers throughout
the individual’s term of employment in a
particular job placement or multiple placements
if those placements are being provided under a
program of transitional employment. On-going
support services must include, at a minimum,
twice-monthly monitoring at the work site of
each individual in supported employment to
assess employment stability, unless under
special circumstances, especially at the request
of the individual, the individualized written
rehabilitation program provides for off-site
monitoring, and, based upon that assessment,
the coordination or provision of specific services
at or away from the work site, that are needed to
maintain employment stability. If off-site
monitoring is determined to be appropriate, it
must, at a minimum, consist of two meetings
with the individual and one contact with the
employer each month. Ongoing support services
consist of—
(A) Any particularized assessment needed to
supplement the comprehensive assessment of
rehabilitation needs;
(B) The provision of skilled job trainers who
accompany the individual for intensive job skill
training at the work site;
(C) Job development and placement;
(D) Social skills training;
(E) Regular observation or supervision of the
individual;
(F) Follow-up services such as regular contact
with the employers, the individuals, the parents,
family members, guardians, advocates or
authorized representatives of the individuals,
and other suitable professional and informed
advisors, in order to reinforce and stabilize the
job placement;
(G) Facilitation of natural supports at the
worksite;
(H) Any other service identified in the scope of
rehabilitation services described in 34 CFR part
361; and

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(I) Any service similar to the foregoing
services.
(Authority: 29 U.S.C. 706(18), 711(c), and 795j)
[59 FR 8331, Feb. 18, 1993, as amended at 62
FR 6363, Feb. 11, 1997]

(1) Other State agencies and other appropriate
entities to assist in the provision of supported
employment services; and
(2) Other public or non-profit agencies or
organizations within the State, employers,
natural supports, and other entities with respect
to the provision of extended services.
(f) Minority outreach. Describe the designated
State unit’s outreach procedures for identifying
and serving individuals with the most severe
disabilities who are minorities.
(g) Assurances. Provide assurances that—
(1) Funds made available under this part will
only be used to provide supported employment
services authorized under the Act to individuals
who are eligible under this part to receive the
services;
(2) The comprehensive assessments of
individuals with severe disabilities conducted
under section 102(b)(1)(A) and funded under
title I of the Act will include consideration of
supported employment as an appropriate
rehabilitation objective;
(3) An individualized written rehabilitation
program, as required by section 102 of the Act,
will be developed and updated, using funds
under title I, that—
(i) Specifies the supported employment
services to be provided to each individual served
under this program, including a description of
the expected extended services needed, which
may include natural supports, and an
identification of the State, Federal, or private
programs or other resources that will provide the
extended services, including a description of the
basis for determining that extended services are
available, or to the extent that it is not possible
to identify the source of extended services at the
time the individualized written rehabilitation
program is developed, a statement describing
the basis for concluding that there is a
reasonable expectation that sources will become
available;
(ii) Provides for periodic monitoring to ensure
that each individual with severe disabilities is
making satisfactory progress toward meeting the
weekly work requirement established in the
individualized written rehabilitation program by
the time of transition to extended services;
(4) The State will use funds provided under
this part only to supplement, and not supplant,
the funds provided under title I of the Act, in
providing supported employment services
specified in the individualized written
rehabilitation program;

Subpart B—How Does a State
Apply for a Grant?
§ 363.10 What documents must a
State submit to receive a grant?
To receive a grant under this part, a State must
submit to the Secretary, as part of the State plan
under 34 CFR part 361, a State plan supplement
that meets the requirements of § 363.11.
(Authority: 29 U.S.C. 795n)

§ 363.11 What information and
assurances must be included in the
State plan supplement?
Each State plan supplement must include the
following:
(a) Designated State agency. Designate the
State unit or units for vocational rehabilitation
services identified in the State plan submitted
under 34 CFR part 361 as the State agency or
agencies to administer this program.
(b) Results of needs assessment. Summarize
the results of the needs assessment of
individuals with severe disabilities conducted
under title I of the Act with respect to the
rehabilitation and career needs of individuals
with severe disabilities and the need for
supported employment services. The results of
the needs assessment must address the
coordination and use of information within the
State relating to section 618(b)(1)(c) of the
Individuals with Disabilities Education Act.
(c) Quality, scope, and extent of services.
Describe the quality, scope, and extent of
supported employment services to be provided
to individuals with the most severe disabilities
under this program. The description must
address the timing of the transition to extended
services referred to in § 363.50(b)(2).
(d) Distribution of funds. Describe the State’s
goals and plans with respect to the distribution
of funds received under § 363.20.
(e) Collaboration. Demonstrate evidence of the
efforts of the designated State unit to identify
and make arrangements, including entering into
cooperative agreements, with—

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(5) Services provided under an individualized
written rehabilitation program will be coordinated
with services provided under other individualized
plans established under other Federal or State
programs;
(6) To the extent job skills training is provided,
the training will be provided on-site;
(7) Supported employment services will
include placement in an integrated setting for the
maximum number of hours possible based on
the unique strengths, resources, interests,
concerns, abilities, and capabilities of individuals
with the most severe disabilities;
(8) The designated State agency or agencies
will expend no more than 5 percent of the
State’s allotment under this part for
administrative costs of carrying out this program;
and
(9) The public participation requirements of
section 101(a)(23) are met.
(h) Other information. Contain any other
information and be submitted in the form and in
accordance with the procedures that the
Secretary may require.
(Approved by the Office of Management and
Budget under control number 1820–0500)
(Authority: 29 U.S.C. 795n)

Subpart F—What Post-Award
Conditions Must Be Met by a
State?
§ 363.50 What collaborative
agreements must the State develop?
(a) A designated State unit must enter into one
or more written cooperative agreements or
memoranda of understanding with other
appropriate State agencies, private nonprofit
organizations, and other available funding
sources to ensure collaboration in a plan to
provide supported employment services and
extended services to individuals with the most
severe disabilities.
(b) A cooperative agreement or memorandum
of understanding must, at a minimum, specify
the following:
(1) The supported employment services to be
provided by the designated State unit with funds
received under this part.
(2) The extended services to be provided by
relevant State agencies, private nonprofit
organizations, or other sources following the
cessation of supported employment services
under this part.
(3) The estimated funds to be expended by the
participating party or parties in implementing the
agreement or memorandum.
(4) The projected number of individuals with
the most severe disabilities who will receive
supported employment services and extended
services under the agreement or memorandum.
(Authority: 29 U.S.C. 795n)

Subpart C—How Does the
Secretary Make a Grant?
§ 363.20 How does the Secretary
allocate funds?
The Secretary allocates funds under this
program in accordance with section 632(a) of
the Act.
(Authority: 29 U.S.C. 795k)

§ 363.51 What are the allowable
administrative costs?
(a) Administrative costs—general.
Expenditures are allowable for the following
administrative costs:
(1) Administration of the State plan supplement
for this program.
(2) Planning program development, and
personnel development to implement a system
of supported employment services.
(3) Monitoring, supervision, and evaluation of
this program.
(4) Technical assistance to other State
agencies, private nonprofit organizations, and
businesses and industries.
(b) Limitation on administrative costs. Not
more than five percent of a State’s allotment

§ 363.21 How does the Secretary
reallocate funds?
The Secretary reallocates funds in accordance
with section 632(b) of the Act.

(Authority: 29 U.S.C. 795k)

Subparts D–E [Reserved]

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may be expended for administrative costs for
carrying out this program.
(Authority: 29 U.S.C. 795n)

§ 363.55 What are the requirements
for successfully rehabilitating an
individual in supported employment?

§ 363.52 What are the information
collection and reporting
requirements?

An individual with the most severe disabilities
who is receiving supported employment services
is considered to be successfully rehabilitated if
the individual maintains a supported
employment placement for 60 days after making
the transition to extended services.
(Authority: 29 U.S.C. 711(c))

(a) A State shall collect and report information
as required under section 13 of the Act for each
individual with the most severe disabilities
served under this program.
(b) The State shall collect and report
separately information for
(1) Supported employment clients served
under this program; and
(2) Supported employment clients served
under 34 CFR part 361.
(Approved by the Office of Management and
Budget under control number 1820–0551)
(Authority: 29 U.S.C. 712 and 795o)

§ 363.56 What notice requirements
apply to this program?
Each grantee must advise applicants for or
recipients of services under this part, or as
appropriate, the parents, family members,
guardians, advocates, or authorized
representatives of those individuals, of the
availability and purposes of the State’s Client
Assistance Program, including information on
seeking assistance from that program.
(Authority: 29 U.S.C. 718a)

§ 363.53 What special conditions
apply to services and activities under
this program?
Each grantee shall coordinate the services
provided to an individual under this part and
under 34 CFR part 361 to ensure that the
services are complementary and not duplicative.
(Authority: 29 U.S.C. 711(c) and 795p)

§ 363.54 What requirements must a
State meet before it provides for the
transition of an individual to
extended services?
A designated State unit must provide for the
transition of an individual with the most severe
disabilities to extended services no later than 18
months after placement in supported
employment, unless a longer period is
established in the individualized written
rehabilitation program, and only if the individual
has made substantial progress toward meeting
the hours-per-week work goal provided for in the
individualized written rehabilitation program,
the individual is stabilized in the job, and
extended services are available and can be
provided without a hiatus in services.
(Authority: 29 U.S.C. 795n and 711(c))

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