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URL: https://www.ecfr.gov/current/title-34/subtitle-B/chapter-III/part-361/subpart-C/section-361.62
Submission: On May 14 via manual from US — Scanned from DE

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THE ELECTRONIC CODE OF FEDERAL REGULATIONS

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TITLE 34



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 1. Title 34 —Education
 2. Subtitle B —Regulations of the Offices of the Department of Education
 3. Chapter III —Office of Special Education and Rehabilitative Services,
    Department of Education
 4. Part 361 —State Vocational Rehabilitation Services Program
 5. Subpart C —Financing of State Vocational Rehabilitation Programs
 6. § 361.62

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   URL https://www.ecfr.gov/current/title-34/part-361/section-361.62 Citation 34
   CFR 361.62 Agency Office of Special Education and Rehabilitative Services,
   Department of Education
   
   --------------------------------------------------------------------------------
   
   Part 361
   
   AUTHORITY:
   
   Section 12(c) of the Rehabilitation Act of 1973, as amended; 29 U.S.C.
   709(c); Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.
   
   SOURCE:
   
   81 FR 55741, Aug. 19, 2016, unless otherwise noted.
   
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§ 361.62 MAINTENANCE OF EFFORT REQUIREMENTS.

(a) General requirements. The Secretary reduces the amount otherwise payable to
a State for any fiscal year by the amount by which the total expenditures from
non-Federal sources under the vocational rehabilitation services portion of the
Unified or Combined State Plan for any previous fiscal year were less than the
total of those expenditures for the fiscal year two years prior to that previous
fiscal year.

(b) Specific requirements for construction of facilities. If the State provides
for the construction of a facility for community rehabilitation program
purposes, the amount of the State's share of expenditures for vocational
rehabilitation services under the plan, other than for the construction of a
facility for community rehabilitation program purposes or the establishment of a
facility for community rehabilitation purposes, must be at least equal to the
expenditures for those services for the second prior fiscal year.

(c) Separate State agency for vocational rehabilitation services for individuals
who are blind. If there is a separate part of the vocational rehabilitation
services portion of the Unified or Combined State Plan administered by a
separate State agency to provide vocational rehabilitation services for
individuals who are blind—

(1) Satisfaction of the maintenance of effort requirements under paragraphs (a)
and (b) of this section is determined based on the total amount of a State's
non-Federal expenditures under both parts of the vocational rehabilitation
services portion of the Unified or Combined State Plan; and

(2) If a State fails to meet any maintenance of effort requirement, the
Secretary reduces the amount otherwise payable to the State for a fiscal year
under each part of the plan in direct proportion to the amount by which
non-Federal expenditures under each part of the plan in any previous fiscal year
were less than they were for that part of the plan for the fiscal year 2 years
prior to that previous fiscal year.

(d) Waiver or modification.

(1) The Secretary may waive or modify the maintenance of effort requirement in
paragraph (a) of this section if the Secretary determines that a waiver or
modification is necessary to permit the State to respond to exceptional or
uncontrollable circumstances, such as a major natural disaster or a serious
economic downturn, that—

(i) Cause significant unanticipated expenditures or reductions in revenue that
result in a general reduction of programs within the State; or

(ii) Require the State to make substantial expenditures in the vocational
rehabilitation program for long-term purposes due to the one-time costs
associated with the construction of a facility for community rehabilitation
program purposes, the establishment of a facility for community rehabilitation
program purposes, or the acquisition of equipment.

(2) The Secretary may waive or modify the maintenance of effort requirement in
paragraph (b) of this section or the 10 percent allotment limitation in § 361.61
if the Secretary determines that a waiver or modification is necessary to permit
the State to respond to exceptional or uncontrollable circumstances, such as a
major natural disaster, that result in significant destruction of existing
facilities and require the State to make substantial expenditures for the
construction of a facility for community rehabilitation program purposes or the
establishment of a facility for community rehabilitation program purposes in
order to provide vocational rehabilitation services.

(3) A written request for waiver or modification, including supporting
justification, must be submitted to the Secretary for consideration as soon as
the State has determined that it has failed to satisfy its maintenance of effort
requirement due to an exceptional or uncontrollable circumstance, as described
in paragraphs (d)(1) and (2) of this section.

(Authority: Sections 101(a)(17) and 111(a)(2) of the Rehabilitation Act of 1973,
as amended; 29 U.S.C. 721(a)(17) and 731(a)(2))

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