[Federal Register: June 5, 2000 (Volume 65, Number 108)]
[Notices]
[Page 35767-35770]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05jn00-137]
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Part III
Department of Education
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National Institute on Disability and Rehabilitative Services; Office of
Special Education and Rehabilitative Services; Notices
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DEPARTMENT OF EDUCATION
National Institute on Disability and Rehabilitation Research;
Notice of Funding Priorities
AGENCY: Department of Education.
ACTION: Notice of final funding priorities for fiscal years 2000-2001
for new awards for the Alternative Financing Program, and the
Alternative Financing Technical Assistance Program, both authorized
under Title III of the Assistive Technology Act of 1998.
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SUMMARY: The Assistant Secretary for the Office of Special Education
and Rehabilitative Services announces final funding priorities for
awards under the Alternative Financing Program (AFP) and one award
under the Alternative Financing Technical Assistance Program (AFTAP)
under the National Institute on Disability and Rehabilitation Research
(NIDRR) for fiscal years 2000-2001. The Assistant Secretary takes this
action in order to award grants or cooperative agreements to States to
establish or maintain alternative financing projects to increase access
to assistive technology (AT) for individuals with disabilities.
Currently, major service programs such as Medicaid, Medicare, special
education, and vocational rehabilitation cannot meet the growing demand
for AT. Most individuals with disabilities do not have the private
financial resources to purchase the AT they need. Loan programs offer
individuals with disabilities attractive options that significantly
enhance their access to AT.
DATES: These priorities take effect on August 4, 2000.
FOR FURTHER INFORMATION CONTACT: Donna Nangle, U.S. Department of
Education, 400 Maryland Avenue, SW., Room 3414, Switzer Building,
Washington, DC 20202-2645. Telephone: (202) 205-5880. Individuals who
use a telecommunications device for the deaf (TDD) may call the TDD
number at (202) 205-4475. Internet: Donna_Nangle@ed.gov.
Individuals with disabilities may obtain this document in an
alternate format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed in the preceding
paragraph.
Waiver of Rulemaking
Pursuant to section 437(d)(1) of the General Education Provisions
Act, the Assistant Secretary has determined that these priorities are
exempt from the Administrative Procedure Act (5 U.S.C. 553). Section
437(d)(1) exempts from rulemaking the first grant competition under a
new or substantially revised program authority. This is NIDRR's first
grant competition under the ATAct, which replaced the Technology-
Related Assistance for Individuals with Disabilities Act of 1988, as
amended (Tech Act), and was signed into law on November 13, 1998.
SUPPLEMENTARY INFORMATION: This notice contains two final priorities
authorized under the ATAct. The priorities are: (1) Alternative
Financing Program (AFP); and (2) Alternative Financing Technical
Assistance Program (AFTAP).
These final priorities support the National Education Goal that
calls for all Americans to possess the knowledge and skills necessary
to compete in a global economy and exercise the rights and
responsibilities of citizenship.
The authority for the Secretary to fund a financing program and
technical assistance (TA) program is contained in Title III of the
ATAct.
Note: This notice of final priorities does not solicit
applications. A notice inviting applications under this competition
will be published in the Federal Register concurrent with or
following the publication of the notice of final priorities.
Alternative Financing Program
Background
For the first time, NIDRR is funding the Alternative Financing
Program, authorized under Title III of the ATAct. The AFP will assist
States to establish or maintain alternative financing projects to
increase access to AT for individuals with disabilities.
The ATAct reaffirms the Federal role of promoting access to AT
devices and services for individuals with disabilities and continues
the AT State Grant Program, authorized under Title I of the ATAct of
1998. In 1988 Congress passed the Tech Act to assist States to identify
and respond to the AT needs of individuals with disabilities.
Reauthorized in 1994, the Tech Act provided Federal funds as a catalyst
for permanent systemic change and as leverage within States to make AT
devices and services more readily available to individuals with
disabilities. All of the 56 State grantees (50 States, District of
Columbia, Puerto Rico, American Samoa, Virgin Islands, Northern
Marianna, Guam) have demonstrated success in increasing availability
of, funding for, access to and provision of, AT devices and services.
On a State level, AT State Grant Program grantees have improved
delivery of AT to individuals with disabilities.
Most often, these efforts involve increased and measurable
responsiveness on the part of public purchasing systems to provide AT
devices and services for individuals with disabilities. Public systems
include, but are not limited to, Medicaid, Medicare, special education
and vocational rehabilitation. These public systems have, to varying
degrees, acknowledged and met the AT needs of individuals with
disabilities who qualify for the particular program.
The Rehabilitation Act of 1973, as amended, includes several
provisions requiring inclusion of AT devices and services among the
range of available services offered by the vocational rehabilitation
system. The Individuals with Disabilities Education Act (IDEA) has
included AT devices and services since 1990. IDEA requires school
districts to take AT into account in their evaluations and planning for
students with disabilities. For eligible recipients, Medicaid offers a
viable though often unpredictable funding source. Some States have
investigated ways to increase the responsiveness of private insurance
companies to the AT needs of privately insured individuals with
disabilities. For individuals who qualify, the aforementioned public
and private agencies should, and typically would be, approached to fund
AT devices and services.
In 1998, NIDRR sponsored five regional hearings on issues affecting
appropriate and timely access to AT devices and services. (Blueprint
for the Millennium: An Analysis of Regional Hearings, 1998) In each of
the hearings, financing of AT was cited as a persistent barrier as was
a general lack of knowledge about public and private financing options.
Testimony from consumers, families, service providers, and developers
referenced a need for financial incentives for both individuals and
businesses to improve AT use. The hearings also identified the need for
new funding strategies and models to expand funds for AT purchases.
Public testimony also indicated that AT users want maximum autonomy in
identifying their technology needs and the devices and services that
will best meet these needs.
Moreover, testimony emphasized that separately, or in combination,
the major service programs do not have sufficient resources to meet the
growing demand for AT and that there also is a lack of private
financial resources for the purchase of AT. As the number of
individuals with disabilities increases and the elderly population
expands, and as consumers and their families become increasingly aware
of the role and
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benefits of AT, the demand for AT will increase; the result will
continue to be a tremendous strain on public and private third party
funding sources. A significant recommendation of the hearings was that
the AT State Grant Program grantees continue to work with other
entities such as consumer organizations, community-based groups, and
private lending institutions to establish alternative financing
projects for the purchase of AT devices and services. Alternative
financing projects offer individuals with disabilities attractive
options and can serve as financing alternatives for individuals with
disabilities who do not qualify for public financing programs. Loan
programs enhance access to AT devices and services in a way that
underscores independence and inclusion.
Currently, a total of 32 AT State Grant Program grantees operate
alternative financing projects under Title I. The success of these
Title I alternative financing projects has stimulated interest in
creating opportunities for additional States to establish alternative
financing projects and for States that have an existing projects to
expand available resources. Currently, individuals who apply for loans
under the Title I AT State Grant Program alternative financing projects
obtain loans that range from $250 to $50,000. The estimated average
loan is between $5,000 and $7,500. (Wallace, J., Assistive Technology
Loan Financing: A Funding Alternative of Increasing Importance. Tech
Express, 1998). The Title I AT State Grant Program alternative
financing projects include various types of activities, such as
revolving, guaranteed, interest buy-down, traditional or combination
program models. States typically enter into an agreement with a private
lending institution such as a bank or credit union and involve
consumers in the selection and approval procedures.
In establishing the AFP, the Assistant Secretary recognizes that
significant challenges and barriers continue to face individuals with
disabilities and their families. A pervasive barrier is the absence of
funding and information about funding opportunities for AT devices and
services. The AFP will enable individuals with disabilities to access a
funding alternative to public assistance programs. NIDRR has $3.9
million available for awards under this program in fiscal year 2000 and
the President has requested $15 million for fiscal year 2001.
Description of the Alternative Financing Program
The AFP creates a new Federal program to pay a share of the cost of
establishment or expansion, and administration of, an alternative AT
financing program. The program features one or more alternative
financing mechanisms to allow individuals with disabilities and their
family members, guardians, advocates, and others to purchase AT devices
and services.
Priorities
Under 34 CFR 75.105(c)(3) and Title III of the ATAct, the Assistant
Secretary gives an absolute preference to applications that meet the
following priorities. The Assistant Secretary will fund under this
competition only applications that meet one of the following
priorities.
Priority 1: Alternative Financing Program
The Assistant Secretary establishes the AFP in order to provide
assistance to States so that individuals with disabilities of all ages
and their family members, guardians, advocates, and authorized
representatives will have increased access to funding for AT devices
and services through alternative financing mechanisms (loans).
Consistent with statutory requirements:
(a) The State must enter into a contract with a community-based
organization (including a group of such organizations), such as Centers
for Independent Living, that has individuals with disabilities involved
in organizational decision making at all organizational levels, to
administer the alternative-financing program. The contract shall: (1)
Include a provision requiring that the program funds, including the
Federal and non-Federal shares of the cost of the program, be
administered in a manner consistent with the provisions of this title;
(2) include provisions for oversight and evaluation to protect Federal
financial interests; and (3) require the community-based organization
to enter into a contract with a commercial lending institution or State
financing agency.
(b) The State that receives a grant and any community-based
organization that enters into a contract with the State, must annually
submit, 12 months after receipt of the fiscal year 2000 award, each of
the following policies, procedures, data, and information: (1) A
procedure to review and process in a timely manner requests for
financial assistance for immediate and potential technology needs,
including consideration of methods to reduce paperwork and duplication
of effort, particularly relating to need, eligibility, and
determination of the specific AT device or service to be financed
through the project; (2) A policy and procedure to assure that access
to the AFP shall be given to consumers regardless of type of
disability, age, income level, location of residence in the State, or
type of AT device or AT service for which financing is requested
through the program; and (3) A procedure to assure consumer-controlled
oversight of the program.
(c) The State must provide the following information: (1) The ratio
of funds provided by the State for the AFP to funds provided by the
Federal Government; (2) the type of alternative financing mechanism
used and the community-based organization with which the State entered
into a contract; (3) the following information concerning each disabled
individual served by the project: The amount of assistance, type of AT
device or AT service financed through the project, type of disability,
age, gender, race, ethnicity, socioeconomic status, primary language,
geographic location within the State, employment status, whether the
consumer is part of an underrepresented population or rural population,
and whether the consumer tried to secure financial support from other
sources and, if so, a description of those sources.
(d) The State must provide one or a combination of the following:
(1) A low-interest loan fund; (2) an interest buy-down program,) a
revolving loan fund; (4) a loan guarantee or insurance program, (5) a
program operated by a partnership among private entities for the
purchase, lease, or other acquisition of AT devices or AT services; or
(6) another mechanism that meets the requirements of this program and
is described in an application, peer reviewed and approved by the
Assistant Secretary.
(e)(1) The State must provide matching funds so that the Federal
share of the cost of the AFP is not more than 50 percent. Because
section 302 (a)(3)(A) of the ATAct requires each State to receive a
minimum award of $500,000, the State match must be at least $500,000;
and (2) The State must provide the non-Federal share of the cost of the
AFP in cash, from State, local, or private sources;
(f) The State must provide an assurance that the State will
continue the AFP after Federal funding has terminated on a permanent
basis or for as long as the mechanisms exist to support such a program;
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(g) The State must provide an assurance that, and information
describing the manner in which, the program will expand and emphasize
consumer choice and control;
(h) The State must provide an assurance that the State will
supplement and not supplant other Federal, State, and local public
funds expended to provide any currently operating AFP in the State;
(i) The State must provide an assurance that the State will place
all funds that support the AFP, including funds repaid during the life
of the program, in a permanent separate account, apart from any other
fund;
(j) The State must provide an assurance that the State's community-
based organization will invest funds in low-risk securities in which a
regulated insurance company may invest under the law of the State if
the organization administering funds invests funds within this account;
(k) The State must provide an assurance that the State's community-
based organization will administer the funds with the same judgement
and care that a person of prudence, discretion, and intelligence would
exercise in the management of the financial affairs of such person;
(l) The State must provide an assurance that funds comprised of the
principal and interest from the State account for this activity will be
available to support the AFP;
(m) The State must provide an assurance that any interest or
investment income that accrues on or derives from such funds after such
funds have been placed under the control of the organization
administering the AFP, but before such funds are distributed for
purposes of supporting the program, will be the property of the
organization administering the program; and
(n) The State must provide an assurance that the State will limit
the indirect costs of the total amount available for the AFP to 10
percent, including both the Federal and State funds.
In addition to the statutory requirements, each project must:
(a) Provide in accessible formats materials that can be used by
potential loan applicants and lending institutions to obtain, share and
disseminate information on loan availability, eligibility requirements
and procedures and general loan related updates; and
(b) Coordinate and share information, resources and with the State
ATAct projects.
(c) Conduct and submit to NIDRR and the AFTAP an annual evaluation
of its activities using the data collection instrument to be developed
the AFTAP described in Priority 2.
Priority 2: Alternative Financing Technical Assistance Program
The Assistant Secretary establishes AFTAP in order to assist States
in meeting the objectives of the AFP. Consistent with the statutory
requirements, the AFTAP project must:
(a) Provide assistance to States preparing applications for the
AFP;
(b) Assist States to develop and implement the AFP; and
(c) Provide any other information and TA the Assistant Secretary
determines to be appropriate to assist States to achieve the objectives
of AFP.
In addition to the statutory requirements, the AFPTA project must:
(a) Develop and implement a self-assessment instrument to determine
the effectiveness of the AFPTA;
(b) Provide in accessible formats materials that contains useful
and replicable information on loan projects and can be used by States
under the AFP and States planning to apply under the AFP to improve the
efficiency and effectiveness of their loan projects working closely
with the National Internet Project located at the Georgia Institute on
Technology;
(c) Develop a uniform data collection instrument for use by the AFP
that includes, at a minimum, data on features of loan programs and
unique characteristics and outcomes in order to comply with annual
reporting requirements; and
(d) Share information and collaborate with the TA programs funded
under Section 104 of the AT Act.
Electronic Access to This Document
You may review this document, as well as all other Department of
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Portable Document Format (PDF) on the Internet at either of the
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To use the PDF you must have the Adobe Acrobat Reader, which is
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Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO access at: http://
www.access.gpo.gov/nara/index.html.
(Catalog of Federal Domestic Assistance Number 84.224C, Assistive
Technology Act Alternative Loan Financing, Title III)
Program Authority: 29 U.S.C. 3051-3058
Dated: May 31, 2000.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 00-13945 Filed 6-2-00; 8:45 am]
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