[Federal Register: December 26, 2002 (Volume 67, Number 248)]
[Notices]
[Page 78790-78794]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26de02-52]
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DEPARTMENT OF EDUCATION
RIN 1820-ZA13
Access to Telework Fund
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Notice of proposed priority and proposed application and
project requirements.
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SUMMARY: The Assistant Secretary for Special Education and
Rehabilitative Services proposes a priority and application and project
requirements for an Access to Telework Fund (ATF). The Assistant
Secretary may use this priority and the requirements for competitions
in fiscal year (FY) 2002 and later years. We take this action to expand
employment opportunities for individuals with disabilities by providing
greater access to computers and other equipment that will allow them to
work from home if they choose. Grants would be made to States,
including the District of Columbia, the Commonwealth of Puerto Rico,
the United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands, and American Indian
tribal governments to enable them to provide loans to individuals with
disabilities to purchase computers and other equipment for this
purpose.
DATES: We must receive your comments on or before January 27, 2003.
ADDRESSES: Address all comments about this proposed priority and
proposed application and project requirements to Pamela Martin, U.S.
Department of Education, 400 Maryland Avenue, SW., room 3314, Switzer
Building, Washington, DC 20202-2645. If you prefer to send your
comments through the Internet, use one of the following addresses:
Pamela.Martin@ed.gov or Gayle.Palumbo@ed.gov.
You must include the term ``Access to Telework Fund'' in the
subject line of your electronic message.
FOR FURTHER INFORMATION CONTACT: Pamela Martin. Telephone (202) 205-
8494 or via Internet: Pamela.Martin@ed.gov.
Or Gayle Palumbo, U.S. Department of Education, Rehabilitation
Services Administration, 50 United Nations Plaza, room 215, San
Francisco, CA 94102. Telephone (415) 556-4071 or via Internet:
Gayle.Palumbo@ed.gov.
If you use a telecommunications device for the deaf (TDD), you may
call the TDD number at (202) 205-4475.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, or computer diskette)
on request to one of the contact persons listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION:
Invitation to Comment
We invite you to submit comments regarding this proposed priority
and the proposed application and project requirements. To ensure that
your comments have maximum effect in developing the notice of final
priority and final application and project requirements, we urge you to
be specific about any recommended changes. We are particularly
interested in receiving comments on the following topics:
1. Eligible applicants for the Access to Telework Fund, including
who may apply for an ATF grant and the implications of allowing more
than one agency within a State to receive a grant.
2. The authorized activities under this program and appropriate
uses of grant funds.
[[Page 78791]]
3. The definition of ``telework,'' as it appears in this priority.
4. Requirements, including reporting requirements, and procedures
considered essential in the establishment of this loan program and
which should be included under ``Application and Project
Requirements.'' For example, comments are welcome on more specific
outcome measures needed to evaluate the impact of the program.
We invite you to assist us in complying with the specific
requirements of Executive Order 12866 and its overall requirement of
reducing regulatory burden that might result from this proposed
priority. Please let us know of any further opportunities we should
take to reduce potential costs or increase potential benefits while
preserving the effective and efficient administration of the program.
During and after the comment period, you may inspect all public
comments about this proposed priority in room 3038, Switzer Building,
330 C Street, SW., Washington, DC, between the hours of 8:30 a.m. and 4
p.m., Eastern time, Monday through Friday of each week except Federal
holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking
Record
On request, we will supply an appropriate aid, such as a reader or
print magnifier, to an individual with a disability who needs
assistance to review the comments or other documents in the public
rulemaking record for this proposed priority. If you want to schedule
an appointment for this type of aid, please contact one of the
individuals listed under FOR FURTHER INFORMATION CONTACT.
We will announce the final priority and final application and
project requirements in a notice in the Federal Register. We will
determine the final priority and final application and project
requirements after considering responses to this notice and other
information available to the Department. This notice does not preclude
us from proposing or funding additional priorities, subject to meeting
applicable rulemaking requirements.
Note: This notice does not solicit applications. In any year in
which we choose to use this proposed priority and proposed
application and project requirements, we invite applications through
a notice in the Federal Register.
Priority
Access to Telework Fund
The proposed priority would implement the Access to Telework Fund
(ATF) proposed by the President in his New Freedom Initiative. This new
program would enable States, including the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern Mariana Islands,
and American Indian tribes to provide loans to individuals with
disabilities to purchase computers and other equipment so they can work
from home.
The ATF will be conducted under section 303(b) of the
Rehabilitation Act of 1973, as amended (Act). The proposed priority
supports section 303(b) by furthering the purposes of the Act,
specifically by empowering individuals with disabilities to maximize
employment, economic self-sufficiency, independence, and inclusion and
integration into society.
Background: In February of 2001, the President introduced his New
Freedom Initiative to help Americans with disabilities by increasing
access to assistive technologies, expanding educational opportunities,
increasing the ability of Americans with disabilities to integrate into
the workforce, and promoting increased access into daily community
life. As a part of this initiative, the ATF was proposed to increase
the participation of Americans with disabilities in the workforce by
expanding telework opportunities.
We anticipate that many employers will provide employees with the
equipment they need to telework. We wish to emphasize that this program
does not relieve covered employers from their obligations under the
Americans with Disabilities Act (ADA). However, we realize that some
individuals with disabilities need an alternative mechanism to access
computers and other needed equipment not provided by an employer to
enable them to work from home. The Access to Telework Fund will provide
that alternative mechanism.
The employment rate for people with disabilities is unacceptably
low and for individuals with significant disabilities it is even lower.
Yet most people with disabilities who can work, but do not have jobs,
say that they would like to work and contribute to the country's
economy. However, individuals with disabilities experience many
barriers to employment, including inadequate transportation, fatigue,
inaccessible work environments, and the need for personal assistance.
For many, these barriers can be reduced or eliminated through the
availability of viable alternatives such as telework and other
alternative work options.
Telework and other alternative work options, such as home-based
self-employment, are rapidly expanding employment options in the
emerging information age. These work options provide employment
opportunities to many Americans who want or need a flexible work
environment. Americans with disabilities should have the same access to
pursue employment opportunities in traditional and alternative work
settings as other members of society.
Promoting telework options may also bring more individuals with
disabilities into the labor market. Many individuals with disabilities,
and individuals with chronic illnesses, may not be aware of how new
technologies can accommodate flexible work schedules and expand
employment options. Becoming more aware of what is available, and that
options do exist, may open more doors to employment. The availability
of telework and other flexible work arrangements for people with
disabilities can reduce or eliminate barriers to employment. Some
employees may want or need to telework almost exclusively, while others
may choose to work from home only if the need arises. These
alternatives can mean the difference between being able to work and not
being able to work.
Computer technology and the Internet have tremendous potential to
broaden the lives and increase the independence and employment of many
people with disabilities. However, the computer and Internet revolution
has not reached as many people with disabilities as the population
without disabilities. Only 25 percent of people with disabilities own a
computer, compared with 66 percent of U.S. adults without disabilities,
and only 20 percent of people with disabilities have access to the
Internet, compared with 40 percent of U.S. adults.
The primary barrier to wider access to computer equipment is cost.
Computers with adaptive technology (e.g., screen readers, voice
synthesizers, adaptive keyboards, and specialized software) can cost as
much as $20,000. The median income of Americans with disabilities is
far below the national average. Thus, for many individuals with
disabilities, owning a computer with adaptive technology is
prohibitively expensive.
[[Page 78792]]
It is often very difficult for individuals with disabilities to
save enough money to purchase computer or other necessary office
equipment. Cash benefit programs do not provide sufficient funds for
both living expenses and savings, and income support programs limit the
amount of assets a person can accumulate. For a number of reasons,
people with disabilities often find it difficult to access loans as a
method to purchase necessary equipment. For example, they may have
insufficient cash or collateral, lack an appropriate credit rating, or
face attitudinal barriers.
Proposed Priority: Under 34 CFR 75.105 (c)(3) we propose to give an
absolute preference to applications that meet the following priority.
Under an absolute priority we consider only applications that meet the
priority.
This priority supports grants to States for the establishment of an
Access to Telework Fund to provide loans to individuals with
disabilities for the purpose of purchasing computers and other
equipment, including adaptive equipment, so that the individuals with
disabilities can telework from home.
The term ``telework'' typically encompasses work that can be
performed effectively from home or from other designated sites away
from the office, such as work on the road or at a telework center. For
the purposes of this program, telework is limited to work that can be
performed effectively from home and does not include work from the road
or a telework center. Successful applicants will develop programs that
will enable them to provide loans, for the purchase of computers and
other equipment, to individuals with disabilities who want to work at
home as an employee, a contractor, or work in home-based self-
employment on a full- or part-time basis. Individuals with disabilities
who are employees and work from home for part of the work week are
eligible for loans for equipment they need while working at home.
Consistent with legislative history, the Department intends to give
grantees the flexibility to design and implement the Access to Telework
program in a manner that will encourage individuals with disabilities
to apply for loans.
Eligible Applicants: State agencies from the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, are eligible to apply for ATF grants.
These agencies may include, but are not limited to, State vocational
rehabilitation agencies; State employment agencies; State agencies
currently administering programs under the Assistive Technology Act,
including the Assistive Technology State Grant Program or the
Alternative Financing Program; Governors' offices; or other appropriate
State agencies. Applicants may also include consortia of State
agencies, with one agency acting as the official applicant for the
grant.
Governing bodies of American Indian tribes located on Federal and
State reservations (and consortia of those governing bodies) consistent
with section 7(19)(B) of the Act are also eligible to apply for ATF
grants.
More than one agency within a State may apply for a grant, but
there must be coordination and communication between grantees in any
single State.
Application and Project Requirements
In accordance with the application and project requirements that
follow, applicants under this competition must successfully demonstrate
that they will:
A. Achieve the program's short-term goal of increasing access to
technology for disabled individuals through the provision of loans that
must be used to purchase computers and other equipment, including
adaptive equipment, so that individuals with disabilities can telework
from home; and
B. Achieve the program's long-term goal of increasing employment
opportunities and competitive employment outcomes for individuals with
disabilities.
Application, matching, reporting, and other project requirements
are as follows:
A. General Requirements for Applicants under this Competition
(1) Each applicant under the ATF competition must provide
information, in its application, on the manner in which its proposed
loan program will expand employment opportunities for individuals with
disabilities by including information on the expected impact and
outcomes of the project. More specifically, applicants must project a
goal of how many people could achieve employment outcomes with the
level of grant funding being requested. Applicants also must be
specific about what data they will collect in order to measure project
outcomes against the goal. Additional outcome measures, such as
increases in salary or customer satisfaction levels, must also be
included to support the application.
(2) Each applicant is allowed flexibility in the development of its
proposed loan program under the Access to Telework Fund. However, the
proposed loan procedures and criteria must be explained in the
application for funding. At a minimum, the application must contain the
following:
(a) Procedures that provide for the timely review and processing of
loan applications and that include methods and processes that reduce
paperwork and duplication of effort, particularly as they relate to the
needs and eligibility of individuals with disabilities to receive loans
from the project, including--
(i) Loan application procedures;
(ii) The criteria whereby an individual with a disability may
qualify for a loan, including criteria for determining credit
worthiness; and
(iii) If proposed, the description of any appeal process for
applicants who are denied loans.
(b) The type or types of alternative financing mechanisms the
applicant is proposing to provide as part of the project and in
conjunction with contracting organizations, if any, including--
(i) A low-interest loan program;
(ii) An interest buy-down program;
(iii) A revolving fund;
(iv) A loan guarantee or insurance program; and
(v) Any other mechanism that meets the requirements and intent of
this program and is approved by the Secretary.
(c) Policies, procedures, and specifications related to the
awarding and collection of loans, including--
(i) Minimum and maximum loan amounts;
(ii) Criteria for determining the amount of a loan, the interest on
loans, and how interest will be determined;
(iii) Loan repayment and collection procedures, including
procedures for handling situations in which individuals are delinquent
in repayment or default on loans, and the consequences of defaulting on
a loan; and
(iv) If appropriate, possibilities for deferral of repayment and
loan forgiveness under specified circumstances.
(d) Outreach and marketing strategies the applicant proposes to use
to inform individuals with disabilities and other appropriate target
groups about the program.
(3) Each applicant must provide information, in its application, on
the procedures to be used to ensure the individuals with disabilities
who receive loans under this program intend to work from home.
(4) If an applicant chooses to enter into contracts with private
financial institutions, banks, credit unions, other
[[Page 78793]]
State agencies, or community-based organizations to administer the
Access to Telework Fund, each contract must include--
(a) 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 requirements of this
program; and
(b) Provisions for contract oversight and evaluation in order to
protect Federal financial interests.
(5) Each applicant must provide a description of each organization,
if any, that it intends to use by contract or other arrangements to
carry out the Access to Telework Fund. The role and responsibilities of
each organization must also be included.
B. Application Assurances
Each applicant must provide the following assurances in its
application:
(1) ATF funds will not be used as a substitute for employer
responsibilities under the ADA or to fulfill responsibilities of other
parties under the ADA.
(2) All Federal and matching funds that support the Access to
Telework Fund, including all principal and interest repaid during the
life of the program, will be placed in a permanent separate account and
identified and accounted for separately from any other funds.
(3) The funds specified in paragraph (B)(2) will be invested in low
risk securities in which a regulated insurance company may invest under
the laws of the State.
(4) Funds comprised of the principal and interest from the account
described in paragraph (B)(2) and any interest or investment income
that accrues on or derives from the investments noted in paragraph
(B)(3) must also be available to support the Access to Telework Fund.
(5) ATF funds will be used to supplement and not supplant Federal
(funding other than through this program), State, and local public
funds used to support similar services to individuals with
disabilities.
(6) The ATF program will be continued on a permanent basis or for
as long as funding exists to support such a program, including funding
identified in paragraphs (B)(2) and (B)(3).
(7) The grantee will administer the funds with the same judgment
and care that a person of prudence, discretion, and intelligence would
exercise in the management of his or her own financial affairs.
(8) Materials used by potential loan applicants to obtain
information on loan availability, eligibility requirements, and
procedures for applying for a loan will be provided in accessible
formats.
(9) The project will coordinate and share information and resources
with other ATF projects within the State, as well as with the
alternative financing programs such as those funded under titles I and
III of the Assistive Technology Act.
(10) Policies and procedures will be established to ensure that
access to the ATF will be given to consumers regardless of type of
disability, age, income level, or type of computers and other equipment
for which financing is requested through the program.
C. Matching Requirements and Limitations on Indirect Costs
(1) The Federal share of the cost of the ATF must not be more than
90 percent. Therefore, each applicant must demonstrate it will provide
at least 10 percent of the total program cost in non-Federal funds.
(2) The grantee must provide the non-Federal share of the cost of
the ATF in cash from State, tribal, local, or private sources.
(3) The non-Federal match requirement must be met within the 12-
month project period.
(4) Federal funds may be drawn down and expended before or after
the non-Federal match requirement is met, as long as the match is
provided within the 12-month project period.
(5) Each grantee must limit indirect costs charged to the Federal
grant to 10 percent of the total direct costs.
D. Reporting Requirements
Through the analysis of data collected under the following
reporting requirements, the Secretary will assess grantee success in
meeting the program's overall goals of--
(1) Increasing access to technology for disabled individuals; and
(2) Increasing employment opportunities and competitive employment
outcomes for individuals with disabilities.
Performance measures used to determine whether the goals have been
accomplished will include-- numbers of loans made to individuals with
disabilities; numbers of individuals who obtained telework employment
as a result of ATF loans; and ATF default rates. Grantee evaluation
systems must be capable of collecting and analyzing this and the
following additional required information.
Each grantee must collect and submit to the Secretary the following
information within 90 calendar days after the end of the project period
and annually thereafter, for as long as an ATF program identified in
paragraphs (B)(2) and (B)(3), Application Assurances, is in operation:
(1) The total financial contribution to the project, including the
Federal share and non-Federal matching contributions, and the source of
the non-Federal share.
(2) The amount of ATF funding requested by and provided to each
individual consumer applicant for a loan.
(3) The total number of loans requested by and made to individuals
with disabilities and the total number of loans in each of the types of
alternative financing mechanisms listed in paragraph (A)(2)(b).
(4) The number of loan applicants denied and the reasons for
denial.
(5) The amount and terms of each loan provided, including the
interest rate.
(6) The types of equipment financed through the project, including
the total number of each type of equipment financed.
(7) Information on the characteristics of each individual with a
disability served under the project, including demographic information
such as age and ethnicity; type of disability; employment status at the
time of loan application; whether the consumer tried to secure
financial support from other sources and, if so, a description of those
sources; whether the individual consumer went to work, if he or she is
teleworking for some part of his or her job, and the occupation in
which the individual is working; the hourly salary the individual
consumer is earning and a comparison of the consumer's salary with that
reported in the previous annual ATF report; and information on whether
each individual has repaid his or her loan, is in repayment status, is
delinquent on repayments, or has defaulted on the loan.
(8) A breakdown of expenditures from the ATF program, including
information on the amount paid in direct loans to individuals with
disabilities, the amount devoted to administrative costs of the
program, and the nature of those administrative costs.
(9) The default rate under the program.
Executive Order 12866
This notice of proposed priority and proposed application and
project requirements has been reviewed in accordance with Executive
Order 12866. Under the terms of the order, we have assessed the
potential costs and benefits of this regulatory action.
The potential costs associated with this notice are those resulting
from
[[Page 78794]]
requirements we have determined as necessary for administering this
program effectively and efficiently.
In assessing the potential costs and benefits--both quantitative
and qualitative--of this notice, we have determined that the benefits
of the proposed priority and proposed application and project
requirements justify the costs.
We have also determined that this regulatory action does not unduly
interfere with State, local, and tribal governments in the exercise of
their governmental functions.
Summary of potential costs and benefits: The Assistant Secretary
has determined that the cost to the Federal Government associated with
this program will not exceed $20 million in FY 2002 or FY 2003. In
addition, grant recipients (State agencies from the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and governing bodies of American Indian
tribes located on Federal and State reservations) must contribute a
required non-Federal match of at least 10 percent of the total program
cost. No other costs will result from the announcement of this proposed
priority and proposed application and project requirements.
The benefit of this proposed priority and proposed application and
project requirements will be the establishment of the Access to
Telework Fund proposed by the President in the New Freedom Initiative,
which calls for the provision of loans to individuals with disabilities
for the purpose of purchasing computers and other equipment, including
adaptive equipment, so that individuals with disabilities can telework
from home.
Intergovernmental Review
This program is subject to Executive Order 12372 and the
regulations in 34 CFR part 79. One of the objectives of the Executive
order is to foster an intergovernmental partnership and a strengthened
federalism. The Executive order relies on processes developed by State
and local governments for coordination and review of proposed Federal
financial assistance.
This document provides early notification of our specific plans and
actions for this program.
Electronic Access to This Document
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Note: The official version of this document is the document
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Regulations is available on GPO Access at: http://www.access.gpo.gov/nara/index.html
.
(Catalog of Federal Domestic Assistance Number 84.235, Special
Demonstration Programs, Access to Telework Fund)
Program Authority: 29 U.S.C. 773(b).
Robert H. Pasternack,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 02-32574 Filed 12-24-02; 8:45 am]
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