SECTION 6.—APPROPRIATION FOR ADMINISTRATION

Authorizes for appropriation $75,000 annually for a period of three years commencing July 1, 1924, for general administration and for making studies, investigations, and reports, including expenditures for salaries, travel, equipment, supplies, printing, and other

expenses.

Provides that a full report of expenses under this section, showing names of each employee and board members, their salaries, travel, and other expenses, shall be annually submitted to Congress.

SECTION 7.-GIFTS TO FEDERAL BOARD FOR VOCATIONAL EDUCATION

Authorizes and empowers the Federal board to receive gifts and donations from public or private sources offered unconditionally, such to be paid into the United States Treasury, to constitute a permanent fund to be called the "Special fund for vocational rehabilitation of disabled persons," to be used under direction of the Federal board for rehabilitation of special cases, including payment of necessary expenses of persons undergoing training.

A full report of donors, amounts of gifts of each, and disbursements shall be submitted annually to Congress.

No discrimination shall be made or permitted as to the beneficiaries under the act under penalty of $200 for each violation. Approved June 2, 1920.

Approved June 5, 1924.

PART III

INTERPRETATION OF PROVISIONS OF THE NATIONAL CIVILIAN VOCATIONAL REHABILITATION ACT

FEDERAL FUNDS ALLOTTED UNDER THE NATIONAL ACT

The national civilian vocational rehabilitation act, as amended June 5, 1924, in order to provide for the promotion of vocational rehabilitation of persons disabled in industry or otherwise, authorizes to be appropriated for the use of the States for the fiscal period 1925 to 1930, inclusive, annually the sum of $1,000,000. It is provided that the allotments shall be made to the States on the basis of population, the share of each State being determined in the proportion which its population bears to the total population of the United States, with the provision of a minimum allotment of $5,000 to any State for a given fiscal year. (For amount of the allotment to each State see Appendix IV, p. 48.)

CONDITIONS UNDER WHICH FEDERAL ALLOTMENTS MAY BE EXPENDED

General Conditions.

Under the terms of the national civilian vocational rehabilitation act, Federal money allotted to a State may be expended only under the following general conditions:

1. That for each dollar of Federal money expended there shall

be expended in the State under the supervision and control of the State board at least an equal amount for the same purpose. (Vocational rehabilitation of persons disabled in industry or otherwise.)

2. That the State board shall submit annually to the Federal board for approval, a plan for the administration of the work.

3. That the State board shall make an annual report to the Federal board on the work done in the State.

4. That no portion of the Federal allotment shall be applied directly or indirectly to the purchase, preservation, erection, or repair of buildings or equipment, or for the purchase or rental of land.

5. That the rehabilitation service of a State shall be made available to civil employees of the United States disabled while in the performance of their duties.

Expenditures From Federal Funds Shall Be Matched.

A fundamental purpose of the Federal Government in allotting funds to the States for the promotion of civilian vocational rehabilitation is that these allotments will be expended under the supervision and control of their State boards for vocational education jointly with expenditures of like amounts provided from within the State for the same purpose. The primary objective of the national act is to empower the Federal board to encourage States to undertake rehabilitation work and to expend their own money, together with Federal money, for the support of the program. There is no basis in the language of the act for the assumption that the Federal allotments are intended to conserve expenditures of State money. On the contrary, they are intended to induce the States to spend their own money in like amount: The language of the national act in this connection is "that for every dollar of Federal money expended there shall be expended in the State, under the supervision and control of the State board at least an equal amount for the same purpose."

The Federal board believes that the intent of the act is that State programs of rehabilitation are to be expanded and improved through the use of Federal money. If Federal funds are used in a State merely to conserve available State rehabilitation funds, obviously the State program is not expanded through the use of Federal funds. For illustration, if a State has an available State rehabilitation fund of $30,000 and a Federal allotment of $30,000, but expends from the joint funds a total amount of only $30,000, obviously the use of Federal money has not resulted in a program of any greater volume than that which would have been possible with the expenditure of State funds alone.

Under a strict legal interpretation of the act all that can be required of a State in making expenditures from its Federal allotment is that it make expenditures in like amounts from State money. It is believed, however, that under the provisions of the national act it is the responsibility of the Federal board constantly to urge States to expand to the limit of possible efficient social value their programs of civilian vocational rehabilitation through the use of State and Federal funds.

Source of State funds used to match expenditures from Federal funds.-The national act does not specify what shall be the source of the State funds that are used to match the Federal funds. The phrase used in this connection is "there shall be expended in the State an equal amount," which is construed to cover appropriations by the State legislature, district, county, or city funds, and gifts or donations.

Use of local funds to match expenditures from Federal funds.— Expenditure of funds by a local agency, private or public, for purposes of rehabilitation covered by the national act, when the agency operates under the control and supervision of the State board may be matched against expenditures from Federal funds, provided:

1. The local agency cooperates with the State board under an agreement which has been approved by the Federal board.

2. The expenditures are for purposes covered by the national act, and the Federal board's policies of administration of the act.

3. The expenditures are make under the supervision and control of the State board.

4. The State board assumes complete responsibility for the rehabilitation work of the local agency, and supervises and controls its operations.

Use of gifts and donations to match expenditures from Federal funds. Gifts and donations may be used to match expenditures from Federal allotments, provided

1. They are deposited with the State treasurer or to the credit of the State board for vocational education, and

2. They are expended by the State board for vocational education, and

3. They are expended for purposes covered by the national act and the Federal board's policies of administration of

the act.

It is not necessary that gifts be accepted unconditionally, the fundamental consideration being that they be expended for purposes covered by the national act.

Although under this policy it might be possible for an individual or for an agency to deposit with a State board or a State treasurer a part of the cost of rehabilitation of that individual, with the understanding that the contribution will be used in part to defray the cost of his rehabilitation, such a practice is not considered consistent with the spirit of the policy. It is not believed that it is the intent of the act to match expenditures of Federal money against expenditures by individuals in their own rehabilitation. Federal funds are primarily intended to be used in matching public, State, and local funds rather than the personal money of persons eligible for rehabilitation.

Furthermore, discounts given by training agencies, artificial appliance makers, or other agencies can not under this policy be treated as gifts to be matched by expenditures from Federal funds.

Matching Funds Shall Be Expended Under the Supervision and Control of the State Board.

A fundamental principle of the national act with respect to the use of State moneys to match Federal moneys is that both be expended under the control and supervision of the State board for vocational education. This is a mandatory provision of the act. Therefore, the State board can not delegate this responsibility to any other agency.

Purpose for Which Funds Are to Be Expended.

The purpose of the appropriation authorized by the act is stated as cooperation with the States in the "maintenance of vocational rehabilitation" and in "returning vocationally rehabilitated persons to civil employment." The Federal board construes these words to cover only vocational rehabilitation and placement, and not maintenance, therapeutic treatment, physical restoration or rehabilitation, or occupational therapy.

Use of Funds for Training in State Institutions for Handicapped or in Public Schools.

One of the provisions of the national act governing the expenditure of Federal and matching funds stated in the language of the act is "that no portion of the appropriations authorized by this act shall be used by any institution for handicapped persons except for special training of such individuals entitled to the benefits of this act as shall be determined by the Federal board." The Federal board has adopted the policy that Federal and State matching funds may be used for tuition and supplies in the training of disabled persons in State institutions for the handicapped, or in public schools only under the following conditions:

1. When special vocational training or conditions of vocational training are provided which regular students of the institution or school would not receive or would not be entitled to receive, or

2. When vocational training is provided for a disabled person who is ineligible for admission to the institution or the school.

In either case it is the responsibilty of the State board to see that the courses in such institutions or schools are so arranged that they will train for specific vocations leading to self-sustaining employment.

This policy prohibits payment of Federal or matching funds for services to which disabled persons, as citizens of the State, are entitled.