the Council under this Act, and the Administrator may appoint such additional individuals and advisory and technical subcommittees as may be useful or necessary in carrying out his functions under this Act.

SEC. 204. (a) There is hereby established a Federal Interagency Committee on Rehabilitation and Employment of the Handicapped, which shall be composed of qualified representatives to be chosen by the heads of the Federal departments or agencies which have a substantial or significant participation in activities dealing with problems of the handicapped, such as the Veterans' Administration, United States Civil Service Commission, United States Bureau of Employment Security, Public Health Service, and so forth.

(b) The Administrator shall serve as Chairman of the Interagency Committee, and shall use the authority granted him under the provisions of this Act to effectuate programs and policies developed by the Committee.

(c) The Committee shall develop and encourage the effectiveness of more economical and efficient methods of administration of activities relating to the handicapped, encourage the coordination of the functions of the various Federal agencies serving the handicapped, and develop advanced programs for the blind, deaf, hard of hearing, amputees, arthritics, cardiacs, cerebral palsied, diabetics, epipletics, victims of muscular dystrophy, mutiple sclerosis, poliomyelitis, rheumatism, silicosis, or any large or distinct group of handicapped. In carrying out such duties the Committee is authorized—

(1) to collect, tabulate and publish statistics relating to the physically and mentally handicapped;

(2) to ascertain and publicize the fields of employment available to the physically and mentally handicapped;

(3) to acquaint employers in private industry with the special capabilities of the handicapped, and to encourage the employment of the handicapped where feasible and practicable, on an equal footing with the nonhandicapped; and

(4) to cooperate with public and private agencies, organizations, and individuals in the medical and vocational rehabilitation and placement in suitable employment of the handicapped.

(d) In performing the activities authorized in this section the Committee shall, wherever possible, and with the consent of the heads thereof, utilize the services and facilities of the Agency, the Bureau of Apprenticeship, Civil Service Commission, Social Security Administration, United States Public Health Service, Office of Education, Children's Bureau, Bureau of the Census, and other appropriate Federal agencies.

(e) The Administrator is authorized to detail to the Committee, upon its request, any officer or employee of the Agency, and, in his discretion, to reimburse, from funds available for the administration of this Act, the appropriation from which the salary or allowance of such officer or employee is paid.

SEC. 205. (a) The functions of the Division for Physically Handicapped in the Secretary's Office of the Department of Labor are hereby transferred to the Agency and shall hereafter be performed by the Administrator.

(b) It shall be the duty of the Administrator to provide such facilities, staff, and service to the President's Committee on Employment of the Physically Handicapped as shall be necessary for proper performance of the Committee's functions in connection with the annual observance of "National Employ the Physically Handicapped Week”, and with the Committee's other continuing programs. Such Committee may reimburse, out of funds appropriated to it, the Administrator for any facilities or assistance, or both, provided under the authority of this section.

(c) The joint resolution entitled "Joint resolution authorizing an appropriation for the work of the President's Committee on National Employ the Physially Handicapped Week", approved July 11, 1949 (63 Stat. 409), as amended, is amended by striking out $225,000 and inserting in lieu thereof $250,000.

TITLE III-COOPERATIVE ENTERPRISES FOR HANDICAPPED

SEC. 301. The sum of $10,000,000 is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, for the fiscal year 1957-58, and $5,000,000 annually, for each of the five fiscal years thereafter, for stablishing and maintaining work projects cooperative enterprises for physically and mentally handicapped persons.

SEC. 302. Cut of the sums authorized to be appropriated in section 301, the Administrator is authorized and empowered to make loans, on the recommenda

tion of State agencies engaged in the rehabilitation of the handicapped, to individuals, corporations, States, Territories, or subdivisions or agencies thereof, and to coperative, nonprofit, or limited dividend associations organized under the laws of any State or Territory, for the purpose of financing work projects cooperative enterprises for those handicapped persons regarded as unfeasible for rehabilita tion, who require special conditions of employment and training. No single loan shall exceed $50,000, and not less than 25 per centum of the loans made in any fiscal year shall be for projects established or to be established in rural areas, as defined by the Administrator.

SEC. 303. Such loans shall be made on such terms and conditions as the Administrator shall determine: Provided, That all loans shall be self-liquidating within a period of twenty years, and shall bear interest at a rate not exceeding 2 per centum per annum: Provided further, That no loans for the purchase, construction, enlargement, rental, or operation of any plan, or property, sha be made in any State except upon the recommendation of the State agency engaged in the rehabilitation of the handicapped of that State: And provided further, That no loans shall be made except upon condition that the recipient thereof provide safeguards to assure the observance, in the operation of the program, of all applicable Federal, State, and local regulations, laws, or standards, regarding health, safety, wages, hours, and working conditions in industrial and commercial establishments, and the observance of such requirements not in conflict with such regulations, laws, or standards as the Administrator may by regulation, prescribe to maintain adequate standards governing health. wages, hours, and working conditions.

TITLE IV-OFFICE OF SERVICES FOR THE BLIND

SEC. 401. Benefits now received by the blind shall not prejudice or debar the blind from seeking or receiving additional benefits as may be made available under this Act.

SEC. 402. (a) The functions of the Secretary of Health, Education, and We fare, under the provisions of title X of the Social Security Act, as amended are transferred to the Administrator.

(b) There are transferred to the Agency for use in connection with the functions transferred by the provisions of this section, the personnel, records and unexpended balances of appropriations, allocations, and other funds (avais ble, or to be made available) of the Department of Health, Education, and Welfare, which are determined by the Director of the Bureau of the Budge to relate to such functions.

SEC. 403. (a) The functions of the Library of Congress and the Librarian thereof, under the provisions of the Act of March 3, 1931 (46 Stat. 1487), amended, are transferred to the Administrator.

(b) There are transferred to the Agency, for use in connection with the functions transferred by the provisions of this section, the personnel, property. records, and unexpended balances of appropriations, allocations, and other funds (available, or to be made available) of the Library of Congress which ar determined by the Director of the Bureau of the Budget to relate to suc functions.

SEC. 404. The first sentence of the first section of the Act of June 20, 188 (52 Stat. 1196), is amended to read as follows: "There is hereby created ? committee to be known as the Committee on Purchases of Blind-Made Products (hereinafter referred to as the 'Committee') to be composed of a private citize conversant with the problems incident to the employment of the blind, and ? representative of each of the following Federal agencies: The Department Defense, the Department of the Treasury, the Department of Agriculture, the Department of Commerce, the Department of the Interior, and the Department of Labor."

SEC. 405. For the purpose of coordinating services to blind persons, the fu tions transferred by this title shall be placed in an Office of Services for th Blind, which shall be headed by a Director, appointed by the Administrat SEC. 406. The Act entitled "An Act to authorize the operation of stands i Federal buildings by blind persons, to enlarge the economic opportunities! the blind, and for other purposes," approved June 20, 1936, as amended U. S. C., secs. 107-107F), is hereby amended as follows:

(1) Renumber section 6 to be section 7 and section 7 to be section 8, and inser a new section 6 as follows:

"SEC. 6. In addition to blind persons hitherto designated as potential operator || of stands in Federal buildings, hereafter, citizens handicapped to the exten

of not less than 75 per centum disability, by cerebral palsy, cardiac conditions, arthritis, epilepsy, poliomyelitis, multiple sclerosis, muscular dystrophy, rheumatism, amputations, paraplegia, hemiplegia, quadriplegia, or results of other diseases, injuries, or congenital defects or deformities, if such person is otherwise qualified, or may be trained in the same manner as have, heretofore, the blind who have qualified for such positions, they shall be given equal opportunities with the blind to avail themselves of privileges of operating stands in Federal buildings."

(2) Amend the title so as to read: "An Act to authorize the operation of stands in Federal buildings by blind persons and other severely handicapped persons; to enlarge their economic opportunities; and for other purposes."

TITLE V-REHABILITATION CENTERS

SEC. 501. There are authorized to be appropriated such sums as may be necessary for making payments to States which have submitted and had approved by the Administrator, in addition to State plans under the Vocational Rehabilitation Act, as amended, State plans for rehabilitation centers under this title. SEC. 502. To be approvable under this title, the State plan, in addition to fulfilling the conditions specified in the Vocational Rehabilitation Act, as amended, shall

(a) provide such rules, regulations, and standards as the Administrator may find reasonable and necessary to assure, in the establishment, maintenance, and operation of rehabilitation centers established pursuant to this title

(1) the observance of minimum standards for their adequate establishment and economical and efficient maintenance and operation, and the provision of services therein at reasonable rates and in accordance with professional standards;

(2) the observance, by such centers, of all applicable Federal, State, and local regulations, laws or standards governing health, safety, wages and hours, and working conditions;

(3) the maintenance of accepted business standards, including adequate financial safeguards (including insurance), as may be necessary to provide stability and protection for such centers; and

(4) that such centers will remain available for the provision of services to the physically and mentally handicapped;

(b) provide that no portion of any money paid to the State under this title shall be applied, directly or indirectly, to the cost of establishing any rehabilitation centers unless

(1) the State agency heretofore submitted such information as the Administrator may find necessary to justify the need therefor;

(2) the Administrator has determined that need exists for such center in that locality and that the plans and specifications for its establishment and operation, including financial arrangements for its establishment, and its maintenance and operation when completed, are practicable and calculated to achieve the purposes of this Act; and

(3) in the case of any rehabilitation center within the purview of section 503 of this Act, application therefor has been approved under such section.

SEC. 503. In the case of any rehabilitation center which constitutes a "hospital," as defined in clause (c) of section 631 of the Public Health Service Act (42 U. S. C. 291 1 (e)), an application therefor shall also be made under section 325 of such Act for Federal assistance in the cost of the construction and equipment thereof. The determination of the Surgeon General and the State agency (designated pursuant to subsection 623 of such Act), whether to approve such application, shall be made without regard to the project's priority or inclusion in a State construction program under such Act, and without regard to the availability of funds from the State's allotment under section 624 of such Act. Federal payments with respect to construction and equipment of such project shall

(a) be made from appropriations pursuant to this Act and not from appropriations pursuant to section 624 of the Public Health Service Act; (b) be made in the manner and subject to the same conditions as provided for payments under this Act and not under section 625 of the Public Health Service Act: Provided, That payments therefor under this Act shall be at the rate provided under part C of title VI of the Public Health Service Act as in effect at the time such payments are made; and

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(c) not reduce the unobligated portion of the State's allotment under section 624 of the Public Health Service Act.

SEC. 504. The Administrator shall approve any plan which he believes to be feasible and which fulfills the conditions specified in the foregoing section, except that he shall not approve any plan which he finds contains such restrictions with respect to the expenditure of funds under such plan that would (1) substantially increase the costs of carrying out the purposes of this title in the State, or (2) seriously impair the effectiveness of the State plan in carrying out the purposes of this title.

SEC. 505. (a) From sums made available pursuant to section 501, the Secretary of the Treasury shall pay to each State which has an approved plan under this title (as well as an approved plan under the Vocational Rehabilitation Act, as amended), for each quarter or shorter period prescribed by the Secretary, the sum of amounts he determines to be

(1) one-half the necessary cost to such State, under such plan, of the establishment of public or nonprofit centers in accordance with the provisions of this title; and

(2) one-half the expenditure in such period necessary for the proper and efficient administration of the State plan, including necessary administrative costs in connection with the establishment of rehabilitation centers and justifying the need therefor.

(b) The method of computing and paying amounts pursuant to subsection (a) shall be as follows:

(1) The Administrator shall, from time to time, estimate the amour's to be paid to each State under the provisions of this Act, such estimate to be based on (A) a report filed by the State agency containing its estimate of the total sums to be expended for the purposes of paragraph (1) of subsection (a) during the period for which such estimate is made, and stating the amount appropriated or made available by the State; (B) # report filed by the State agency containing its estimate for such period, of the administrative expenses to be incurred in carrying out the State plan: (C) records and progress reports pertaining to each center being established pursuant to this title; and (D) such other investigation as the Administrat may find necessary.

(2) The Administrator shall then certify to the Secretary of the Treasury the amount so estimated by the Administrator for any period, reduced or increased, as the case may be, by any sum by which he finds that his estimate for any prior period was greater or less than the amount which should have been paid to the State for such prior period, except that such increases or reductions shall not be made to the extent that such sums have bee applied to make the amount certified for any prior period greater or less than the amount estimated by the Administrator for such prior period.

(3) The Secretary of the Treasury shall, upon receiving such certificaties pay, through the Division of Disbursements of the Treasury Department and prior to audit or settlement by the General Accounting Office, to the State at the time or times fixed by the Administrator, the amounts certified. The money so received by the State shall be paid out in accordance with the provisions of the State plan.

SEC. 506. (a) Whenever the Administrator, after reasonable notice and opportunity for hearing to the State agency, finds that in the administration of the plan under this title there is

(1) a failure to comply substantially with any provision of the plan approved by the Administrator under section 504; or

(2) a failure to afford reasonable cooperation with other Federal State agencies providing vocational rehabilitation or related services, the Administrator shall notify such State agency that future payments will net be made with respect to the plan approved pursuant to this title unti he is satisfied that there will no longer be any such failure or that further payments will not be made with respect to any center or centers designated by the Secretary as being affected by the default, as he may determine be appropriate under the circumstances. Until the Administrator is * satisfied, he shall make no further certification to the Secretary of the Treasury with respect to such State plan or with respect to any center thereunder.

(b) If any rehabilitation center for which funds have been paid under this title shall, at any time within twenty years after the establishment thereof. (A) be sold or transferred to, or come into the hands of any person, agency

ganization, (1) which is not a public or private nonprofit agency, or (2) is not approved as a transferee by the State agency, or its successors, or eases to be a public or other nonprofit rehabilitation center as defined in cational Rehabilitation Act, as amended, the United States shall be entitled over from either the transferee or the transferor, or in the case of a which has ceased to be a nonprofit rehabilitation center, from the owner f, one-half of the then value of such center as determined by agreement of rties, or by action brought in the district court of the United States in the t in which such center is situated: Provided, That the recovery thereunder not exceed the total amount paid to the State under this title with respect a center.

507. Until such time as a plan is submitted to the Board of Vocational ilitation (or other agency designated by law) of the District of Columbia pproved by the Administrator under this title, the Administrator, out of made available for this purpose, is authorized to carry out the purposes s title in the District of Columbia. In carrying out his functions under ection, the Administrator is authorized to utilize and enlarge appropriate of the Federal Departments and agencies and to enter into agreements and ating working arrangements with public agencies and private persons, stitutions within the United States, its Territories and possessions, for es and use of facilities of such persons, agencies, and institutions, and to asate them and such units for such services and use.

508. As used in this title

The term "rehabilitation center" is a facility operated for the primary e of assisting in the rehabilitation of physically and mentally handi| persons

(1) which provides one or more of the following types of services:

(A) testing, fitting, or training in the use of prosthetic or othorpedic appliances and devices;

(B) prevocational or conditioning therapy;

(C) physical, corrective, or occupational therapy;

(D) adjustment training; or

(E) evaluation or control of special disabilities; or

(2) in which a coordinated approach is made to the physical, mental, and cational evaluation of physically and mentally handicapped persons, and integrated program of physical restoration and prevocational or votional training is provided under competent professional supervision and rection;

The term "establishment" means construction of new buildings, acquisixpansion, remodeling, and alteration of existing buildings and initial ent of such buildings; and the cost of establishment includes fees of cts and other technical consultants, but excludes (1) the cost of off-site ements and (2) except in the case of publicly owned and operated reation, the cost of acquisition of land.

GVI-SPECIAL PROGRAMS FOR THE SEVERELY HANDICAPPED 601. There are authorized to be appropriated such sums as may be ry for making payments under the provisions of this title to States in addition to submitting and having approved plans for vocational reation in accordance with the Vocational Rehabilitation Act, as amended, ubmitted and had approved by the Administrator plans for services to yhandicapped persons.

602. To be approvable under this title, a State plan for services to sehandicapped persons shall

1) fulfill the conditions specified germane, under the Vocational Rebilitation Act, as amended;

2) provide the following programs:

(A) services to sheltered workshops employing severely handicapped persons;

(B) assistance to homebound severely handicapped persons in establishing themselves and continuing in remunerative employment; (C) establishment and supervision of individual business enterprise programs for severely handicapped persons;

3) provide such regulations as the Administrator may find appropriate assure in the operation of services in sheltered workshops and assistance he homebound