2 of 142 DOCUMENTS. NEW JERSEY REGISTER Copyright 2007 by the New Jersey Office of Administrative Law. 39 N.J.R. 1628(a)

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1 Page 1 2 of 142 DOCUMENTS NEW JERSEY REGISTER Copyright 2007 by the New Jersey Office of Administrative Law VOLUME 39, ISSUE 9 ISSUE DATE: MAY 7, 2007 RULE PROPOSALS LABOR AND WORKFORCE DEVELOPMENT DIVISION OF VOCATIONAL REHABILITATION SERVICES 39 N.J.R. 1628(a) Proposed Readoption with Amendments: N.J.A.C. 12:51 Click here to view Interested Persons Statement Vocational Rehabilitation Services Authorized By: David J. Socolow, Commissioner, Department of Labor and Workforce Development. Authority: N.J.S.A. 34:16-27, 34:1-20, 34:16-20 et seq., 29 U.S.C. 701 et seq. and 34 CFR Part 361. Calendar Reference: See Summary below for explanation of exception to calendar requirement. Proposal Number: PRN A public hearing on the proposed readoption with amendments will be held on the following date at the following location: Thursday, May 24, :00 A.M. to 12:00 Noon N.J. Department of Labor and Workforce Development John Fitch Plaza 1st Floor, Conference Room Trenton, New Jersey Please call the Office of Legal and Regulatory Services at (609) if you wish to be included on the list of speakers. Submit written comments by July 6, 2007 to: David Fish, Regulatory Officer Office of Legal and Regulatory Services N.J. Department of Labor and Workforce Development P.O. Box th Floor Trenton, New Jersey

2 Page 2 Fax to: (609) If you need this document in Braille, large print or audio cassette, contact the Office of Marketing at (609) or NJ Relay (TTY) The agency proposal follows: Summary Pursuant to N.J.S.A. 52:14B-5.1c, N.J.A.C. 12:51, pertaining to vocational rehabilitation services, is scheduled to expire on September 18, The Department has reviewed these rules and, with the exception of technical amendments described in detail below, has determined them to be necessary, reasonable and proper for the purposes for which they were originally promulgated. Accordingly, the Department proposes that N.J.A.C. 12:51 be readopted with amendments. A summary of the subchapters of N.J.A.C. 12:51 follows: Subchapter 1 sets forth the scope and purpose of the chapter. Subchapter 2 delineates the standards and requirements adopted by reference and identifies where those standards and requirements may be reviewed or obtained. The Department is proposing to amend N.J.A.C. 12: and 2.2 to reflect a change in the name of the accreditation commission for rehabilitation facilities from the "Rehabilitation Accreditation Commission" to the "Commission on Accreditation of Rehabilitation Facilities (CARF)." The Department is also proposing to amend N.J.A.C. 12: in order to reflect the following two new organizational designations: "the Council on Accreditation" and "The Joint Commission." These two bodies were formerly known as "the Council on Accreditation of Services for Families and Children" and "the Joint Commission on Accreditation of Health Care Organizations," respectively. In addition, the Department is proposing to amend N.J.A.C. 12: in order to reflect the new name of the manual which contains CARF's standards. That manual was formerly known as the "Standards Manual and Interpretive Guidelines for Employment and Community Support Services." It is now known as the "Employment and Community Services Standards Manual." Finally, the Department is proposing to amend N.J.A.C. 12: in order to reflect the updated address for the American Institute of Certified Public Accountants and to reflect the updated Federal Register citation for the Single Audit Act, Federal OMB Circular entitled, "Audits of Institutions of Higher Education and Other Nonprofit Organizations." Subchapter 3 describes different types of organizations that may vend rehabilitation services. The Department is proposing that N.J.A.C. 12: and 3.5 be amended in order to correct grammatical errors. The Department is also proposing that N.J.A.C. 12: be amended in order to reflect the change in the name of the accreditation commission for rehabilitation facilities from the "Rehabilitation Accreditation Commission" to the "Commission on Accreditation of Rehabilitation Facilities." In addition, the Department is proposing that N.J.A.C. 12: be amended in order to reflect a change in the name of the Department from the "Department of Labor" to the "Department of Labor and Workforce Development." Subchapter 4 addresses the vocational evaluation procedure. The Department is proposing that N.J.A.C. 12: be amended in order to reflect a change in the name of the rehabilitation continuing education program that offers courses in vocational rehabilitation from the "Region II Rehabilitation Continuing Education Programs (RRCEP II)" to the "Region II Rehabilitation Continuing Education Program (RCEP II)." In addition, the amendments to N.J.A.C. 12: would reflect a change in the course offerings of the RCEP II. Specifically, when this chapter was last readopted, in 2001, the RCEP II offered three courses, namely, (1) Vocational Evaluation Methods, (2) Advanced Vocational Assessment Techniques, and (3) Functional Situational Assessment. Currently, the RCEP II offers five courses: (1) Vocational Assessment for Beginners, (2) Functional and Situational Assessment, (3) Vocational Evaluation Methods, (4) Vocational Assessment Tools, and (5) Advanced Vocational Evaluation.

3 Page 3 Subchapter 5 concerns the components of work adjustment training. Subchapter 6 addresses time-limited job coaching. Subchapter 7 provides guidelines for vending employment skills training programs. The Department is proposing that N.J.A.C. 12: be amended in order to reflect that, pursuant to P.L. 2005, c. 354, the State Department of Labor and Workforce Development, rather than the State Department of Education, approves skill training programs offered by community based organizations. Thus, the proposed amendment would substitute the Department of Labor and Workforce Development for the Department of Education. Subchapter 8 addresses the requirements for extended employment (sheltered workshop) programs. The Department is proposing that N.J.A.C. 12: be amended in order to reflect the change in the name of the accreditation commission for rehabilitation facilities from the "Rehabilitation Accreditation Commission" to the "Commission on Accreditation of Rehabilitation Facilities." In addition, the Department is proposing that N.J.A.C. 12: be amended in order to correct an error in statutory citation. Specifically, the section currently refers to the "Extended Employment Act." There is no "Extended Employment Act." Instead, the pertinent law is the "Sheltered Workshop Act of 1971, N.J.S.A. 34:16-39 et seq." Subchapter 9 sets forth the programs, recording and reporting requirements for approved psycho-social programs. Subchapter 10 sets forth the procedures to establish and change fees. Subchapter 11 sets forth the requirements for existing and new programs and the procedures for obtaining program approval. Subchapter 12 addresses staff requirements for organizations that provide vocational rehabilitation services. The Department is proposing that N.J.A.C. 12: be amended in order to reflect a change in the acronym of the rehabilitation continuing education program that offers courses in vocational rehabilitation from the "Region II Rehabilitation Continuing Education Program (RRCEP II)" to the "Region II Rehabilitation Continuing Education Program (RCEP II)." Subchapter 13 contains physical plant requirements for organizations that provide vocational rehabilitation programs. Subchapter 14 contains community relations requirements for organizations that provide vocational rehabilitation programs. Subchapter 15 describes the composition and purpose of the Professional Advisory Committee. Subchapter 16 explains the method by which organizations may apply to the Division of Rehabilitation Services for grant monies. Subchapter 17 addresses payment and attendance policy requirements for organizations that provide vocational rehabilitation services. Subchapter 18 addresses the standards for approval of vocationally-oriented rehabilitation organizations to vend services to the Division of Vocational Rehabilitation Services. The Department is proposing that N.J.A.C. 12: be amended in order to reflect the change in the name of the accreditation commission for rehabilitation facilities from the "Rehabilitation Accreditation Commission" to the "Commission on Accreditation of Rehabilitation Facilities." Subchapter 19 addresses eligibility requirements for individuals who seek to obtain services from the Division of Vocational Rehabilitation Services.

4 Page 4 Subchapter 20 contains standards for organizations that vend supported employment services to the Division of Vocational Rehabilitation Services. The Department is proposing that N.J.A.C. 12: be amended in order to reflect the new name of the manual that contains CARF's standards. That manual was formerly known as the "Standards Manual and Interpretive Guidelines for Employment and Community Support Services," referenced in subsection (d) as the CARF Standards Manual. It is now known as the "Employment and Community Services Standards Manual." As the Department has provided a 60-day comment period for this notice of proposal, this notice is excepted from the rulemaking calendar requirements, pursuant to N.J.A.C. 1:30-3.3(a)5. Social Impact The rules proposed for readoption would continue to have a positive social impact in that they would ensure that individuals with disabilities receive needed vocational rehabilitation services and that the organizations providing these valuable services meet program standards set by the Division of Vocational Rehabilitation Services. Individuals with disabilities who receive vocational rehabilitation services through the Division of Vocational Rehabilitation Services under the rules proposed for readoption with amendments would continue to benefit from increased job opportunities in competitive integrated work environments (that is, working with non-disabled individuals). The rules proposed for readoption with amendments would also continue to benefit the organizations that provide vocational rehabilitation services as vendors for the Division of Vocational Rehabilitation Services in that the rules provide guidance to those organizations regarding (1) Division standards for vendors of vocational rehabilitation services and (2) the procedure for vendors to follow in order to obtain Division approval. The proposed amendments would have a positive social impact in that they would update the names of organizations and standards manuals, as well as addresses, and would correct grammatical errors, thereby eliminating any possible confusion that might otherwise exist among end-users of the rules. Economic Impact The rules proposed for readoption with amendments would continue to have a positive economic impact upon individuals with disabilities who seek vocational rehabilitation services, in that the programs addressed by those rules would provide opportunities for individuals with disabilities to receive work behavior training in competitive, integrated settings at commensurate wage levels, whereas without the programs addressed by the rules proposed for readoption, those individuals would most likely have to obtain such training in facilities under wage and hour certificates, which allow for the payment of wages at less than the minimum wage. The rules proposed for readoption would continue to have some negative economic impact upon vocational rehabilitation organizations seeking to become vendors of vocational rehabilitation services for the Division of Vocational Rehabilitation Services in that they would have to comply with the existing program, staffing, facilities, reporting, recordkeeping, auditing and accounting procedures set forth in the rules. However, the positive economic impact of the rules proposed for readoption upon those organizations would be that, where they successfully satisfy the requirements contained within the rules, they would be eligible for approval as vendors of vocational rehabilitation services and thereby, would also be eligible to receive grants from the Division of Vocational Rehabilitation Services for providing such services and be eligible to provide such services for the Division on a fee-for-service basis. The proposed amendments would have no economic impact, positive or negative, on any party. Federal Standards Statement The rules proposed for readoption and the proposed amendments do not exceed standards or requirements imposed by Federal law. Specifically, the rules proposed for readoption and the proposed amendments are consistent with the Rehabilitation Act of 1973, 29 U.S.C. 701 et seq., and the regulations promulgated in accordance therewith, 34 CFR Part 361. Consequently, a Federal standards analysis is not required.

5 Page 5 Jobs Impact The rules proposed for readoption and the proposed amendments would have no impact on jobs, with the exception of a possible indirect impact on jobs resulting from an increase in the wage earning capacity of individuals with disabilities. The Department does not anticipate an increase or decrease in jobs as a result of these rules. Agriculture Industry Impact The rules proposed for readoption and the proposed amendments would have no impact on the agriculture industry. Regulatory Flexibility Analysis The rules proposed for readoption would continue to impose reporting, recordkeeping and compliance requirements on "small businesses," as that term is defined by the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq. Specifically, in order for vendors of rehabilitation services, many of which are small businesses, to be approved by the Division of Vocational Rehabilitation Services to receive grants for the provision of rehabilitation services or to receive approval to provide rehabilitation services on behalf of the Division of Vocational Rehabilitation Services on a fee-for-service basis, those vendors would continue to be required to comply with the existing program, staffing, facilities, reporting, recordkeeping, auditing and accounting procedures set forth in the rules. For example, regarding reporting and recordkeeping requirements, N.J.A.C. 12: would continue to require that an organization approved to provide extended employment services is responsible for the submission of a quarterly statistical report 14 calendar-days after the close of each quarter. N.J.A.C. 12: would continue to require that extended employment contractors must have accounting records, which include information such as individual client attendance records summarizing periodically, on a calendar basis, the number of days the client is present and absent (and the reason), the total wages or other payments to all individual clients on an annual basis, and supplementary cost records, which will enable the State auditor to readily and accurately determine the separate cost for direct labor, indirect labor, and payments made in excess of those required by minimum Wage and Hour rules (often called wage supplements or "subsidies"). N.J.A.C. 12:51-3.5, as amended, would require that the rehabilitation organization's accounting system must follow the standards established by the Commission on Accreditation of Rehabilitation Facilities and the American Institute of Certified Public Accountants Audit Guide for Audits of Voluntary Health and Welfare Organizations. N.J.A.C. 12: would also continue to require that the governing entity and the executive director of not-for-profit organizations must have an audit conducted, which meets the requirements for the Single Audit Act, Federal OMB Circular A-133, 'Audits of Institutions of Higher Education and Other Nonprofit Organizations.'" Each of these standards is consistent with the standards maintained by the Commission on Accreditation of Rehabilitation Facilities and published in the most recent Employment and Community Services Standards Manual. Moreover, as indicated in the Federal Standards Statement above, the standards contained in the rules proposed for readoption are also consistent with the "Rehabilitation Act of 1973," 29 U.S.C. 701 et seq., and the regulations promulgated in accordance therewith, 34 CFR Part 361. In order to ensure adherence by vendors to nationally recognized standards for the provision of rehabilitation services and, thereby to protect the health, welfare and safety of individuals with disabilities, the Department must require all businesses, large and small, to adhere to the minimum standards set forth in the rules proposed for readoption. The auditing and accounting requirements contained in the rules proposed for readoption would likely require the use of professional services. The cost of these professional services is unknown as it would likely vary from business to business depending upon a variety of factors. There is no way to lessen the burden of these standards on small businesses. The proposed amendments would impose no reporting, recordkeeping or compliance requirements on small businesses, as that term is defined by the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq. Smart Growth Impact The rules proposed for readoption and the proposed amendments would not have an impact on the achievement of smart growth and the implementation of the State Development and Redevelopment Plan.

6 Page 6 Full text of the rules proposed for readoption may be found in the New Jersey Administrative Code at N.J.A.C. 12:51. Full text of the proposed amendments follows (additions indicated in boldface thus; deletions indicated in brackets [thus]): 12: Adoption by reference (a) The standards maintained by the [Rehabilitation Accreditation Commission, also known as the] Commission on [the] Accreditation of Rehabilitation Facilities (CARF), and published in the most recent [Standards Manual and Interpretive Guidelines for] Employment and Community [Support] Services Standards Manual and other accrediting bodies, such as the Council on Accreditation [of Services for Families and Children, the], The Joint Commission [on Accreditation of Health Care Organizations] and other State agencies for whom documentation is provided indicating that they meet or exceed CARF standards are adopted and incorporated herein by reference as standards for the operation of vocational rehabilitation programs in New Jersey. (b)-(c) (No change.) 12: Availability of standards adopted by reference (a) A copy of the standards adopted and incorporated herein by reference as standards for the operation of vocational rehabilitation programs in New Jersey may be obtained from the [Rehabilitation Accreditation] Commission on Accreditation of Rehabilitation Facilities, 4891 East Grant Road, Tucson, Arizona (b) A copy of the standards adopted and incorporated herein by reference as standards for rehabilitation organizations accounting systems may be obtained from the American Institute for Certified Public Accountants, [666 Fifth Avenue] 1211 Avenue of the Americas, 19th Floor,New York, New York [10019] (c) The Single Audit Act, Federal OMB Circular A-133, "Audits of Institutions of Higher Education and Other Non-profit Organizations" may be found in the Federal Register, Volume [55, No. 52, Friday, March 16, 1990] 68, No 124, June 27, (d) (No change.) 12: Governing entity (a)-(b) (No change.) (c) The governing entity shall be responsible for: (No change.) 4. Establishing policy regarding property, funds, and personnel operations; (No change.) (d) (No change.) 12: Business and financial practices

7 Page 7 (a) The rehabilitation organization's accounting system will follow the standards established by the [Rehabilitation Accreditation] Commission on Accreditation of Rehabilitation Facilities and the American Institute of Certified Public Accountants (AICPA) Audit Guide for Audits of Voluntary Health and Welfare Organizations[, as amended and supplemented, incorporated herein by reference]. The accounting system shall be functional and enable the organization to identify clearly the cost of rehabilitation services, production activities, administration, and other expenses of operation. (b)-(i) (No change.) (j) The organization must comply with all Federal and State wage and hour laws and regulations, and be certified when applicable, by the Wage and Hour Public Contracts Division of the U.S. Department of Labor and by the State of New Jersey. All clients under the age of 18 are required to have working papers issued by the local board of education. The organization will comply with Federal, State and local laws and regulations covering the physical facility, staff, client benefits and will also comply as nearly as practicable with local industrial and/or business practices relating to fringe benefits, including Social Security coverage for all clients so eligible. The community rehabilitation program shall have a risk protecting program adequate to preserve its assets and to compensate its staff, volunteers, clientele, and the public for reasonable claims due to events for which the facility is liable. Evaluation of the needs for insurance and the types of protection offered shall be reviewed annually, or more frequently, if necessary. Insurance or risk coverage will include building(s), equipment, [and] inventory, and malpractice liability, Workers' Compensation, Social Security and bonding of appropriate personnel. (k) (No change.) (l) All financial records will be made available to authorized representatives of the New Jersey Department of Labor and Workforce Development and the New Jersey Commission for the Blind and Visually Impaired community rehabilitation program staff and will be subject to examination and audit upon satisfactory notice thereof. (m)-(n) (No change.) 12: Short-term comprehensive vocational evaluation (a)-(i) (No change.) (j) The short-term comprehensive vocational evaluation will be conducted by a vocational evaluator who: shall have a minimum of a Bachelor's degree in Vocational Rehabilitation or a related field; shall have successfully completed at least one basic and one advanced course in test and measurements; shall come to the position with two years of relevant experience; shall be prepared to sit for the Certified Vocational Evaluator (CVE), a national examination, within three years of hire; shall be supervised by an individual who meets the CARF definition of Vocational Specialist or Vocational Evaluator; participates in ongoing relevant training in vocational evaluation and assessment, such as the biannual Vocational Evaluation and Work Adjustment Association (VEWAA) vocational evaluation forum, regional CRP training, and New Jersey DVRS sponsored training that is appropriate to the profession. An alternative to preparing and sitting for certification through Commission on Certification of Work Adjustment and Vocational Evaluation Specialists (CCWAVES) is to attend [three] five courses offered through the Region II Rehabilitation Continuing Education Program[s (RRCEP II): Vocational Evaluation Methods, Advanced Vocational Assessment Techniques, and Functional Situational Assessment] (RCEP II): Vocational Assessment for Beginners, Functional and Situational Assessment, Vocational Evaluation Methods, Vocational Assessment Tools and Advanced Vocational Evaluation. Completion of these courses followed by passing an examination that assesses the person's competency may be substituted for CCWAVES certification. (k) After receiving the initial approval, an organization shall have an evaluator certified by the [Commission on

8 Page 8 Certification of Work Adjustment and Vocational Evaluation Specialists (]CCWAVES[)] in order to continue to provide services. Thus, when first applying, an organization will be given up to three years to qualify the evaluator for CCWAVES. Absent extenuating circumstances, no extensions will be granted subsequent to the three-year qualifying period. Organizations that choose the [RRCEP] RCEP II alternative shall demonstrate the individual's competency via examination within the same time period. Absent extenuating circumstances, no extensions will be granted subsequent to the three-year qualifying period. 12: Approval process In order to vend a skill training program by a community-based organization, it is necessary to acquire [Chapter 531 approval from the Department of Education, or approval pursuant to N.J.A.C. 6A:18-1 et seq. if the organization intends to offer the program to the general public for a fee] approval from the New Jersey Department of Labor and Workforce Development. In those instances where some other Department has approval authority, the appropriate approval from that Department shall be secured. 12: Extended (sheltered) employment (a)-(j) (No change.) (k) Physical plant facilities must comply with the [Rehabilitation Accreditation] Commission on Accreditation of Rehabilitation Facilities standards for Health and Safety[," as amended and supplemented, incorporated herein by reference]." (l) (No change.) 12: Reevaluation of extended (sheltered) employees (a) Annual reevaluation and ongoing services to extended (sheltered) employees is the responsibility of the vocational rehabilitation facility. This activity is supported by DVRS under the funding of the [Extended Employment Act] Sheltered Workshop Act of 1971, N.J.S.A. 34:16-39 et seq. The Division shall also meet with extended employees to offer them additional options for integrated employment. 12: Staff requirements, procedures and qualifications (a) (No change.) (b) The organization will provide a staff improvement program designed to encourage professional growth and development of the staff; for example, University Training Programs. Part of this program should include attendance at professional conferences each year pertaining to the work of the staff member, such as the National Rehabilitation Association, ACCSES New Jersey and the Association of Persons in Supported Employment, meetings and programs [which] that are offered by the Regional Rehabilitation Continuing Education Program [(RRCEP)] (RCEP), University of Medicine and Dentistry of New Jersey, and the New Jersey Psychiatric Rehabilitation Association. (c)-(i) (No change,) 12: New Jersey Division of Vocational Rehabilitation Services (a)-(b) (No change.) (c) In order to achieve the above, community rehabilitation programs [which] that are providing vocational evaluation,

9 Page 9 work adjustment training, extended employment, time limited job coaching and/or supported employment services to clients of DVRS will apply for accreditation in employment services and arrange an on-site survey by the [Rehabilitation Accreditation] Commission on Accreditation of Rehabilitation Facilities or any other accrediting body [which] that meets or exceeds CARF standards no later than the third year of operation from date of approval by DVRS. Programs are encouraged to submit all core programs for accreditation, but are required to submit comprehensive vocational evaluation services to vend vocational evaluation; employee development services to vend work adjustment training; organizational employment services to vend extended employment; and community employment services to vend supported employment and/or time limited job coaching. 12: Administrative (a)-(c) (No change.) (d) The organization's policy shall demonstrate that systems are in place to measure outcomes including effectiveness, efficiency, and satisfaction of the people served and comply with the most recent CARF Employment and Community Services Standards Manual.

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