CHAPTER 400.1 VOCATIONAL REHABILITATION ADMINISTRATION

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Section									Page No.		
400.1-1		Objectives					   400.1-1.1	

400.1-2 	Sole State Agency				   400.1-2.1
(A)	Department - Sole State Agency	   400.1-2.1
(B)	Division - Designated State Unit	   400.1-2.1
(C)	Responsibility for Decisions		   400.1-2.1
(D)	Establishment and Administration of 
Policies						   400.1-2.1

400.1-3  	State Plan					   400.1-3.1
(A)	Submittal of State Plan for Approval  400.1-3.1
(B)	Choice to Submit State Unified Plan   400.1-3.1
(C)	Opportunity for Public Comment	   400.1-3.1
(D)	Remains in Effect Subject to 
Modifications by the Division or the 
Secretary of Education			   400.1-3.3
(E)	Requirements for Submittal for 
Approval						   400.1-3.3
(F)	Required Annual Submissions for 
Approval						   400.1-3.4
(G)	Secretary Approval of State Plans and 
Revisions						   400.1-3.4
(H)	Secretary Disapproval of State Plans  400.1-3.4

400.1-4	   Nondiscrimination				   400.1-4.1

400.1-5	   Right to Due Process			   400.1-5.1
(A)	Right and Opportunity to Appeal 
(Request for Review)			   400.1-5.1
(1)	Ninety (90) Day Time Limit	   400.1-5.1
(2)	Date of Request			   400.1-5.1
(3)	Format of the Request		   400.1-5.1
(4)	Content of the Request		   400.1-5.2
(5)	Acknowledgement of Receipt of 
Request by the Division		   400.1-5.2
(6)	Copy Filed in Case Record	   400.1-5.2
(B)	Notice to Applicants or Eligible 
Individuals					   400.1-5.2
(1)	Right to Impartial Hearing	   400.1-5.2
(2)	Right to Mediation			   400.1-5.3
(3)	With Whom to File			   400.1-5.3
(4)	Manner for Selecting a Mediator  400.1-5.3
(5)	Availability of the Client 
Assistance Program			   400.1-5.3

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(C)	Timing of Notice in Writing to 
Applicants and Eligible Individuals   400.1-5.3
(1)	At Application				   400.1-5.4
(2)	At Assignment of Priority for 
Services					   400.1-5.4
(3)	At Development of the IPE	   400.1-5.4
(4)	At Reduction, Suspension or 
Termination of Services		   400.1-5.4
(D)	Right to Challenge Ineligibility and
“No Longer Eligible” Determinations   400.1-5.4

400.1-6	Mediation						   400.1-6.1
(A)	Mediation Process				   400.1-6.1
(1)	Voluntary Participation		   400.1-6.1
(2)	Denial or Delay of Right to 
Hearing					   400.1-6.1
(3)	Time Period for Conducting the 
Mediation					   400.1-6.1
(4)	Termination of Mediation		   400.1-6.2
(5)	Qualifications of Mediators	   400.1-6.2
(6)	List of Mediators			   400.1-6.3
(7)	Selection of Mediator		   400.1-6.3
(8)	Opportunity for Further 
Selection					   400.1-6.3
(9)	Documentation of Selection	   400.1-6.4
(10)	Opportunity to Present Evidence 
and Information During the 
Mediation					   400.1-6.4
(11)	Right to be Represented During 
the Mediation				   400.1-6.4	
(12)	Provision of Interpreter or 
Reader Services			   400.1-6.4	
(13)	Submittal of Position Statement 
by the Division			   400.1-6.5
(14)	No Suspension, Reduction, or 
Termination of VR Services 
Pending Resolution			   400.1-6.5
(15)	Notice of Mediation			   400.1-6.6
(16)	Payment for Transportation Costs 400.1-6.6
(B)	Payment for Mediation Costs		   400.1-6.6
(C)  Compensation of the Mediator and
Procedures for Conducting the 
Mediation						   400.1-6.7

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400.1-7	Hearing						   400.1-7.1
(A)	Hearing Procedures				   400.1-7.1
(1)	Time Period for Conducting the 
Hearing				   	   400.1-7.1
(2)	Qualifications of the Hearing 
Officer					   400.1-7.2
(3)	List of Hearing Officers and
	Selection of Hearing Officer	   400.1-7.2
(4)	Opportunity to Present Evidence 
and Information During the 
Hearing					   400.1-7.3
(5)	Right to Be Represented During 
the Hearing				   400.1-7.3
(6)	Provision of Interpreter or 
Reader Services			   400.1-7.4
(7)	Payment for Transportation Costs 400.1-7.4
(8)	Submittal of Position Statement 4
by the Division			   400.1-7.4
(9)	No Suspension, Reduction, or 
Termination of VR Services 
Pending Resolution			   400.1-7.4
(10)	Notice of Hearing			   400.1-7.5
(11)	Postponement of Hearing		   400.1-7.6
(12)	Cancellation of Hearing		   400.1-7.6

(B)	Compensation of the Hearing Officer 
and Responsibilities			   400.1-7.8 
(C)	Finality of Hearing Decision and
	Implementation of Hearing Officer’s 
Decision Pending Civil Action		   400.1-7.8
(D)	Right to Bring Civil Action 		   400.1-7.9

400.1-8  	Maintenance of Case Records		   400.1-8.1
(A)	Division’s Record of Services for 
Applicants and Eligible Individuals   400.1-8.1
(B)	Confidentiality of Case Record 
Information					   400.1-8.1
(C)	Confidentiality of Medical or 
Psychological Records			   400.1-8.1

400.1-9   Certification for 
     Telephone Solicitation         	   400.1-9.1
(A)	Responsibility for Certification	   400.1-9.1
(B)	The Certificate				   400.1-9.1
(C)	Disclosure with Solicitation		   400.1-9.1

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(D)	Certification Requirements		   400.1-9.1
(E)	Termination of Application		   400.1-9.2
(F)	Processing Applications			   400.1-9.2
(G)	Renewal of Certification			   400.1-9.3
(H)	Right to Appeal				   400.1-9.3

400.1-10  Standards of Services	    		   400.1-10.1
(A)	Authorization for 
Expenditure of Funds			   400.1-10.1
(B)	Emergency Authorizations			   400.1-10.1
(C)	Preference for In-State Services	   400.1-10.1
(D)	No Absolute Dollar Limits on Services 400.1-10.1
(E)	Payments to Vendors				   400.1-10.1
(F)	Amount of Payment				   400.1-10.2
(G)	Vendor’s Qualifications			   400.1-10.2

400.1-11 	Administration of Funds			   400.1-11.1
(A)	Responsibility for Funds			   400.1-11.1
(B)	Charges Not Covered 
by Fee Schedules				   400.1-11.1
(C)	Authorization for Payment of Services 400.1-11.1
(D)	Vendor’s Qualifications			   400.1-11.1
(E)	Use of Division’s Medical Consultants 
in Selecting Service Providers	   400.1-11.2
(F)	Fee Schedules					   400.1-11.2
(1)	Medical Fee Schedule		   400.1-11.3
(2)	Dental Fee Schedule			   400.1-11.3
(3)	Psychological Fee Schedule	   400.1-11.3
(4)	Sign Language Interpreter 
Services Fee Schedule		   400.1-11.4
(5)	Health Insurance			   400.1-11.4
(6)	Canceled Services			   400.1-11.5
(7)	Payment for Failed Appointments  400.1-11.5
(8)	Costs for Special Reports	   400.1-11.5
(9)	Payments to Hospitals		   400.1-11.5

400.1-12	Interagency Cooperation 
  and Collaboration				   400.1-12.1
(A)	Governor’s Assurance of Interagency 
Cooperation and Collaboration		   400.1-12.1
(1)	Mechanisms for Interagency 
Coordination				   400.1-12.1
(2)	Content of the Agreement or 
Other Mechanism			   400.1-12.1

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(B)	Obligations of Other Public Entities 
Under Federal or State Laws		   400.1-12.1

400.1-13	Coordination of Services with the
State Department of Education		   400.1-13.1
(A)	Plans, Policies and Procedures for 
Coordination of Services			   400.1-13.1
(1)	Individualized Plan for 
Employment				   400.1-13.1
(2)	Formal Interagency Agreement	   400.1-13.1

400.1-14	Cooperation with WIA One-Stop Centers 400.1-14.1
(A)	Required Division Functions		   400.1-14.1

400.1-15	Cooperative Agreements with WIA One-
Stop Partners					   400.1-15.1
	(A)	Development of Cooperative Agreements 
with Other Entities Under the One-Stop 
Service Delivery System			   400.1-15.1
(1)	Replication of Agreements at
	the Local Level			   400.1-15.1
(2)	Content of Cooperative 
Agreements				   400.1-15.1

400.1-16	Cooperation with Other Federal, 
State, and Local Agencies and
Programs						   400.1-16.1
	
400.1-17	Requests to Inspect or Obtain Copies 
  	of Government or Personal Records	   400.1-17.1
(A)	Formal or Informal Requests		   400.1-17.1
(B)	Notice of Inability to Disclose 
Information					   400.1-17.1
(C)	Notice of Denial of Access		   400.1-17.2

400.1-18  Requests for Changes in the Rules 
        	of the Division				   400.1-18.1
(A)	Written Petition				   400.1-18.1
(B)	Processing of Petitions			   400.1-18.1
 
400.1-19  Volunteer Services Program		   400.1-19.1
(A)	Use of Volunteers in the Division	   400.1-19.1
(B)	Compliance with Hawaii Revised 
Statutes						   400.1-19.1

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(C)	Development, Coordination, Monitoring
And Evaluation of the Program		   400.1-19.1
(D)	Compilation of Statistical Data and 
Submittal of Annual Assessment Form   400.1-19.1

OBJECTIVES    		     					 400.1-1.1

400.1-1	Objectives

The objectives of the rules of the Vocational Rehabilitation and Services for the Blind Division are to implement the requirements of Chapters 347 and 348, Hawaii Revised Statutes, Chapter 6A, 20 United States Code, and Chapter 16, 29 United States Code, for administering services for the blind and visually impaired including the vending facilities for the blind program, and a statewide, comprehensive, coordinated, effective, efficient, and accountable program of vocational rehabilitation (VR) services, which is an integral part of a Statewide Workforce Investment System and is designed to assess, plan, develop and provide VR services for individuals with disabilities, consistent with their strengths, resources, priorities, concerns, abilities, capabilities, interests and informed choice, so that they may prepare for and engage in gainful employment.  [Eff Aug 13, 2007]  (Auth:  HRS §§347-3, 347-4, 348-3, 348-6; 29 U.S.C. §720; 34 C.F.R. §361.1)	(Imp:  HRS §§347-3, 347-4, 348-3, 348-6; 29 U.S.C. §720; 34 C.F.R. §361.1)

SOLE STATE AGENCY						    400.1-2.1

400.1-2	Sole State Agency

(A)	Department - Sole State Agency 

The Department of Human Services, hereafter referred to as the department, shall be the sole State agency to administer the VR Services Program.

(B)	Division - Designated State Unit

The Vocational Rehabilitation and Services for the Blind Division, hereafter referred to as the division, is the designated State unit of the department to administer the VR Services Program in the State, including services for individuals who are blind and visually impaired, and disability determination under the Social Security Act.

(C)	Responsibility for Decisions

All decisions affecting the eligibility and priority for services of eligible individuals, the determination of VR needs, and the nature and scope of VR services to be provided, shall be made by the division.  This responsibility shall not be delegated to any other agency or individual.

(D)	Establishment and Administration of Policies

The administrator of the division, hereafter referred to as division administrator, shall have the authority and responsibility to establish policies on eligibility requirement, determination of VR needs, and on the standards governing the quality and quantity of services to be provided.  These policies shall be administered uniformly and expeditiously to assure prompt handling of 
referrals and applications in the provision of services to eligible individuals statewide.  [Eff Aug 13, 2007]  (Auth:  HRS §§347-3, 347-4, 348-3, 348-6; 29 U.S.C. §§705(8)(A) and (B), 721(a)(2); 34 C.F.R. §361.5)  (Imp:  HRS §§347-3, 347-4, 348-3,   

SOLE STATE AGENCY							400.1-2.2

348-6; 29 U.S.C. §§705(8)(A) and (B), 721(a)(2); 34 C.F.R. §361.5(13) and (14))

STATE PLAN					            	400.1-3.1

400.1-3	State Plan

(A)	Submittal of State Plan for Approval

The department must submit to the U.S. Secretary of Education, hereafter referred to as Secretary, and obtain approval of, a State Plan that contains a description of the State’s VR Services Program, the plans and policies (rules) to be followed in carrying out the program, and other information requested by the Secretary, in accordance with 34 C.F.R. Section 361.10 and the requirements of this Section.

(B)	Choice to Submit State Unified Plan

	The department may choose to submit the State Plan for VR Services as part of the State Unified Plan under Section  501 of the Workforce Investment Act of 1998.  The portion of the State Unified Plan that includes the State Plan for VR Services must meet the State Plan requirements in this Section.

(C)	Opportunity for Public Comment

Prior to the adoption of any substantive rules governing the provision of VR services under the State Plan, including making any substantive amendment to those rules, the State Plan must assure that the department conducts public meetings throughout the State to provide the public, including individuals with disabilities, an opportunity to comment on the rules, in accordance with the following requirements:

(1)	The State Plan must assure that the department provides appropriate and sufficient notice throughout the State of the meetings in accordance with 
State law governing public meetings.

(2)	The State Plan must provide a summary 
of the input of the State Rehabilitation 
Council (Council) into the State Plan 

STATE PLAN								400.1-3.2

and any amendments to the State Plan,
including:

(a)	Recommendations from the annual report of the Council;

(b)	The Council’s review and analysis of the effectiveness of, and consumer satisfaction with:

1)	The functions performed by the department;

2)	The VR services provided by State agencies and other public and private entities responsible for providing VR services to individuals with disabilities; and

3)	The employment outcomes achieved by eligible individuals receiving services including the availability of health and other employment benefits in connection with those employment outcomes;

(c)	Other reports prepared by the Council; and

(d)	The division’s response to the input and recommendations, including explanations of reasons for rejecting any input or recommendations of the Council.

(3)	The State Plan must assure that the department actively consults with the 
director of the Client Assistance 
Program, the State Rehabilitation 
Council, and, as appropriate, Indian tribes, tribal organizations, and native Hawaiian organizations on its rules
governing the provision of VR services under the State Plan.

STATE PLAN							      400.1-3.3

(4)	The division must provide to the public,
through appropriate modes of communication:

(a)	Notices of the public meetings;

(b)	Any materials furnished prior to or during the public meetings; and

(c)	The rules governing the provision of VR services under the State Plan.

(D)	Remains in Effect Subject to Modifications by the Division or the Secretary of Education 

The State Plan remains in effect, subject to the submission of modifications the division determines to be necessary or the Secretary may require, based on a change in State policy, a change in Federal law, including regulations, an interpretation of the Rehabilitation Act of 1973, as amended, hereafter referred to as the Act, by a Federal court or the highest court of the 
State, or a finding by the Secretary, of 
State noncompliance with the requirements of the Act, or Federal regulations.

(E)	Requirements for Submittal for Approval

The division must submit the State Plan for approval:

(1)	To the Secretary on the same date that the State submits a State Plan relating to the Statewide Workforce Investment
System under Section 112 of the 
Workforce Investment Act of 1998;

(2)	As part of the State Unified Plan submitted under Section 501 of the 
Workforce Investment Act of 1998; or

(3)	To the Secretary on the same date that the State submits a State Unified Plan under Section 501 of the Workforce
Investment Act that does not include the

STATE PLAN							  	 400.1-3.4

State Plan under this Section.

(F)	Required Annual Submissions for Approval

The division must make the following annual submissions to the Secretary for approval:

(1)	Revisions to the State Plan in accordance with subsection (D) and 34 C.F.R. 76.140.

(2)	Annual updates of the information required under 34 C.F.R. Sections 361.18, 361.29, and 361.35 and any other updates of the information required under this Section that are requested by the Secretary.

(3)	The division is not required to submit rules or descriptions required under 
this Section, that have been previously submitted to the Secretary and that demonstrate that the State meets the requirements of this Section, including any rules, or descriptions submitted under this Section that are in effect on August 6, 1998.

(G)	Secretary Approval of State Plans and Revisions

The Secretary approves any State Plan and 
any revisions to the State Plan that conform
to the requirements of this Section and Section 101(a) of the Act.

(H)	Secretary Disapproval of State Plans

The Secretary disapproves any State Plan that 
does not conform to the requirements of this Section and Section 101(a) of the Act, and that is not in accordance with the following procedures:

(1)	Prior to disapproving any State Plan, the Secretary attempts to resolve

STATE PLAN							      400.1-3.5

disputes informally with State officials.

(2)	If, after reasonable effort has been made to resolve the dispute, no resolution has been reached, the Secretary provides notice to the department of the intention to disapprove the State Plan and of the opportunity for a hearing.

(3)	If the department requests a hearing, the Secretary designates one or more individuals, either from the U.S. Department of Education or elsewhere, not responsible for or connected with the administration of the State VR Services Program, to conduct a hearing in accordance with the provisions of 34 C.F.R. Part 81, Subpart A.

(4)	The hearing officer issues an initial decision in accordance with 34 C.F.R. 81.41.

(5)	The department may seek the Secretary’s review of the initial decision in accordance with 34 C.F.R. Part 81.

(6)	The Secretary reviews the initial decision in accordance with 34 C.F.R. 81.43.

(7)	The final decision of the U.S. Department of Education is made in accordance with 34 C.F.R. 81.44.

(8)	The department may appeal the Secretary’s decision to disapprove the State Plan by filing a petition for 
review with the United States Court of Appeals for the circuit in which the State is located, in accordance with Section 107(d) of the Act.  [Eff Aug 13, 2007]  (Auth:  HRS §§347-4, 348-3, 348-6; 29 U.S.C. §721; 34 C.F.R. §§361.10, 361.20)  (Imp:  HRS §§347-4, 348-3, 348-

STATE PLAN							      400.1-3.6

6; 29 U.S.C. §§721, 727; 34 C.F.R. §§361.10, 361.20)

NONDISCRIMINATION							 400.1-4.1

400.1-4  	Nondiscrimination

(A)	Services shall be administered without regard to age, gender, race, color, national origin, religion or political beliefs.  

(B)	No qualified person with a disability shall be denied the benefits of, be excluded from participating in, or otherwise be subjected to discrimination solely on the basis of the person’s disability, under the division’s programs.  [Eff Aug 13, 2007]  (Auth:  HRS §§347-4, 348-3, 348-6; 29 U.S.C. §794; 34 C.F.R. §361.42(c))  (Imp:  HRS §§347-4, 348-3, 348-6; 29 U.S.C. §794; 34 C.F.R. §361.42(c))

RIGHT TO DUE PROCESS		                     400.1-5.1

400.1-5	Right to Due Process

(A)	Right and Opportunity to Appeal (Request for Review)

Any applicant or eligible individual or, as appropriate, individual’s representative, who is dissatisfied with any decision or action taken by personnel of the division that affects the provision of VR services or general services for the blind, may request, or, if appropriate, may request through the individual’s representative, for a timely review of that determination, in accordance with this Section.

(1)	Ninety (90) Day Time Limit

The request for review from an applicant or eligible individual or, as appropriate, individual’s representative must be made within 90 days of the decision or action taken by the division.  If the 90th day falls on a weekend or holiday, the 90th day shall be the working day following the weekend or holiday.

(2)	Date of Request

The date of request is the date the division receives a signed request for review from the applicant or eligible individual or, as appropriate, individual’s representative.

(3)	Format of the Request

The request must be made to the division administrator, in writing.

(a)	The division shall assist the applicant or eligible individual 
in documenting the request by use 
of the division’s preprinted form letter.

RIGHT TO DUE PROCESS		                     400.1-5.2 

(b)	Other written requests for review, 
containing the required information specified in paragraph (4) by an applicant or eligible individual or, as appropriate, individual’s representative, shall be sufficient to initiate the review process.

(4)	Content of the Request

The request for review shall contain the nature of the complaint, the agency staff involved, the alleged action or decision in question, a statement, if applicable, that the applicant or eligible individual or, as appropriate, individual’s representative wants to pursue mediation prior to formal due process hearing, and the signature of the applicant or eligible individual, or, as appropriate, individual’s representative.

(5)	Acknowledgement of Receipt of Request by the Division 

The request for review shall be acknowledged by the division administrator within two weeks of its receipt by the division.

(6)	Copy Filed in Case Record

A copy of the request for review shall be filed in the division’s record of services for the individual.

 (B)	Notice to Applicants or Eligible Individuals

The division shall provide each applicant or 
eligible individual or, as appropriate, the individual’s representative, notice of:

(1)	Right to Impartial Hearing

The right to obtain review of any determinations made by personnel of the 

RIGHT TO DUE PROCESS		                     400.1-5.3 

division that affect the provision of VR 
services through an impartial due process hearing in accordance with Section 400.1-7;

(2)	Right to Mediation

The right to pursue mediation with respect to determinations made by personnel of the division that affect 
the provision of VR services, prior to 
hearing, in accordance with the mediation process under Section 400.1-6; 

(3)	With Whom to File

The names and addresses of individuals with whom requests for mediation or due process hearings may be filed;

(4)	Manner for Selecting a Mediator

The manner in which a mediator may be selected consistent with the requirements of Section 400.1-6(A)(7), or the manner in which an impartial hearing officer may be selected consistent with the requirements of Section 400.1-7(A)(3)(b); and

(5)	Availability of the Client Assistance Program

The availability of the Client Assistance Program of the Hawaii Disability Rights Center to assist the 
applicant or eligible individual during mediation sessions or impartial due process hearings.

(C)	Timing of Notice in Writing to Applicants and Eligible Individuals

Such notification shall be provided in
writing:

RIGHT TO DUE PROCESS		                     400.1-5.4

(1)	At Application

At the time the individual applies for vocational rehabilitation services under Section 401.1-4;

(2)	At Assignment of Priority for Services

At the time the individual is assigned to a category in the division’s Order of Selection, when the division has established an Order of Selection under Section 401.1-5:

(3)	At Development of the IPE

At the time the Individualized Plan for Employment (IPE) is developed; and

(4)	At Reduction, Suspension or Termination of Services

Whenever vocational rehabilitation services for an individual are reduced, suspended, or terminated.

(D)	Right to Challenge Ineligibility and “No Longer Eligible” Determinations 

Applicants who are found ineligible for VR services and previously eligible individuals who are determined to be no longer eligible for VR services pursuant to Section 401.1-8, are permitted to challenge the determinations of ineligibility under the procedures described in this Section.  [Eff Aug 13, 2007]  (Auth: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §722(c); 34 C.F.R. §361.57)  (Imp: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §722; 34 C.F.R. §361.57)

MEDIATION									400.1-6.1

400.1-6 	Mediation

(A)	Mediation Process			

	The following mediation procedures shall be followed whenever an applicant or eligible individual or, as appropriate, individual’s representative requests mediation prior to a 
hearing, to resolve the individual’s request for review of the division’s decision or action taken concerning the provision of vocational rehabilitation services, or the provision of general services for the blind.

(1)	Voluntary Participation

Participation in the mediation process shall be voluntary on the part of the applicant or eligible individual, as appropriate, and on the part of the division.

(2)	Denial or Delay of Right to Hearing

The mediation process shall not be used to deny or delay the applicant’s or eligible individual’s right to pursue resolution of the dispute through hearing, or any other rights provided under Title I of the Act.

(3)	Time Period for Conducting the Mediation

The mediation process must be conducted within the same 60-day time period allowed for conducting the formal hearing to resolve the request for review.  However, the mediation process must allow time for holding the formal hearing by the 60th day, should the parties fail to reach agreement through 
mediation, unless the parties agree to a specific extension of time to conduct the hearing.

MEDIATION									400.1-6.2

(4)	Termination of Mediation

At any point during the mediation process, either party or the mediator may elect to terminate the mediation.  In the event the mediation is terminated, either party may pursue resolution through hearing.

(5)	Qualifications of Mediators

The mediation process shall be conducted by a qualified and impartial mediator defined as follows:

(a)	Is not an employee of a public agency other than an employee of a public agency who is an administrative law judge, hearing examiner, employee of a State office of mediators, or employee of an institution of higher education (an individual is not considered to be an employee of the department or division solely because the individual is paid by the department or division to serve as a mediator);

(b)	Is not a member of the State Rehabilitation Council for the division;

(c)	Has not been involved previously 
in the vocational rehabilitation of the applicant or eligible individual;

(d)	Is knowledgeable of the VR services program and the applicable Federal and State laws, regulations, and policies governing the provision of VR services;

(e)	Has been trained in effective mediation techniques consistent with any State-approved or State-

MEDIATION									400.1-6.3

	recognized certification, licensing, registration, or other requirements; and

(f)	Has no personal, professional, or financial interest that would be in conflict with the objectivity of the individual during the mediation 
	proceedings.

(6)	List of Mediators

The division shall maintain a list of qualified and impartial mediators

(7)	Selection of Mediator

The applicant or eligible individual or, as appropriate, individual’s representative, must select a first and second choice of impartial mediators from the list of qualified and impartial mediators:

(a)	By a random method, from numbered chips corresponding to the names on the division’s list of qualified and impartial mediators; or

(b)	By name, in the order of preference of the individual or individual’s representative.

(8)	Opportunity for Further Selection

The individual or individual’s representative, shall be informed that the purpose for naming a second choice is to avoid delay should the mediator of first choice not be available, and that the individual or individual’s representative will be provided opportunity for further selection if the mediator of first and second choice is not available, as soon as this becomes known to the division.

MEDIATION									400.1-6.4

(9)	Documentation of Selection

The individual or individual’s representative’s selection shall be documented on the division’s form for selection of impartial mediator and filed in the division’s record of services for the individual.  

(a)	A copy of the completed selection form containing the selections shall be given to the individual or individual’s representative as early as possible.

(b)	A copy of the completed selection form and other necessary documents shall be immediately forwarded to the division administrator.

(10)	Opportunity to Present Evidence and 
Information During the Mediation

An applicant or eligible individual or, as appropriate, the individual’s representative shall be provided opportunity to submit during mediation sessions evidence and other information that supports the applicant’s or eligible individual’s position.

(11)	Right to be Represented During the Mediation

An applicant or eligible individual shall be allowed to be represented during mediation sessions, by counsel or other advocate selected by the applicant or eligible individual. 

(12)	Provision of Interpreter or Reader Services

Interpreter or reader services shall be arranged by the division for an applicant or eligible individual or, as appropriate, individual's representative

MEDIATION									400.1-6.5

who is not English-speaking or who is deaf, blind, or deaf-blind.

(13)	Submittal of Position Statement by the Division

A written position statement explaining the reasons for the division’s action or decision, and citing the authority or the specific sections of the State Plan, statutes, rules or policy on which the decision was based, shall be submitted to the mediator, and the applicant or eligible individual or, as appropriate, individual’s representative in advance of the mediation.  A copy of the statement shall be filed in the division’s record of services for the applicant or eligible individual.

(14)	No Suspension, Reduction, or Termination of VR Services Pending Resolution

The division may not institute a suspension, reduction, or termination of VR services being provided to an
applicant or eligible individual, 
including evaluation and assessment 
services and IPE development, pending a resolution through mediation under this Section, unless:

(a)	The individual or, in appropriate cases, the individual’s representative requests a suspension, reduction or termination or services; or

(b)	The division has evidence that the services have been obtained through misrepresentation, fraud, collusion, or criminal conduct on the part of the individual or the individual’s representative.

MEDIATION									400.1-6.6

(15)	Notice of Mediation

Notice of mediation shall be issued by 
the mediator in writing and sent by certified mail with return receipt requested at least 15 days before the first mediation session.  The notice shall include a statement of:

(a)	The date, time, and place of the first mediation session;

(b)	The legal authority under which the mediation is to be held;

(c)	The particular sections of the statutes and rules involved;

(d)	An explicit statement in plain language of the issues involved and the facts alleged by the division in support thereof, provided that if the division is unable to state 
	such issues and facts in detail at the time the notice is served, the initial notice may be limited to a statement of the issues involved; 
	and

(e)	The fact that the applicant or eligible individual is allowed to be represented by counsel or other advocate if the applicant or eligible individual so chooses.

(16)	Payment for Transportation Costs

The division may pay for transportation for the applicant or eligible individual to and from the place of the mediation when the individual is unable to meet such costs and requests for payment by the division.

(B)	Payment for Mediation Costs

The division shall pay for the cost of 

MEDIATION									400.1-6.7

the mediation process but is not required to pay for any costs related to the representative of an applicant or eligible individual authorized under paragraph (A)(11).

(C)	Compensation of the Mediator and Procedures for Conducting the Mediation

The qualified and impartial mediator shall be compensated for conducting the mediation at a rate determined by the division, and shall conduct the mediation in accordance with the following procedures and shall prescribe additional procedures as the circumstances warrant to insure fair and orderly conduct of the mediation:

(1)	The mediator shall preside over the entire proceedings and shall assist the parties in reaching agreement based on the provisions of the approved State Plan, the Act, Federal VR regulations, and applicable State rules or policies.

(2)	Each session shall be scheduled in 
	a timely manner and shall be held in a location that is convenient to the parties to the dispute.

(3)	Any decision to postpone or extend the mediation at the request of either party or both parties shall be made by the mediator and must allow for implementing the formal hearing procedures within the 60-day time period allowed for resolving the request for review should the parties fail to reach agreement through mediation, unless the parties agree to a specific extension of time.  The 60-day time period begins from the date the 
division receives the individual’s request for review and includes the period of time spent in mediation.

(4)	The mediator shall ensure that all discussions that occur during the 
MEDIATION									400.1-6.8

	mediation process shall be confidential and may not be used as evidence in any subsequent due process hearing or civil proceeding, by requiring that both parties to the mediation sign a confidentiality pledge on a preprinted form prepared by the division, prior to the commencement of the mediation.

(5)	The mediator shall decide the merits of any adjournment and shall conclude the mediation when satisfied that all pertinent and relevant factors needed to reach an agreement have been presented and examined.

(6)	If mediation is unsuccessful in 
	resolving the disputes, the mediator shall terminate the mediation process and submit a written summary of the mediation, including the reasons for the termination to the parties.

(7)	If mediation is successful, the mediator shall prepare and share with the parties to the dispute, a written summary of the agreements reached by the parties.  The mediator may use the division’s pre-printed form or other format.  [Eff Aug 13, 2007]  (Auth: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §722(c); 34 C.F.R. §361.57)  (Imp: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §722(c); 34 C.F.R. §361.57)

HEARING									400.1-7.1

400.1-7	Hearing

	(A)	Hearing Procedures

The following hearing procedures shall be followed whenever an applicant or eligible individual or, as appropriate, individual’s representative requests for a review of a determination made by personnel of the division that affects the provision of VR services or general services for the blind to the individual, unless informal resolution or a mediation agreement is achieved prior to hearing:

(1)	Time Period for Conducting the Hearing

The hearing (formal due process hearing) must be held within 60 days of an applicant’s or eligible individual’s or, as appropriate, individual’s representative’s request for review, unless informal resolution or a mediation agreement is achieved prior to the 60th day or the parties agree to a specific extension of time.

(2)	Qualifications of the Hearing Officer

The hearing shall be conducted by a qualified and impartial hearing officer defined as follows:

(a)	Is not an employee of a public agency other than an employee of a public agency who is an administrative law judge, hearing examiner, or employee of an institution of higher education;

(b)	Is not a member of the State Rehabilitation Council for the division;

(c)	Has not been involved previously in the vocational rehabilitation of the applicant or eligible individual;

(d)	Has knowledge of the delivery of VR services, the State Plan under 

HEARING									400.1-7.2
 
Section 101 of the Act, and the Federal and State rules governing the provision of VR services;  

(e)  Has received training with respect to the performance of official duties; and

(f)  Has no personal or financial interest that would be in conflict with the objectivity of the individual.

(3)	List of Hearing Officers and Selection of Hearing Officer

The division shall maintain a list of qualified and impartial hearing officers.

(a)	The list shall be jointly identified by the division and members of the State Rehabilitation Council.

(b)	The applicant or eligible individual or, as appropriate, individual’s representative, must select a first and second choice of impartial hearing officers from the list of qualified and impartial hearing officers:

1)	By a random method, from numbered chips corresponding to the names on the division’s list of qualified and impartial hearing officers; or

2)	By name, from the list of qualified and impartial hearing officers, in the order of preference of the individual or individual’s representative.

(c)	The individual or individual’s representative shall be informed that the purpose for naming a second choice is to avoid delay should the impartial hearing officer of first choice not be available, and that the individual or individual’s representative will be provided opportunity for further selection if the hearing officer of 
HEARING									400.1-7.3

first and second choice is not available.

(d)	The individual or individual’s representative’s selection shall be documented on the division’s form for selection of impartial hearing officer, and filed in the division’s record of services for the individual.  A copy shall be given to the individual or individual’s representative as early as possible.

(e)	A copy of the completed selection form and other necessary documents shall be immediately forwarded to the division administrator.

(4)	Opportunity to Present Evidence and 
Information During the Hearing

An applicant or eligible individual or, as appropriate, the individual’s representative shall be provided opportunity to submit during the hearing, evidence and other information that supports the applicant’s or eligible individual’s position.  However, discussions that occurred during the mediation process described in Section 400.1-6 shall be confidential and may not be used as evidence in any due process hearing or civil proceeding pursuant to Section 400.1-6©(4).

(5)	Right to be Represented During the Hearing

An applicant or eligible individual shall be allowed to be represented during the hearing, by counsel or other advocate selected by the applicant or eligible individual.  In addition, the applicant or eligible individual or, as appropriate, the individual’s representative must be given the opportunity to present witnesses during the hearing and to examine all witnesses and other relevant sources of information and evidence.

HEARING									400.1-7.4

(6)	Provision of Interpreter or Reader Services

Interpreter or reader services shall be arranged by the division for an applicant or eligible individual or, as appropriate, individual's representative who is non English-speaking or who is deaf, blind, or deaf-blind.

(7)	Payment for Transportation Costs

The division may pay for transportation 
of the individual to and from the place of the hearing if such costs are required and requested by the individual or individual’s representative, but the division is not required to pay for any costs related to the representative authorized under paragraph (5).

(8)	Submittal of Position Statement by the Division

A written position statement explaining the reasons for the division’s action or decision, and citing the authority or the specific sections of the State Plan, statutes, rules or policy on which the decision was based, shall be submitted to the impartial hearing officer and the 
applicant or eligible individual or, as appropriate, individual’s representative in advance of the hearing.  A copy of this statement shall be filed in the division’s record of services for the individual.

(9)	No Suspension, Reduction, or Termination of VR Services Pending Resolution
	
The division may not institute a suspension, reduction, or termination of VR services being provided to an applicant or eligible individual, including evaluation and assessment services and IPE development, pending a resolution through hearing under this Section, unless:

(a)	The individual or, in appropriate cases, 
HEARING									400.1-7.5

individual’s representative requests a suspension, reduction, or termination of services; or

(b)	The division has evidence that the services have been obtained through misrepresentation, fraud, collusion, or criminal conduct on the part of the individual or the individual’s representative.

(10)	Notice of Hearing
  
Notice of hearing shall be issued by the impartial hearing officer in writing and sent by certified mail with return receipt requested at least 15 days before the hearing.  The notice shall include a statement of:

(a)	The date, time, place and nature of hearing;

(b)	The legal authority under which the hearing is to be held;

(c)	The particular sections of the statutes and rules involved;

(d)	An explicit statement in plain 
language of the issues involved and the facts alleged by the division in support thereof, provided that the initial notice may be limited to a statement of the issues involved if the division is unable to state such issues and facts in detail at the time the notice is served, and furnishes a bill of particulars thereafter upon application; and

(e)	The fact that any party may retain counsel if the party so desires and the fact that the individual is allowed to be represented by counsel or other appropriate advocate.

HEARING									400.1-7.6

(11)	Postponement of Hearing

The hearing may be postponed at the request of the individual or, as appropriate, individual’s representative, or the division administrator.  Reasonable extension of time for good cause shown at the request of a party or at the request of both parties shall be allowed.

(12)	Cancellation of Hearing

A hearing may be canceled only if the following occurs:

(a)	The individual or, as appropriate, individual’s representative, fails to appear.

1)  The appropriate branch administrator shall determine cause for failure to appear.

2)	If for good cause(e.g. unable to call or appear due to emergency hospitalization on the day of the hearing), and the individual or individual’s representative shows continued desire and interest for a hearing, the branch administrator shall submit a written decision to the impartial hearing officer to allow for rescheduling of the hearing.  The hearing shall be rescheduled and conducted by the impartial hearing officer within three weeks following receipt of the branch administrator’s written decision with the understanding of the parties that the three week period shall satisfy any need for specific extension of time beyond the required 60-day time period for conducting the hearing.

3)	If without good cause (e.g. could have notified the hearing officer or division of need to reschedule 
HEARING									400.1-7.7
	
	but failed to do so, and failed to appear), the individual’s or, as appropriate, individual’s representative’s failure to appear shall be treated as a final decision to terminate the request for review.

4)	The branch administrator shall inform the individual or, as appropriate, individual’s representative, the division administrator, and the impartial hearing officer of the branch administrator’s decision and reasons, in writing.

5)	A copy of the branch administrator’s decision shall be filed in the division’s record of services for the individual.

(b)	The individual or, as appropriate, individual’s representative requests for cancellation of the hearing.

1)	The individual or, as appropriate, individual’s representative’s request for cancellation shall be acknowledged in writing by the branch administrator.

2)	The branch administrator shall also notify the individual or, as appropriate, individual’s representative of the individual’s right to reactivate the request for hearing if the individual wishes within 30 days of the date of the notice of cancellation.

(c)	Corrective action, by the division, is taken before the hearing and agreed to by the individual or, as appropriate, individual’s representative.

1)	The branch administrator shall seek 
a cancellation with the applicant 
HEARING									400.1-7.8

or eligible individual or, as appropriate, individual’s representative and acknowledge the cancellation in writing.

2)	All actions taken and results obtained shall be documented and reported to the division administrator.  A copy of the documentation shall be filed in the division’s record of services for the individual.

(B)	Compensation of the Hearing Officer and Responsibilities

The impartial hearing officer selected in accordance with subsection (F)(3), shall be compensated for conducting the hearing at a rate determined by the division, and shall preside over the entire proceeding and must:

(1)	Make a decision based on the provisions of the approved State Plan, the Act, Federal VR regulations, and applicable State rules and policies that are consistent with Federal requirements; and
		
(2)	Provide to the individual or, if appropriate, individual’s representative and the division administrator, a full written report of the findings and grounds for the decision within 30 days of the completion of the hearing.

(C)	Finality of Hearing Decision and Implementation of Hearing Officer’s Decision Pending Civil Action

The hearing officer’s decision is final, except that any party involved in a hearing who is dissatisfied with the 

HEARING									400.1-7.9

hearing officer’s decision may bring a civil action under Subsection (D).

(1)	If a party brings a civil action under Subsection (D) to challenge the final decision of a hearing officer, the final decision of the hearing officer must be implemented pending review by the court.

(2)	All matters relating to the hearing shall be heard and disposed of within 90 days from the date of the request for review, except in those cases where:

(D)	Right to Bring Civil Action

Any party involved in a hearing who disagrees with the findings and decision of an impartial hearing officer under Subsection (C)	has a right to bring a civil action with respect to the matter in dispute.

(1)	The action may be brought in any 
State court of competent 
jurisdiction or in a district court of the United States of competent jurisdiction without regard to the 
amount in controversy.

(2)	In any action brought under this Subsection, the court:

(a)	Receives the records related to the hearing;

 (b)	Hears additional evidence at the request of a party to the action; and

(c)	Grants the relief that the court determines to be appropriate, basing its decision on the preponderance of the evidence.  [Eff Aug 13, 
HEARING									400.1-7.10

	2007]  (Auth:  HRS §§347-4, 348-3, 348-6; 29 U.S.C. §722(c); 34 C.F.R. §361.57)  (Imp: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §722(c); 34 C.F.R. §361.57)

MAINTENANCE OF CASE RECORDS					400.1-8.1

400.1-8   Maintenance of Case Records

(A)	Division’s Record of Services for Applicants and Eligible Individuals

The division shall maintain a record of services (case file, case record) for each applicant and eligible individual.  Information in the record of services shall be limited to purposes necessary for the administration of the programs of the division, and in accordance with Section 401.1-34.

(B)	Confidentiality of Case Record Information

All information contained in the division’s record of services for applicants and eligible individuals is confidential and may be released only for purposes necessary for the proper administration of the vocational rehabilitation services and the services for the blind programs, or with the written informed consent of the applicant or eligible individual or, as appropriate, individual’s representative, and in accordance with Section 401.1-35 and other applicable Federal and State laws.

(C)	Confidentiality of Medical or Psychological Records

All medical or psychological records in the possession of any physician or psychologist, or medical facility which were obtained by services paid for by the division shall be confidential and shall have the same degree of protection provided in this Section and Section 401.1-35.  [Eff Aug 13, 2007]  (Auth: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §§709(c), 721(a)(6)(A); 34 C.F.R. §361.38)  (Imp: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §§709(c), 721(a)(6); 34 C.F.R. §361.38)

CERTIFICATION FOR TELEPHONE SOLICITATION		 400.1-9.1

400.1-9  	Certification for Telephone Solicitation

(A)	Responsibility for Certification

The department shall certify and issue a certificate to persons with disabilities engaging in the solicitation of goods or services by telephone who declare their condition to promote sales, and satisfy the application and certification requirements of this Section.                                                                                                                     

(B)	The Certificate

The certificate shall certify that the applicant is impaired by a disability which constitutes a substantial permanent or semi-permanent impairment to employment.  The certificate shall be valid for one year (12 months from the date of the certificate) and may be renewed in accordance with subsection (G).

(C)	Disclosure With Solicitation

The person so certified at the time of solicitation shall disclose:

(1)	The person’s name and vocational rehabilitation certificate number;

(2)	The person’s employer’s name;

(3)	The amount of remuneration or commission the person will receive from the sale of goods or services; and

(4)	The fact that the person represents a business for profit which is owned by persons who are not disabled or impaired, if such is the fact.

(D)	Certification Requirements

 	Persons who wish to be certified under this Section shall apply, in writing, to the Vocational Rehabilitation and Services for the Blind Division and submit the following 

CERTIFICATION FOR TELEPHONE SOLICITATION		400.1-9.2

information within 30 calendar days, unless extended for a specific period of time by the
division in the event of a national disaster, State emergency, or union strike, which would prevent the applicant or the division from fulfilling this requirement:

(1)	Name, address, telephone;

(2)	Name of firm or employer;

(3)	Statement of request and signature; and

(4)	Written medical reports (medical or psychological or both) substantiating claimed disability and other related information as necessary, completed by licensed physicians or psychologists in cases of mental conditions.

(E)	Termination of Application                                                                                  
 
Failure to submit the required information within the 30-day period, or by the end of any specific period of extension allowed by the division, will result in termination of the application.

(F)	Processing Applications

All applications must be reviewed and be approved or denied by a representative of the division within 60 calendar days of the date the application is received by the division, unless extended for a specific period of time in the event of a natural disaster, State emergency, or union strike, which would prevent the applicant or division from fulfilling review requirements.  Failure on the part of the division to complete the review or to approve or deny an application within the 60 calendar day period, or within any specific period of extension determined
necessary under this subsection, shall result in an automatic approval of the application.  The division shall issue a numbered certificate to the applicant which shall be 

CERTIFICATION FOR TELEPHONE SOLICITATION		 400.1-9.3

valid for one year (12 months from the date of the certificate) after which the 
individual must reapply for certification.

(G)	Renewal of Certification

Renewal of certification shall be filed in the same manner as an initial application, and in accordance with the requirements of subsections (D), (E), and (F).  Medical reports shall not be required except where the individual’s circumstances may indicate one is needed. 

(H)	Right to Appeal

Any applicant for initial, reapplication, or renewal certification who is dissatisfied with the division’s decision or action taken in reviewing or denying the applicant’s application, may file an appeal with the department in accordance with the general provisions for administrative relief contained in Title 17, Chapter 2, Hawaii Administrative Rules of the Department of Human Services.  [Eff Aug 13, 2007]  (Auth: HRS §§91-13.5, 481B-3)  (Imp: HRS §§91-13.5, 481B-3)      

STANDARDS OF SERVICES				   	   400.1-10.1

400.1-10 	Standards of Services

(A)	Authorization for Expenditure of Funds

Except as provided in subsection (B), all purchases of services for applicants and eligible individuals shall be authorized in writing by authorized staff of the division either simultaneously with or before purchases.

(B)	Emergency Authorizations

In an emergency situation, verbal authorization by authorized staff of the division will be permitted if there is prompt documentation and the authorization is confirmed in writing and forwarded to the provider of the services immediately thereafter.

(C)	Preference for In-State Services

The division shall give preference for in-State services provided that the preference does not deny an individual a necessary service.  If the individual chooses an out-of-State service at a higher cost than an in-State service, and either service would meet the individual’s rehabilitation needs, the division shall not be responsible for those costs in excess of the cost of the in-State service.

(D)	No Absolute Dollar Limits on Services

The division shall not place absolute dollar limits on specific service categories or on the total services provided to an individual.

(E)	Payments to Vendors

The division shall make payments to vendors for goods and services authorized by the 
division, upon certification that the goods and services have been rendered.

(1)	Funds shall be expended only as 
STANDARDS OF SERVICES	 			      400.1-10.2

authorized by applicable Federal and State laws, rules, regulations, policies and procedures governing the programs of the division.

(2)	Funds shall not be expended for past incurred indebtedness of applicants and eligible individuals.

(F)	Amount of Payment

Amount of payment for goods and services shall be in accordance with established fee schedules.  Where a fee schedule does not exist, payment shall be at the lowest cost for comparable goods and services.

(G)	Vendor’s Qualifications

Vendors from whom personal services and materials are to be purchased shall:

(1)	Possess a State general excise license.

(2)	Meet applicable State accreditation, licensing or certification requirements.

(3)	Have established and maintained a place of business with the intent of being permanent.  [Eff Aug 13, 2007]  (Auth: HRS §§103D, 347-4, 348-3; 29 U.S.C. §§709(c), 721(a)(6); 34 C.F.R. §361.50)  (Imp: HRS §§103D, 347-4, 348-3; 29 U.S.C. §§709(c), 721(a)(6); 34 C.F.R. §361.50)

ADMINISTRATION OF FUNDS					     400.1-11.1

400.1-11 	Administration of Funds

(A)	Responsibility for Funds

The division administrator shall be responsible for all funds under the jurisdiction of the division, in all of its programs and organizational subdivisions, regardless of their source or designation.

(B)	Charges Not Covered By Fee Schedules

Any charge for services not covered by approved fee schedules shall be authorized by authorized staff of the division in accordance with this Section, Section 400.1-10 and applicable State fiscal policies and procedures governing the purchase of services.

(C)	Authorization for Payment of Services

Payment for services must be authorized in writing, by authorized staff of the division either simultaneously with or before the services are rendered.  In an emergency situation, verbal authorization by authorized staff of the division will be permitted if there is prompt documentation and the authorization is confirmed in writing and forwarded to the provider of the services immediately thereafter.

(D)	Vendor’s Qualifications

Services shall be provided by qualified vendors who meet the requirements of Section 400.1-10(G) and are duly licensed to practice their profession in accordance with State licensure laws.

(1)	Physicians must be licensed by the State Board of Medical Examiners;

(2)	Specialists must be licensed to practice 
practice in the State and certified by 
the American Board in the particular medical specialty;

ADMINISTRATION OF FUNDS	  				   400.1-11.2

(3)	Dentists must be licensed by the State Board of Dental Examiners; 

(4)	Psychologists must be licensed by the State and certified by the appropriate certifying body; and

(5)	Other duly authorized medically-oriented resource persons, such as osteopaths, must be licensed and certified by the appropriate governing bodies.

(E)	Use of Division’s Medical Consultants in Selecting Service Providers

	When board certified or licensed service providers are not available, the division’s medical consultant shall assist in making a selection of a service provider guided by available objective standards of competence, such as the following:

(1)	Completion of training and experience requirements for admission to board examinations;

(2)	Recognition as a competent specialist by State or County medical societies;

(3)	Acceptance as a specialist by the Workers’ Compensation Board;

(4)	Membership on the clinical teaching staff of a medical school; or

(5)	Similar objective standards of competence as described in (1) through (4).

 (F)	Fee Schedules

	New schedules or changes in existing fee schedules shall be authorized only by the division administrator and are subject to the public hearing process before purchase of services.

ADMINISTRATION OF FUNDS					    400.1-11.3

(1)	Medical Fee Schedule

The 1970 Relative Value Studies (RVS) of the Hawaii Medical Association and the conversion factors approved by the division and distributed under internal communication memo entitled “VRSBD Medical Fee Schedule – RVS Conversion Factors” shall be the division’s fee schedule for all medical diagnostic and treatment (restoration) services purchased by the division.  Where there is no procedure code or fee that adequately covers a particular situation or is indicated “by report” in the RVS, the physician must provide a brief description of the services plus the charge, for review and approval by authorized staff of the division.  A change of physicians or vendors may be necessary in instances where agreement on charges cannot be reached.

(2)	Dental Fee Schedule

The dental fee schedule approved by the division and distributed under internal communication memo entitled “VRSBD Dental Fee Schedule” shall be the schedule used for all dental services purchased by the division.  

(3)	Psychological Fee Schedule

The division’s list of allowed psychological services distributed under internal communication memo entitled “VRSBD Psychological Fee Schedule” shall be the division’s fee schedule for psychological services purchased by the division.  

(4)	Sign Language Interpreter Services Fee Schedule

The sign language interpreter services fee schedule approved by the division and distributed under internal 
ADMINISTRATION OF FUNDS	 				    400.1-11.4

communication memo entitled “VRSBD Interpreters for the Deaf and Deaf-Blind” shall be the schedule for all sign language interpreter services purchased by the division.  The division’s maximum rates for interpreter services shall be determined by the division in consideration of:

(a)	The current guidelines issued by the Disability and Communication Access Board; and

(b)	The Certification levels of the National Registry of Interpreters for the Deaf, the National Association of the Deaf, and the Hawaii Quality Assurance System.

(5)	Health Insurance

When health insurance is available for applicants or eligible individuals, the
division shall only pay the difference between the amount indicated on the division’s applicable fee schedule and the amount covered by the health insurance.  If the amount covered by the health insurance equals or exceeds the amount indicated on the division’s applicable fee schedule, the division’s share shall be zero.

(a)	In arranging for the purchase of services, the division shall inform the vendor of the above arrangements in determining the division’s share in the cost.

(b)	Regardless of the amount of the division’s share in the cost, the division shall ensure that the vendor agrees not to bill the applicant or eligible individual for any remaining difference in charges resulting from the differences in the amounts covered by insurance, the division’s fee 
ADMINISTRATION OF FUNDS				          400.1-11.5

schedule, and the vendor’s charges for the service.

(c)	A change of physician or vendor may be necessary in instances where agreement on charges cannot be reached.

(6)	Canceled Services

No payment shall be made to vendors for services canceled by the division.    Vendors shall be notified in writing of the cancellation.

(7)	Payment for Failed Appointments

The division may pay up to fifty per cent of the amount authorized in instances when the applicant or eligible individual fails to keep an appointment.  Exact amount of payment shall be individually adjusted.  Factors such as prolonged procedures, e.g., psychiatry-psychological evaluations, and repeated “no shows” should be considered in setting the final payment amounts.

(8)	Costs for Special Reports

When a request is made to a vendor for special reports such as narrative reports, reviews of medical records, or copies of medical files necessary to establish or clarify an applicant’s or eligible individual’s status, a charge adequate to cover the value of the additional service may be authorized within the limits set by the division administrator.  The cost allowed will vary with the complexity, extensiveness, and time required by a vendor to prepare the report.

(9)	Payments to Hospitals

Payments to hospitals shall be the usual and customary rates as published by the 
ADMINISTRATION OF FUNDS						400.1-11.6

hospital for procedures that are not covered by the division’s fee schedules.   Payments shall not be authorized for private rooms unless it is a medical necessity, authorized by the physician and approved by the division’s medical consultant.  [Eff Aug 13, 2007]  (Auth: HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §§361.50, 361.51)  (Imp: HRS §§347-4, 348-3, 348-6; 29 U.S.C. §721; 34 C.F.R. §§361.50, 361.51)

INTERAGENCY COOPERATION AND COLLABORATION         400.1-12.1

400.1-12 	Interagency Cooperation and Collaboration

(A)	Governor’s Assurance of Interagency Cooperation and Collaboration

The division, in consultation with other appropriate agencies, and with the Governor’s assurance, if necessary, will effect an interagency agreement or other mechanism for interagency coordination between the division and any appropriate public entity, including the State entity responsible for administering the State Medicaid program, a public institution of higher education, and a component of the Statewide Workforce Investment System, to ensure the provision of vocational rehabilitation services described in Section 401.1-6 other than those services exempted in Section 401.1-13(B), that are included in the IPE of an eligible individual, including the provision of such VR services during any pendency of any interagency dispute described in paragraph (2)(c).

(1)	Mechanisms for Interagency Coordination

The above requirements of paragraph (A) may be met through:

(a)	A State statute or regulation;

(b)	A signed agreement between the respective officials of the public entities that clearly identifies the responsibilities of each public entity for the provision of the services; or

(c)	Another appropriate mechanism as determined by the division.

 (2)	Content of the Agreement or Other Mechanism

	The interagency agreement or other mechanism for interagency coordination must include the following: 

INTERAGENCY COOPERATION AND COLLABORATION         400.1-12.2

(a)	An identification or description of a method for defining, the financial responsibility of the public entity for providing the VR services other than those exempted in Section 401.1-13(B), and a provision stating the financial responsibility of the public entity for providing those services.

(b)	Information specifying the conditions, terms, and procedures under which the division must be reimbursed by the other public entities for providing VR services based on the terms of the agreement or other mechanism.  

(c)	Information specifying procedures for resolving interagency disputes under the agreement or other mechanism, including procedures under which the division may initiate proceedings to secure reimbursement from other public entities or otherwise implement the provisions of the agreement or mechanism.

(d)	Information specifying policies and procedures for public entities to determine and identify interagency coordination responsibilities of each public entity to promote the coordination and timely delivery of VR services other than those exempted in Section 401.1-13(B).

 (B)	Obligations of Other Public Entities Under Federal or State Laws

	If a public entity, other than the division, is obligated under Federal law (such as the Americans with Disabilities Act, Section 504 of the Act, or Section 188 of the Workforce Investment Act) or State law, or assigned 

INTERAGENCY COOPERATION AND COLLABORATION         400.1-12.3

responsibility under State policy or an interagency agreement established under this subsection, to provide or pay for any services considered to be VR services (e.g., interpreter services under Section 401.1-24), other than those exempted in Section 401.1-13(B):

(1)	The public entity must fulfill that obligation or responsibility through:

(a)	The terms of the interagency agreement or other requirements of this Section;

(b)	Providing or paying for the service directly or by contract; or

(c)	Other arrangement.

(2)	If the public entity fails to provide or pay for VR services for an eligible individual as established under this subsection, the division must provide or pay for those services to the individual and may claim reimbursement for the services from the public entity that failed to provide or pay for those services.  The public entity must reimburse the division pursuant to the terms of the interagency agreement or 
other mechanism in accordance with the procedures established in the agreement or other mechanism pursuant to paragraph (A)(2)(c).  [Eff Aug 13, 2007]  (Auth: HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.53(d) and (e)) (Imp: HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.53(d) and (e))

COORDINATION OF SERVICES WITH 
THE STATE DEPARTMENT OF EDUCATION				400.1-13.1
 
400.1-13	Coordination of Services with the State Department of Education

(A)	Plans, Policies and Procedures for Coordination of Services

	The division shall implement the following plans, policies, and procedures for coordination of services with the State Department of Education to facilitate the transition of students with disabilities from the receipt of educational services in school to the receipt of vocational rehabilitation services under the division:

(1)	Individualized Plan for Employment

The development and approval of an Individualized Plan for Employment in accordance with Section 401.1-10 as early as possible during the transition planning process but, at the latest, by the time each student determined to be eligible for VR services leaves the school setting or, if the division is operating under an Order of Selection pursuant to Section 401.1-5, before each eligible student able to be served under the Order leaves the school setting.

(2)	Formal Interagency Agreement

A formal interagency agreement with the State Department of Education which at a minimum, provides for:

(a)	Consultation and technical assistance to assist the Department of Education in planning for the transition of students with disabilities from school to post-school activities, including VR services;

(b)	Transition planning between personnel of the division and the Department of Education for 
COORDINATION OF SERVICES WITH 
THE STATE DEPARTMENT OF EDUCATION				400.1-13.2

students with disabilities that facilitate the development and completion of their Individualized Education Programs (IEPs) under the Individual's with Disabilities Education Act (IDEA);

(c)	The roles and responsibilities, including financial responsibilities of each agency, including provisions for determining State lead agencies and qualified personnel responsible for transition services; and

(d)	Procedures for outreach to and identification of students with disabilities who are in need of transition services as early as possible during the transition planning process, and including, at a minimum, a description of the purpose of the VR services program, eligibility requirements, application procedures, and scope of services that may be provided to eligible individuals.  [Eff Aug 13, 2007]  (Auth:  HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.22)  (Imp: HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.22)

COOPERATION WITH WIA ONE-STOP CENTERS			400.1-14.1

400.1-14	Cooperation with WIA One-Stop Centers

(A)	Required Division Functions

The division shall carry out the following functions as a required partner in the One-Stop service delivery system of the Statewide Workforce Investment System under Title I of the Workforce Investment Act of 1998:

(1)	Make available to participants through the One-Stop service delivery system the core services that are applicable to the program administered by the division under this part, which consists of:

(a)	Eligibility determination;

(b)	Outreach, intake and orientation;

(c)	Skills assessment;

(d)	Job search, placement assistance, career counseling;

(e)	Information on:

1)	Employment statistics information.

2)	Performance and cost data on eligible training providers.

3)	Local area performance outcomes.

4)	Availability of supportive services.

5)	Filing claims on unemployment compensation.

(f)	Assistance in establishing eligibility for welfare-to-work and financial aid for training and education; and

COOPERATION WITH WIA ONE-STOP CENTERS			400.1-14.2

(g)	Follow up services for 12 months after placement.

(2)	Use a portion of funds made available to the program administered by the division under this part, consistent with the Act and this part, to:

(a)	Create and maintain the One-Stop service delivery system; and

(b)	Provide core services as described in subparagraph (1)

(3)	Enter into a memorandum of understanding (MOU) with the Local Workforce Investment Board under Section 117 of the Workforce Investment Act of 1998 relating to the operation of the One-
Stop service delivery system that meets the requirements of Section 121(c) of the Workforce Investment Act including a description of services, how the cost of the identified services and operating costs of the system will be funded, and methods for referrals.

(4)	Participate in the operation of the One-Stop service delivery system consistent with the terms of the MOU and the requirements of the Act and this part.

(5)	Provide representation on the Local Workforce Investment Board.  [Eff Aug 13, 2007]  (Auth: HRS §§347-3, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.23(a))  (Imp: HRS §§347-1, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.23(a))

COOPERATIVE AGREEMENTS 
WITH WIA ONE-STOP PARTNERS 					400.1-15.1

400.1-15	Cooperative Agreements with WIA One-Stop Partners

(A)	Development pf Cooperative Agreements with Other Entities Under the One-Stop Service Delivery System

The division or department shall enter into cooperative agreements with the other entities that are partners under the One-Stop service delivery system of the Workforce Investment Act of 1998.

(1)	Replication of Agreements at the Local Level

The division shall replicate those agreements at the local level between individual offices of the division and local entities carrying out the One-Stop service delivery system or other activities through the Statewide Workforce Investment System.

(2)	Content of Cooperative Agreements 

Cooperative agreements developed under this subsection may provide for:

(a)	Intercomponent training and technical assistance regarding:

1)	The availability and benefits of, and information on eligibility standards for, vocational rehabilitation services; and

2)	The promotion of equal, effective and meaningful participation by individuals with disabilities in the One-Stop service delivery system and other workforce investment activities through the promotion of program accessibility consistent with the requirements of the 
COOPERATIVE AGREEMENTS 
WITH WIA ONE-STOP PARTNERS 					400.1-15.2

Americans with Disabilities Act of 1990 and Section 504 of the Act, the use of nondiscriminatory policies and procedures, and the provision of reasonable accommodations, auxiliary aids and services, and rehabilitation technology for individuals with disabilities;

(b)	The use of information and financial management systems that link all of the partners of the One-Stop service delivery system to one another and to other electronic networks, including non-visual electronic networks, and that relate to subjects such as employment statistics, job vacancies, career planning, and workforce investment activities;

(c)	The use of customer service features such as common intake and referral procedures, customer databases, resource information, and human services hotlines;

(d)	The establishment of cooperative efforts with employers to facilitate job placement and carry out other activities that the division and the employers determine to be appropriate;

(e)	The identification of staff roles, 
responsibilities, and available resources and specification of the financial responsibility of each partner of the One-Stop service delivery system with respect to providing and paying for necessary services, consistent with the requirements of the Act, this part, other Federal requirements, and State law; and
COOPERATIVE AGREEMENTS 
WITH WIA ONE-STOP PARTNERS 					400.1-15.3

(f)	The specification of procedures for resolving disputes among partners of the One-Stop service delivery system.  [Eff Aug 13, 2007]  (Auth: HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.23(b))  (Imp: HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.23(b))

COOPERATION WITH OTHER FEDERAL, 
STATE, AND LOCAL AGENCIES AND PROGRAMS			400.1-16.1

400.1-16	Cooperation with Other Federal, State, and Local Agencies and Programs

The division shall cooperate with and use the services and facilities of other Federal, 
State, and local agencies and programs, including programs carried out by the Under Secretary for Rural Development of the Department of Agriculture and State Use contracting programs to the extent that those agencies and programs are not carrying out activities through the Statewide Workforce Investment System.  [Eff Aug 13, 2007]  (Auth: HRS §§347-4, 348-7; 29 U.S.C. §721; 34 C.F.R. §361.24)  (Imp: HRS §§347-4, 348-7; 29 U.S.C. §721; C.F.R. §361.24)

REQUESTS TO INSPECT OR OBTAIN  
COPIES OF GOVERNMENT OR PERSONAL RECORDS		400.1-17.1

400.1-17 	Requests to Inspect or Obtain Copies of Government or Personal Records

(A)	Informal or Formal Requests

All requests, informal or formal, to inspect or obtain copies of government or personal records maintained by the division, shall be processed in accordance with Title 2, Chapter 71, Hawaii Administrative Rules, of the Office of Information Practices (OIP) pertaining to agency procedures and fees for processing government record requests and, as appropriate, in accordance with Section 401.1-35 pertaining to confidentiality, and this Section.

(1)	Requests to inspect or obtain copies of government or personal records maintained by a unit (branch or section) of the division shall be processed by the unit in accordance with this Section.

(2)	A record of each request processed by a unit including the amount of fees assessed or waived, or both, shall be submitted to the division administrator upon processing of each request, for reporting to the OIP as required.

(B)	Notice of Inability to Disclose Information

When the division, branch or section is unable to disclose a record, a written notice to the requester shall be prepared, in accordance with Section 2-71-14(c) of the OIP rules, and shall state that the division is unable to disclose the requested record, or part thereof, because:

(1)	The division does not maintain the record, and may provide the name and address of another agency that the division reasonably believes may maintain the requested record;

REQUESTS TO INSPECT OR OBTAIN  
COPIES OF GOVERNMENT OR PERSONAL RECORDS	     400.1-17.2

(2)	The division requires a further description or clarification of the requested record in order to identify and search for the record; or

(3)	The request requires the division to create a summary or compilation of information from records that is not readily retrievable.

(C)	Notice of Denial of Access

When the division, branch or section intends to deny access to all or part of the information requested, a written notice to the requester shall be prepared in accordance with Section 2-71-14(b) of the OIP rules, and shall state:

(1)	The specific record or parts of the record that will not be disclosed; and

(2)	The specific legal authorities under which the request for access is denied under Section 92F-13, Hawaii Revised Statutes, or other laws.  [Eff Aug 13, 2007]  (Auth: HRS §§91-2, 92F-11)  (Imp: HRS §§91-2, 92F-11)

REQUESTS FOR CHANGES IN THE 
RULES OF THE DIVISION 						400.1-18.1

400.1-18  Request for Changes in the Rules of the Division

(A)	Written Petition

Any interested person may petition the director in writing for the amendment, adoption or repeal of a rule of the division.

(B)	Processing of Petitions

When a petition is filed, the department shall process the request in accordance with Chapter 17-3.  [Eff Aug 13, 2007]  (Auth: HRS §§91-2, 348-3)  (Imp: HRS §§91-2, 348-3)

VOLUNTEER SERVICES PROGRAM			          400.1-19.1

400.1-19 	Volunteer Services Program

(A)	Use of Volunteers in the Division

The division may use volunteers to enhance and supplement services provided by the staff.

(B)	Compliance with Hawaii Revised Statutes

The division’s volunteer services program shall comply with Chapter 90, Hawaii Revised Statutes concerning the utilization of volunteer services.

(C)	Development, Coordination, Monitoring and Evaluation of the Program

A division volunteer coordinator shall develop, coordinate, monitor, and evaluate the volunteer services program of the division.
 
(1)	Each branch shall have a branch volunteer coordinator before volunteers may be used by the branch.  The branch volunteer coordinator shall maintain statistical data and assess the effectiveness of the program.

(2)	All volunteers shall be appropriately recognized.

(D)	Compilation of Statistical Data and Submittal of Annual Assessment Form

The division volunteer coordinator shall compile statistical data and submit the Annual Assessment Form to the Statewide Volunteer Services, Office of the Governor.  [Eff Aug 13, 2007]  (Auth: HRS §90-2)  (Imp:  HRS §90-2)