rehabilitation facility, the expansion, remodeling or alteration of existing buildings, the initial equipment of such buildings and initial staffing thereof;

"(0) The term 'blind person' means a person who has (1) not more than 20/200 central visual acuity in the better eye after correction; or (2) an equally disabling loss of the visual field."

SECTION 4. Section 4 of Act 43, Arkansas Acts of 1955 [Arks. Stats. (1947) Section 80-2543] is hereby amended to read as follows:

"Section 4. ESTABLISHMENT OF A REHABILITATION SERVICE. There is hereby created and established a Rehabilitation Service within the State Board for Vocational Education."

SECTION 5. Section 5 of Act 43, Arkansas Acts of 1955 [Arks Stats. (1947) Section 80-2544] is hereby amended to read as follows:

"Section 5. DIRECTOR OF THE REHABILITATION SERVICE. The Rehabilitation Service shall be administered, under the general supervision and direction of the State Board, by a Director, appointed by the State Board in accordance with established personnel standards and on the basis of education, training, experience, and demonstrated ability in the field of rehabilitation. In carrying out his duties under this Act the Director:

"(a) shall, with the approval of the State Board, prepare regulations for promulgation by the State Board governing personnel standards, the protection of records and confidential information, the manner and form of filing application, eligibility, and investigation and determination thereof, for rehabilitation services, procedures for fair hearings, and such other regulations as he finds necessary to carry out the purposes of this Act, including the order to be followed in selecting those to whom rehabilitation services are to be provided in situations where service cannot be provided to all who are eligible for service; "(b) shall, with the approval of the State Board, establish appropriate subordinate administrative units within the Service;

"(c) shall recommend to the State Board, for appointment, such personnel as he deems necessary for the efficient performance of the functions of the Service; "(e) shall prepare, and submit to the State Board, and the Governor, annual reports of activities and expenditures and, prior to each regular session of the legislature, estimates of sums required to carry out this Act, and estimates of the amounts to be made available for this purpose from all sources;

"(f) shall make certification for disbursement, in accordance with regulations, of funds available for carrying out the purposes of this Act;

"(g) may, with the approval of the State Board, delegate to any officer or employee of the Service, such as his powers and duties, except the making of regulations and the making of recommendations for appointment of personnel, as he finds necessary to carry out the purposes of this Act."

SECTION 6. Section 6 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2545] is hereby amended to read as follows:

"Section 6. ADMINISTRATION. The State Board, through the Service, shall provide the rehabilitation services authorized by this Act to the physically or mentally disabled, including the blind citizens, and those who can benefit from independent living services, determined by the Director to be eligible therefor, and, in carrying out the purposes of this Act, the Rehabilitation Service is authorized, among other things:

"(a) to be the sole State agency to supervise and administer the rehabilitation services authorized by this Act except such part of or parts as may be administered by a local agency in a political subdivision of the State, in which case the Service shall be the sole agency to supervise such local agency in the administration of such part or parts;

"(b) to enter into reciprocal agreement with other states to provide for the services authorized by this Act to residents of the state concerned;

"(e) to conduct research and compile statistics relating to the provision of services or the need of services of disabled individuals;

"(d) to license blind individuals to operate vending stands under its supervision and control and subject to the terms and conditions in regulations issued pursuant to Section 5 (b) on (1) State property; (2) county or municipal property; (3) Federal property, pursuant to delegation of authority under the Randolph-Sheppard Act and any amendment thereto or any Act of Congress relating to this subject; (4) private property; (5) subject to Section 2 of Act 142 of the Acts of 1945;

"(e) to provide for the establishment, supervision and control of suitable business enterprises to be operated by the severely disabled individual, includ

ing the blind, where the operation will be improved through the management and supervision of the Service."

SECTION 7. Section 7 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2546] is hereby amended to read as follows:

"Section 7. AUTHORITY TO ESTABLISH AND OPERATE REHABILITATION FACILITIES. The Rehabilitation Service is authorized to utilize funds made available from appropriations by Congress; by appropriation of, the General Assembly; the disbursement of funds of other State Agencies; by gifts, grants, fees for services, sale of products or items of manufacture or hand work, and donations, for the purpose of establishing and operating Rehabilitation Centers, Workshops, Business Enterprise Programs, and Home Industries and other facilities. Gifts, grants, fees for services, income from the sale of products or items of manufacture or handwork, and donations, may be deposited in one or more banks and expended by the State Board, in compliance with the rules and regulations of the State Comptroller, in the establishment and operation of rehabilitation facilities and such other program services as may be determined by the State Board, which are consistent with the purposes of this Act. The State Board is hereby authorized and empowered to lease or purchase public or private property, real, personal or mixed, for the purpose of establishing and operating rehabilitation facilities."

SECTION 8. Section 8 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2547] is amended to read as follows:

"Section 8. COOPERATIVE AGREEMENTS. The State Board, through the Rehabilitation Service, is hereby empowered and directed:

"(a) To cooperate with the Department of Public Welfare in an effort to rehabilitate those disabled individuals who are applicants for or recipients of public assistance. In this respect it is the intent of the General Assembly that the employment and self-maintenance of disabled adults shall be encouraged to the maximum extent. The Rehabilitation Service and the Department of Public Welfare shall take all necessary steps to implement the intent of this section, including the joint development of plans for orderly referral and processing of feasible cases with priority being given to those for whom rehabilitation is determined most feasible.

"(b) To cooperate with the Federal government, pursuant to agreements, in carrying out the purposes of any Federal statutes pertaining to the purposes of this Act and is authorized to adopt such methods of administration as are found to be necessary for proper and efficient operation of such agreements or plans for rehabilitation and to comply with such conditions as may be necessary to secure the full benefits of such Federal statutes and appropriations; to administer any legislation pursuant thereto, enacted by the State of Arkansas; to direct the disbursement, and administer the use of, all funds provided by the Federal government or the State for the rehabilitation of disabled persons of Arkansas and to do all things necessary to insure the rehabilitation of disabled persons.

"(c) To cooperate with other Federal, State and local public agencies and institutions in providing services relating to rehabilitation, including the State Employment Service, and shall make maximum utilization of the job placement and employment counseling services and other services and facilities of such offices in providing the services authorized by this Act; in studying the problems involved therein; and in establishing, developing and providing such programs, facilities and services as may be necessary or desirable.

"(d) To cooperate wtih political sub-divisions and other public and non-profit organizations and agencies in the establishment of workshops rehabilitation facilities and to use such facilities as meet the standards established by the State Board in providing rehabilitation services.

"(e) To enter into contractual arrangements with the Bureau of Old Age and Survivors Insurance with respect to certifications of disability and performance of other duties, and with other authorized public agencies for performance of services related to rehabilitation."

SECTION 9. Section 10 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2549] is hereby amended to read as follows:

"Section 10. APPROPRIATIONS. Budget estimates of the amount of appropriations needed each fiscal year for rehabilitation services, and the administration of said program, shall be submitted by the Director to the State Board, and the amount approved shall be included in the estimates made by the State Board, to the General Assembly for the operation of the rehabilitation program.

In

the event Federal funds are available to the State of Arkansas for rehabilitation purposes, the Rehabilitation Service is authorized to comply with such requirements as may be necessary to obtain said Federal funds in the maximum amount and most advantageous proportion possible insofar as this may be done without violating other provisions of the State law and Constitution. In the event the National Congress fails in any year to appropriate funds for grant-in-aid to the State for rehabilitation purposes, the State Board shall include as a part of the budget a request for adequate state funds for rehabilitation purposes."

SECTION 10. Section 12 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2551] is hereby amended to read as follows:

"Section 12. ELIGIBILITY FOR REHABILITATION. Rehabilitation services shall be provided to any disable individual: (1) who is a bona fide resident of the State at the time of filing his application therefor and whose rehabilitation the Director determines after full investigation can be satisfactorily achieved; or (2) who is eligible therefore under the terms of an agreement with another State or with the Federal government; provided that, except as otherwise provided by law or as specified in any agreement with the Federal government with respect to classes of individual certified to the State Board thereunder, the following rehabilitation services shall be provided at public cost only to disabled individuals found to require financial assistance with respect thereto :

"(a) Physical restoration;

"(b) Transportation provided for other purposes than to determine the eligibility of the individual for rehabilitation services and the nature and extent of the services necessary;

"(c) Occupational and business licenses;

"(d) Tools, equipment, initial stock and supplies, including livestock and capital advances, books and training materials;

"(e) Maintenance."

SECTION 11. Section 15 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2554] is hereby amended to read as follows:

"Section 15. HEARINGS. Any individual applying for or receiving rehabilitation, who is aggrieved by any action or inaction of the Service shall be entitled, in accordance with regulations, to a hearing in accordance with the regulations adopted and promulgated by the State Board on that subject.”

SECTION 12. Section 16 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2555] is hereby amended to read as follows:

"Section 16. MISUSE OF REHABILITATION LISTS AND RECORDS. It shall be unlawful, except for purposes directly connected with the administration of the Rehabilitation Service, and in accordance with regulations, for any person or persons to solicit, disclose, receive, or make use of, or authorize, knowingly permit, participate in, or acquiesce in the use of, any list of, or name of, or any information concerning, persons applying for or receiving rehabilitation, directly or indirectly derived from the records."

SECTION 13. Section 17 of Act 43, Arkansas Acts of 1955 [Ark. Stats. (1947) Section 80-2556] is amended to read as follows:

"Section 17. LIMITATION OF POLITICAL ACTIVITY. No officer or employee engaged in the administration of the Rehabilitation program shall use his official authority or influence or permit the use of the Rehabilitation program for the `purpose of interfering with an election or affecting the results thereof or for any partisan political purpose. No such officer or employee shall take any active part in the management of political campaigns or participate in any political activity, except that he shall retain the right to vote as he may please and to express his opinions as a citizen on all subjects. No such officer or employee shall solicit or receive, nor shall any such officer or employee be obliged to contribute or render, any service, assistance, subscription, assessment, or contribution for any political purpose. Any officer or employee violating this provision shall be subject to discharge or suspension."

SECTION 14. REPEAL. All laws or parts of laws in conflict with the provisions of this Act are hereby repealed.

SECTION 15. SEPARABILITY. If any provision of this Act or the application thereof to any person or circumstances, is held invalid, the remainder of the Act. and the application of such provision to other persons or circumstances shall not be affected thereby.

SECTION 16. It is hereby ascertained and declared that the existing laws pertaining to the administration and operation of the rehabilitation service are inadequate to fully implement federal legislation in the establishment of re

habilitation facilities and that the immediate passage of this act is necessary to remedy this condition. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.

The CHAIRMAN. As I recall, and the testimony will possibly prove this, some $200,000 was appropriated by the Arkansas Legislature as its contribution to get this facility and service in operation. I believe I can state that there is no objection to this bill on the part of any Government agency, and the purpose of these hearings is to make a record so that the Congress, all Members of Congress, may be fully informed of what is proposed, and there is no private interest, private source, getting any special benefit from this. It will be dedicated to a public service, a tax-supported institution, and the bill provides That when it is not used, when the State ceases to use it for a rehabilitation center, for medical or educational purposes, that title reverts back to the Federal Government.

I believe that covers it generally, and we have with us today Mr. Don Russell, of Little Rock, Ark., who is director of the Arkansas State Board for Vocational Education.

Mr. Russell, will you come around, please?

Mr. Russell, will you state your name and proceed in your own way. If you have a prepared statement, you may read it or you may submit it for the record if you so desire and simply make highlight comments, if you prefer to handle it that way.

Mr. RUSSELL. Thank you, Mr. Chairman.

The CHAIRMAN. In the meantime, state what your position is and how long you have been in this service, and give us your background. STATEMENT OF DON W. RUSSELL, DIRECTOR, ARKANSAS STATE BOARD FOR VOCATIONAL EDUCATION

Mr. RUSSELL. Thank you, Mr. Chairman, and gentlemen of the committee. With your permission, I do have a prepared statement which I would like to file and confine my remarks to the high points of the statement.

The CHAIRMAN. The statement will be printed in the record in full at this point.

(The prepared statement follows:)

STATEMENT BY DON W. RUSSELL

My name is Don W. Russell. I am director of the rehabilitation service of the Arkansas State Board for Vocational Education. The rehabilitation service is designated by State law as the agency having the legal responsibility for administering the State-Federal program of vocational rehabilitation.

The State of Arkansas, through the Arkansas Rehabilitation Service, has proposed a specific plan whereby the Army-Navy Hospital, Hot Spring, Ark., may be converted into a comprehensive rehabilitation center to serve the disabled of Arkansas, the region, and the Nation. The plan proposed by the Arkansas Rehabilitation Service requires

1. The transfer of all real and personal property at the Army-Navy Hospital to the State of Arkansas for use as a comprehensive rehabilitation center; and

2. Additional Federal funds through the Office of Vocational Rehabilitation-to be matched by the State of Arkansas-for the establishment and operation of the center. Special research and demonstration grant funds should be made available under section 4(a) (1) of the Office of Vocational

Rehabilitation budget for a minimum of 5 years, during which time an adequate program of financing can be developed.

This plan, as proposed by the Arkansas Rehabilitation Service

1. Is in line with existing policies of the Federal Government in assisting in the rehabilitation of the disabled;

2. Can be financed under existing legislation;

3. Will partially fill the existing gap in rehabilitation services to the disabled; and

4. Will result in the full utilization of the Army-Navy Hospital.

S. 1616 is one of the two necessary pieces of legislation required of Congress in order to effectuate this plan. The other congressional action needed involves the financial support required. My remarks today will be primarily directed toward the provisions in S. 1616 relative to the transfer of the Army-Navy Hospital property to the State of Arkansas. The problem of adequate financing is so much involved, however, that it will be mentioned briefly. If you desire I shall be pleased to go more into detail on the proposed program of services and the financial support required.

You are quite familiar with the Army-Navy Hospital and know that the facility is a modern, well-equipped, 500-bed, general hospital in excellent condition. You know that it consists of 36 buildings on a tract of some 25 acres; that the total cost of the hospital has been about $20 million; that the facility is now practically unused; that for several years the Department of Army has attempted to close the hospital and declare it surplus, and that it has beep kept open as a result of congressional action; that some 25 departments and agencies of the Federal Government have surveyed the facility to determine whether or not they could use it; and that no department or agency of Government has been able to justify or recommend a use for the property which would be economical to operate and would utilize the entire facility.

The need for establishing and operating rehabilitation centers and facilities is recognized at all levels of government and has tremendous support from private agencies, organizations, and the lay public. The Congress, through enactment of Public Law 482 of 1954, the Medical Facilities Survey and Construction (Hill-Burton) Act, has provided funds to the States to survey the need for such facilities and to assist in the construction of the facilities needed. Presently, $10 million annually is appropriated under this act. The value of the Army-Navy Hospital is far in excess of the total annual appropriation for construction of such facilities for the country as a whole. Public Law 565 of 1954 (Vocational Rehabilitation Act) makes funds available to State rehabilitation agencies for serving the disabled which may include the purchase of equipment and initial staffing of facilities as well as the purchase of services from the facilities. S. 772, by Senator Hill; H.R. 1119, by Mr. Fogarty; and H.R. 3465, by Mr. Elliott, propose additional Federal legislation to help meet the need for rehabilitation facilities. This legislation would establish a facilities program in the Office of Vocational Rehabilitation and provide Federal financial assistance to the States to help them establish and operate a variety of rehabilitation facilities.

The State's vocational rehabilitation council, composed of State directors of vocational rehabiiltation, reports that the largest unmet need for rehabilitation services lies in the area which requires comprehensive centers. The National Rehabilitation Association, an orangization composed of some 16,000 professional and lay persons who are interested in the disabled, is actively supporting a legislative program designed to expand the facilities program. A committee of this appropriation has approved the plan which Arkansas has proposed. Endorsement of the proposal has also been made by the directors of the Vocational rehabilitation agencies in all the States bordering Arkansas.

I know that you are thoroughly familiar with the program of vocational rehabilitation and the humanitarian and economic values it provides to the disabled individual, his community, State, and the Nation. I know I do not have to justify the existence of a rehabilitation program to you but I would like to point out some of the experiences of the Arkansas Rehabilitatioon Service to give you further evidence of the need for a comprehensive rehabilitation center in the south-central part of the United States.

Arkansas has been cited as having one of the best programs of rehabilitation in the Nation. The program operates under a comprehensive State rehabilitation act with a base even more broad than existing Federal legislation. State

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