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May 8 (calendar day, May 9), 1930.-Ordered to be printed

Mr. METCALF, from the Committee on Education and Labor, sub

mitted the following

REPORT

[To accompany H. R. 7390)

The Committee on Education and Labor, to which was referred the bill (H. R. 7390) to authorize the appointment of an Assistant Commissioner of Education in the Department of the Interior, having considered said bill, reports favorably thereon with the recommendation that the bill do pass as amended by the House of Representatives. This bill was introduced at the request of the Secretary of the Interior and, after amendment, was approved by the Commissioner of Education.

This bill merely gives to a position already in existence in the Department of the Interior the title of Assistant Commissioner of Education and authorizes him to sign such letters and documents as come under his jurisdiction over that title. It establishes no new positions and will not require any increase in the appropriation for salaries for that office.

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Mr. COUZENS, from the Committee on Education and Labor, sub

mitted the following

REPORT

[To accompany H. R. 10175)

The Committee on Education and Labor, to which was referred the bill (H. R. 10175) to amend an act entitled "An act to provide for the promotion of vocational rehabilitation of persons disabled in industry or otherwise and their return to civil employment," approved June 2, 1920, as amended, having considered said bill, reports favorably thereon with the recommendation that the bill do pass with the following amendments: On page 2, line 15, after the words "fiscal year," insert:

Provided further, That such portions of the sums allotted that will not be used in any fiscal year, may be allotted in that year proportionately to the States which are prepared through available State funds to use the additional Federal funds.

On page 7, line 6, in section 6, after the words "sum of,” strike out the figures "$100,000" and insert in lieu thereof the figures “$75,000."

The committee thought it wise that allotments of funds unused by the States should be reallotted to other States where funds were available;

Also they could see no necessity for increasing the appropriation for administrative and other expenses of the board from $75,000 to $100,000, and have accordingly amended the House measure reducing this amount.

Changes in the existing law which will be made by this bill are shown in the House Report No. 742, with the two exceptions above noted.

(House Report No. 742, Seventy-first Congress, second session] The Committee on Education, to which was referred the bill (H. R. 10175) to amend an act entitled "An act to provide for the promotion of vocational rehabilitation of persons disabled in industry or otherwise and their return to civil employment,” approved June 2, 1920, as amended, having considered said

four years.

bill, reports favorably thereon with the recommendation that the bill do pass as introduced.

On June 2, 1920, the National Government inaugurated a program of participation with the States for vocationally rehabilitating disabled persons, initiated through an act originally known as the industrial rehabilitation act, which made available to the States an appropriation of $1,000,000 annually for a period of

As the intent of this act was to provide continuous participation by the Government in the program (opinion by office of Attorney General, December 10, 1923), Congress amended the act, effective June 5, 1923, providing authorization of aid to the States of $1,000,000 annually for a period of six years.

The second period of authorization of aid to the States terminates June 30, 1930. Therefore the extension of the appropriations sections of the national act will logically come before the Seventy-first Congress.

On January 20, 1930, the committee held hearings on this subject, and there was inserted in the record a communication from the Director of the Budget indicating that it would not be in conflict with the financial program of the President to amend the act of June 2, 1920, as amended, so as to

(a) Extend for a period of two years, commencing July 1, 1930, the authorization for the appropriation of $1,000,000 per year contained in section 1.

(6) Increase from $5,000 to $10,000 the minimum allotment to any State.

"(c) Increase the amount necessary to provide the minimum allotment from $34,000 to approximately $97,000, with a provision authorizing the annual appropriation of such amount for two years from July 1, 1930.

(d) Increase the amount for the administrative and other expenses of the board from $75,000 to $100,000, with a provision authorizing an annual appropriation of such amount for two years from July 1, 1930.”

The bill is in accord with this recommendation, except that it extends the period for three years, instead of two years.

To date 44 States of the Union have accepted the provisions of the national rehabilitation act and are cooperating with the Federal Government in retraining and returning to remunerative employment their disabled citizens. Some of the States are appropriating three or four times the amount allotted by the Federal Government.

This counseling, training, and placing of disabled persons costs on the average only $250 per case. Figures from the various States show that it costs from $300 to $500 annually to maintain these persons in idleness at State expense in poorhouses and other institutions before they are rehabilitated.

The average age of rehabilitated persons is 30 years, which gives them on the average a working expectancy of 20 years. During the first year after rehabilitation they earn on an average more than the cost of their rehabilitation and still have a period of 19 years in which to be earners.

The rehabilitation program has been in operation for over nine years. During a large part of this period the work in the States first cooperating was in the experimental stage, as is now the case with those States which have inaugurated their program more recently. Therefore it is imperative that Federal aid be extended for such period of years as will give equal opportunity to all States in the development of standards of efficiency in practice and methods.

This is a humanitarian service in that it helps those who are not able to help themselves and places them in a position to live happy lives of usefulness. It is a social service in that it converts those who are not able to take their places in society into self-respecting citizens. It is an economic service in that it converts liabilities into assets.

Following is an excerpt from a letter from Hon. James J. Davis, Secretary of Labor, addressed to the chairman of the committee:

"As Secretary of Labor and as chairman of the Federal Board for Vocational Education, I have had the opportunity of observing for a number of years the development of the national program providing for the vocational rehabilitation of persons disabled in industry or otherwise.

*I desire to urge upon Congress the imperative need of prompt and favorable action upon legislation extending this service. Not to continue the program would be to break faith with the States, and to terminate a movement which has been developing so auspiciously and with every promise of big accomplishments would be disastrous. At such a critical time in the development of the vocational rehabilitation of the disabled, for the Federal Government to withdraw its support would be in effect a repudiation of a movement of far-reaching economic and social significance to the Nation. The rehabilitation program must

*

not only be continued, but expanded, if we are to conserve to the fullest extent the efficiency of our man power."

It was very forcefully brought to the attention of the Committee on Education, at the hearing, that there is an unusually widespread interest in this work throughout the Nation. As is disclosed by the hearing, it has the indorsement of employers' and employees' organizations, labor organizations, national and State public officials, health organizations, crippled children's organizations, educational officials and organizations, civic organizations, National Rehabilitation Association, American Vocational Association, and such manufacturers as Edsel B. Ford, Hudson Motor Car Co., Western Electric Co. and Packard Motor Car Co.

Two witnesses opposed the measure on constitutional grounds.

This bill does not initiate any new principle of Federal participation. It merely extends the appropriation authorizations of the present act for three years.

In compliance with paragraph 2a of Rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill are shown as follows: existing law proposed to be omitted is inclosed in black brackets; new matter is printed in italic; existing law in which no change is proposed is shown in roman.

That in order to provide for the promotion of vocational rehabilitation of persons disabled in industry or [in any legitimate occupation and their return to civil employment] otherwise and their placement in employment, there is hereby authorized to be appropriated for the use of the States, subject to the provisions of this act, for the [purpose of cooperating with them in the maintenance of vocational rehabilitation of such disabled persons, and in returning vocationally rehabilitated persons to civil employment for each of the fiscal years ending June 30, 1925, June 30, 1926, and June 30, 1927, and thereafter for a period of three years, the sum of $1,000,000.] fiscal year ending June 30, 1931, the sum of $1,000,000; for the fiscal year ending June 30, 1932, the sum of $1,000,000; and for the fiscal year ending June 30, 1933, the sum of $1,000,000. Said sums shall be allotted to the States in the proportion which their [population bears] populations bear to the total population in the United States, not including Territories, outlying possessions, and the District of Columbia, according to the last preceding United States census: Provided, That the allotment of funds to any State shall not be less than a minimum of ($5,000] $10,000 for any fiscal year. And there is hereby authorized to be appropriated for each of the fiscal years ending [June 30, 1925, 1926, and 1927,] June 30, 1931, June 30, 1932, and June 30, 1933, the sum of ($34,000] $97,000, or so much thereof as may be needed, which shall be used for the purpose of providing the minimum allotments to the States provided for in this section.

All (moneys] money expended under the provisions of this act from appropriations authorized by section 1 shall be upon the condition (1) that for each dollar of Federal money expended there shall be expended in the State under the supervision and control of the State board at least an equal amount for the same purpose: Provided, That no portion of the appropriations authorized by this act shall be used by any institution for handicapped persons except for [the special training] vocational rehabilitation of such individuals entitled to the benefits of this act as shall be determined by the Federal board; (2) that the State board shall annually submit to the Federal board for approval plans showing (a) [the kinds of vocational rehabilitation and schemes of placement for which it is proposed the appropriation shall be used;) [(b)] the plan of administration and supervision of the work; [(c) courses of study; (d) methods of instructions; (e) qualifications of teachers, supervisors, directors, and other necessary administrative officers or employees; (f) plans for the training of teachers, supervisors, and directors;] (b) the qualifications of directors, supervisors, and other employees; and (c) the policies and methods of carrying on the work; (3) that the State board shall make an annual report to the Federal board on or before September 1 of each year on the work done in the State and on the receipts and expenditures of money under the provisions of this act; (4) that no portion of any [moneys] money authorized to be appropriated by this act for the benefit of the States shall be applied, directly or indirectly, to the purchase, preservation, erection, or repair of any building or buildings or equipment, or for the purchase or rental of any land; (5) that all [courses for] vocational rehabilitation service given under the supervision and control of the State board [and all courses for vocational rehabilitation maintained] shall be available, under such rules and regulations as the Federal board shall prescribe, to any civil employee of the United States disabled while in the performance of his duty.

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Sec. 3. That in order to secure the benefits of the appropriations authorized by section 1 any State shall, through the legislative authority thereof, (1) accept the provisions of this act; (2) empower and direct the board designated or created as the State board for vocational education to cooperate in the administration of the provisions of the vocational education act, approved February 23, 1917 (United States Code, tille 20, chapter 2), to cooperate as herein provided with the Federal Board for Vocational Education in the administration of the provisions of this act; (3) in those States where a State workmen's compensation board, or other State board, department, or agency exists, charged with the administration of the State workmen's compensation or liability laws, the legislature shall provide that a plan of cooperation be formulated between such State board, department, or agency, and the State board charged with the administration of this act, such plan to be effective when approved by the governor of the State; (4) provide for the supervision and support of the [courses) program of vocational rehabilitation to be provided by the State board in carrying out the provisions of this act; (5) appoint as custodian for said appropriations its State treasurer, who shall receive and provide for the proper custody and disbursement of all money paid to the State from said appropriations: Provided, That any State which, prior to June 30, [1924] 1930, has accepted and otherwise complied with the provisions of the act of June 2, 1920, as amended June 5, 1924, shall be deemed to have accepted and complied with the provisions of this amendment to said act.

SEC. 4. That the Federal Board for Vocational Education shall have power to cooperate with State boards in carrying out the purposes and provisions of this act, and is hereby authorized to make and establish such rules and regulations as may be necessary or appropriate to carry into effect the provisions of this [Act; to] act in order to provide for the vocational rehabilitation of disabled persons, and their [return to civil] placement in [employment and] employment; and to cooperate, for the purpose of carrying out the provisions of this act, with such public and private agencies as it may deem advisable. It shall be the duty of said board (1) to examine plans submitted by the State boards and approve the same if believed to be feasible and found to be in conformity with the provisions and purposes of this act; (2) to ascertain annually whether the several States are using or are prepared to use the money received by them in accordance with the provisions of this act; (3) to certify on or before the 1st day of January of each year to the Secretary of the Treasury each State which has accepted the provisions of this act and complied therewith, together with the amount which each State is entitled to receive under the provisions of this act; (4) to deduct from the next succeeding allotment to any State whenever any portion of the fund annually allotted has not been expended for the purpose provided for in this act a sum equal to such [unexpended] portion; (5) to withhold the allotment of moneys to any State whenever it shall be determined that moneys allotted are not being expended for the purposes and conditions of this act; and (6) to require the replacement by withholding subsequent allotments of any portion of the moneys received by the custodian of any State under this act that by any action or contingency is diminished or lost; Provided, That if any allotment is withheld from any State the State board of such State may appeal to the Congress of the United [States, and] States, and if the Congress shall not, within one year from the time of said appeal, direct such sum to be paid, it shall be covered into the Treasury.

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Sec. 6. That there is hereby authorized to be appropriated to the Federal Board for Vocational Education the sum of ($75,000) $100,000 annually for a period of three years, commencing July 1, [1924] 1930, for the purpose of making studies, investigations, and reports regarding the vocational rehabilitation of disabled persons and their placements in suitable or gainful occupations, and for the administrative expenses of said board incident to performing the duties imposed by this act, including salaries of such assistants, experts, clerks, and other employees, in the District of Columbia or elsewhere as the board may deem necessary, actual traveling and other necessary expenses incurred by the members of the board and by its employees, under its orders, including attendance at meetings of educational associations and other organizations, rent and equipment of offices in the District of Columbia and elsewhere, purchase of books of reference, law books, and periodicals, stationery, typewriters and exchange thereof, miscellaneous supplies, postage on foreign mail, printing and binding to be done at the Government Printing Office, and all other necessary expenses.

A full report of all expenses under this section, including names of all employees and salaries paid them, traveling expenses and other expenses incurred by each and every employee and by members of the board, shall be submitted annually to Congress by the board.

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