PUBLIC LAW 105-220—AUG. 7, 1998 112 STAT. 1191 "(4) AWARD OF GRANTS. —In selecting entities to receive grants under paragraph (1), the Commissioner shall take into consideration— "(A) the diversity of strategies used to increase client choice, including selection among qualified service providers; "(B) the geographic distribution of projects; and "(C) the diversity of clients to be served. "(5) RECORDS. —Entities that receive grants under paragraph (1) shall maintain such records as the Commissioner may require and comply with any request from the Commissioner for such records. "(6) DIRECT SERVICES.— At least 80 percent of the funds awarded for any project under this subsection shall be used for direct services, as specifically chosen by eligible clients. "(7) EVALUATION.— The Commissioner may conduct an evaluation of the demonstration projects with respect to the services provided, clients served, client outcomes obtained, implementation issues addressed, the cost-effectiveness of the project, and the effects of increased choice on clients and service providers. The Commissioner may reserve funds for the evaluation for a fiscal year from the amounts appropriated to carry out projects under this section for the fiscal year. "(8) DEFINITIONS. —For the purposes of this subsection: "(A) DIRECT SERVICES. —The term 'direct services' means vocational rehabilitation services, as described in section 103(a). "(B) ELIGIBLE CLIENT.— The term 'eligible client' means an individual with a disability, as defined in section 7(20)(A), who is not currently receiving services under an individualized plan for emplo3ment established through a designated State unit. "(b) SPECIAL DEMONSTRATION PROGRAMS.— "(1) GRANTS; CONTRACTS. —The Commissioner, subject to the provisions of section 306, may provide grants to, or enter into contracts with, eligible entities to pay all or part of the cost of programs that expand and improve the provision of rehabilitation and other services authorized under this Act or that further the purposes of the Act, including related research and evaluation activities. "(2) ELIGIBLE ENTITIES; TERMS AND CONDITIONS.— "(A) ELIGIBLE ENTITIES.— TO be eligible to receive a grant, or enter into a contract, under paragraph (1), an entity shall be a State vocational rehabilitation agency, community rehabilitation program, Indian tribe or tribal organization, or other public or nonprofit agency or organization, or as the Commissioner determines appropriate, a for-profit organization. The Commissioner may limit competitions to one or more types of organizations described in this subparagraph. "(B) TERMS AND CONDITIONS. — A grant or contract under paragraph (1) shall contain such terms and conditions as the Commissioner may require. "(3) APPLICATION. —An eligible entity that desires to receive a grant, or enter into a contract, under paragraph (1) shall submit an application to the Secretary at such time, in such form, and containing such information and assurances as the
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