PURPOSE: This rule establishes the standards for self-employment services provided by the Division of Vocational Rehabilitation, Department of Elementary and Secondary Education for individuals with disabilities pursuant to the Rehabilitation Act of 1973 as amended and the Code of Federal Regulations.

1. (1) Self-employment is a business operated by the client in which that individual performs, supervises or subcontracts the major part of the product or service to be produced. Self-employment is a vocational option that may be considered in the wide array of employment outcomes. Self-employment services must be agreed to by the eligible individual and approved by the Division of Vocational Rehabilitation (DVR).
2. (2) Individualized Plans for Employment
3. (IPE) that have an objective of self-employment require a DVR approved business plan.
4. (3) Self-employment businesses must comply with all applicable federal, state, local regulations and statutory requirements.

5. (4) DVR may only contribute in purchasing of required business equipment, supplies, rent (up to six (6) months) or other start-up costs identified in an approved business plan for self-employment.

   1. (A) The client should contribute toward the cost of the planned services to the maximum of their abilities. The client must make application for all available comparable services, such as micro enterprise grants, Small Business Administration assistance and Rural Missouri Incorporated assistance.

   2. (B) The percentage of DVR’s contribution will depend upon comparable services or client contributions toward the self-employment plan as well as the overall cost of the planned services. DVR may contribute as follows:

      1. 1. Identified start-up costs from one

dollar to five thousand dollars ($1 to $5,000)—up to one hundred percent (100%) DVR’s contribution;

1. 2. Identified start-up costs from five

thousand one dollars to ten thousand dollars ($5,001 to $10,000)—up to an additional fifty percent (50%) beyond DVR’s initial contribution of five thousand dollars ($5,000);

1. 3. Identified start-up costs from ten

thousand one dollars to twenty thousand dollars ($10,001 to $20,000)—up to an additional twenty-five percent (25%) of twenty thousand dollars ($20,000) beyond DVR’s contribution listed above; and/or

1. 4. All self-employment plans which

exceed DVR’s total contribution of ten thousand dollars ($10,000) must be reviewed and 5 CSR 90-5

approved by the Self-Employment Review Team.

1. (5) DVR funds may not be used for the purchase of the following:

   1. (A) Real property, defined as land, including land improvements, structures and appurtenances thereto, excluding moveable machinery or equipment; and/or
   2. (B) Automobile, truck, van, airplane, boat, other powered vehicle, or trailer that requires title and/or licensing by the state.
2. (6) DVR will follow all Missouri procurement policies as specified in the Revised Statutes of Missouri for the purchase, retention, repossession and discarding of items including but not limited to prosthetic appliances; home modifications; vehicle modifications; initial tools, stock and equipment and/or rehabilitation technology/devices.

AUTHORITY: sections 161.092, RSMo Supp. 2003 and 178.600, 178.610 and 178.620, RSMo 2000.* Original rule filed June 30, 2004, effective Jan. 30, 2005.

*Original authority: 161.092, RSMo 1963, amended 1973, 2002, 2003; 178.600, RSMo 1963; 178.610, RSMo 1963; and 178.620, RSMo 1963.