Collapse to view only § 107. Operation of vending facilities

§ 107. Operation of vending facilities
(a) Authorization
(b) Preferences regulations; justification for limitation on operation
In authorizing the operation of vending facilities on Federal property, priority shall be given to blind persons licensed by a State agency as provided in this chapter; and the Secretary, through the Commissioner, shall, after consultation with the Administrator of General Services and other heads of departments, agencies, or instrumentalities of the United States in control of the maintenance, operation, and protection of Federal property, prescribe regulations designed to assure that—
(1) the priority under this subsection is given to such licensed blind persons (including assignment of vending machine income pursuant to section 107d–3 of this title to achieve and protect such priority), and
(2) wherever feasible, one or more vending facilities are established on all Federal property to the extent that any such facility or facilities would not adversely affect the interests of the United States.
Any limitation on the placement or operation of a vending facility based on a finding that such placement or operation would adversely affect the interests of the United States shall be fully justified in writing to the Secretary, who shall determine whether such limitation is justified. A determination made by the Secretary pursuant to this provision shall be binding on any department, agency, or instrumentality of the United States affected by such determination. The Secretary shall publish such determination, along with supporting documentation, in the Federal Register.
(June 20, 1936, ch. 638, § 1, 49 Stat. 1559; Aug. 3, 1954, ch. 655, § 4(a), 68 Stat. 663; Pub. L. 93–516, title II, § 202, Dec. 7, 1974, 88 Stat. 1623; Pub. L. 93–651, title II, § 202, Nov. 21, 1974, 89 Stat. 2–8.)
§ 107a. Federal and State responsibilities
(a) Functions of Secretary; surveys; designation of State licensing agencies; qualifications for license; evaluation of programs
The Secretary of Education shall—
(1) Insure that the Rehabilitation Services Administration is the principal agency for carrying out this chapter; and the Commissioner shall, within one hundred and eighty days after enactment of the Randolph-Sheppard Act Amendments of 1974, establish requirements for the uniform application of this chapter by each State agency designated under paragraph (5) of this subsection, including appropriate accounting procedures, policies on the selection and establishment of new vending facilities, distribution of income to blind vendors, and the use and control of set-aside funds under section 107b(3) of this title;
(2) Through the Commissioner, make annual surveys of concession vending opportunities for blind persons on Federal and other property in the United States, particularly with respect to Federal property under the control of the General Services Administration, the Department of Defense, and the United States Postal Service;
(3) Make surveys throughout the United States of industries with a view to obtaining information that will assist blind persons to obtain employment;
(4) Make available to the public, and especially to persons and organizations engaged in work for the blind, information obtained as a result of such surveys;
(5) Designate as provided in section 107b of this title the State agency for the blind in each State, or, in any State in which there is no such agency, some other public agency to issue licenses to blind persons who are citizens of the United States for the operating of vending facilities on Federal and other property in such State for the vending of newspapers, periodicals, confections, tobacco products, foods, beverages, and other articles or services dispensed automatically or manually and prepared on or off the premises in accordance with all applicable health laws, as determined by the State licensing agency, and including the vending or exchange of chances for any lottery authorized by State law and conducted by an agency of a State; and
(6) Through the Commission,1
1 So in original. Probably should be “Commissioner,”.
(A) conduct periodic evaluations of the program authorized by this chapter, including upward mobility and other training required by section 107d–4 of this title, and (B) take such other steps, including the issuance of such rules and regulations, as may be necessary or desirable in carrying out the provisions of this chapter.
(b) Duty of State licensing agencies to prefer blind
(c) Selection of location and type of facility
(d) Buildings occupied by United States departments, agencies, and instrumentalities required to provide sites for facilities; exceptions
(1) After January 1, 1975, no department, agency, or instrumentality of the United States shall undertake to acquire by ownership, rent, lease, or to otherwise occupy, in whole or in part, any building unless, after consultation with the head of such department, agency, or instrumentality and the State licensing agency, it is determined by the Secretary that (A) such building includes a satisfactory site or sites for the location and operation of a vending facility by a blind person, or (B) if a building is to be constructed, substantially altered, or renovated, or in the case of a building that is already occupied on such date by such department, agency, or instrumentality, is to be substantially altered or renovated for use by such department, agency, or instrumentality, the design for such construction, substantial alteration, or renovation includes a satisfactory site or sites for the location and operation of a vending facility by a blind person. Each such department, agency, or instrumentality shall provide notice to the appropriate State licensing agency of its plans for occupation, acquisition, renovation, or relocation of a building adequate to permit such State agency to determine whether such building includes a satisfactory site or sites for a vending facility.
(2) The provisions of paragraph (1) shall not apply (A) when the Secretary and the State licensing agency determine that the number of people using the property is or will be insufficient to support a vending facility, or (B) to any privately owned building, any part of which is leased by any department, agency, or instrumentality of the United States and in which, (i) prior to the execution of such lease, the lessor or any of his tenants had in operation a restaurant or other food facility in a part of the building not included in such lease, and (ii) the operation of such a vending facility by a blind person would be in proximate and substantial direct competition with such restaurant or other food facility except that each such department, agency, and instrumentality shall make every effort to lease property in privately owned buildings capable of accommodating a vending facility.
(3) For the purposes of this subsection, the term “satisfactory site” means an area determined by the Secretary to have sufficient space, electrical and plumbing outlets, and such other facilities as the Secretary may by regulation prescribe, for the location and operation of a vending facility by a blind person.
(e) State licensing agency in States having vocational rehabilitation plans
(June 20, 1936, ch. 638, § 2, 49 Stat. 1559; 1939 Reorg. Plan No. I, §§ 201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1946 Reorg. Plan No. 2, § 6, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Aug. 3, 1954, ch. 655, § 4(b)–(d), 68 Stat. 663; Pub. L. 93–516, title II, § 203, Dec. 7, 1974, 88 Stat. 1623; Pub. L. 93–651, title II, § 203, Nov. 21, 1974, 89 Stat. 2–8; Pub. L. 96–88, title III, § 301(a)(4)(B), title V, § 507, Oct. 17, 1979, 93 Stat. 678, 692; Pub. L. 104–66, title I, § 1041(i), Dec. 21, 1995, 109 Stat. 715; Pub. L. 105–220, title IV, § 414(a), Aug. 7, 1998, 112 Stat. 1241.)
§ 107b. Application for designation as State licensing agency; cooperation with Secretary; furnishing initial stock
A State agency for the blind or other State agency desiring to be designated as the licensing agency shall, with the approval of the chief executive of the State, make application to the Secretary and agree—
(1) to cooperate with the Secretary in carrying out the purpose of this chapter;
(2) to provide for each licensed blind person such vending facility equipment, and adequate initial stock of suitable articles to be vended therefrom, as may be necessary: Provided, however, That such equipment and stock may be owned by the licensing agency for use of the blind, or by the blind individual to whom the license is issued: And provided further, That if ownership of such equipment is vested in the blind licensee, (A) the State licensing agency shall retain a first option to repurchase such equipment and (B) in the event such individual dies or for any other reason ceases to be a licensee or transfers to another vending facility, ownership of such equipment shall become vested in the State licensing agency (for transfer to a successor licensee) subject to an obligation on the part of the State licensing agency to pay to such individual (or to his estate) the fair value of his interest therein as later determined in accordance with regulations of the State licensing agency and after opportunity for a fair hearing;
(3) that if any funds are set aside, or caused to be set aside, from the net proceeds of the operation of the vending facilities such funds shall be set aside, or caused to be set aside, only to the extent necessary for and may be used only for the purposes of (A) maintenance and replacement of equipment; (B) the purchase of new equipment; (C) management services; (D) assuring a fair minimum return to operators of vending facilities; and (E) retirement or pension funds, health insurance contributions, and provision for paid sick leave and vacation time, if it is determined by a majority vote of blind licensees licensed by such State agency, after such agency provides to each such licensee full information on all matters relevant to such proposed program, that funds under this paragraph shall be set aside for such purposes: Provided, however, That in no event shall the amount of such funds to be set aside from the net proceeds of any vending facility exceed a reasonable amount which shall be determined by the Secretary;
(4) to make such reports in such form and containing such information as the Secretary may from time to time require and to comply with such provisions as he may from time to time find necessary to assure the correctness and verification of such reports;
(5) to issue such regulations, consistent with the provisions of this chapter, as may be necessary for the operation of this program;
(6) to provide to any blind licensee dissatisfied with any action arising from the operation or administration of the vending facility program an opportunity for a fair hearing, and to agree to submit the grievances of any blind licensee not otherwise resolved by such hearing to arbitration as provided in section 107d–1 of this title.
(June 20, 1936, ch. 638, § 3, 49 Stat. 1560; 1946 Reorg. Plan No. 2, § 6, eff. July 16, 1946, 11 F.R 7873, 60 Stat. 1095; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Aug. 3, 1954, ch. 655, § 4(e), 68 Stat. 664; Pub. L. 93–516, title II, § 204, Dec. 7, 1974, 88 Stat. 1625; Pub. L. 93–651, title II, § 204, Nov. 21, 1974, 89 Stat. 2–10.)
§ 107b–1. Access to information with State licensing agencies; election and responsibilities of Committee of Blind Vendors
In addition to other requirements imposed in this title 1
1 See References in Text note below.
and in the Randolph-Sheppard Act [20 U.S.C. 107 et seq.] upon State licensing agencies, such agencies shall—
(1) provide to each blind licensee access to all relevant financial data, including quarterly and annual financial reports, on the operation of the State vending facility program;
(2) conduct the biennial election of a Committee of Blind Vendors who shall be fully representative of all blind licensees in the State program,2
2 So in original. The comma probably should be a semicolon.
and
(3) insure that such committee’s responsibilities include (A) participation, with the State agency, in major administrative decisions and policy and program development, (B) receiving grievances of blind licensees and serving as advocates for such licensees, (C) participation, with the State agency, in the development and administration of a transfer and promotion system for blind licensees, (D) participation, with the State agency, in developing training and retraining programs, and (E) sponsorship, with the assistance of the State agency, of meetings and instructional conferences for blind licensees.
(Pub. L. 93–516, title II, § 209, Dec. 7, 1974, 88 Stat. 1630; Pub. L. 93–651, title II, § 209, Nov. 21, 1974, 89 Stat. 2–15.)
§ 107b–2. Omitted
§ 107b–3. Audit of nonappropriated fund activities

The Comptroller General is authorized to conduct regular and periodic audits of all nonappropriated fund activities which receive income from vending machines on Federal property, under such rules and regulations as he may prescribe. In the conduct of such audits he and his duly authorized representatives shall have access to any relevant books, documents, papers, accounts, and records of such activities as he deems necessary.

(Pub. L. 93–516, title II, § 211, Dec. 7, 1974, 88 Stat. 1630; Pub. L. 93–651, title II, § 211, Nov. 21, 1974, 89 Stat. 2–15.)
§ 107c. Repealed. Pub. L. 93–516, title II, § 205, Dec. 7, 1974, 88 Stat. 1626
§ 107d. Expenditures
(a) Personal services, rent, printing, etc.
(b) Preference to blind persons in employment
(June 20, 1936, ch. 638, § 4, formerly § 5, 49 Stat. 1560; 1946 Reorg. Plan No. 2, § 6, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; renumbered § 4 and amended Pub. L. 93–516, title II, §§ 206, 208(d), Dec. 7, 1974, 88 Stat. 1626, 1629; Pub. L. 93–651, title II, §§ 206, 208(d), Nov. 21, 1974, 89 Stat. 2–11, 2–14.)
§ 107d–1. Grievances of blind licensees
(a) Hearing and arbitration
(b) Noncompliance by Federal departments and agencies; complaints by State licensing agencies; arbitration
(June 20, 1936, ch. 638, § 5, as added Pub. L. 93–516, title II, § 206, Dec. 7, 1974, 88 Stat. 1626; Pub. L. 93–651, title II, § 206, Nov. 21, 1974, 89 Stat. 2–11.)
§ 107d–2. Arbitration
(a) Notice and hearing
(b) Composition of panel; designation of chairman; termination of violations
(1) The arbitration panel convened by the Secretary to hear grievances of blind licensees shall be composed of three members appointed as follows:
(A) one individual designated by the State licensing agency;
(B) one individual designated by the blind licensee; and
(C) one individual, not employed by the State licensing agency or, where appropriate, its parent agency, who shall serve as chairman, jointly designated by the members appointed under subparagraphs (A) and (B).
If any party fails to designate a member under subparagraph (1)(A), (B), or (C), the Secretary shall designate such member on behalf of such party.
(2) The arbitration panel convened by the Secretary to hear complaints filed by a State licensing agency shall be composed of three members appointed as follows:
(A) one individual, designated by the State licensing agency;
(B) one individual, designated by the head of the Federal department, agency, or instrumentality controlling the Federal property over which the dispute arose; and
(C) one individual, not employed by the Federal department, agency, or instrumentality controlling the Federal property over which the dispute arose, who shall serve as chairman, jointly designated by the members appointed under subparagraphs (A) and (B).
If any party fails to designate a member under subparagraph (2)(A), (B), or (C), the Secretary shall designate such member on behalf of such party. If the panel appointed pursuant to paragraph (2) finds that the acts or practices of any such department, agency, or instrumentality are in violation of this chapter, or any regulation issued thereunder, the head of any such department, agency, or instrumentality shall cause such acts or practices to be terminated promptly and shall take such other action as may be necessary to carry out the decision of the panel.
(c) Publication of decisions in Federal Register
(d) Payment of costs by the Secretary
(June 20, 1936, ch. 638, § 6, as added Pub. L. 93–516, title II, § 206, Dec. 7, 1974, 88 Stat. 1626; Pub. L. 93–651, title II, § 206, Nov. 21, 1974, 89 Stat. 2–11.)
§ 107d–3. Vending machine income
(a) Accrual to blind licensee and alternatively to State agency; ceiling on amount for individual licensee
(b) Direct competition between vending machine and vending facility; proportion of accrued income from such vending machines for individual licensee
(1) After January 1, 1975, 100 per centum of all vending machine income from vending machines on Federal property which are in direct competition with a blind vending facility shall accrue as specified in subsection (a) of this section. “Direct competition” as used in this section means the existence of any vending machines or facilities operated on the same premises as a blind vending facility except that vending machines or facilities operated in areas serving employees the majority of whom normally do not have direct access to the blind vending facility shall not be considered in direct competition with the blind vending facility. After January 1, 1975, 50 per centum of all vending machine income from vending machines on Federal property which are not in direct competition with a blind vending facility shall accrue as specified in subsection (a) of this section, except that with respect to Federal property at which at least 50 per centum of the total hours worked on the premises occurs during periods other than normal working hours, 30 per centum of such income shall so accrue.
(2) The head of each department, agency, and instrumentality of the United States shall insure compliance with this section with respect to buildings, installations, and facilities under his control, and shall be responsible for collection of, and accounting for, such vending machine income.
(c) Disposal of accrued vending machine income by State licensing agency
(d) Income from vending machines in certain locations excepted
(e) Regulations establishing priority for operation of cafeterias
(f) Existing arrangements more favorable to blind licensees unaffected
(g) Regulations for compliance
(June 20, 1936, ch. 638, § 7, as added Pub. L. 93–516, title II, § 206, Dec. 7, 1974, 88 Stat. 1627; Pub. L. 93–651, title II, § 206, Nov. 21, 1974, 89 Stat. 2–12.)
§ 107d–4. Training programs for maximum vocational potential for blind

The Commissioner shall insure, through promulgation of appropriate regulations, that uniform and effective training programs, including on-the-job training, are provided for blind individuals, through services under the Rehabilitation Act of 1973 [29 U.S.C. 701 et seq.]. He shall further insure that State agencies provide programs for upward mobility (including further education and additional training or retraining for improved work opportunities) for all trainees under this chapter, and that follow-along services are provided to such trainees to assure that their maximum vocational potential is achieved.

(June 20, 1936, ch. 638, § 8, as added Pub. L. 93–516, title II, § 206, Dec. 7, 1974, 88 Stat. 1628; Pub. L. 93–651, title II, § 206, Nov. 21, 1974, 89 Stat. 2–13.)
§ 107e. Definitions
As used in this chapter—
(1) “blind person” means a person whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than twenty degrees. In determining whether an individual is blind, there shall be an examination by a physician skilled in diseases of the eye, or by an optometrist, whichever the individual shall select;
(2) “Commissioner” means the Commissioner of the Rehabilitation Services Administration;
(3) “Federal property” means any building, land, or other real property owned, leased, or occupied by any department, agency, or instrumentality of the United States (including the Department of Defense and the United States Postal Service), or any other instrumentality wholly owned by the United States, or by any department or agency of the District of Columbia or any territory or possession of the United States;
(4) “Secretary” means the Secretary of Education;
(5) “State” means a State, territory, possession, Puerto Rico, or the District of Columbia;
(6) “United States” includes the several States, territories, and possessions of the United States, Puerto Rico, and the District of Columbia;
(7) “vending facility” means automatic vending machines, cafeterias, snack bars, cart services, shelters, counters, and such other appropriate auxiliary equipment as the Secretary may by regulation prescribe as being necessary for the sale of the articles or services described in section 107a(a)(5) of this title and which may be operated by blind licensees; and
(8) “vending machine income” means receipts (other than those of a blind licensee) from vending machine operations on Federal property, after cost of goods sold (including reasonable service and maintenance costs), where the machines are operated, serviced, or maintained by, or with the approval of, a department, agency, or instrumentality of the United States, or commissions paid (other than to a blind licensee) by a commercial vending concern which operates, services, and maintains vending machines on Federal property for, or with the approval of, a department, agency, or instrumentality of the United States.
(June 20, 1936, ch. 638, § 9, formerly § 6, 49 Stat. 1560; Aug. 3, 1954, ch. 655, § 4(f), 68 Stat. 664; renumbered § 9 and amended Pub. L. 93–516, title II, §§ 206, 207, Dec. 7, 1974, 88 Stat. 1626, 1628; Pub. L. 93–651, title II, §§ 206, 207, Nov. 21, 1974, 89 Stat. 2–11, 2–13; Pub. L. 96–88, title III, § 301(a)(4)(B), title V, § 507, Oct. 17, 1979, 93 Stat. 678, 692.)
§ 107e–1. Repealed. Pub. L. 93–516, title II, § 205, Dec. 7, 1974, 88 Stat. 1626
§ 107f. Authorization of appropriations

There is authorized to be appropriated such sums as may be necessary for carrying out the provisions of this chapter.

(June 20, 1936, ch. 638, § 10, formerly § 7, 49 Stat. 1560; renumbered § 8, Aug. 3, 1954, ch. 655, § 4(g), 68 Stat. 664; renumbered § 10, Pub. L. 93–516, title II, § 206, Dec. 7, 1974, 88 Stat. 1626; Pub. L. 93–651, title II, § 206, Nov. 21, 1974, 89 Stat. 2–11.)