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Randolph-Sheppard
Randolph-Sheppard Act Text
What follows is the complete text of the federal
Randolph-Sheppard Act. The act provides for the operation of food service and
vending facilities on federal properties. Click on the section title to go
directly to that section.
THE RANDOLPH-SHEPPARD ACT
AS AMENDED AND AS CODIFIED AT
CHAPTER 6A OF TITLE 20 OF THE U.S. CODE
Table of Contents (TOC)
CHAPTER 6A-VENDING FACILITIES
FOR BLIND IN FEDERAL BUILDINGS
107. Operation of vending facilities authorized; preferences; regulations;
justification for limitation on such operation.
107a. Surveys by Secretary of Health, Education, and Welfare; designating State
licensing agencies; qualifications for license; preferences; selection of
locations.
107b. Application for designation as State licensing agency; cooperation with Secretary;
furnishing initial stock.
107b-1. Access to information with State licensing agencies; election and responsibilities
of Committee of Blind Vendors.
107b-2. Standards, studies, and reports
107b-3. Audit of non appropriated fund activities.
107c. Repealed, Pub.L. 93-516, Title II, Section 205, December 7, 1974, 88 Stat. 1626.
107d. Expenditures for personal services, rent, printing, etc.; preference to blind persons.
107d-1. Grievances for blind licensees; hearing and arbitration; non-compliance by federal
departments and agencies; complaints by state licensing agencies; arbitration.
107d-2. Arbitration--Notice and hearing
107d-3. Vending machine income--Accrual to blind licensee and alternatively to state
agency; ceiling on amount for individual licensee.
107d-4 Training programs for maximum vocational potential for blind.
107e. Definitions
107f. Appropriations
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Section 107.
Operation of vending facilities authorized; preferences; regulations;
justification for limitation on such operation
(a) For the purposes of providing blind
persons with remunerative employment, enlarging the economic opportunities of
the blind, and stimulating the blind to greater efforts in striving to make
themselves self-supporting, blind persons licensed under the provisions of
this chapter shall be authorized to operate vending facilities on any Federal
property.
(b) 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 insure 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.
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Section 107a.
Surveys by Secretary of Health, Education, and Welfare; designating State
licensing agencies; qualifications for license; preferences; selection of
locations
(a) The Secretary of Health Education, and
Welfare 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 December 7, 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 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 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 annually submit to the appropriate committees of Congress a report based
on such evaluations, 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) The State licensing agency shall, in
issuing each such license for the operation of a vending facility, give
preference to blind persons who are in need of employment. Each such license
shall be issued for an indefinite period but may be terminated by the State
licensing agency if it is satisfied that the facility is not being operated in
accordance with the rules and regulations prescribed by such licensing agency.
Such licenses shall be issued only to applicants who are blind within the
meaning of section 107e of this title.
(c) The State licensing agency designated by
the Secretary is authorized, with the approval of the head of the department
or agency in control of the maintenance, operation and protection of the
Federal property on which the facility is to be located but subject to
regulations prescribed pursuant to section 107 of this title, to select a
location for such facility and the type of facility to be provided.
(d)(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 Stated 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 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) In any State having an approved plan for
vocational rehabilitation pursuant to the Vocational Rehabilitation Act or the
Rehabilitation Act of 1973, the State licensing agency designated under
paragraph (5) of subsection (a) of this section shall be the State agency
designated under section 721(a)(1)(A) of Title 29.
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Section 107b.
Application for designation as State licensing agency; cooperation with the
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 to 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.
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Section 107b-1.
Access to information with the State licensing agencies; election and
responsibilities of Committee of Blind Vendors
In addition to other requirements imposed in
this title and in this chapter 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, 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.
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Section 107b-2.
Standards, studies and reports
(a) The Secretary, through the Commissioner,
after a period of study not to exceed six months following December 7, 1974,
and after full consultation with, and full consideration of the views of blind
vendors and State licensing agencies, shall promulgate national standards for
funds set aside pursuant to section 107b(3) of this title which include
maximum and minimum amounts for such funds, and appropriate contributions, if
any, to such funds by blind vendors.
(b)(1) The secretary shall study the
feasibility and desirability of establishing a nationally administered
retirement, pension, and health insurance system for blind licensees, and such
study shall include, but not be limited to, consideration of eligibility
standards, amounts and sources of contributions, number of potential
participants, total costs, and alternative forms of administration, including
trust funds and revolving funds.
(2) The Secretary shall, within one year
following December 7, 1974, complete the study required by paragraph (1) of
this subsection and report his findings, together with any recommendations, to
the President and the Congress.
(d) Each State licensing agency shall, within
one year following December 7, 1974, submit to the Secretary a report, with
appropriate supporting documentation, which shows the actions taken by such
agency to meet the requirements of section 107a(a)(1) of this title.
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Section 107b-3.
Audit of non appropriated fund activities
The Comptroller General is authorized to
conduct regular and periodic audits of all non appropriated 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.
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Section 107c.
Repealed, Pub.L. 93-516, Title II, Section 205, December 7, 1974, 88 Stat. 1626
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Section 107d.
Expenditures for personal services, rent, printing, etc.; preference to blind
persons
(a) The Secretary is authorized to make such
expenditures out of any money appropriated therefor (including expenditures
for personal services and rent at the seat of government and elsewhere, books
of reference and periodicals, for printing and binding, and for traveling
expenses) as he may deem necessary to carry out the provisions of this
chapter.
(b) The Secretary shall, in employing such
additional personnel as may be necessary, give preference to blind persons who
are capable of discharging the required duties.
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Section 107d-1
Grievances of blind licensees; hearing and arbitration; non-compliance by
federal departments and agencies; complaints by state licensing agencies;
arbitration
(a) Any blind licensee who is dissatisfied
with any action arising from the operation or administration of the vending
facility program may submit to a State licensing agency in accordance with
section 107b(6) of this title. If such blind licensee is dissatisfied with any
action taken or decision rendered as a result of such hearing, he may file a
complaint with the Secretary who shall convene a panel to arbitrate the
dispute pursuant to section 107d-2 of this title, and the decision of such
panel shall be final and binding on the parties except as otherwise provided
in this chapter.
(b) Whenever any State licensing agency
determines that any department, agency, or instrumentality of the United
States that has control of the maintenance, operation, and protection of
Federal property is failing to comply with the provisions of this chapter or
any regulations issued thereunder (including a limitation on the placement or
operation of a vending facility as described in section 107(b) of this title
and the Secretary's determination thereon) such licensing agency may file a
complaint with the Secretary who shall convene a panel to arbitrate the
dispute pursuant to section 107d-2 of this title, and the decision of such
panel shall be final and binding on the parties except as otherwise provided
in this chapter.
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Section 107d-2.
Arbitration-- Notice and hearing
(a) Upon receipt of a complaint filed under
section 107d-1 of this title, the Secretary shall convene an ad hoc
arbitration panel as provided in subsection (b) of this section. Such panel
shall, in accordance with the provisions of subchapter II of chapter 5 of
Title 5, give notice, conduct a hearing, and render its decision which shall
be subject to appeal and review as a final agency action for purposes of
chapter 7 of such Title 5.
Composition of a panel; designation of
chairman; termination of violations
(b)(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 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.
Publication of decisions in Federal Register
(c) The decisions of a panel convened by the
Secretary pursuant to this section shall be matters of public record and shall
be published in the Federal Register.
Payment of costs by the Secretary
(d) The Secretary shall pay all reasonable
costs of arbitration under this section in accordance with a schedule of fees
and expenses he shall publish in the Federal Register.
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Section 107d-3.
Vending machine income--Accrual to blind licensee and alternatively to state
agency; ceiling on amount for individual licensee
(a) In accordance with the provisions of
subsection (b) of this section, vending machine income obtained from the
operation of vending machines on Federal property shall accrue (1) the blind
licensee operating a vending facility on such property, or (2) in the event
there is no blind licensee operating such facility on such property, to the
State agency in whose State the Federal property is located, for the uses
designated in subsection (c) of this section, except that with respect to
income which accrues under clause (1) of this subsection, the Commissioner may
prescribe regulations imposing a ceiling on income from such vending machines
for an individual blind licensee. In the event such a ceiling is imposed, no
blind licensee shall receive less vending machine income under such ceiling
than he was receiving on January 1, 1974. No limitation shall be imposed on
income from vending machines, combined to create a vending facility, which are
maintained, serviced, or operated by a blind licensee. Any amounts received by
a blind licensee that are in excess of the amount permitted to accrue to him
under any ceiling imposed by the Commissioner shall be disbursed to the
appropriate State agency under clause (2) of this subsection and shall be used
by such agency in accordance with subsection (c) of this section.
Direct competition between vending machine and
vending facility; proportion of accrued income from such vending machines for
individual licensee
(b)(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" 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.
Disposal of accrued vending machine income by
State licensing agency
(c) All vending machine income which accrues
to a State licensing agency pursuant to subsection (a) of this section shall
be used to establish retirement or pension plans, for health insurance
contributions, and for provision of paid sick leave and vacation time for
blind licensees in such State, subject to a vote of blind licensees as
provided under section 107b(3)(E) of this title. Any vending machine income
remaining after application of the first sentence of this subsection shall be
used for the purposes specified in sections 107b(3)(A), (B), (C), and (D) of
this title, and any assessment charged to blind licensees by a State licensing
agency shall be reduced pro rata in an amount equal to the total of such
remaining vending machine income.
Income from vending machines in certain
locations excepted
(d) Subsections (a) and (b)(1) of this section
shall not apply to income from vending machines within retail sales outlets
under the control of exchange or ships' stores systems authorized by Title 10,
or to income from vending machines operated by the Veterans Canteen Service,
or to income from vending machines not in direct competition with a blind
vending facility at individual locations, installations, or facilities on
Federal Property the total of which at such individual locations,
installations, or facilities does not exceed $3,000 annually.
Regulations establishing priority for
operation of cafeterias
(e) The Secretary, through the Commissioner,
shall prescribe regulations to establish a priority for the operation of
cafeterias on Federal property by blind licensees when he determines, on an
individual basis and after consultation with the head of the appropriate
installation, that such operation can be provided at a reasonable cost with
food of a high quality comparable to that currently provided to employees,
whether by contract or otherwise.
Existing arrangements more favorable to blind
licensees unaffected
(f) This section shall not operate to preclude
preexisting or future arrangements, or regulations of departments, agencies,
or instrumentalities of the United States, under which blind licensees
(1) receive a greater percentage or amount of
vending machine income than that specified in subsection (b)(1) of this
section, or
(2) receive vending machine income from
individual locations, installations, or facilities on Federal property the
total of which at such individual locations, installations or facilities does
not exceed $3,000 annually.
Regulations for compliance
(g) The Secretary shall take such action and
promulgate such regulations as he deems necessary to assure compliance with
this section.
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Section 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. 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.
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Section 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 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 Health,
Education, and Welfare;
(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 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.
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Section 107e-1. Repealed.
Pub. L. 93-516, Title II, Section 205, December 7, 1974, 88 Stat. 1626
Section 107f.
Appropriations
There is authorized to be appropriated such sums
as may be necessary for carrying out the provisions of this chapter.
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