R-S Training Outline
Randolph Sheppard 101
Randolph Sheppard Act
History
Leonard Robinson
 Authored “Light at the Tunnel End”
 Blind attorney from Knoxville
 Led fight to get bill enacted
 Based upon similar program in Canada
Legislation Enacted
 Legislation Opposed
 Organized agencies for the blind
 Legislation Supported
 Lions International
 Veterans
 Organized Labor
Legislation Enacted (continued)
 Sponsors of the Bill
Congressman Jennings Randolph –
West Virginia
Senator Morris Sheppard – Texas
 Bill Signed Into Law
 June 20, 1936
 President Franklin D. Roosevelt
Randolph Sheppard Act
Legislative History
Key Provisions of Original Legislation
 Blind persons were AUTHORIZED to operate
vending facilities in Federal Buildings
 Established age and visions criteria
 Established licensing procedures
 Defined visual requirements for participation
in program
 State agency to be designated to administer
program
1943 Vocational Rehabilitation Act
 Blind persons became eligible for VR
services
 VR funds could be used for Randolph
Sheppard purposes
1954 Amendments to Randolph
Sheppard Act
 Changed “authorized” to PREFERENCE
 Change federal buildings to federal property
 List of articles to be sold was expanded to
include vending and other prepackaged
goods
 Established set aside fees
 Granted rights to vendors to have fair
hearings
1965 Amendments to the Vocational
Rehabilitation Act
Established the VR agency in the
state as the one to provide
supervision to Randolph Sheppard
Programs
1974 Amendments to the Randolph
Sheppard Act
Changed “preference” to PRIORITY
 Removed age requirement
 Included cafeterias
 Income sharing
 Vendor benefits
 Established the Committee of Blind Vendors
and the requirement of active participation
 Established arbitration procedures to resolve
disputes
 Authorized the Secretary of the Department of
Education to promulgate regulations
34 C.F.R. 395
395.1
Terms
 Defines terms found in the regulations
and law
34 C.F.R. 395
395.2 Applications as Designation as State
Licensing Agency – General
 State agency providing vocational
rehabilitation services to the blind is the only
agency eligible for designation as the SLA
 Submitted in writing to the Secretary of
Education
 Approved by the governor
 Submitted over the signature of the
Administrator of the SLA
34 C.F.R. 395
395.3 Application as Designation as state
Licensing Agency – Content
 SLA’s legal authority to administer the
program
 Description of methods for coordinating VR
and Randolph Sheppard Programs including
post employment services
 Policies and standards for selecting facility
sites
34 C.F.R. 395
395.3 Application as Designation as state
Licensing Agency – Content (Cont’d)
 Methods to ensure active participation by
the Committee
 Policies for making vending facility
equipment and stock available to vendors
 Sources of funds
34 C.F.R. 395
395.3 Application as Designation as state
Licensing Agency – Content (Cont’d)
 Policies describing the relationship
between agency and vendors
Selection criteria
Duties
Supervision
Transfer and Promotions
Financial participation
Right to a fair hearing and arbitration
34 C.F.R. 395
395.3 Application as Designation as state
Licensing Agency – Content (Cont’d)
 Methods to provide suitable training,
including upward mobility training
 Procedures for utilizing a nominee agency
if so desired
 Arrangements for vesting equipment
34 C.F.R. 395
395.3 Application as Designation as state
Licensing Agency – Content (Cont’d)
Assurances
 Cooperate with the Secretary in carrying
out the requirements of the Act
 Take effective actions for supervision
including terminating licenses
34 C.F.R. 395
395.3 Application as Designation as state
Licensing Agency – Content (Cont’d)
Submit promptly to the Secretary
 Changes in legal authority
 Rule changes
 Set Aside Schedules
 Policies against discrimination
 Provide each vendor a copy of the rules
 Submit to arbitration to grievances by vendors
 Adopt accounting procedures as necessary
 Make reports as required
34 C.F.R. 395
395.4 State Rules and Regulations
 SLA must promulgate
 Rules must be published in accordance
with state law
 Ensure that equipment stock can only be
vested in the SLA, vendor, or nominee
agency
34 C.F.R. 395
395.5 Approval of Application for
designation as SLA
By the Secretary of Education
34 C.F.R. 395
395.17 suspension as Designation as SLA
 May be suspended by the Secretary if (s)he
finds that the SLA is not in compliance with
the Act
 Secretary will first give notice that there are
compliance issues
 90 day notice of suspension is required
 SLA can request a hearing before the
Secretary or his/her designee
34 C.F.R. 395
395.6 Vendor Ownership
 Must have written agreement with
vendor
 Rules must set forth guidelines
 Vendor remains Randolph Sheppard
vendor
34 C.F.R. 395
395.7 The Issuance and Condition of Licenses
Criteria for issuance must be objective
 Licensees must be:
Legally blind
U.S. Citizen
Certified by the agency to be qualified
 Issued by SLA to vendor for an indefinite
period of time subject to termination for
failure to comply with all requirements
34 C.F.R. 395
395.32 Collection and Use of Vending Machine
Income from Vending Machines on Federal
Property
 Property Management official will be
responsible for collection
 100% of income from vending machines in
direct competition to a blind vendor accrues
to the SLA to be disbursed to the vendor
34 C.F.R. 395
395.32 Collection and Use of Vending
Machine Income from Vending Machines
on Federal Property (Cont’d)
 50% of income from vending machines
not in direct competition will accrue to the
SLA to be disbursed to the vendor
 30% of income on properties where at
least 50% of the work is performed after
normal work hours
34 C.F.R. 395
395.32 Collection and Use of Vending Machine
Income from Vending Machines on Federal
Property (Cont’d)
 A vendor is limited to receive no more than
the national average annual income per
vendor
34 C.F.R. 395
395.32 Collection and Use of Vending Machine
Income from Vending Machines on Federal
Property (Cont’d)
 Exceptions to income sharing provisions
Machines controlled by military ship stores
or post exchanges
Machines controlled by the VA
Locations where the income is less than
$3,000 annually
34 C.F.R. 395
395.8 Distribution and Use of Income from
Vending Machines on Federal Property
 SLA will disburse quarterly
 Vendor is limited to amount he can receive
34 C.F.R. 395
395.8 Distribution and Use of Income from
Vending Machines on Federal Property (Cont’d)
 Funds not disbursed to a vendor can be used
for other purposes as voted on by the vendors
Retirement or pensions
Health Insurance
Sick Leave
Vacation Pay
34 C.F.R. 395
395.8 Distribution and Use of Income from
Vending Machines on Federal Property
(Cont’d)
 Funds not used for these purposes may be
used by program
Repair and maintenance of equipment
Purchase of equipment
Management Services
Fair minimum return to the vendors
34 C.F.R. 395
395.9 The Setting Aside of Funds by the SLA
 Must be in writing and approved by the
Secretary of Education
 Can be used for multiple purposes
Maintenance and repair of equipment
Purchase of equipment
Management services
Fair minimum return
Benefits as specified in 395.8
34 C.F.R. 395
395.10 The Maintenance and
Replacement of Vending Facility
Equipment
 Responsibility of SLA
34 C.F.R. 395
395.11 Training Program for Blind Individuals
 Must be provided as a VR service to VR
clients
 Must include on-the-job training
 Upward Mobility training
 Post employment services
34 C.F.R. 395
395.12 Access to Program and Financial
Information
 Each blind vendor must be given access
 Schedule a time to interpret the data
 Quarterly and annual reports
 Does not override confidentiality laws
34 C.F.R. 395
395.13 Evidentiary Hearings and Arbitration of
Complaints
 Available to any blind vendor dissatisfied with
any agency action arising out of the
administration of the program
 The filing of a complaint authorizes the
release of information
34 C.F.R. 395
395.13 Evidentiary Hearings and Arbitration of
Complaints (Cont’d)
 If dissatisfied with the decision in a fair
hearing, a vendor may seek arbitration
Three member panel appointed by
Secretary
One member selected by vendor
One member selected by SLA
Independent member jointly agreed to
by other two panel members
34 C.F.R. 395
395.13 Evidentiary Hearings and Arbitration of
Complaints (Cont’d)
 Decisions are matter of public record
 Decisions are binding upon the parties but
are subject to judicial review
 Secretary pays all expenses except attorney
fees
 Grantors of permits cannot be required to
participate
34 C.F.R. 395
C.F.R. 395.14 Committee of Blind Vendors
 Elected biennially
 Must be representative of all vendors
34 C.F.R. 395
 Active participation
Major administrative and policy decisions
affecting the overall administration of the
program
Receive and transmit to the SLA guidance
of vendors
Promotions and transfers
Training
34 C.F.R. 395
395.15 Use of Nominee Agreements
 Must be in writing
 Must ensure that SLA has full
responsibility for administration of the
program
34 C.F.R. 395
A. 395.16 Permit for Establishment of Vending
Facilities
1. SLA must submit application in writing
a. Must specify:
1. Location
2. Amount of space necessary
3. Type of facility and equipment
4. Number, type, and location of all vending
machines
5. Other terms and conditions
34 C.F.R. 395
395.30 The Location and Operation of Vending
Facilities for Blind Vendors on Federal
Property
 Federal property management must take
steps necessary to ensure one or more
vending facilities to be operated by a blind
vendor
 Limitations placed on earnings must be
approved by Secretary
34 C.F.R. 395
395.30 The Location and Operation of
Vending Facilities for Blind Vendors on
Federal Property (Cont’d)
 Exceptions to the priority
If the facility adversely affects the interests
of the U.S.
National Parks where vending is
combined with other things such as
lodging
Certain NASA facilities
34 C.F.R. 395
395.31 Acquisition and Occupation of Federal
Property
 Federal agency shall not occupy in whole or
in part any building unless it determines that
there is space for a blind vendor
 Federal agency shall provide 60 days notice
of intent to occupy a building
C.F.R. 395
395.31 Acquisition and Occupation of Federal
Property (Cont’d)
 SLA with approval of property management
will be given opportunity to select location of
facility and type of service to be provided
34 C.F.R. 395
395.31 Acquisition and Occupation of Federal
Property (Cont’d)
 Exceptions to priority
SLA determines insufficient patronage
Fewer than 100 Federal employees on the
premises
Less than 15,000 square feet of space
Leased property and there is a private
operation that the blind vendor would be in
direct competition with
34 C.F.R. 395
395.33 Operation of Cafeterias by Blind
Vendors
 Priority applies if SLA proposal is in the
competitive range
 Contract rather than permit
 Property management may choose to bypass
soliciting proposals and enter into direct
negotiations with the SLA
34 C.F.R. 395
Enforcement Procedures
 Day-to-day problems should be resolved
informally
 Issues related to compliance to permit should
be put in writing by property management
34 C.F.R. 395
Arbitration of State Agency Complaints
 Disputes between SLA and Federal
property management can be resolved
using the same arbitration process
available to vendors