[Code of Federal Regulations]
[Title 34, Volume 2]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR395.15]

[Page 471-472]
 
                           TITLE 34--EDUCATION
 
              CHAPTER III--OFFICE OF SPECIAL EDUCATION AND
            REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION
 
PART 395--VENDING FACILITY PROGRAM FOR THE BLIND ON FEDERAL AND OTHER PROPERTY--Table of Contents
 
                  Subpart B--The State Licensing Agency
 
Sec. 395.15  Use of nominee agreements.

    (a) The State licensing agency may enter into an agreement whereby 
another agency or organization undertakes to furnish services to blind 
vendors. Such agreement shall be in writing and shall contain provisions 
which:
    (1) Clearly insure the retention by the State licensing agency of 
full responsibility for the administration and operation of all phases 
of the program;
    (2) Specify the type and extent of the services to be provided under 
such agreement;
    (3) Provide that no set-aside charges will be collected from blind 
vendors except as specified in such agreement;
    (4) Specify that no nominee will be allowed to exercise any function 
with respect to funds for the purchase of new equipment or for assuring 
a fair minimum of return to vendors, except to collect and hold solely 
for disposition in accordance with the order of the State licensing 
agency any charges authorized for those purposes by the licensing 
agency; and
    (5) Specify that only the State licensing agency shall have control 
with respect to selection, placement, transfer, financial participation 
and termination of the vendors, and the preservation, utilization, and 
disposition of program assets.

[[Page 472]]

    (b) If the State licensing agency permits any agency or organization 
other than a vendor to hold any right, title to, or interest in vending 
facilities or stock, the arrangement shall be one permitted by State law 
and shall specify in writing that all such right, title to, or interest 
is held by such agency or organization as the nominee of the State 
licensing agency for program purposes and subject to the paramount right 
of the State licensing agency to direct and control the use, transfer, 
and disposition of such vending facilities or stock.