[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: 34CFR395.6]

[Page 468]
 
                           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. 395.6  Vendor ownership of vending facilities.

    (a) If a State licensing agency determines under Sec. 395.4(c) that 
the right, title to, and interest in a vending facility may be vested in 
the blind vendor, the State licensing agency shall enter into a written 
agreement with each vendor who is to have such ownership. Such agreement 
shall contain in full the terms and conditions governing such ownership 
in accordance with criteria in the State licensing agency's regulations, 
this part, and the terms and conditions of the permit. The criteria 
established to govern the determination that the title may be so vested 
shall contain reasonable provisions to enable a vendor to purchase 
vending facility equipment and to ensure that no individual will be 
denied the opportunity to become a vendor because of his inability to 
purchase the vending facility equipment or the initial stock;
    (b) The State licensing agency shall establish in writing and 
maintain policies determining whether the vendor-owner or the State 
licensing agency shall be required to maintain the vending facility in 
good repair and in an attractive condition and replace worn-out or 
obsolete equipment; and if the former, such policies shall provide that 
upon such vendor-owner's failure to do so, the State licensing agency 
may make the necessary maintenance, replacement, or repairs and make 
equitable arrangements for reimbursement;
    (c) Where the vendor owns such equipment and is required to maintain 
the vending facility in good repair and in an attractive condition and 
replace worn-out or obsolete equipment, or agrees to purchase additional 
new equipment, service charges for such purposes shall be equitably 
reduced and the method for determining such amount shall be established 
by the State licensing agency in writing;
    (d) Where the vendor owns such equipment, the State licensing agency 
shall retain a first option to repurchase such equipment, and in the 
event the vendor-owner 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 its part to pay to 
such vendor-owner or his estate, the fair value therein; and
    (e) The vendor-owner, his personal representative or next of kin 
shall be entitled to an opportunity for a full evidentiary hearing with 
respect to the determination of the amount to be paid by the State 
licensing agency for a vendor's ownership in the equipment. When the 
vendor-owner is dissatisfied with any decision rendered as a result of 
such hearing, he may file a complaint with the Secretary under 
Sec. 395.13 to request the convening of an ad hoc arbitration panel.