[Code of Federal Regulations]
[Title 34, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR395.17]

[Page 470-471]
 
                           TITLE 34--EDUCATION
 
            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.  395.17  Suspension of designation as State licensing agency.

    (a) If the Secretary has reason to believe that, in the 
administration of the program, there is a failure on the part of any 
State licensing agency to comply substantially with the Act and this 
part, he shall so inform such agency in writing, setting forth, in 
detail, the areas in which there is such failure and giving it a 
reasonable opportunity to comply.
    (b) If, after the lapse of a reasonable time, the Secretary is of 
the opinion that such failure to comply still continues and that the 
State licensing agency is not taking the necessary steps to comply, he 
shall offer to such agency, by reasonable notice in writing thereto and 
to the chief executive of the State, an opportunity for a hearing before 
the Secretary (or person designated by the Secretary) to determine 
whether there is a failure on the part of such agency to comply 
substantially with the provisions of the Act and of this part.
    (c) If it is thereupon determined that there is a failure on the 
part of such agency to comply substantially with the Act and this part, 
appropriate written notice shall be given to such agency and to the 
chief executive of the State suspending such agency's designation as 
licensing agency effective 90 days from the date of such notice. A copy 
of such written notice shall be given to each department, agency, or 
instrumentality of the United States responsible for the maintenance, 
operation, and protection of Federal property on which vending machines 
subject to the requirements of Sec.  395.32 are located in the State. 
Upon the suspension of such designation, vending machine income from 
vending machines on Federal property due for accrual to the State 
licensing agency under Sec.  395.32 shall be retained in escrow by such 
department, agency, or instrumentality of the United States responsible 
for the maintenance, operation and protection of the Federal property on 
which such vending machines are located, pending redesignation of the 
State licensing agency or rescission of the suspension under paragraph 
(e) of this section.
    (d) If, before the expiration of such 90 days, the Secretary (or 
person designated by him) determines that the State licensing agency is 
taking the necessary steps to comply, he may postpone the effective date 
of such suspension for such time as he deems necessary in the best 
interest of the program.
    (e) If, prior to the effective date of such suspension, the 
Secretary (or person designated by him) finds that there is no longer a 
failure on the part of the State licensing agency to comply 
substantially with the provisions of the Act and this part, he shall so 
notify the agency, the chief executive of the State, and each Federal 
department, agency, or instrumentality required to place funds in escrow 
under paragraph

[[Page 471]]

(c) of this section, in which event the suspension of the designation 
shall not become effective and the requirement to place funds in escrow 
shall be terminated.