[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: 34CFR395.3]

[Page 464-465]
 
                           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.  395.3  Application for designation as State licensing agency; content.

    (a) An application for designation as a State licensing agency under 
Sec.  395.2 shall indicate:
    (1) The State licensing agency's legal authority to administer the 
program, including its authority to promulgate rules and regulations to 
govern the program;
    (2) The State licensing agency's organization for carrying out the 
program, including a description of the methods for coordinating the 
State's vending facility program and the State's vocational 
rehabilitation program, with special reference to the provision of such 
post-employment services necessary to assure that the maximum vocational 
potential of each blind vendor is achieved;
    (3) The policies and standards to be employed in the selection of 
suitable locations for vending facilities;
    (4) The methods to be used to ensure the continuing and active 
participation of the State Committee of Blind Vendors in matters 
affecting policy and program development and administration.
    (5) The policies to be followed in making suitable vending facility 
equipment and adequate initial stock available to a vendor;
    (6) The sources of funds for the administration of the program;
    (7) The policies and standards governing the relationship of the 
State licensing agency to the vendors, including their selection, 
duties, supervision, transfer, promotion, financial participation, 
rights to a full evidentiary hearing concerning a State licensing agency 
action, and, where necessary, rights for the submittal of complaints to 
an arbitration panel;
    (8) The methods to be followed in providing suitable training, 
including on-the-job training and, where appropriate, upward mobility 
training, to blind vendors;
    (9) The arrangements made or contemplated, if any, for the 
utilization of the services of any nominee under Sec.  395.15; the 
agreements therefor and the services to be provided; the procedures for 
the supervision and control of the services provided by such nominee and 
the methods used in evaluating services received, the basis for 
remuneration, and the fiscal controls and accounting procedures;
    (10) The arrangements made or contemplated, if any, for the vesting 
in accordance with the laws of the State, of the right, title to, and 
interest in vending facility equipment or stock (including vending 
machines), used in the program, in a nominee to hold such right, title 
to, and interest for program purposes; and
    (11) The assurances of the State licensing agency that it will:
    (i) Cooperate with the Secretary in applying the requirements of the 
Act in a uniform manner;

[[Page 465]]

    (ii) Take effective action, including the termination of licenses, 
to carry out full responsibility for the supervision and management of 
each vending facility in its program in accordance with its established 
rules and regulations, this part, and the terms and conditions governing 
the permit;
    (iii) Submit promptly to the Secretary for approval a description of 
any changes in the legal authority of the State licensing agency, its 
rules and regulations, blind vendor agreements, schedules for the 
setting aside of funds, contractual arrangements for the furnishing of 
services by a nominee, arrangements for carrying general liability and 
product liability insurance, and any other matters which form a part of 
the application;
    (iv) If it intends to set aside, or cause to be set aside, funds 
from the net proceeds of the operation of vending facilities, obtain a 
prior determination by the Secretary that the amount of such funds to be 
set aside is reasonable;
    (v) Establish policies against discrimination of any blind vendor on 
the basis of sex, age, physical or mental impairment, creed, color, 
national origin, or political affiliation;
    (vi) Furnish each vendor a copy of its rules and regulations and a 
description of the arrangements for providing services, and take 
adequate steps to assure that each vendor understands the provisions of 
the permit and any agreement under which he operates, as evidenced by 
his signed statements:
    (vii) Submit to an arbitration panel those grievances of any vendor 
unresolved after a full evidentiary hearing;
    (viii) Adopt accounting procedures and maintain financial records in 
a manner necessary to provide for each vending facility and for the 
State's vending facility program a classification of financial 
transactions in such detail as is sufficient to enable evaluation of 
performance; and
    (ix) Maintain records and make reports in such form and containing 
such information as the Secretary may require, make such records 
available for audit purposes, and comply with such provisions as the 
Secretary may find necessary to assure the correctness and verification 
of such reports.
    (b) An application submitted under Sec.  395.2 shall be accompanied 
by a copy of State rules and regulations affecting the administration 
and operation of the State's vending facility program.