[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: 34CFR395.9]

[Page 467-468]
 
                           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.  395.9  The setting aside of funds by the State licensing agency.

    (a) The State licensing agency shall establish in writing the extent 
to which funds are to be set aside or caused to be set aside from the 
net proceeds of the operation of the vending facilities and, to the 
extent applicable, from vending machine income under Sec.  395.8(c) in 
an amount determined by the Secretary to be reasonable.
    (b) Funds may be set aside under paragraph (a) of this section only 
for the purposes of:
    (1) Maintenance and replacement of equipment;
    (2) The purchase of new equipment;
    (3) Management services;
    (4) Assuring a fair minimum of return to vendors; or
    (5) The establishment and maintenance of retirement or pension 
funds, health insurance contributions, and provision for paid sick leave 
and vacation time, if it is so determined by a majority vote of blind 
vendors licensed by the State licensing agency, after such agency 
provides to each such vendor information on all matters relevant to such 
proposed purposes.

[[Page 468]]

    (c) The State licensing agency shall further set out the method of 
determining the charge for each of the above purposes listed in 
paragraph (b) of this section, which will be determined with the active 
participation of the State Committee of Blind Vendors and which will be 
designed to prevent, so far as is practicable, a greater charge for any 
purpose than is reasonably required for that purpose. The State 
licensing agency shall maintain adequate records to support the 
reasonableness of the charges for each of the purposes listed in this 
section, including any reserves necessary to assure that such purposes 
can be achieved on a consistent basis.