[Federal Register: June 15, 2001 (Volume 66, Number 116)]
[Notices]
[Page 32610-32611]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jn01-51]
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DEPARTMENT OF EDUCATION
Arbitration Panel Decision Under the Randolph-Sheppard Act
AGENCY: Department of Education.
ACTION: Notice of Arbitration Panel Decision Under the Randolph-
Sheppard Act.
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SUMMARY: Notice is hereby given that on October 20, 2000, an
arbitration panel rendered a decision in the matter of Alabama
Department of Rehabilitation Services v. Department of Veterans
Affairs, Veterans Canteen Service (Docket No. R-S/98-7). This panel was
convened by the U.S. Department of Education pursuant to 20 U.S.C.
107d-1(b) upon receipt of a complaint filed by petitioner, the Alabama
Department of Rehabilitation Services.
FOR FURTHER INFORMATION: A copy of the full text of the arbitration
panel decision may be obtained from George F. Arsnow, U.S. Department
of Education, 400 Maryland Avenue, SW., room 3230, Mary E. Switzer
Building, Washington, DC 20202-2738. Telephone: (202) 205-9317. If you
use a telecommunications device for the deaf (TDD), you may call the
TDD number at (202) 205-8298.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed in the preceding
paragraph.
Electronic Access To This Document
You may view this document, as well as all other Department of
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Note: The official version of this document is the document
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Regulations is available on GPO Access at: http://
www.access.gpo.gov/nara/index.html.
SUPPLEMENTARY INFORMATION: Pursuant to the Randolph-Sheppard Act (20
U.S.C. 107d-2(c)) (the Act), the Secretary publishes in the Federal
Register a synopsis of each arbitration panel decision affecting the
administration of vending facilities on Federal and other property.
Background
This dispute concerns the alleged violation by the Department of
Veterans Affairs (DVA), Veterans Canteen Service (VCS), of the priority
provisions of the Act (20 U.S.C. 107 et seq.) and implementing
regulations in 34 CFR part 395 at DVA/VCS Medical Centers in Alabama.
A summary of the facts is as follows: In 1995, the Alabama
Department of Rehabilitation Services, the State licensing Agency
(SLA), submitted permit applications to establish Randolph-Sheppard
vending facilities on four Federal properties maintained and operated
by DVA and VCS in Alabama. The permits were for the Veterans
Administration Medical Center, Tuskegee; the Regional Office and DVA
Medical Center, Montgomery; the Veterans Hospital, Birmingham; and the
Veterans Administration Hospital, Tuscaloosa.
By letter dated July 11, 1996, DVA acknowledged receipt of the
permit applications and informed the SLA that a decision would be made
after a review had been conducted to determine whether there were any
plans to acquire, occupy, or otherwise engage in any substantial
alterations or renovations of the involved buildings. The SLA did not
receive any further communication from DVA or VCS until March 4, 1998.
On that date, DVA wrote to the SLA advising that the Montgomery and
Tuskegee facilities did not plan any construction that would require
notice to the SLA and indicating that there was no suitable existing
space available for the location of blind vending facilities at those
centers. The letter informed the SLA that the hospitals at Birmingham
and Tuscaloosa planned substantial alterations and renovations. The DVA
forwarded the SLA's applications for permits at these hospitals to the
directors of those facilities.
Following receipt of DVA's March 4th letter, representatives of the
SLA met with the Directors or their designees of the DVA Medical
Centers located in Birmingham and Tuscaloosa. On May 21, 1998, the SLA
wrote each Director asking for a response to the applications that had
been pending since 1995. The SLA did not receive any response and in
June 1998 filed with the Department of Education a request for
arbitration of the matter.
In July 1998, the Tuscaloosa Director notified the SLA that DVA/VCS
intended to occupy a building that might contain a satisfactory site
for the establishment of a vending location for a blind vendor. On July
20, 1998, the SLA responded that it would send a representative to
develop a site specific survey. In September 1998, the attorney for the
SLA contacted the attorney for DVA and requested a meeting to negotiate
a resolution to the issues.
In a letter dated November 9, 1998, the DVA denied the SLA's second
application filed in August 1998 to establish vending locations at the
Tuscaloosa facility. Based upon information that the average income for
its blind vendors was $25,000, the SLA previously had determined that
it would take $100,000 in gross sales at the Tuscaloosa facility to
provide a net income of $25,000 for a blind vendor. In the letter, the
DVA indicated to the SLA that the $100,000 gross sales requirement for
a possible vending location at the Tuscaloosa facility would include
practically all of the gross sales, and the DVA would not give up the
operation.
The SLA notified the Department of Education by letter dated
December 8, 1998 that no decision had been issued by DVA on its request
to establish vending facilities at the DVA Medical Centers. Therefore,
the SLA requested that the arbitration should proceed. A hearing on
this matter was held on January 11-12, 2000.
Arbitration Panel Decision
The central issue before the arbitration panel was whether DVA/
VCS's determination that no existing suitable space was available for
blind vending facilities at DVA's Montgomery and Tuskegee locations and
the failure of DVA's Medical Directors at the Birmingham and Tuscaloosa
locations to approve the permit applications for blind vending
facilities were contrary to and in violation of the Randolph-Sheppard
Act, 20 U.S.C. 107 et seq., and the implementing regulations in 34 CFR
part 395.
The arbitration panel found that DVA/VCS did not comply with the
Act in processing the SLA's 1995 permit 1 applications. Nor did DVA/VCS
give reasons for its denial of permits at the Montgomery and Tuskegee
Medical Centers as required by the Act and regulations in 34 CFR
395.16.
The panel also concluded that, at the Tuscaloosa and Birmingham
locations, DVA/VCS did not provide the SLA with timely notice of the
substantial
[[Page 32611]]
renovations at these sites as required by the Act and implementing
regulations in 34 CFR 395.31(c). Furthermore, during the renovations at
the Birmingham and Tuscaloosa Medical Centers, DVA/VCS failed to
provide the SLA with access to the facilities, personnel numbers, or
financial data pertaining to the vending operations, as required by the
Act, to determine if a suitable site existed.
Therefore, for the previously stated reasons, the arbitration panel
ruled that DVA/VCS had violated the Randolph-Sheppard Act. However, the
panel stated that it did not have the authority to prescribe remedies.
It noted that DVA/VCS' current position is that it is presently in
compliance with the Randolph-Sheppard Act.
The views and opinions expressed by the panel do not necessarily
represent the views and opinions of the U.S. Department of Education.
Dated: June 12, 2001.
Francis V. Corrigan,
Deputy Director, National Institute on Disability and Rehabilitation
Research.
[FR Doc. 01-15153 Filed 6-14-01; 8:45 am]
BILLING CODE 4000-01-U