FR Doc E7-23153
[Federal Register: November 29, 2007 (Volume 72, Number 229)]
[Page 67599-67600]
From the Federal Register Online via GPO Access []

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Arbitration Panel Decision Under the Randolph-Sheppard Act

AGENCY: Department of Education.

ACTION: Notice of arbitration panel decision under the Randolph-
Sheppard Act.


SUMMARY: The Department of Education (Department) gives notice that on 
July 18, 2007, an arbitration panel rendered a decision in the matter 
of Frank Malone

[[Page 67600]]

v. Ohio Rehabilitation Services Commission, Bureau of Services for the 
Blind (Case No. R-S/04-8). This panel was convened by the Department 
under 20 U.S.C. 107d-1(a), after the Department received a complaint 
filed by the petitioner, Frank Malone.

FOR FURTHER INFORMATION CONTACT: You may obtain a copy of the full text 
of the arbitration panel decision from Suzette E. Haynes, U.S. 
Department of Education, 400 Maryland Avenue, SW., Room 5022, Potomac 
Center Plaza, Washington, DC 20202-2800. Telephone: (202) 245-7374. If 
you use a telecommunications device for the deaf (TDD), you may call 
the Federal Relay Service (FRS) at 1-800-877-8339.
    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 under FOR FURTHER 

SUPPLEMENTARY INFORMATION: Under section 6(c) of the Randolph-Sheppard 
Act (the Act), 20 U.S.C. 107d-2(c), the Secretary publishes in the 
Federal Register a synopsis of each arbitration panel decision 
affecting the administration of vending facilities on Federal and other 


    Frank Malone (Complainant) alleged violations by the Ohio 
Rehabilitation Services, Bureau of Services for the Blind, the State 
Licensing Agency (SLA), regarding the Act, the implementing regulations 
in 34 CFR part 395, and State rules and regulations. Specifically, 
Complainant alleged that these violations led to his resignation as 
manager of the cafeteria at the Verne Riffe Center for Government and 
the Arts (Riffe Center) in Columbus, Ohio.
    Additionally, Complainant alleged that the SLA improperly 
administered the Randolph-Sheppard Vending Program with respect to the 
SLA's rules and regulations concerning rent payments owed by him to the 
Ohio Building Authority (OBA), and the SLA's alleged failure to 
maximize Complainant's cafeteria facility, thus limiting his vocational 


    Complainant filed a grievance against the SLA on this matter. A 
hearing on the grievance was held on August 20, 21, 22, and 26, 2003. 
Complainant's grievance was denied. On October 14, 2003, the hearing 
officer sustained the SLA's decision concerning the revocation of 
Complainant's vending license and ordered that the SLA collect from 
Complainant all monies due regarding outstanding rent payments to OBA. 
On November 19, 2003, the SLA adopted the hearing officer's order as 
final agency action. Complainant sought review by a Federal arbitration 
panel of that decision.

Arbitration Panel Decision

    After reviewing all of the records and hearing testimony of 
witnesses, the panel ruled that the SLA failed in its responsibilities 
toward Complainant in violation of the Act, implementing regulations, 
and State rules and regulations. Specifically, the panel directed the 
SLA to restore Complainant's vending operator's license and reinstate 
him in the Business Enterprise program with full seniority.
    Further, the panel concluded that Complainant had been deprived of 
employment as a licensed vendor for four years, in part as a result of 
the SLA's omissions. Therefore, the panel also directed the SLA to 
offer Complainant the first available vending facility consistent with 
his ability and comparable in size, responsibility, and income 
potential as that of his previous assignment at the Riffe Center 
cafeteria facility.
    Additionally, the panel awarded Complainant damages in the amount 
of $93,202.01 for lost profits that he would have earned at the Riffe 
Center cafeteria facility less the amount of rent payments owed by 
Complainant to the SLA in the amount of $19,254.30. The total amount of 
the damage award to be paid by the SLA to Complainant is $73,947.71. 
The panel also found insufficient evidence to award further damages 
based upon Complainant's claim that he was entitled to an ATM machine 
and to have a priority for catering.
    The views and opinions expressed by the panel do not necessarily 
represent the views and opinions of the Department.

Electronic Access to This Document

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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:

    Dated: November 26, 2007.
William W. Knudsen,
Deputy Assistant, Secretary for Special Education and Rehabilitative 
[FR Doc. E7-23153 Filed 11-28-07; 8:45 am]