FR Doc 2010-19961
[Federal Register: August 12, 2010 (Volume 75, Number 155)]
[Notices]
[Page 48955-48956]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12au10-44]
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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: The Department of Education (Department) gives notice that on
July 17, 2009, an arbitration panel rendered a decision in the matter
of the Illinois Department of Human Services, Division of
Rehabilitation Services v. United States Postal Service, Case No. R-S/
06-14. This panel was convened by the Department under 20 U.S.C. 107d-
1(b) after the Department received a complaint filed by the petitioner,
the Illinois Department of Human Services, Division of Rehabilitation
Services.
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), call the
Federal Relay Service (FRS), toll-free, at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
accessible format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
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
property.
Background
The Illinois Department of Human Services, Division of
Rehabilitation Services, the State licensing agency (SLA) alleged
violations by the United States Postal Service (USPS) of the Act and
the implementing regulations in 34 CFR part 395. Specifically, the SLA
alleged that USPS violated the Act, the implementing regulations, and
the vending permits held by the SLA concerning a vending machine
facility operated by a blind vendor at the USPS's Chicago Processing
and Distribution Center.
According to the arbitration panel, the issues to be resolved were:
(1) Whether the USPS cafeteria operations are exempt from the Act and
whether the vending machines operated by a private vendor at the
Chicago Processing and Distribution Center are in direct competition
with the vending machines operated by the SLA's blind vendor; (2)
Whether the no-commission contracts let by USPS for cafeteria vending
violated the Act, and what compensatory damages, if any are due the
SLA; and (3) Whether the SLA may amend its complaint against USPS to
[[Page 48956]]
address information which surfaced during settlement negotiations,
namely, whether USPS violated the Act, its regulations, and the vending
permits by closing Break Room A and removing the vending machines for
34 days, and what compensatory damages, if any, are due the SLA.
Arbitration Panel Decision
After hearing testimony and reviewing all of the evidence, the
panel majority ruled that: (1) USPS cafeterias are not exempt from the
protections of the Act, including the vending machine income sharing
provisions; (2) The vending machines operated in the cafeteria at the
Chicago Processing and Distribution Center by a private vendor are in
direct competition with the blind vendor and are subject to the 100
percent income sharing provisions under the Act; and (3) The no-
commission contracts let by USPS for cafeteria vending machines at the
Chicago Processing and Distribution Center under its break-even policy
violated the purpose and terms of the Act and implementing regulations.
Thus, the panel majority ruled that USPS must compensate the SLA
100 percent of vending machine income for all of the vending machines
located in the rotunda and in the cafeteria at the Chicago Processing
and Distribution Center in accordance with the income sharing
provisions of the Act and implementing regulations at 34 CFR 395.32 as
of September 21, 2006.
The panel majority further ruled that the USPS must pay interest at
the Federal interest rate and the method of calculating interest should
begin only at the end of the month in which the income originally would
have been earned by the blind vendor and continue forward from that
time. Additionally, the panel majority determined there was no need to
allow the SLA to amend its complaint because those issues had already
been resolved.
One panel member dissented to a portion of the decision regarding
the monetary remedy award. Specifically, it was this panel member's
belief that within 30 days following the date of the arbitration
panel's decision, USPS should compensate the SLA the amount of
$5,934.70 for income lost by the blind vendor from January 29 to March
3, 2007, resulting from violations of the Act. Also, this member
believed that USPS should compensate the SLA the amount of $318,600 for
income lost by the SLA and blind vendor as a consequence of vending
machines operated by a private vendor in direct competition with the
blind vendor in violation of the income sharing provisions of the Act
and the relevant permits. Finally, this member believed that USPS
should pay the SLA interest in the amount of $17,556.83 calculated at 5
percent per annum, compounded.
The views and opinions expressed by the panel do not necessarily
represent the views and opinions of the Department.
Electronic Access to This Document
You may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or Adobe
Portable Document Format (PDF) on the Internet at the following site:
http://www.ed.gov/news/fedregister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. If you have questions about using PDF, call the U.S.
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in
the Washington, DC, area at (202) 512-1530.
Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at:
http://www.gpoaccess.gov/nara/index.html.
Dated: August 9, 2010.
Alexa Posny,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 2010-19961 Filed 8-11-10; 8:45 am]
BILLING CODE 4000-01-P