C.F.R. » Title 34 » CHAPTER III—OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION › PART 395—VENDING FACILITY PROGRAM FOR THE BLIND ON FEDERAL AND OTHER PROPERTY › Subpart C—Federal Property Management

34 C.F.R. § 395.32

Collection and distribution of vending machine income from vending machines on Federal property

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(a) The on-site official responsible for the Federal property of each property managing department, agency, or instrumentality of the United States, in accordance with established procedures of such department, agency, or instrumentality, shall be responsible for the collection of, and accounting for, vending machine income from vending machines on Federal property under his control and shall otherwise ensure compliance with the provisions of this section.

(b) Effective January 2, 1975, 100 per centum of all vending machine income from vending machines on Federal property which are in direct competition with a vending facility operated by a blind vendor shall accure to the State licensing agency which shall disburse such income to such blind vendor operating such vending facility on such property provided that the total amount of such income accruing to such blind vendor does not exceed the maximum amount determined under § 395.8(a). In the event that there is income from such vending machines in excess of the maximum amount which may be disbursed to the blind vendor under § 395.8(a), such additional income shall accrue to the State licensing agency for purposes determined in accordance with § 395.8(c).

(c) Effective January 2, 1975, 50 per centum of all vending machine income from vending machines on Federal property which are not in direct competition with a vending facility operated by a blind vendor shall accrue to the State licensing agency which shall disburse such income to the blind vendor operating such vending facility on such property. In the event that there is no blind vendor, such income shall accrue to the State licensing agency, except as indicated under paragraph (d) of this section. The total amount of such income disbursed to such blind vendor shall not exceed the maximum amount determined under § 395.8(a). In the event that there is income from such vending machines in excess of the maximum amount which may accrue to the blind vendor under § 395.8(a), such additional income shall accrue to the State licensing agency for purposes determined in accordance with § 395.8(c).

(d) Effective January 2, 1975, 30 per centum of all vending machine income from vending machines, which are not in direct competition with a vending facility operated by a blind vendor and which are on Federal property at which at least 50 per centum of the total hours worked on the premises occurs during a period other than normal working hours, shall accrue to the State licensing agency which shall disburse such income to the blind vendor operating a vending facility on such property. In the event that there is no blind vendor on such property, such income shall accrue to the State licensing agency. The total amount of such income disbursed to such blind vendor shall not exceed the maximum amount determined under § 395.8(a). In the event that there is income from such vending machines in excess of the maximum amount which may be disbursed to the blind vendor under § 395.8(a), such additional income shall accrue to the State licensing agency for purposes determined in accordance with § 395.8(c).

(e) The determination that a vending machine on Federal property is in direct competition with a vending facility operated by a blind vendor shall be the responsibility of the on-site official responsible for the Federal property of each property managing department, agency or instrumentality of the United States, subject to the concurrence of the State licensing agency.

(f) In the case of vending machine income which, prior to the effective date of this part, has been disbursed to a blind vendor by a property managing department, agency, or instrumentality from proceeds which accrued from operations subsequent to January 2, 1975, pursuant to agreements in effect prior to such time, such income may be deducted, at the discretion of such property managing department, agency or instrumentality, from vending machine income due to the State licensing agency under paragraphs (b), (c), or (d) of this section.

(g) The collection of vending machine income and its disbursement to the appropriate State licensing agency shall be conducted on at least a quarterly basis.

(h) All arrangements pertaining to the operation of vending machines on Federal property not covered by contract with, or by permits issued to, State licensing agencies, shall be renegotiated upon the expiration of the existing contract or other arrangement for consistency with the provisions of this section.

(i) The provisions of this section shall not apply to income from vending machines within operated retail sales outlets under the control of post exchange or ships' stores systems authorized under title 10 U.S.C.; to income from vending machines operated by the Veterans Canteen Service; or to income from vending machines not in direct competition with a blind vending facility at individual locations, installations, or facilities on Federal property the total of which at such individual locations, installations, or facilities does not exceed $3,000 annually.

(j) The provisions of this section shall not operate to preclude pre-existing or future arrangements, or regulations of departments, agencies, or instrumentalities of the United States, under which blind vendors or State licensing agencies may:

(1) Receive a greater percentage or amount of vending machine income than that specified in paragraphs (b), (c), and (d) of this section, or

(2) Receive vending machine income from individual locations, installations, or facilities on Federal property the total of which at such individual locations, installations, or facilities does not exceed $3,000 annually.

Notes of Decisions
Cited in 9 cases (2 in the last 5 years), 1984–2022 · leading case: Harlan L. Jacobsen v. United States Postal Serv., 993 F.2d 649 (9th Cir. 1993).
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Harlan L. Jacobsen v. United States Postal Serv., 993 F.2d 649 (9th Cir. 1993). · cites it 2× “” 34 C.F.R. § 395.32 (e) (1991); see also 20 U.”
Comm. of Blind Vendors v. Dist. of Columbia, 736 F. Supp. 292 (D.D.C. 1990). · cites it 5× “See also 34 C.F.R. § 395.32 . At the federal level, the Act delegates to the Secretary of Education (“Secretary”) the responsibility for interpreting and enforcing its provisions.”
Texas State Comm'n v. United States, 6 Cl. Ct. 730 (Ct. Cl. 1984). · cites it 2× “” 34 C.F.R. § 395.32 (i) (1982). At the arbitration proceeding, plaintiff argued in favor of HEW’s interpretation of the exemption.”
Texas State Comm'n for the Blind & State of Texas v. The United States, 796 F.2d 400 (Fed. Cir. 1986). “15,802-17 (1977), now 34 C.F.R. § 395.32 (1985). 21 Interestingly, the preamble to the regulations, in explaining why officers and enlisted messes were not considered exempt, states that the act “limits exemptions from the income sharing requirements to systems authorized under…”
Schlank v. Williams, 572 A.2d 101 (D.C. 1990). “34 C.F.R. § 395.32 (a) provides that the on-site federal' official responsible for the administration of the program shall collect and account for vending machine income.”
Gillick v. Saddler, 2012 IL App (4th) 111117 (Ill. App. Ct. 2012). · cites it 7× “34 C.F.R. § 395.32 (b) (2010). DHS was then required to disburse that income to plaintiff.”
State of Ohio v. U.S. Dep't of Educ. (6th Cir. 2021). “Neither of the latter cases, 3While34 C.F.R. § 395.32(a) tasks federal officials with collecting “vending machine income from vending machines on Federal property,” the statute clarifies that this does not include income from blind licensees.”
State of Hawaii v. Usedu (9th Cir. 2022). “§§ 107b(3), 107d- 3(a); 34 C.F.R. § 395.32 . Central to this appeal, the RSA also includes a “review requirement.”
Browder v. US Dept of Educ. (4th Cir. 2000). · cites it 2× “§ 107d-3(b)(1); 34 C.F.R. § 395.32 (c). If no blind ven- dor operates on a "Federal property," then 50% of the income from non-blind vendors operating on the property is distributed to the state licensing agency for the benefit of all blind vendors in the state.”
— 34 C.F.R. § 395.32(a) — 1 case
State of Ohio v. U.S. Dep't of Educ. (6th Cir. 2021). “Neither of the latter cases, 3While34 C.F.R. § 395.32(a) tasks federal officials with collecting “vending machine income from vending machines on Federal property,” the statute clarifies that this does not include income from blind licensees.”
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