34 C.F.R. § 395.9

The setting aside of funds by the State licensing agency

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(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 § 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.

(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.

Notes of Decisions

Cited in 3 cases (1 in the last 5 years), 1990–2022 · leading case: Schlank v. Williams, 572 A.2d 101 (D.C. 1990).

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Schlank v. Williams, 572 A.2d 101 (D.C. 1990). · cites it 2× “§ 107b(3); 34 C.F.R. § 395.9 . 2 The state agency also agrees to provide written procedures by which a blind vendor dissatisfied with any action taken by the agency in administering the program may obtain a full evidentiary hearing at the state level, and to submit grievances…”

Comm. of Blind Vendors v. Dist. of Columbia, 736 F. Supp. 292 (D.D.C. 1990). · cites it 5× “34 C.F.R. § 395.9 (1988). Should the vendor choose to leave the stand or transfer to another, the vendor is required to return the start-up inventory and petty cash.”

Kolb v. United States (Fed. Cl. 2022). “See also 34 C.F.R. § 395.9 (b). The RSA and its implementing regulations establish different procedures and processes for individual vendors grievances and complaints brought by SLAs.”

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