II 

110TH CONGRESS 

2D SESSION S. 3112 

To reauthorize the Javits-Wagner-O’Day Act and the Randolph-Sheppard 

Act, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 11, 2008 

Mr. ENZI introduced the following bill; which was read twice and referred to 

the Committee on Health, Education, Labor, and Pensions 

A BILL 

To reauthorize the Javits-Wagner-O’Day Act and the 

Randolph-Sheppard Act, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Javits-Wagner-O’Day and Randolph-Sheppard Mod6 ernization Act of 2008’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Establishment of Committee. 

TITLE I—PROCUREMENT 


erowe on PRODPC61 with BILLS
2 

•S 3112 IS

Sec. 101. Short title. 

Sec. 102. Purposes. 

Sec. 103. Duties and powers of the Committee relating to procurement. 

Sec. 104. Procurement requirements for the government. 

Sec. 105. Central nonprofit agencies. 

Sec. 106. Qualified nonprofit agencies. 

Sec. 107. Demonstration projects. 

Sec. 108. Records and audits. 

Sec. 109. Study of Federal government utilization. 

Sec. 110. Authorization of appropriations. 

TITLE II—RANDOLPH-SHEPPARD ACT 

Sec. 201. Short title. 

Sec. 202. Definitions. 

Sec. 203. Operation of vending facilities. 

Sec. 204. Duties and powers of the Committee. 

Sec. 205. State licensing agency powers and duties. 

Sec. 206. Vendors’ duties. 

Sec. 207. Authorization of appropriations. 

TITLE III—JAVITS-WAGNER-O’ DAY AND RANDOLPH-SHEPPARD 

VENDORS CONTRACTING WITH THE DEPARTMENT OF DEFENSE 

Sec. 301. Definitions. 

Sec. 302. Javits-Wagner-O’Day program. 

Sec. 303. Randolph-Sheppard program. 

TITLE IV—TRANSFER OF FUNCTIONS AND SAVINGS PROVISIONS 

Sec. 401. Definitions. 

Sec. 402. Transfer of functions. 

Sec. 403. Determinations of certain functions by the Office of Management and 

Budget. 

Sec. 404. Personnel provisions. 

Sec. 405. Delegation and assignment. 

Sec. 406. Reorganization. 

Sec. 407. Rules. 

Sec. 408. Transfer and allocations of appropriations and personnel. 

Sec. 409. Incidental transfers. 

Sec. 410. Effect on personnel. 

Sec. 411. Savings provisions. 

Sec. 412. Separability. 

Sec. 413. Transition. 

Sec. 414. References. 

Sec. 415. Additional conforming amendments. 

TITLE V—REPEALS OF FORMER PROVISIONS 

Sec. 501. Repeals. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 


erowe on PRODPC61 with BILLS
3 

•S 3112 IS

1 (1) BLIND.—The term ‘‘blind’’, used with re2 spect to an individual or a class of individuals, 

3 means an individual or class of individuals, respec4 tively, whose central visual acuity does not exceed 

5 20/200 in the better eye with correcting lenses or 

6 whose visual acuity, if better than 20/200, is accom7 panied by a limit to the field of vision in the better 

8 eye to such a degree that its widest diameter 

9 subtends an angle of no greater than 20 degrees. 

10 For purposes of this paragraph, to determine wheth11 er an individual is blind, a physician skilled in dis12 eases of the eye, or an optometrist, whichever the in13 dividual shall select, shall conduct an examination. 

14 (2) CENTRAL NONPROFIT AGENCY.—The term 

15 ‘‘central nonprofit agency’’ means an agency des16 ignated under section 103(d), that meets the re17 quirements for such designation under section 105. 

18 (3) COMMITTEE.—The term ‘‘Committee’’, ex19 cept when used as part of another term, means the 

20 Committee for the Advancement of Individuals with 

21 Disabilities established under section 3. 

22 (4) DIRECT LABOR.—The term ‘‘direct labor’’ 

23 includes all work required for preparation, proc24 essing, and packing of a product, or work directly 


erowe on PRODPC61 with BILLS
4 

•S 3112 IS

1 relating to the performance of a service, but not su2 pervision, administration, inspection, or shipping. 

3 (5) ELECTRONIC COMMERCE.—The term ‘‘elec4 tronic commerce’’ means buying, selling, producing, 

5 or working in an electronic medium. 

6 (6) EXPERIENTIAL LEARNING OPTION.—The 

7 term ‘‘experiential learning option’’ means an option 

8 for acquiring firsthand knowledge of, and building 

9 social and vocational problem solving skills for, inte10 grated competitive employment through active, di11 rect participation in individualized work activities, 

12 including the use of supported employment services, 

13 in an integrated competitive employment environ14 ment. 

15 (7) FISCAL YEAR.—The term ‘‘fiscal year’’ 

16 means the 12-month period beginning on October 1 

17 of each year. 

18 (8) GOVERNMENT; ENTITY OF THE GOVERN19 MENT.—The terms ‘‘Government’’ and ‘‘entity of the 

20 Government’’ include any entity of the legislative 

21 branch or the judicial branch, any military depart22 ment or Executive agency (as such department and 

23 agency are respectively defined by sections 102 and 

24 105 of title 5, United States Code), the United 

25 States Postal Service, and any nonappropriated fund 


erowe on PRODPC61 with BILLS
5 

•S 3112 IS

1 instrumentality under the jurisdiction of the Armed 

2 Forces. 

3 (9) OTHER SIGNIFICANT DISABILITY.—The 

4 term ‘‘other significant disability’’, used with respect 

5 to an individual or a class of individuals, means an 

6 individual or class of individuals, respectively, who 

7 has an impairment that— 

8 (A) is a physical or cognitive impairment, 

9 or combination of physical and cognitive impair10 ments, other than blindness; 

11 (B) results in a work function barrier or 

12 employment activity limitation, including the 

13 need for ongoing services or supports over an 

14 extended period of time; and 

15 (C) results in substantial employment 

16 functional limitations in 2 or more of the fol17 lowing major life activities: 

18 (i) Self-care. 

19 (ii) Receptive and expressive lan20 guage. 

21 (iii) Cognitive functioning, including 

22 learning. 

23 (iv) Mobility. 

24 (v) Self-direction. 

25 (vi) Capacity for independent living. 


erowe on PRODPC61 with BILLS
6 

•S 3112 IS

1 (vii) Economic self-sufficiency. 

2 (viii) Emotional adjustment. 

3 (ix) Work tolerance, productivity, or 

4 quality. 

5 (10) QUALIFIED NONPROFIT AGENCY.—The 

6 term ‘‘qualified nonprofit agency’’ means an agency 

7 selected by a central nonprofit agency to serve as a 

8 qualified nonprofit agency, that meets the require9 ments for such qualification under section 106. 

10 (11) QUALIFIED NONPROFIT AGENCY FOR INDI11 VIDUALS WHO ARE BLIND.—The term ‘‘qualified 

12 nonprofit agency for individuals who are blind’’ 

13 means an agency— 

14 (A) organized under the laws of the United 

15 States or of any State, operated in the interest 

16 of individuals who are blind, and the net income 

17 of which does not inure in whole or in part to 

18 the benefit of any shareholder or other indi19 vidual; 

20 (B) that complies with any applicable occu21 pational health and safety standard prescribed 

22 by the Secretary of Labor; and 

23 (C) that— 


erowe on PRODPC61 with BILLS
7 

•S 3112 IS

1 (i) produces products or provides serv2 ices (whether or not the products or serv3 ices are procured under this Act); and 

4 (ii) during a fiscal year, employs indi5 viduals who are blind for not less than 75 

6 percent of the person-hours of direct labor 

7 (adjusted in accordance with section 

8 103(g)) required to produce the products 

9 or provide the services. 

10 (12) QUALIFIED NONPROFIT AGENCY FOR INDI11 VIDUALS WITH OTHER SIGNIFICANT DISABILITIES.— 

12 The term ‘‘qualified nonprofit agency for individuals 

13 with other significant disabilities’’ means an agen14 cy— 

15 (A) organized under the laws of the United 

16 States or of any State, operated in the interest 

17 of individuals with other significant disabilities, 

18 and the net income of which does not inure in 

19 whole or in part to the benefit of any share20 holder or other individual; 

21 (B) that complies with any applicable occu22 pational health and safety standard prescribed 

23 by the Secretary of Labor; and 

24 (C) that— 


erowe on PRODPC61 with BILLS
8 

•S 3112 IS

1 (i) produces products or provides serv2 ices (whether or not the products or serv3 ices are procured under this Act); and 

4 (ii) during a fiscal year, employs indi5 viduals who are blind or individuals with 

6 other significant disabilities for not less 

7 than 75 percent of the person-hours of di8 rect labor (adjusted in accordance with 

9 section 103(g)) required to produce the 

10 products or provide the services. 

11 (13) SIGNIFICANT DISABILITY.—The term ‘‘sig12 nificant disability’’, used with respect to an indi13 vidual or a class of individuals, means an individual 

14 or class of individuals, respectively, each of whom 

15 is— 

16 (A) an individual who is blind; or 

17 (B) an individual with another significant 

18 disability. 

19 (14) STATE.—The term ‘‘State’’ means each of 

20 the 50 States, the District of Columbia, the Com21 monwealth of Puerto Rico, the United States Virgin 

22 Islands, Guam, American Samoa, and the Common23 wealth of the Northern Mariana Islands. 


erowe on PRODPC61 with BILLS
9 

•S 3112 IS

1 SEC. 3. ESTABLISHMENT OF COMMITTEE. 

2 (a) ESTABLISHMENT.—There is established a com3 mittee to be known as the Committee for the Advancement 

4 of Individuals with Disabilities. The Committee shall be 

5 composed of 21 voting members, and 5 ex officio non6 voting members, appointed as follows: 

7 (1) VOTING NUMBERS FROM FEDERAL DEPART8 MENTS OR AGENCIES.— 

9 (A) IN GENERAL.—Each head of a Federal 

10 department or agency described in subpara11 graph (C) shall appoint as a member of the 

12 Committee 1 officer or employee from an office 

13 of administration and management, acquisition 

14 policy, procurement, contracting, or finance, or 

15 another similar office, of that Federal depart16 ment or agency. 

17 (B) REHABILITATION SERVICES ADMINIS18 TRATION AND OFFICE OF DISABILITY EMPLOY19 MENT POLICY.—The Commissioner of the Re20 habilitation Services Administration of the De21 partment of Education and the Assistant Sec22 retary for Disability Employment Policy of the 

23 Department of Labor shall also serve as mem24 bers of the Committee. 

25 (C) FEDERAL DEPARTMENTS AND AGEN26 CIES.—The Federal departments and agencies 


erowe on PRODPC61 with BILLS
10 

•S 3112 IS

1 referred to in subparagraph (A) are the Depart2 ment of Agriculture, the Department of De3 fense, the Department of the Army, the Depart4 ment of the Navy, the Department of the Air 

5 Force, the Department of Veterans Affairs, the 

6 Department of Justice, the Department of 

7 Homeland Security, the Department of Housing 

8 and Urban Development, and the General Serv9 ices Administration. 

10 (2) VOTING MEMBERS APPOINTED BY PRESI11 DENT.—The President shall appoint to the Com12 mittee, by and with the advice and consent of the 

13 Senate— 

14 (A) 1 member from persons who are not 

15 officers or employees of the Government and 

16 who are conversant with the problems incident 

17 to the employment of individuals who are blind; 

18 (B) 1 member from persons who are not 

19 officers or employees of the Government and 

20 who are conversant with the problems incident 

21 to the employment of individuals with other sig22 nificant disabilities; 

23 (C) 1 member from persons who— 

24 (i) are not officers or employees of the 

25 Government; 


erowe on PRODPC61 with BILLS
11 

•S 3112 IS

1 (ii) are individuals who are blind or 

2 represent such individuals; and 

3 (iii) are employed in qualified non4 profit agencies for individuals who are 

5 blind; 

6 (D) 1 member from persons who— 

7 (i) are not officers or employees of the 

8 Government; 

9 (ii) are individuals with other signifi10 cant disabilities or represent such individ11 uals; and 

12 (iii) are employed in qualified non13 profit agencies for individuals with other 

14 significant disabilities; 

15 (E) 1 member from persons who are not 

16 officers or employees of the Government and 

17 who represent a central nonprofit agency for in18 dividuals who are blind, a qualified nonprofit 

19 agency for individuals who are blind, or a na20 tional association representing qualified non21 profit agencies described in this subparagraph; 

22 (F) 1 member from persons who are not 

23 officers or employees of the Government and 

24 who represent a central nonprofit agency for in25 dividuals who have other significant disabilities, 


erowe on PRODPC61 with BILLS
12 

•S 3112 IS

1 a qualified nonprofit agency for individuals who 

2 have other significant disabilities, or a national 

3 association representing qualified nonprofit 

4 agencies described in this subparagraph; 

5 (G) 1 member from persons who are not 

6 officers or employees of the Government and 

7 who represent the small business community, 

8 the service sector, the product sector, the labor 

9 sector, the manufacturing sector, or a national 

10 association of small business communities or 

11 sectors described in this subparagraph; 

12 (H) 1 member from persons who are not 

13 officers or employees of the Government and 

14 who represent a licensed vendor (as defined in 

15 section 202) who is blind, a State agency de16 scribed in section 101(a)(2)(A)(i) of the Reha17 bilitation Act of 1973 (29 U.S.C. 

18 721(a)(2)(A)(i)), or a national association of 

19 vendors or agencies described in this subpara20 graph; and 

21 (I) 1 member from persons who are not of22 ficers or employees of the Government and who 

23 represent a licensed vendor (as defined in sec24 tion 202) with a disability other than blindness, 

25 a State agency described in section 


erowe on PRODPC61 with BILLS
13 

•S 3112 IS

1 101(a)(2)(A) of the Rehabilitation Act of 1973 

2 (29 U.S.C. 721(a)(2)(A)) (other than clause (i) 

3 of such section), or a national association of 

4 vendors or agencies described in this subpara5 graph. 

6 (3) EX OFFICIO, NONVOTING MEMBERS.—The 

7 Administrator of the Small Business Administration 

8 and the Secretary of Commerce shall appoint as ex 

9 officio, nonvoting members of the Committee 1 offi10 cer or employee of the Small Business Administra11 tion and the Department of Commerce, respectively. 

12 The Secretary of Education shall appoint as an ex 

13 officio, nonvoting member of the Committee the As14 sistant Secretary for Vocational and Adult Edu15 cation or the Assistant Secretary for Postsecondary 

16 Education. The Director of the Office on Disability 

17 of the Department of Health and Human Services 

18 and the Chairperson of the National Council on Dis19 ability shall also serve as ex officio, nonvoting mem20 bers of the Committee. 

21 (4) TRANSITION RULES.— 

22 (A) DEFINITIONS.—In this paragraph: 

23 (i) CURRENT COMMITTEE.—The term 

24 ‘‘current Committee’’ means the ComVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
14 

•S 3112 IS

1 mittee for the Advancement of Individuals 

2 with Disabilities. 

3 (ii) FORMER COMMITTEE.—The term 

4 ‘‘former Committee’’ means the Committee 

5 for Purchase From People Who Are Blind 

6 or Severely Disabled. 

7 (B) CONTINUATION OF MEMBERS.—If the 

8 head of a Federal department or agency ap9 pointed an officer or employee described in sub10 paragraph (A) or (B) of paragraph (1) to the 

11 former Committee, under section 1(a)(1) of the 

12 Javits-Wagner-O’Day Act, and the officer or 

13 employee was serving on the former Committee 

14 on the date of enactment of the Javits-Wagner15 O’Day and Randolph-Sheppard Modernization 

16 Act of 2008, that officer or employee shall be 

17 considered to have been appointed to the cur18 rent Committee under paragraph (1). If the 

19 President appointed an individual described in 

20 any of subparagraphs (A) through (D) of para21 graph (2) to the former Committee, under sec22 tion 1(a)(2) of the Javits-Wagner-O’Day Act, 

23 and the individual was serving on the former 

24 Committee on the date of enactment of the Jav25 its-Wagner-O’Day and Randolph-Sheppard 


erowe on PRODPC61 with BILLS
15 

•S 3112 IS

1 Modernization Act of 2008, that individual shall 

2 be considered to have been appointed to the 

3 current Committee under the corresponding 

4 subparagraph of paragraph (2). 

5 (C) TREATMENT.—An appointment to the 

6 current Committee described in subparagraph 

7 (B) shall— 

8 (i) be treated as a first appointment 

9 to the current Committee; 

10 (ii) take effect on the date that the 

11 first appointments made under any of sub12 paragraphs (E) through (I) of paragraph 

13 (2) take effect; and 

14 (iii) in the case of an individual ini15 tially appointed by the President to the 

16 former Committee, end on the same date 

17 as the initial appointment would have 

18 ended. 

19 (D) ACTIONS AND AUTHORITIES.—This 

20 Act shall not affect any action or authority of 

21 any member of the former Committee, or of 

22 that Committee. 

23 (b) VACANCY.—A vacancy in the membership of the 

24 Committee for the Advancement of Individuals with DisVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
16 

•S 3112 IS

1 abilities shall not affect its powers but shall be filled in 

2 the manner in which the original appointment was made. 

3 (c) CHAIRMAN.—The members of the Committee 

4 shall elect 1 of their number to be Chairman. 

5 (d) TERMS.— 

6 (1) LENGTH AND NUMBER.—Except as pro7 vided in subsection (a)(4)(B) and paragraphs (2) 

8 and (3), members appointed under paragraph (2) of 

9 subsection (a) shall be appointed for terms of 5 

10 years. No member of the Committee appointed 

11 under such paragraph may serve more than 2 con12 secutive full terms, beginning on the date of com13 mencement of the member’s first full term on the 

14 Committee. 

15 (2) STAGGERED TERMS.—Of the members first 

16 appointed under subparagraphs (E), (F), (G), (H), 

17 and (I) of subsection (a)(2)— 

18 (A) the member appointed under subpara19 graph (H) of that subsection shall be appointed 

20 for a term that ends on the same date as the 

21 term of the member appointed under subpara22 graph (A) of that subsection; 

23 (B) the member appointed under subpara24 graph (I) of that subsection shall be appointed 

25 for a term that ends on the same date as the 


erowe on PRODPC61 with BILLS
17 

•S 3112 IS

1 term of the member appointed under subpara2 graph (B) of that subsection; 

3 (C) the member appointed under subpara4 graph (G) of that subsection shall be appointed 

5 for a term that ends on the same date as the 

6 term of the member appointed under subpara7 graph (C) of that subsection; 

8 (D) the member appointed under subpara9 graph (F) of that subsection shall be appointed 

10 for a term that ends on the same date as the 

11 term of the member appointed under subpara12 graph (D) of that subsection; and 

13 (E) the member appointed under subpara14 graph (E) of that subsection shall be appointed 

15 for a term that ends 1 year after the date on 

16 which the term of the member appointed under 

17 subparagraph (B) of that subsection ends. 

18 (3) MIDTERM VACANCIES AND EXPIRED

19 TERMS.—Any member appointed under paragraph 

20 (2) of subsection (a) to fill a vacancy occurring prior 

21 to the expiration of the term for which his prede22 cessor was appointed shall be appointed only for the 

23 remainder of such term. A member appointed under 

24 such paragraph may serve after the expiration of the 


erowe on PRODPC61 with BILLS
18 

•S 3112 IS

1 member’s term until the member’s successor has 

2 taken office. 

3 (e) QUORUM.—Ten voting members of the Com4 mittee, including not less than 5 members appointed under 

5 subsection (a)(2), shall constitute a quorum. 

6 (f) PAY AND TRAVEL EXPENSES.— 

7 (1) PAY FOR MEMBERS NOT OFFICERS OR EM8 PLOYEES OF GOVERNMENT.—Except as provided in 

9 paragraph (2), members of the Committee shall each 

10 be entitled to receive the daily equivalent of the max11 imum rate payable for a position at GS–15 of the 

12 General Schedule for each day (including traveltime) 

13 during which they are engaged in the actual per14 formance of services for the Committee. 

15 (2) NO PAY FOR OFFICERS OR EMPLOYEES OF

16 GOVERNMENT.—Members of the Committee who are 

17 officers or employees of the Government shall receive 

18 no additional pay on account of their service on the 

19 Committee. 

20 (3) TRAVEL EXPENSES.—While away from 

21 their homes or regular places of business in the per22 formance of services for the Committee, members of 

23 the Committee shall be allowed travel expenses, in24 cluding per diem in lieu of subsistence, in the same 

25 manner as persons employed intermittently in the 


erowe on PRODPC61 with BILLS
19 

•S 3112 IS

1 Government service are allowed expenses under sec2 tion 5703 of title 5 of the United States Code. 

3 (g) STAFF.— 

4 (1) EXECUTIVE DIRECTOR.— 

5 (A) IN GENERAL.—The Committee, by a 

6 majority vote of the voting members of the 

7 Committee, shall appoint (including having the 

8 authority to remove) and shall fix the pay of an 

9 Executive Director to assist the Committee, at 

10 the direction of the Committee, in carrying out 

11 the Committee’s duties and powers under this 

12 Act. 

13 (B) APPLICABLE PROVISIONS.—The rate 

14 of pay for the Executive Director shall not ex15 ceed the rate payable for level II of the Execu16 tive Schedule under section 5313 of title 5, 

17 United States Code. The Committee shall other18 wise appoint and fix the pay of the Executive 

19 Director without regard to the provisions of 

20 title 5, United States Code, governing appoint21 ments in the competitive service, and the provi22 sions of chapter 75 of such title (relating to ad23 verse actions), chapter 77 of such title (relating 

24 to appeals), and chapter 51 and subchapter III 


erowe on PRODPC61 with BILLS
20 

•S 3112 IS

1 of chapter 53 (relating to classification of posi2 tions and General Schedule pay rates.) 

3 (C) EFFECT OF REMOVAL.—An Executive 

4 Director who is removed by the Committee shall 

5 not be eligible to serve as a member of the 

6 Committee for 10 years after the date of the re7 moval. 

8 (2) PERSONNEL.—Subject to such rules as may 

9 be adopted by the Committee, the Chairman may 

10 appoint (including having the authority to remove) 

11 and fix the pay of such personnel as the Committee 

12 determines are necessary to assist it in carrying out 

13 its duties and powers under this Act. The personnel 

14 of the Committee appointed under this paragraph 

15 shall be appointed subject to the provisions of title 

16 5, United States Code, governing appointments in 

17 the competitive service, and shall be paid in accord18 ance with the provisions of chapter 51 and sub19 chapter III of chapter 53 of such title (relating to 

20 classification of positions and General Schedule pay 

21 rates). 

22 (h) OBTAINING OFFICIAL DATA.— 

23 (1) IN GENERAL.—The Committee may secure 

24 directly from any entity of the Government informa25 tion necessary to enable the Committee to carry out 


erowe on PRODPC61 with BILLS
21 

•S 3112 IS

1 this Act. Upon request of the Chairman of the Com2 mittee, the head of such Government entity shall 

3 furnish such information to the Committee in a 

4 timely and reasonable fashion. 

5 (2) EXCEPTIONS.—Paragraph (1) shall not 

6 apply to— 

7 (A) any classified information; or 

8 (B) information from any entity of the 

9 Government that discloses the identity of, or 

10 any other personally identifiable information re11 lated to, any individual. 

12 (i) RECUSAL.—Members of the Committee appointed 

13 under subparagraph (E), (F), (H), or (I) of subsection 

14 (a)(2) shall recuse themselves from voting on any matters 

15 that could directly benefit them, or the agencies, associa16 tions, or vendors they represent, including the addition of 

17 an item to the procurement list. Members of the Com18 mittee appointed under any of subparagraphs (A) through 

19 (G) of subsection (a)(2) shall recuse themselves from vot20 ing on any matters regarding title II. Members of the 

21 Committee appointed under subparagraph (H) or (I) of 

22 subsection (a)(2) shall recuse themselves from voting on 

23 any matters regarding title I. 


erowe on PRODPC61 with BILLS
22 

•S 3112 IS

1 TITLE I—PROCUREMENT 

2 SEC. 101. SHORT TITLE. 

3 This title may be cited as the ‘‘Javits-Wagner-O’Day 

4 Act’’. 

5 SEC. 102. PURPOSES. 

6 The purposes of this title are— 

7 (1) to deliver to entities of the Government, at 

8 a fair price, products and services of high quality 

9 that such an entity would ordinarily procure to meet 

10 the entity’s mission; 

11 (2) to provide employment to individuals with 

12 significant disabilities; and 

13 (3) to empower individuals with significant dis14 abilities, through informed choice, to maximize em15 ployment, economic self-sufficiency, independence, 

16 and inclusion in and integration into society, by pro17 viding for— 

18 (A) a network of nonprofit agencies uti19 lizing comprehensive and coordinated state-of20 the-art employment technologies, strategies, and 

21 approaches; 

22 (B) training and skill development; and 

23 (C) research. 


erowe on PRODPC61 with BILLS
23 

•S 3112 IS

1 SEC. 103. DUTIES AND POWERS OF THE COMMITTEE RE2 LATING TO PROCUREMENT. 

3 (a) IN GENERAL.—In carrying out the purposes of 

4 this title— 

5 (1) the Committee shall— 

6 (A) identify products and services offered 

7 for sale by qualified nonprofit agencies and ap8 propriate for addition to the procurement list 

9 established under subsection (b); 

10 (B) inform entities of the Government 

11 about the statutory mandate of section 104 that 

12 items on the procurement list be purchased 

13 from qualified nonprofit agencies; and 

14 (C) promote such products and services of15 fered for sale by qualified nonprofit agencies 

16 and the activities of such agencies pursuant to 

17 this title; 

18 (2) the Committee shall monitor the compliance 

19 of entities of the Government with the requirements 

20 of this title, and enforce the requirements; and 

21 (3) the Committee shall, not less often than 

22 every 5 years, develop or update a strategic plan 

23 that establishes the implementation responsibilities 

24 and goals of central nonprofit agencies, and qualified 

25 nonprofit agencies, for improving activities carried 


erowe on PRODPC61 with BILLS
24 

•S 3112 IS

1 out under this title and related activities, includ2 ing— 

3 (A) improving data collection; 

4 (B) creating employment opportunities for 

5 individuals who are blind and individuals with 

6 other significant disabilities through activities 

7 carried out under this title; 

8 (C) creating competitive employment op9 portunities for individuals who are blind and in10 dividuals with other significant disabilities 

11 through activities in this title through experien12 tial learning options and activities (such as out13 placement and promotion described in sub14 section (g)(1)(B)) that are related to activities 

15 carried out under this title; 

16 (D) increasing wages for individuals de17 scribed in subparagraph (B); 

18 (E) meeting career advancement indicators 

19 for such individuals; 

20 (F) increasing sales revenues; 

21 (G) monitoring progress toward meeting 

22 the objectives of this title; and 

23 (H) measuring success toward meeting the 

24 objectives. 

25 (b) PROCUREMENT LIST.— 


erowe on PRODPC61 with BILLS
25 

•S 3112 IS

1 (1) IN GENERAL.—The Committee shall estab2 lish and publish in the Federal Register a list (re3 ferred to in this Act as the ‘‘procurement list’’) of— 

4 (A) the products produced by any qualified 

5 nonprofit agency for individuals who are blind 

6 or by any qualified nonprofit agency for individ7 uals with other significant disabilities; and 

8 (B) the services provided by any such 

9 agency, 

10 that the Committee determines are suitable for pro11 curement by the Government pursuant to this title. 

12 Such list shall initially consist of the procurement 

13 list in effect under the Javits-Wagner-O’Day Act on 

14 the day before the date of enactment of the Javits15 Wagner-O’Day and Randolph-Sheppard Moderniza16 tion Act of 2008. 

17 (2) ADDITIONS AND REMOVALS.— 

18 (A) IN GENERAL.—The Committee may, 

19 by rule made in accordance with the require20 ments of subsections (b), (c), (d), and (e) of 

21 section 553 of title 5, United States Code, add 

22 to and remove from the procurement list prod23 ucts so produced and services so provided. 

24 (B) SALES PRIOR TO ADDITIONS.—If an 

25 entity of the Government solicits a qualified 


erowe on PRODPC61 with BILLS
26 

•S 3112 IS

1 nonprofit agency to sell a product or service 

2 that such agency is producing commercially, 

3 and the entity of the Government is interested 

4 in adding the product or service to the procure5 ment list, the Committee may allow the quali6 fied nonprofit agency to sell the product or 

7 service to the Government prior to adding such 

8 item to the procurement list. After that sale, 

9 the qualified nonprofit agency may continue to 

10 sell the product or service to the Government 

11 under this title only if the product or service is 

12 added to the procurement list under subpara13 graph (A). 

14 (C) REMOVALS.— 

15 (i) IN GENERAL.—If a product or 

16 service is on the procurement list but has 

17 not been purchased by the Government 

18 within the last 36 months, the Committee 

19 shall remove the product or service from 

20 the procurement list, except as provided in 

21 clause (ii). 

22 (ii) AGENCY JUSTIFICATION.—The 

23 qualified nonprofit agency responsible for 

24 producing the product or providing the 

25 service may submit a justification to the 


erowe on PRODPC61 with BILLS
27 

•S 3112 IS

1 Committee, in writing and prior to the re2 moval, for the continued listing of such 

3 product or service. If the Committee deter4 mines that the justification is sufficient to 

5 warrant the continued listing, the Com6 mittee shall not remove the product or 

7 service from the procurement list. 

8 (D) PROCEDURES FOR APPEALS AND

9 PRESENTATIONS.—The Committee shall create 

10 procedures— 

11 (i) for qualified nonprofit agencies to 

12 appeal a determination— 

13 (I) by a central nonprofit agency 

14 about the distribution of products and 

15 services among such agencies; 

16 (II) by the Committee that a 

17 product or service will be removed 

18 from the procurement list; 

19 (III) by the Committee that a 

20 product or service will not be added to 

21 the procurement list; and 

22 (IV) by the Committee that a 

23 product or service will be sold to the 

24 Government at a revised price; and 


erowe on PRODPC61 with BILLS
28 

•S 3112 IS

1 (ii) for businesses, resellers, and man2 ufacturing companies, to give oral presen3 tations at Committee meetings— 

4 (I) describing the potential im5 pact of products or services proposed 

6 to be added to the procurement list; 

7 and 

8 (II) for the potential removal of 

9 products or services from the procure10 ment list. 

11 (E) CONSTRUCTION.—Nothing in this sec12 tion shall prohibit a qualified nonprofit agency 

13 from selling a product or service commercially 

14 to an entity of the Government, rather than 

15 selling the product or service through the pro16 gram carried out under this title. The Com17 mittee shall not treat the item involved as if the 

18 item were added to the procurement list, and 

19 the qualified nonprofit agency may not label or 

20 identify the item in a manner that associates 

21 the item with the program, unless the Com22 mittee adds the item to the procurement list 

23 under subparagraph (A). 

24 (c) PRICE.—The Committee shall determine the fair 

25 market price of products and services that are on the proVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
29 

•S 3112 IS

1 curement list and that are offered for sale to the Govern2 ment by any qualified nonprofit agency for individuals who 

3 are blind or any such agency for individuals with other 

4 significant disabilities. The Committee shall also revise 

5 from time to time in accordance with changing market 

6 conditions its price determinations with respect to such 

7 products and services. The Committee will prepare a no8 tice stating the Committee’s justification for such a revi9 sion, and send the notice to the appropriate central non10 profit agency and qualified nonprofit agency. 

11 (d) DESIGNATION OF CENTRAL NONPROFIT AGEN12 CIES.— 

13 (1) IN GENERAL.—The Committee shall des14 ignate a central nonprofit agency or agencies to fa15 cilitate the distribution (by direct allocation, sub16 contract, or any other means) of orders of the Gov17 ernment for products and services on the procure18 ment list among qualified nonprofit agencies for in19 dividuals who are blind or qualified nonprofit agen20 cies for individuals with other significant disabilities. 

21 (2) FUNCTIONS.—Agencies designated under 

22 paragraph (1) shall carry out functions that are not 

23 inherently governmental functions. 

24 (e) REGULATIONS.— 


erowe on PRODPC61 with BILLS
30 

•S 3112 IS

1 (1) IN GENERAL.—The Committee shall pre2 scribe such regulations, including regulations regard3 ing specifications for products and services on the 

4 procurement list, the time of their delivery, direct 

5 labor hour percentages, experiential learning options, 

6 governance standards including accreditation stand7 ards, and reviewing, monitoring, and auditing of the 

8 central nonprofit agencies and qualified nonprofit 

9 agencies, as the Committee considers to be appro10 priate to carry out this title. In prescribing the regu11 lations, the Committee shall take into account the 

12 interests of small qualified nonprofit agencies, and 

13 the needs of qualified nonprofit agencies that enter 

14 into several contracts, but receive only a small per15 centage of their contract award amounts through 

16 contracts entered into under this title. 

17 (2) PRIORITY.—The Committee shall prescribe 

18 regulations providing that, in the purchase by the 

19 Government of products produced and offered for 

20 sale by qualified nonprofit agencies for individuals 

21 who are blind or qualified nonprofit agencies for in22 dividuals with other significant disabilities, priority 

23 shall be accorded to products produced and offered 

24 for sale by qualified nonprofit agencies for individ25 uals who are blind. 


erowe on PRODPC61 with BILLS
31 

•S 3112 IS

1 (3) EXCLUSIONS.—The Committee shall not 

2 prescribe regulations for central nonprofit agencies 

3 or qualified nonprofit agencies that specify board 

4 size, board practices such as having certain commit5 tees, or rotation of board members. 

6 (4) PROPOSED REGULATIONS.—Not later than 

7 180 days after the date of enactment of the Javits8 Wagner-O’Day and Randolph-Sheppard Moderniza9 tion Act of 2008, the Committee shall issue pro10 posed regulations to implement that Act, provide an 

11 opportunity for public comment, and prescribe final 

12 regulations to implement the amendments. 

13 (f) STUDY AND EVALUATION.—The Committee shall 

14 make a continuing study and evaluation of its activities 

15 under this title for the purpose of assuring effective and 

16 efficient administration of this title. The Committee may 

17 study (on its own or in cooperation with other public or 

18 nonprofit private agencies)— 

19 (1) problems related to the employment of indi20 viduals who are blind and of individuals with other 

21 significant disabilities; 

22 (2) the development and adaptation of produc23 tion methods that would enable a greater utilization 

24 of individuals who are blind and of individuals with 

25 other significant disabilities; and 


erowe on PRODPC61 with BILLS
32 

•S 3112 IS

1 (3) areas relating to providing informed choice, 

2 supported employment, customized employment, self3 employment, and individualized experiential learning 

4 options in the community involved to direct labor 

5 employees of qualified nonprofit agencies, promoting 

6 job placement and retention of the workers, pro7 moting consumer satisfaction with products and 

8 services produced or provided for sale under this 

9 title, establishing standards and certification (which 

10 may include accreditation) for community rehabilita11 tion programs, and converting from providing non12 integrated community rehabilitation programs to 

13 providing integrated community-based employment. 

14 (g) DIRECT LABOR HOUR PERCENTAGE.— 

15 (1) MODIFICATIONS.— 

16 (A) IN GENERAL.—In the case of a quali17 fied nonprofit agency, with a product- or serv18 ice-related order performed by the qualified 

19 nonprofit agency, that has obtained approval 

20 for a request under paragraph (5), the Com21 mittee shall modify the direct labor hours per22 centage requirement described in paragraph 

23 (11)(C) or (12)(C) of section 2, as described in 

24 this paragraph. 


erowe on PRODPC61 with BILLS
33 

•S 3112 IS

1 (B) EMPLOYEES.—The Committee shall 

2 allow the agency to count towards the percent3 age, for the agency overall or a specific order, 

4 up to 24 percent of the hours performed by per5 sons that were formerly direct labor employees 

6 of the agency and that are individuals who are 

7 blind or individuals with other significant dis8 abilities, as appropriate, if such persons were— 

9 (i) outplaced into competitive employ10 ment, with compensation at a rate not less 

11 than the minimum wage rate set forth in 

12 section 6(a)(1) of the Fair Labor Stand13 ards Act of 1938 (29 U.S.C. 206(a)(1)), 

14 and with benefits offered by the employee 

15 involved, for at least 90 days; 

16 (ii) outplaced into self-employment in 

17 which the agency subcontracted a portion 

18 of the order to a direct labor employee that 

19 is an individual who is blind or an indi20 vidual with another significant disability, 

21 as appropriate; or 

22 (iii) promoted from nonsupervisory, 

23 nonmanagement positions into initial su24 pervisory and management positions within 

25 the qualified nonprofit agency, through 


erowe on PRODPC61 with BILLS
34 

•S 3112 IS

1 promotions that involved changes in work 

2 duties, titles, and wages. 

3 (C) HOURS.—The hours counted under 

4 paragraph (1) shall be— 

5 (i) for a former employee described in 

6 subparagraph (B)(ii), hours of self-employ7 ment as a subcontractor described in that 

8 subparagraph, but the hours may only be 

9 counted for the length of the subcontract 

10 for that order; and 

11 (ii) for a former employee described in 

12 subparagraph (B)(iii), hours in an initial 

13 supervisory or management position de14 scribed in that subparagraph. 

15 (2) JOB COACHES.—The Committee may au16 thorize a qualified nonprofit agency that has ob17 tained approval for a request under paragraph (5) to 

18 exclude job coaches from the workers used to cal19 culate the agency overall and specific order direct 

20 labor hour percentage counts if— 

21 (A) the job coaches are providing job 

22 coaching functions; 

23 (B) the job coaches are not paid by funds 

24 generated through orders authorized under this 

25 title; and 


erowe on PRODPC61 with BILLS
35 

•S 3112 IS

1 (C) all direct labor employees of the agency 

2 that are individuals who are blind or individuals 

3 with other significant disabilities (including di4 rect labor employees making commensurate 

5 wages) are compensated at a rate not less than 

6 the minimum wage rate described in paragraph 

7 (1)(B)(i). 

8 (3) PHASE-IN PERIOD.—If a qualified nonprofit 

9 agency is unable to initially perform a project while 

10 meeting the appropriate direct labor hour percentage 

11 requirement, the Committee may allow the qualified 

12 nonprofit agency a 1-year phase-in period in order to 

13 meet the requirement, subject to the following condi14 tions: 

15 (A) OVERALL PERCENTAGE.—A request by 

16 the qualified nonprofit agency for a phase-in pe17 riod shall include information on whether or not 

18 the phase-in period will cause the nonprofit 

19 agency’s cumulative overall direct labor hour 

20 percentage to drop below 75 percent. 

21 (B) PLAN.—If the agency’s cumulative 

22 overall direct labor hour percentage will drop 

23 below 75 percent as a result of the phase-in pe24 riod, the agency shall submit a phase-in plan 

25 and include a description of the method that 


erowe on PRODPC61 with BILLS
36 

•S 3112 IS

1 the agency will use to ensure that, and the 

2 timeframe in which, the agency will meet the 75 

3 percent direct labor hour percentage require4 ment. 

5 (C) NO REQUESTS AFTER PROJECT BEGIN6 NING.—A qualified nonprofit agency may not 

7 request, and the Committee may not permit, a 

8 phase-in period for a project after beginning 

9 work on that project. 

10 (4) TRAINING HOURS COUNTED TOWARD DI11 RECT LABOR HOURS.—For purposes of computing 

12 the direct labor hour percentage described in para13 graph (11)(C) or (12)(C) of section 2, a qualified 

14 nonprofit agency may count an hour that an em15 ployee spends in training under section 105(a)(3)(B) 

16 or 106(b)(3), or in an experiential learning option 

17 (including individualized training activities) de18 scribed in clause (i)(II) or (ii)(II) of section 

19 106(d)(2)(E), as an hour of direct labor under such 

20 paragraph (11)(C) or (12)(C), respectively. 

21 (5) ADJUSTMENTS TO DIRECT LABOR HOUR

22 PERCENTAGE COUNTS.—To be eligible for an adjust23 ment to a direct labor hour percentage count under 

24 paragraph (1) or (2), a qualified nonprofit agency 

25 shall submit a request to the Committee. The reVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
37 

•S 3112 IS

1 quest shall contain information demonstrating that 

2 the agency meets such requirements as the Com3 mittee shall establish with respect to the number of 

4 employees of the agency that are outplaced or pro5 moted as described in clause (i), (ii), or (iii) of para6 graph (1)(B), relative to the agency’s years of expe7 rience with the program carved out under this title, 

8 and the success rate of the agency in making such 

9 outplacements or promotions. The Committee may 

10 approve such a request for the second full fiscal year 

11 after the date of enactment of the Javits-Wagner12 O’Day and Randolph-Sheppard Modernization Act 

13 of 2008, and any subsequent fiscal year. 

14 (6) DEFINITION.—In this subsection, the term 

15 ‘‘commensurate wage’’ means a commensurate wage 

16 as described in section 14(c) of the Fair Labor 

17 Standards Act of 1938 (29 U.S.C. 214(c)). 

18 (h) REVIEWS AND MONITORING.— 

19 (1) DUTIES.—In carrying out the Committee’s 

20 duties under this title, the Committee shall conduct 

21 a review annually, and onsite monitoring once every 

22 2 years, for programs carried out through central 

23 nonprofit agencies or by qualified nonprofit agencies 

24 under this title. 


erowe on PRODPC61 with BILLS
38 

•S 3112 IS

1 (2) PROCEDURES FOR REVIEWS.—In con2 ducting an annual review under this subsection of a 

3 program carried out through a central nonprofit 

4 agency or by a qualified nonprofit agency, the Com5 mittee shall consider, at a minimum— 

6 (A) the process used by the agency re7 viewed to determine the eligibility of employees 

8 with significant disabilities; 

9 (B) the production of products or provision 

10 of services by the agency; 

11 (C) the direct labor hour percentage for 

12 the agency; 

13 (D) the goals described in subsection (k) 

14 and the extent to which the agency has met 

15 such goals; 

16 (E) reports, and information supporting 

17 reports, prepared under sections 105(d)(2) and 

18 106(e); 

19 (F) information filed by the agency with 

20 the Internal Revenue Service, and budget, fi21 nancial management, and audit data; and 

22 (G) the agency’s activities in such other 

23 areas of inquiry as the Committee may consider 

24 to be appropriate. 


erowe on PRODPC61 with BILLS
39 

•S 3112 IS

1 (3) PROCEDURES FOR MONITORING.—In con2 ducting monitoring under this subsection the Com3 mittee shall— 

4 (A) conduct— 

5 (i) onsite visits, including onsite re6 views of records to verify that the central 

7 nonprofit agency or qualified nonprofit 

8 agency involved is following the require9 ments of this title; 

10 (ii) meetings with the central non11 profit agency or qualified nonprofit agency; 

12 (iii) reviews of individual case files, in13 cluding eligibility determinations; and 

14 (iv) meetings with staff and employees 

15 of the central nonprofit agency or qualified 

16 nonprofit agency, including employees that 

17 are individuals who are blind or individuals 

18 with other significant disabilities; and 

19 (B) determine whether the central non20 profit agency or qualified nonprofit agency in21 volved is complying with the reporting require22 ments of this title, and meeting the goals de23 scribed in subsection (k). 

24 (4) NONDISCLOSURE.—For purposes of any re25 view or monitoring carried out under this subsection 


erowe on PRODPC61 with BILLS
40 

•S 3112 IS

1 the Committee shall not disclose or require a central 

2 nonprofit agency or qualified nonprofit agency to 

3 disclose the identity of, or any other personally iden4 tifiable information related to, any individual partici5 pating in an activity authorized under this title. 

6 (5) AVAILABILITY ON WEBSITE.—The Com7 mittee shall make available to the public on the 

8 Committee’s website each report resulting from a re9 view or monitoring carried out under this subsection. 

10 (i) ENFORCEMENT.— 

11 (1) SALES DATA.—Pursuant to section 3(h), 

12 not later than 90 days after the date of enactment 

13 of the Javits-Wagner-O’Day and Randolph-Sheppard 

14 Modernization Act of 2008, the Chairman of the 

15 Committee and the Administrator of General Serv16 ices shall enter into an agreement, under which the 

17 Administrator, in consultation with the Chairman, 

18 shall identify and provide to the Committee relevant 

19 sales data on sales of products and services through 

20 the General Services Administration, to assist the 

21 Committee in identifying— 

22 (A) areas in which the Committee and cen23 tral nonprofit agencies shall target marketing of 

24 products and services on the procurement list, 


erowe on PRODPC61 with BILLS
41 

•S 3112 IS

1 to encourage entities of the Government to pur2 chase such products and services; and 

3 (B) training and outreach opportunities re4 garding the procurement requirements specified 

5 in section 104 and information about products 

6 and services on the procurement list. 

7 (2) GENERAL SERVICES ADMINISTRATION.—At 

8 the request of the Committee, the Inspector General 

9 of the General Services Administration shall assist 

10 the Committee in determining if entities of the Gov11 ernment (in the executive branch), central nonprofit 

12 agencies, and qualified nonprofit agencies are com13 plying with this title. 

14 (j) INFORMATION COLLECTION AND REPORT.— 

15 (1) IN GENERAL.—Not later than December 31 

16 of the first full fiscal year after the date of enact17 ment of the Javits-Wagner-O’Day and Randolph18 Sheppard Modernization Act of 2008, and each De19 cember 31 thereafter, the Committee shall collect in20 formation described in this subsection for the fiscal 

21 year ending the preceding September 30, including 

22 the information provided by the central nonprofit 

23 agencies and qualified nonprofit agencies in annual 

24 reports submitted under sections 105(d)(2) and 

25 106(e). The Committee shall prepare an overall sumVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
42 

•S 3112 IS

1 mary of the information collected under this sub2 section, including compiling and preparing a sum3 mary of the information provided by the central non4 profit agencies and qualified nonprofit agencies. The 

5 Committee shall annually prepare and submit to the 

6 President and Congress a report that includes the 

7 overall summary. 

8 (2) COLLECTION OF INFORMATION.— 

9 (A) CENTRAL NONPROFIT AGENCIES AND

10 QUALIFIED NONPROFIT AGENCIES.— 

11 (i) RECORDS.—Central nonprofit 

12 agencies, and qualified nonprofit agencies, 

13 receiving funds under this title shall keep 

14 records prescribed by the Committee as re15 quired by this title and shall participate in 

16 data collection as required by this title, in17 cluding data collection required for prepa18 ration of the reports described in clause 

19 (ii). The Committee shall have access to 

20 such records of agencies described in this 

21 subparagraph and to any other records of 

22 the agencies that relate to activities of the 

23 agencies and compliance by the agencies 

24 with any requirement of this title. 


erowe on PRODPC61 with BILLS
43 

•S 3112 IS

1 (ii) REPORTS.—The Committee shall 

2 require that each central nonprofit agency, 

3 and qualified nonprofit agency, receiving 

4 funds under this title annually prepare and 

5 submit to the Committee the reports de6 scribed in sections 105(d)(2) and 106(e), 

7 respectively. 

8 (B) COMMITTEE.—The Committee shall 

9 collect information to determine whether the 

10 purposes of this title are being met and to as11 sess the performance of programs carried out 

12 under this title, including information related to 

13 audits, performance, and compliance. In par14 ticular, the Committee shall collect and main15 tain audit reports and Federal returns of orga16 nizations exempt from income tax submitted by 

17 the central nonprofit agencies. 

18 (3) INFORMATION.—The information required 

19 to be collected under this subsection and summa20 rized for the Committee report described in para21 graph (1) shall include— 

22 (A) information collected from central non23 profit agencies and qualified nonprofit agencies 

24 pursuant to sections 105(d)(2) and 106(e), ag25 gregated for the United States; 


erowe on PRODPC61 with BILLS
44 

•S 3112 IS

1 (B)(i) details on decisions, about whether 

2 to add items to the procurement list, that take 

3 longer than 120 days from the time the central 

4 nonprofit agencies involved submit pricing 

5 memoranda to the Committee; and 

6 (ii) justifications for any denials of pro7 posals for additions to the procurement list; 

8 (C) information on the development of new 

9 markets for products and services of qualified 

10 nonprofit agencies, including electronic com11 merce; 

12 (D) an analysis of the direct and indirect 

13 impacts this title has on the small business 

14 community; 

15 (E) a description of the steps taken to 

16 minimize the negative impacts of the programs 

17 carried out under this title on businesses, re18 sellers, and manufacturing companies; 

19 (F) an analysis of the progress of the cen20 tral nonprofit agencies and qualified nonprofit 

21 agencies in meeting the goals described in sub22 section (k); and 

23 (G) information on the number of requests 

24 made of the Committee, and the number of re25 sponses made by the Committee to requests, 


erowe on PRODPC61 with BILLS
45 

•S 3112 IS

1 under section 552 of title 5, United States Code 

2 (commonly known as the ‘‘Freedom of Informa3 tion Act’’); and 

4 (H) information on other items as deter5 mined necessary by the Committee. 

6 (4) SUBMISSION OF REPORT.—Not later than 

7 February 28 of the fiscal year following the fiscal 

8 year for which the Committee collects information 

9 for the Committee report described in paragraph 

10 (1), the Committee shall submit the Committee re11 port to the President, the Committee on Government 

12 Reform and the Committee on Education and the 

13 Workforce of the House of Representatives, and the 

14 Committee on Homeland Security and Governmental 

15 Affairs and the Committee on Health, Education, 

16 Labor, and Pensions of the Senate. 

17 (5) AVAILABILITY ON WEBSITE.—The Com18 mittee shall make the Committee report available to 

19 the public on the Committee’s website. 

20 (6) NONDISCLOSURE.—For purposes of this 

21 subsection, and sections 105(d)(2) and 106(e), the 

22 Committee shall not disclose or require a central 

23 nonprofit agency or qualified nonprofit agency to 

24 disclose, and a central nonprofit agency shall not re25 quire a qualified nonprofit agency to disclose, the 


erowe on PRODPC61 with BILLS
46 

•S 3112 IS

1 identity of, or any other personally identifiable infor2 mation related to, any individual participating in an 

3 activity authorized under this title. 

4 (7) CONSEQUENCES FOR FAILURE TO RE5 PORT.— 

6 (A) QUALIFIED NONPROFIT AGENCIES.—If 

7 the Committee has not received the annual re8 port of a qualified nonprofit agency for a year 

9 under section 106(e), the Committee may ban 

10 the agency from participating in activities car11 ried out under this title, or redistribute orders 

12 to other qualified nonprofit agencies, until the 

13 Committee has received the report. 

14 (B) CENTRAL NONPROFIT AGENCIES.—If 

15 the Committee has not received the annual re16 port of a central nonprofit agency for a year 

17 under section 105(d)(2), the Committee may 

18 suspend the agency’s authority to collect or use 

19 a portion of the fee authorized in section 

20 105(a)(4)(J)(v), and may direct the use of the 

21 fee, until the Committee has received the re22 port. 

23 (k) GOALS.—Not later than 1 year after the date of 

24 enactment of the Javits-Wagner-O’Day and Randolph25 Sheppard Modernization Act of 2008, the Committee, with 


erowe on PRODPC61 with BILLS
47 

•S 3112 IS

1 the assistance of the central nonprofit agencies and quali2 fied nonprofit agencies, shall establish goals for the com3 bined results achieved by all entities participating in ac4 tivities authorized by this title with respect to performance 

5 indicators including the following performance indicators: 

6 (1) Outplacement of employees into competitive 

7 employment, as described in subsection (g)(1)(B)(i). 

8 (2) Outplacement of employees into self-employ9 ment described in subsection (g)(1)(B)(ii). 

10 (3) Promotion of employees into supervisory 

11 and management positions within the qualified non12 profit agency, as described in subsection 

13 (g)(1)(B)(iii). 

14 (4) Establishment of wages for all employees 

15 that are individuals who are blind or individuals with 

16 other significant disabilities, including individuals 

17 employed under special certificates under section 

18 14(c) of the Fair Labor Standards Act of 1938 (29 

19 U.S.C. 214(c)), at a rate for each employee that is 

20 not less than the minimum wage rate set forth in 

21 section 6(a)(1) of the Fair Labor Standards Act of 

22 1938 (29 U.S.C. 206(a)(1)) during such employ23 ment. 

24 (l) FREEDOM OF INFORMATION ACT.—The Com25 mittee is subject to section 552 of title 5, United States 


erowe on PRODPC61 with BILLS
48 

•S 3112 IS

1 Code (commonly known as the ‘‘Freedom of Information 

2 Act’’). 

3 (m) AMOUNTS MADE AVAILABLE FROM FEES.—The 

4 Committee may accept funds made available from fees 

5 under section 105(f) and use the funds for the purposes 

6 of carrying out activities described in subsection (a)(3), 

7 subsections (f) through (j), and section 108 (relating to 

8 conducting planning, information collection, reviews, mon9 itoring, reporting, auditing, and enforcement of this title). 

10 SEC. 104. PROCUREMENT REQUIREMENTS FOR THE GOV11 ERNMENT. 

12 If any entity of the Government intends to procure 

13 any product or service on the procurement list, that entity 

14 shall, in accordance with rules and regulations of the Com15 mittee, procure such product or service, at the price estab16 lished by the Committee, from a qualified nonprofit agency 

17 for individuals who are blind or qualified nonprofit agency 

18 for individuals with other significant disabilities if the 

19 product or service is available within the period required 

20 by that Government entity. This section shall not apply 

21 with respect to the procurement of any product that is 

22 available for procurement from an industry established 

23 under chapter 307 of title 18, United States Code, and 

24 that, under section 4124 of such title, is required to be 

25 procured from such industry. 


erowe on PRODPC61 with BILLS
49 

•S 3112 IS

1 SEC. 105. CENTRAL NONPROFIT AGENCIES. 

2 (a) IN GENERAL.— 

3 (1) DESIGNATION AND COORDINATION.—In ac4 cordance with section 103(d) the Committee shall 

5 designate a central nonprofit agency or agencies to 

6 facilitate the distribution of orders to qualified non7 profit agencies as described in section 103(d). If the 

8 Committee designates more than 1 central nonprofit 

9 agency, the central nonprofit agencies shall, to the 

10 maximum extent possible, as determined by the 

11 Committee, coordinate activities authorized under 

12 this section. 

13 (2) PREFERENCES AND FACILITATION OF OR14 DERS.—In facilitating the distribution of the orders, 

15 each central nonprofit agency— 

16 (A) shall give preference to qualified non17 profit agencies that— 

18 (i) meet the goals described in section 

19 103(k); and 

20 (ii) establish partnerships with smaller 

21 qualified nonprofit agencies and small 

22 businesses, particularly small businesses 

23 owned by individuals with disabilities; 

24 (B) may distribute large orders of products 

25 and services among multiple qualified nonprofit 

26 agencies; and 


erowe on PRODPC61 with BILLS
50 

•S 3112 IS

1 (C) shall make the decisions regarding the 

2 facilitation of distribution of orders among the 

3 qualified nonprofit agencies available on a se4 cured portion of the central nonprofit agency’s 

5 website, accessible only to individuals associated 

6 with the qualified nonprofit agencies and the 

7 Committee. 

8 (3) INFORMATION, ASSISTANCE, TRAINING, AND

9 TECHNICAL ASSISTANCE.— 

10 (A) INFORMATION AND ASSISTANCE.— 

11 Each central nonprofit agency shall respond to 

12 requests for information or assistance from 

13 qualified nonprofit agencies, employees of such 

14 agencies that are individuals who are blind or 

15 individuals with other significant disabilities, 

16 and businesses wanting to employ either of such 

17 types of individuals, including— 

18 (i) requests for information or assist19 ance concerning expanding self-employ20 ment, business ownership, and business de21 velopment opportunities, and other types of 

22 entrepreneurial employment opportunities 

23 for individuals who are blind, or individ24 uals with other significant disabilities, em25 ployed by qualified nonprofit agencies; 


erowe on PRODPC61 with BILLS
51 

•S 3112 IS

1 (ii) requests for information or assist2 ance concerning expanding and improving 

3 transition services to facilitate the transi4 tion of students with disabilities from 

5 school to employment; 

6 (iii) requests for assistance or infor7 mation on effective approaches to enhance 

8 informed choice in employment, or provide 

9 person-centered community-based experien10 tial learning options, for individuals who 

11 are blind, or individuals with other signifi12 cant disabilities, employed by qualified 

13 nonprofit agencies; 

14 (iv) requests for assistance in devel15 oping corrective action plans, improving fi16 nancial management procedures to correct 

17 material weaknesses identified during au18 dits, and filing Federal returns of organi19 zations exempt from income tax; 

20 (v) requests for assistance in devel21 oping and implementing effective data col22 lection and reporting systems that measure 

23 the outcomes of the activities authorized 

24 under this title, and preparing reports for 


erowe on PRODPC61 with BILLS
52 

•S 3112 IS

1 the Committee required under sections 

2 103(j) and 106(e); 

3 (vi) requests for information on effec4 tive approaches that enhance employment 

5 results for individuals with disabilities, in6 cluding conducting outreach and forming 

7 partnerships with business and industry; 

8 and 

9 (vii) requests for assistance on acquir10 ing additional orders from the Federal 

11 Government and expanding business lines. 

12 (B) TRAINING AND TECHNICAL ASSIST13 ANCE.—Each central nonprofit agency shall de14 velop and provide State-specific, regional, and 

15 national training and technical assistance con16 cerning the employment of individuals who are 

17 blind or individuals with other significant dis18 abilities through qualified nonprofit agencies, 

19 including— 

20 (i) facilitating on-site and electronic 

21 information sharing using state-of-the-art 

22 Internet technologies such as real-time on23 line discussions, multipoint video confer24 encing, and web-based audio/video broad25 casts, on emerging topics that affect— 


erowe on PRODPC61 with BILLS
53 

•S 3112 IS

1 (I) the employment of individuals 

2 who are blind or individuals with 

3 other significant disabilities; and 

4 (II) activities carried out under 

5 this title; 

6 (ii) providing information on benefits 

7 planning, work incentives, and protections 

8 that exist in benefits programs such as the 

9 supplemental security income program es10 tablished under title XVI of the Social Se11 curity Act (42 U.S.C. 1381 et seq.), the 

12 disability insurance benefits program es13 tablished under title II of the Social Secu14 rity Act (42 U.S.C. 401 et seq.), the Tick15 et to Work and Self-Sufficiency Program 

16 established under 1148 of the Social Secu17 rity Act (42 U.S.C. 1320b–19), and the 

18 Medicaid program established under title 

19 XVIII of the Social Security Act (42 

20 U.S.C. 1395 et seq.) that help beneficiaries 

21 work at a higher level with fair compensa22 tion and still retain essential supports; 

23 (iii) providing information and assist24 ance in converting qualified nonprofit 

25 agencies providing community rehabilitaVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
54 

•S 3112 IS

1 tion programs to integrated community2 based employment providers, including 

3 supported employment, customized employ4 ment, and self-employment providers; 

5 (iv) promoting sharing of evidence6 based and promising practices among 

7 qualified nonprofit agencies; 

8 (v) providing training to enhance up9 ward mobility, self-employment, business 

10 ownership, and business development op11 portunities, and other types of entrepre12 neurial employment opportunities for indi13 viduals who are blind and individuals with 

14 other significant disabilities, based on iden15 tified obstacles to employment and solu16 tions from data regarding experiential 

17 learning options described in section 

18 106(e)(2)(J), and related findings; 

19 (vi) enhancing competitive employ20 ment options and outcomes for individuals 

21 with mental illness and individuals with 

22 cognitive disabilities; 

23 (vii) enabling the qualified nonprofit 

24 agencies to provide practical information 

25 on effective approaches for business and 


erowe on PRODPC61 with BILLS
55 

•S 3112 IS

1 industry to use in employing individuals 

2 with disabilities, including the provision of 

3 reasonable accommodations; 

4 (viii)(I) coordinating— 

5 (aa) qualified nonprofit agency 

6 training, experiential learning options, 

7 outplacement, and upward mobility 

8 activities, for direct labor employees; 

9 with 

10 (bb) the activities of the one-stop 

11 partners described in section 121(b) 

12 of the Workforce Investment Act of 

13 1998 (29 U.S.C. 2841(b)) and agen14 cies carrying out programs under the 

15 Rehabilitation Act of 1973 (29 U.S.C. 

16 701 et seq.); or 

17 (II) providing financial assistance di18 rectly for the opportunities described in 

19 subclause (I)(aa); 

20 (ix) providing information on other 

21 emerging workforce issues concerning the 

22 delivery of publicly funded employment and 

23 training services and supports to assist in24 dividuals who are blind and individuals 

25 with other significant disabilities to enter 


erowe on PRODPC61 with BILLS
56 

•S 3112 IS

1 the workforce, achieve improved employ2 ment results, and become economically 

3 self-sufficient; 

4 (x) providing training on how to reach 

5 goals described in section 103(k); and 

6 (xi) carrying out other activities re7 quested by the Committee or qualified non8 profit agencies. 

9 (4) ADMINISTRATIVE DUTIES.—Each central 

10 nonprofit agency shall— 

11 (A) represent the interests of the qualified 

12 nonprofit agencies; 

13 (B) evaluate the qualifications and capa14 bilities of the qualified nonprofit agencies asso15 ciated with the central nonprofit agency and 

16 provide the Committee with pertinent data con17 cerning the qualified nonprofit agencies, their 

18 status as qualified nonprofit agencies, their 

19 manufacturing or service capabilities, and other 

20 information as required by the Committee; 

21 (C) obtain such procurement information 

22 relating to Federal contracting activities as is 

23 required by the Committee to— 


erowe on PRODPC61 with BILLS
57 

•S 3112 IS

1 (i) determine the suitability of a prod2 uct or service proposed to the Committee 

3 for addition to the procurement list; 

4 (ii) establish an initial fair market 

5 price for a product or service proposed for 

6 addition to the procurement list or make a 

7 change in the fair market price; 

8 (iii) recommend to the Committee 

9 suitable products or services for procure10 ment from the qualified nonprofit agencies; 

11 and 

12 (iv) recommend to the Committee ini13 tial fair market prices for products or serv14 ices proposed for addition to the procure15 ment list; 

16 (D) collect and maintain the necessary 

17 records and data for qualified nonprofit agen18 cies to distribute orders, and collect and main19 tain audit reports and Federal returns of orga20 nizations exempt from income tax submitted by 

21 the qualified nonprofit agencies; 

22 (E) oversee and assist qualified nonprofit 

23 agencies to ensure compliance with contract 

24 terms in furnishing a product or a service and 


erowe on PRODPC61 with BILLS
58 

•S 3112 IS

1 compliance with this title, including appropriate 

2 regulations; 

3 (F) recommend price changes with appro4 priate justification for products or services on 

5 the procurement list for which the central non6 profit agency has distributed orders; 

7 (G) submit initial certifications for quali8 fied nonprofit agencies; 

9 (H) assist the Committee to obtain and re10 view the annual certification for each of the 

11 qualified nonprofit agencies for the most recent 

12 full fiscal year; 

13 (I) promote position vacancies within the 

14 Federal Government to individuals who are 

15 blind, or individuals with other significant dis16 abilities, that are employed by the qualified 

17 nonprofit agencies; and 

18 (J) perform other nongovernmental admin19 istrative functions, subject to the oversight and 

20 direction of the Committee, including— 

21 (i) carrying out communications and 

22 public relations activities to increase Gov23 ernment and public awareness of this title, 

24 in accordance with the strategic plan de25 scribed in section 103(a)(3); 


erowe on PRODPC61 with BILLS
59 

•S 3112 IS

1 (ii) carrying out research and pilot 

2 programs and demonstration projects to 

3 determine the impact of activities on indi4 viduals who are blind and individuals with 

5 other significant disabilities; 

6 (iii) gathering data and reports from 

7 qualified nonprofit agencies in accordance 

8 with sections 103(j) and 106(e)(1) to de9 termine if the agencies have met the goals 

10 described in section 103(k); 

11 (iv) assisting the Committee in car12 rying out reviews and monitoring and pre13 paring reports, in accordance with section 

14 103; and 

15 (v) collecting a fee of up to 4 percent 

16 of the amount of each contract for an 

17 order awarded to the qualified nonprofit 

18 agencies associated with the central non19 profit agency, for facilitating their partici20 pation in activities carried out under this 

21 title. 

22 (b) INITIAL DESIGNATION.— 

23 (1) ELIGIBLE ENTITIES.—To be eligible to be 

24 designated as a central nonprofit agency under sec25 tion 103(d) (and distribute orders of the GovernVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
60 

•S 3112 IS

1 ment through direct allocation, subcontract, or any 

2 other means) a nonprofit agency shall have— 

3 (A) experience and expertise in admin4 istering and facilitating the distribution of Gov5 ernment contracts; 

6 (B) experience and expertise in providing 

7 training and technical assistance to individuals 

8 with disabilities, nonprofit agencies, and busi9 nesses; 

10 (C) documented experience with and 

11 knowledge about— 

12 (i) supported employment, vocational 

13 training, customized employment, self-em14 ployment, and other types of entrepre15 neurial employment opportunities and out16 comes for individuals with disabilities; 

17 (ii) providing transition services for 

18 students with disabilities; and 

19 (iii) assistive technology; and 

20 (D) the expertise necessary to identify the 

21 additional data elements needed to provide com22 prehensive reports on activities and outcomes of 

23 the qualified nonprofit agencies authorized 

24 under section 106(e), and experience in utilizing 

25 data to prepare annual reports. 


erowe on PRODPC61 with BILLS
61 

•S 3112 IS

1 (2) APPLICATION AND ASSURANCES.—To be eli2 gible to be designated as a central nonprofit agency 

3 under section 103(d), an agency shall submit an ap4 plication to the Committee at such time, in such 

5 manner, and containing such information as the 

6 Committee may require. The agency shall include in 

7 the application satisfactory assurances that— 

8 (A) the agency will establish clear prior9 ities through annual and 3-year program and fi10 nancial planning objectives for fulfilling the re11 quirements of subsection (a), and meeting the 

12 overall strategic plan responsibilities and goals 

13 of the Committee pursuant to subsections 

14 (a)(3) and (k) of section 103(a)(3) that are re15 lated or pertinent to activities authorized or 

16 compliance required under this title, and a work 

17 plan for carrying out the responsibilities and 

18 achieving the goals, including responsibilities re19 lating to the types of services to be provided; 

20 (B) the agency will use sound organiza21 tional and personnel assignment practices, in22 cluding making nondiscriminatory decisions to 

23 employ and advance in employment qualified in24 dividuals who are blind and qualified individuals 

25 with other significant disabilities throughout the 


erowe on PRODPC61 with BILLS
62 

•S 3112 IS

1 agency on the same terms and conditions re2 quired with respect to the employment of indi3 viduals with disabilities under section 503 of 

4 the Rehabilitation Act of 1973 (29 U.S.C. 793); 

5 (C) the agency will practice sound fiscal 

6 management; and 

7 (D) the agency will conduct annual self8 evaluations, prepare an annual report, and 

9 maintain records adequate to measure perform10 ance with respect to the goals described in sec11 tion 103(k), that contain information, including 

12 information regarding— 

13 (i) the extent to which the agency is 

14 meeting the goals; 

15 (ii) the number and types of individ16 uals who are blind, or individuals with 

17 other significant disabilities, receiving em18 ployment and other services through the 

19 agency; 

20 (iii) the types of training, technical 

21 assistance, and other services provided 

22 through the agency and the number of in23 dividuals who are blind or individuals with 

24 other significant disabilities receiving each 

25 type of service; 


erowe on PRODPC61 with BILLS
63 

•S 3112 IS

1 (iv) the sources and amounts of fund2 ing for the agency, other than funding pro3 vided through this title; and 

4 (v) the number of individuals who are 

5 blind, or individuals with other significant 

6 disabilities, who are employed by or are 

7 subcontractors of the agency, including the 

8 number who are in management, are in de9 cisionmaking positions, or are subcontrac10 tors trained by the agency. 

11 (c) MAINTAINING DESIGNATION.— 

12 (1) IN GENERAL.—To maintain its designation 

13 each central nonprofit agency shall comply with the 

14 requirements of this subsection. 

15 (2) SPECIFIC QUALIFICATIONS.—In addition to 

16 meeting the requirements of subsection (b), each 

17 central nonprofit agency shall— 

18 (A) comply with the applicable compensa19 tion, employment, and occupational health and 

20 safety standards prescribed by the Secretary of 

21 Labor, including procedures to encourage filling 

22 of vacancies within the agency by promotion of 

23 qualified employees that are individuals who are 

24 blind or individuals with other significant dis25 abilities; 


erowe on PRODPC61 with BILLS
64 

•S 3112 IS

1 (B) comply with directives or requests 

2 issued by the Committee in furtherance of the 

3 objectives of this title, including regulations 

4 issued under this title; 

5 (C) make the agency’s records, pertinent 

6 to activities authorized or compliance required 

7 under this title, available for inspection at any 

8 reasonable time by representatives of the Com9 mittee or an entity representing the Committee; 

10 (D) in a case in which the central non11 profit agency is authorized to supply products 

12 or services, maintain records of direct labor 

13 hours performed for the agency by each worker 

14 pursuant to subparagraph (E) of section 

15 106(d)(2); 

16 (E)(i) have a financial audit performed by 

17 an independent accountant; 

18 (ii) in the case of a central nonprofit agen19 cy that is required to file a Federal return of 

20 organization exempt from income tax, file such 

21 a return; 

22 (iii) in the case of a central nonprofit 

23 agency that receives a Federal award under this 

24 title in an annual amount that is not less than 

25 the amount specified by the Director of the OfVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
65 

•S 3112 IS

1 fice of Management and Budget as described in 

2 section 7502(a)(1)(A) of title 31, United States 

3 Code, comply with the Single Audit Act of 1984 

4 and the amendments made by that Act; and 

5 (iv) submit to the Committee copies of re6 ports of audits, and returns, described in this 

7 subparagraph; 

8 (F) ensure that Federal returns of organi9 zations exempt from income tax reflect all ma10 terial correcting adjustments that have been 

11 identified in accordance with generally accepted 

12 accounting principles; 

13 (G) adopt and comply with the Internal 

14 Revenue Service regulations relating to excess 

15 benefit transactions, issued under section 4958 

16 of the Internal Revenue Code of 1986; and 

17 (H) comply with assurances made under 

18 subsection (b)(2). 

19 (d) REVIEWS, MONITORING, REPORTING, AND AU20 DITING.— 

21 (1) ACCESS.—Each central nonprofit agency 

22 shall give the Committee access, for the purpose of 

23 reviews, monitoring, and audits and examinations, to 

24 any records maintained by the central nonprofit 


erowe on PRODPC61 with BILLS
66 

•S 3112 IS

1 agency that may be related or pertinent to activities 

2 authorized or compliance required under this title. 

3 (2) ANNUAL REPORT.— 

4 (A) IN GENERAL.—Not later than Decem5 ber 1 of the first full fiscal year after the date 

6 of enactment of the Javits-Wagner-O’Day and 

7 Randolph-Sheppard Modernization Act of 2008, 

8 and each December 1 thereafter, each central 

9 nonprofit agency shall report data for the fiscal 

10 year ending the preceding September 30 and 

11 provide an annual report to the Committee to 

12 enable the Committee to prepare the Committee 

13 report described in section 103(j). If the agency 

14 has the capability, the agency shall report the 

15 data and provide the agency report electroni16 cally. 

17 (B) CONTENTS.—Such agency report shall 

18 include— 

19 (i) information collected from quali20 fied nonprofit agencies associated with the 

21 central nonprofit agency pursuant to sec22 tion 106(e), aggregated for the central 

23 nonprofit agency; 

24 (ii) information about the associated 

25 qualified nonprofit agencies, aggregated for 


erowe on PRODPC61 with BILLS
67 

•S 3112 IS

1 the central nonprofit agency, consisting 

2 of— 

3 (I) information on the number of 

4 oral presentations given at Committee 

5 meetings described in section 

6 106(e)(2)(A) by businesses, resellers, 

7 and manufacturing companies; 

8 (II) a comparison of sales of 

9 items under this title by the qualified 

10 nonprofit agencies to sales of similar 

11 items through Government contracts 

12 with small businesses; and 

13 (III) information on— 

14 (aa) the frequency of the 

15 provision of, and the nature of, 

16 the training or technical assist17 ance described in section 

18 106(e)(2)(C) and provided to em19 ployees of the qualified nonprofit 

20 agencies who are blind, employ21 ees of the agencies with other 

22 significant disabilities, other em23 ployees of the agencies, and busi24 nesses; 


erowe on PRODPC61 with BILLS
68 

•S 3112 IS

1 (bb) participation in infor2 mation, assistance, training, or 

3 technical assistance activities, de4 scribed in section 106(e)(2)(C), 

5 by businesses; and 

6 (cc) total number of appeals 

7 of determinations described in 

8 section 103(b)(2)(D)(i); 

9 (iii) information about the associated 

10 qualified nonprofit agencies, disaggregated 

11 by State, consisting of— 

12 (I) information on sales under 

13 this title; 

14 (II) information on the number 

15 of employees (and of direct labor em16 ployees) that are individuals who are 

17 blind or individuals with other signifi18 cant disabilities, disaggregated for 

19 each State as described in section 

20 106(e)(2)(D)(i); 

21 (III) information on the number 

22 of individuals described in section 

23 106(e)(2)(E); and 


erowe on PRODPC61 with BILLS
69 

•S 3112 IS

1 (IV) information on wages and 

2 benefits, including the information de3 scribed in section 106(e)(2)(F); 

4 (iv) information about the central 

5 nonprofit agency, consisting of— 

6 (I) information on assets, liabil7 ities, and reserves, and income gen8 erated by the endowment fund dis9 closed in subsection (e); 

10 (II) a summary of an analysis of 

11 economic impact studies performed by 

12 the central nonprofit agency on busi13 nesses, resellers, and manufacturing 

14 companies when determining if serv15 ices and products should be proposed 

16 to the Committee for addition to the 

17 procurement list; 

18 (III) information on the results 

19 of any demonstration projects con20 ducted under section 107 in which the 

21 central nonprofit agency participated; 

22 and 

23 (IV) information on whether the 

24 central nonprofit agency had audits, 


erowe on PRODPC61 with BILLS
70 

•S 3112 IS

1 or filed returns, described in section 

2 106(e)(2)(L); and 

3 (v) information on other items as de4 termined necessary by the Committee. 

5 (3) AVAILABILITY ON WEBSITE.—The central 

6 nonprofit agency shall make the agency report avail7 able to the public on the agency’s website. 

8 (e) ENDOWMENT FUNDS.— 

9 (1) ESTABLISHMENT.—Each central nonprofit 

10 agency is authorized, using a portion of the fees col11 lected under subsection (a)(4)(J)(v), to establish a 

12 Javits-Wagner-O’Day Endowment Fund as a perma13 nent endowment fund, to enable the central non14 profit agency to provide information, assistance, 

15 training, and technical assistance under subsection 

16 (a)(3). 

17 (2) TYPES OF INVESTMENTS.—The central non18 profit agency may invest amounts in the endowment 

19 fund in instruments and securities offered through 1 

20 or more cooperative service organizations of oper21 ating educational organizations under section 501(f) 

22 of the Internal Revenue Code of 1986, or in low-risk 

23 instruments and securities in which a regulated in24 surance company may invest under the laws of the 


erowe on PRODPC61 with BILLS
71 

•S 3112 IS

1 State in which the central nonprofit agency is lo2 cated. 

3 (3) MANAGEMENT.—In managing the invest4 ments of the endowment fund, the central nonprofit 

5 agency shall exercise the judgment and care, under 

6 the prevailing circumstances, that a person of pru7 dence, discretion, and intelligence would exercise in 

8 the management of that person’s own business af9 fairs. 

10 (4) LIMITATIONS.—The central nonprofit agen11 cy may not invest amounts in the endowment fund 

12 in real estate, or in instruments or securities issued 

13 by an organization in which an executive officer or 

14 member of the central nonprofit agency is a control15 ling shareholder, director, or owner within the mean16 ing of securities laws (as defined in section 3(a) of 

17 the Securities Exchange Act of 1934 (15 U.S.C. 

18 78c(a))) and other applicable laws. The central non19 profit agency may not assign amounts in, hypoth20 ecate, encumber, or create a lien on the endowment 

21 fund without specific written authorization of the 

22 Committee. 

23 (5) WITHDRAWALS AND EXPENDITURES.— 

24 (A) IN GENERAL.—Except as provided in 

25 subparagraph (B), the central nonprofit agency 


erowe on PRODPC61 with BILLS
72 

•S 3112 IS

1 may not withdraw or expend any amount in the 

2 endowment fund. 

3 (B) WITHDRAWAL FOR NECESSARY EX4 PENSES.—Except as provided in subparagraph 

5 (E), the central nonprofit agency may, each fis6 cal year, withdraw or expend not more than 50 

7 percent of the income generated by the endow8 ment fund for the prior fiscal year to provide 

9 information, assistance, training, and technical 

10 assistance under subsection (a)(3). 

11 (C) NO COMMERCIAL PURPOSES.—The 

12 central nonprofit agency may not withdraw or 

13 expend the income generated by the endowment 

14 fund for any commercial purpose. 

15 (D) MAINTENANCE OF RECORDS.—Each 

16 fiscal year, the central nonprofit agency shall 

17 maintain records of the income generated by 

18 the endowment fund for the prior fiscal year 

19 and shall include the amount of the income in 

20 the Committee report under subsection 

21 (d)(2)(B)(iv)(I). 

22 (E) EXCEPTION TO WITHDRAWAL LIMIT.— 

23 The Committee may permit the central non24 profit agency to withdraw or expend a portion 

25 of the amounts in the endowment fund in exVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
73 

•S 3112 IS

1 cess of 50 percent of the income generated by 

2 the endowment fund for the prior fiscal year if 

3 the agency demonstrates, to the Committee’s 

4 satisfaction, that such withdrawal or expendi5 ture is necessary because of— 

6 (i) a financial emergency, such as a 

7 pending insolvency or temporary liquidity 

8 problem; 

9 (ii) a natural disaster or similarly 

10 dangerous situation; or 

11 (iii) another unusual occurrence or ex12 igent circumstance. 

13 (6) REDISTRIBUTION OF FEE.—After providing 

14 notice and an opportunity for a hearing, the Com15 mittee is authorized to request that the central non16 profit agency deposit additional funding, in excess of 

17 the portion described in paragraph (1), from the fees 

18 collected under subsection (a)(4)(J)(v) into the en19 dowment fund if the central nonprofit agency— 

20 (A) makes a withdrawal or expenditure of 

21 an amount in the endowment fund that is not 

22 consistent with this subsection; 

23 (B) fails to comply with the investment 

24 standards and limitations described in this sub25 section; or 


erowe on PRODPC61 with BILLS
74 

•S 3112 IS

1 (C) fails to account properly to the Com2 mittee concerning the investment of, or a with3 drawal or expenditure of, an amount in the en4 dowment fund. 

5 (7) DEFINITIONS.—In this section: 

6 (A) ENDOWMENT FUND.—The term ‘‘en7 dowment fund’’ means a fund established and 

8 maintained pursuant to this subsection by a 

9 central nonprofit agency, for the purpose of 

10 generating income to provide services under 

11 subsection (a). 

12 (B) INCOME.—The term ‘‘income’’, used 

13 with respect to an endowment fund under this 

14 subsection, means an amount equal to the divi15 dends and interest accruing from investments 

16 of amounts in such fund. 

17 (f) COMMITTEE PORTION OF FEES.—The central 

18 nonprofit agencies shall make available to the Committee 

19 5 percent of the fees collected under subsection 

20 (a)(4)(J)(v), but the agencies, collectively, shall not make 

21 available more than a total of $5,000,000 from such fees 

22 to the Committee for a fiscal year. The Committee shall 

23 use the funds made available under this paragraph as de24 scribed in section 103(m). 

25 (g) CORRECTIVE ACTION PLAN AND SANCTIONS.— 


erowe on PRODPC61 with BILLS
75 

•S 3112 IS

1 (1) CORRECTIVE ACTION PLAN.—If the Com2 mittee determines that a central nonprofit agency 

3 fails to comply with the requirements of this title, or 

4 to make progress toward carrying out the agency’s 

5 duties under this title, not later than 90 days after 

6 making that determination, the Committee shall as7 sist the agency, through technical assistance or other 

8 means, to develop a corrective action plan, for the 

9 year following the date of the determination. 

10 (2) SANCTIONS FOR NONCOMPLIANCE WITH

11 PLAN.— 

12 (A) FIRST YEAR.—If the Committee deter13 mines that the central nonprofit agency fails to 

14 develop and comply with a corrective action 

15 plan described in paragraph (1) for a year, the 

16 Committee shall— 

17 (i) partially or completely suspend the 

18 agency’s authority to collect or use the fee 

19 authorized in subsection (a)(4)(J)(v), and 

20 shall direct the use of the fee, until the 

21 central nonprofit agency develops and com22 plies with such a plan; or 

23 (ii) establish a proportion of the fee 

24 authorized in subsection (a)(4)(J)(v) that 

25 may be used for indirect costs, and estabVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
76 

•S 3112 IS

1 lish a proportion of the fee that shall be 

2 deposited in the endowment fund author3 ized in subsection (e) and used for infor4 mation, assistance, training, and technical 

5 assistance under subsection (a)(3), for the 

6 following year. 

7 (B) SECOND YEAR.—If the Committee de8 termines that the central nonprofit agency fails 

9 to develop and comply with the corrective action 

10 plan for 2 consecutive years, the Committee 

11 shall suspend the agency’s designation as a cen12 tral nonprofit agency for the following year, in13 cluding suspension of authority to collect or use 

14 the fee authorized in subsection (a)(4)(J)(v), 

15 and shall direct the use of the fee for that year. 

16 (C) THIRD YEAR.— 

17 (i) IN GENERAL.—If the Committee 

18 determines that the central nonprofit agen19 cy fails to develop and comply with the cor20 rective action plan for 3 consecutive years, 

21 the Committee shall designate a new cen22 tral nonprofit agency. 

23 (ii) IMPACT OF REDESIGNATION.—If 

24 the Committee designates a new agency to 

25 replace a former central nonprofit agency 


erowe on PRODPC61 with BILLS
77 

•S 3112 IS

1 under clause (i), the former agency may 

2 not apply for designation as a central non3 profit agency under this title until— 

4 (I) 5 years after the date of the 

5 designation of the new agency; and 

6 (II) the former agency dem7 onstrates that it has complied with 

8 the corrective action plan. 

9 (3) EGREGIOUS VIOLATION AT ANY TIME.—If 

10 the Committee determines that the central nonprofit 

11 agency has committed an egregious violation of this 

12 title, the Committee shall suspend the agency’s des13 ignation as a central nonprofit agency, including 

14 suspension of authority to collect or use the fee au15 thorized in subsection (a)(4)(J)(v), and shall direct 

16 the use of the fee. 

17 (4) APPEALS PROCEDURES.—The Committee 

18 shall establish appeals procedures for central non19 profit agencies that are determined to— 

20 (A) have failed to comply or make progress 

21 as described in paragraph (1); 

22 (B) have failed to develop and comply with 

23 a corrective action plan under paragraph (2); or 

24 (C) have committed an egregious violation 

25 of this title, as described in paragraph (3). 


erowe on PRODPC61 with BILLS
78 

•S 3112 IS

1 (5) COMMITTEE ACTION.—As part of the an2 nual reports required under section 103(j), the Com3 mittee shall describe each action taken under para4 graph (1), (2), or (3) and the outcomes of each such 

5 action. 

6 (6) PUBLIC NOTIFICATION.—The Committee 

7 shall notify the public of each action taken by the 

8 Committee under paragraph (1), (2), or (3) by mak9 ing available information about the action on the 

10 website of the Committee. As a part of such notifica11 tion, the Committee shall describe each such action 

12 taken under paragraph (1), (2), or (3) and the out13 comes of each such action. 

14 (7) RULE OF CONSTRUCTION.—Nothing in this 

15 section shall be construed to require the Committee 

16 to sanction a central nonprofit agency (including 

17 designating a new agency to replace a central non18 profit agency) upon enactment of the Javits-Wag19 ner-O’Day and Randolph-Sheppard Modernization 

20 Act of 2008. 

21 SEC. 106. QUALIFIED NONPROFIT AGENCIES. 

22 (a) IN GENERAL.—In accordance with section 

23 103(d), the central nonprofit agencies shall facilitate the 

24 distribution of orders of the Government for products and 

25 services on the procurement list among qualified nonprofit 


erowe on PRODPC61 with BILLS
79 

•S 3112 IS

1 agencies for individuals who are blind and qualified non2 profit agencies for individuals with other significant dis3 abilities. 

4 (b) DUTIES.—The qualified nonprofit agencies that 

5 receive such orders shall— 

6 (1) fulfill the requirements of the orders from 

7 the Government for products and services; 

8 (2) provide employment for individuals who are 

9 blind or individuals with other significant disabil10 ities; and 

11 (3) provide skill development, training, technical 

12 assistance, and experiential learning options to help 

13 such employees maintain, regain, or advance in em14 ployment— 

15 (A) with the assistance of the central non16 profit agencies pursuant to subparagraphs (A) 

17 and (B) of section 105(a)(3), one-stop partners 

18 described in section 121(b) of the Workforce 

19 Investment Act of 1998 (29 U.S.C. 2841(b)), 

20 and agencies carrying out programs under the 

21 Rehabilitation Act of 1973 (29 U.S.C. 701 et 

22 seq.); and 

23 (B) to meet the goals described in section 

24 103(k). 


erowe on PRODPC61 with BILLS
80 

•S 3112 IS

1 (c) INITIAL QUALIFICATION.—In order to be quali2 fied as a qualified nonprofit agency under this title, a non3 profit agency shall submit an application to a central non4 profit agency at such time, in such manner, and con5 taining such information as the central nonprofit agency 

6 or the Committee shall require, and shall meet the fol7 lowing requirements: 

8 (1) DOCUMENTS OF PRIVATELY INCORPORATED

9 NONPROFIT AGENCY.—A privately incorporated non10 profit agency shall submit to the Committee through 

11 the associated central nonprofit agency the following 

12 documents, transmitted with a letter signed by a 

13 chief executive or other officer of the corporation: 

14 (A) A copy of the articles of incorporation, 

15 showing the date of filing and the signature of 

16 an appropriate State official. 

17 (B) A copy of the bylaws for the corpora18 tion, certified by an officer of the corporation. 

19 (C) If the articles of incorporation or by20 laws do not include wording to the effect that 

21 no part of the net income of the nonprofit agen22 cy may inure to the benefit of any shareholder 

23 or other individual, 1 of the following: 

24 (i) A certified copy of the State stat25 ute under which the nonprofit agency was 


erowe on PRODPC61 with BILLS
81 

•S 3112 IS

1 incorporated that includes wording to the 

2 effect that no part of the net income of the 

3 nonprofit agency may inure to the benefit 

4 of any shareholder or other individual. 

5 (ii) A copy of a resolution approved by 

6 the governing body of the corporation, cer7 tified by an officer of the corporation, with 

8 wording to the effect that no part of the 

9 net income of the nonprofit agency may 

10 inure to the benefit of any shareholder or 

11 other individual. 

12 (2) DOCUMENTS OF STATE-OWNED OR STATE13 OPERATED NONPROFIT AGENCY.—A State-owned or 

14 State-operated nonprofit agency, or a nonprofit 

15 agency established or authorized by a State statute 

16 other than the State corporation laws and not pri17 vately incorporated, shall submit to the Committee 

18 through the associated central nonprofit agency 1 of 

19 the following documents, transmitted with a letter 

20 signed by an official of the agency that directs the 

21 operations of the nonprofit agency or, in the case of 

22 a State-owned nonprofit agency, an officer of the 

23 agency, as applicable: 

24 (A) A certified true copy of the State stat25 ute establishing or authorizing qualified nonVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
82 

•S 3112 IS

1 profit agencies for individuals who are blind or 

2 qualified nonprofit agencies for individuals with 

3 other significant disabilities. 

4 (B)(i) In the case of a State-owned non5 profit agency, a certified true copy of the cor6 poration bylaws. 

7 (ii) In the case of a State or local govern8 ment agency, a certified true copy of imple9 menting regulations, operating procedures, no10 tice of establishment of the nonprofit agency, or 

11 other similar documents. 

12 (3) ASSURANCES.—The agency shall include in 

13 the application satisfactory assurances that— 

14 (A) the agency will establish clear prior15 ities through annual and 3-year program and fi16 nancial planning objectives for fulfilling the re17 quirements of subsections (a) and (b), and 

18 meeting the overall strategic plan responsibil19 ities and goals of the Committee pursuant to 

20 subsections (a)(3) and (k) of section 103 that 

21 are related or pertinent to activities authorized 

22 or compliance required under this title, and a 

23 work plan for carrying out the responsibilities 

24 and achieving the goals, including responsibilVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
83 

•S 3112 IS

1 ities relating to the types of services to be pro2 vided; 

3 (B) the agency will use sound organiza4 tional and personnel assignment practices, in5 cluding making nondiscriminatory decisions to 

6 employ and advance in employment qualified in7 dividuals with significant disabilities throughout 

8 the agency on the same terms and conditions 

9 required with respect to the employment of in10 dividuals with disabilities under section 503 of 

11 the Rehabilitation Act of 1973 (29 U.S.C. 793); 

12 (C) the agency will practice sound fiscal 

13 management; and 

14 (D) the agency will conduct annual self15 evaluations, prepare an annual report, and 

16 maintain records adequate to measure perform17 ance with respect to the goals described in sec18 tion 103(k), that contain information, including 

19 information regarding— 

20 (i) the extent to which the agency is 

21 meeting the goals; 

22 (ii) the number and types of individ23 uals who are blind, or individuals with 

24 other significant disabilities, receiving emVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
84 

•S 3112 IS

1 ployment and other services through the 

2 agency; 

3 (iii) the number of individuals who are 

4 blind or individuals with other significant 

5 disabilities that received training, technical 

6 assistance or other services, and the type 

7 of services they received; 

8 (iv) the sources and amounts of fund9 ing for the agency, other than funding pro10 vided through this title; and 

11 (v) the number of individuals who are 

12 blind, or individuals with other significant 

13 disabilities, who are employed by or are 

14 subcontractors of the agency, including the 

15 number who are in management, are in de16 cisionmaking positions, or are subcontrac17 tors trained by the agency. 

18 (d) MAINTAINING QUALIFICATION.— 

19 (1) IN GENERAL.—To maintain its qualification 

20 each qualified nonprofit agency shall comply with 

21 the requirements of this subsection. In addition, 

22 each qualified nonprofit agency shall submit to the 

23 associated central nonprofit agency by November 1 

24 of each year, 2 completed copies of the annual cer25 tification described in subparagraph (G) or (H) of 


erowe on PRODPC61 with BILLS
85 

•S 3112 IS

1 section 105(a)(4) covering the preceding full fiscal 

2 year. If the agency has the capability, the agency 

3 shall submit the copies of the certification electroni4 cally. 

5 (2) SPECIFIC QUALIFICATIONS.—In addition to 

6 meeting the requirements of subsection (c), each 

7 nonprofit agency shall— 

8 (A) furnish products or services in strict 

9 accordance with Government orders; 

10 (B) comply with the applicable compensa11 tion, employment, and occupational health and 

12 safety standards prescribed by the Secretary of 

13 Labor, including procedures to encourage filling 

14 of vacancies within the agency by promotion of 

15 qualified employees that are individuals who are 

16 blind or individuals with other significant dis17 abilities; 

18 (C) comply with directives or requests 

19 issued by the Committee in furtherance of the 

20 objectives of this title, including regulations 

21 issued under this title; 

22 (D)(i) make the agency’s records, pertinent 

23 to activities authorized or compliance required 

24 under this title, available for inspection at any 

25 reasonable time by representatives of the ComVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
86 

•S 3112 IS

1 mittee or the central nonprofit agency associ2 ated with the nonprofit agency, or by an entity 

3 representing the Committee or central nonprofit 

4 agency; and 

5 (ii) if the agency has the capability, make 

6 the records available electronically; 

7 (E) maintain records of direct labor hours 

8 performed for the agency by each worker, in9 cluding— 

10 (i) for individuals who are blind— 

11 (I) a file for each such individual 

12 performing direct labor that contains 

13 a written report reflecting visual acu14 ity and field of vision of each eye, 

15 with best correction, signed by a per16 son licensed to evaluate such acuity 

17 and field of vision, or a certification of 

18 blindness by a State or local govern19 ment entity; and 

20 (II) within the file, information 

21 pertaining to the individual— 

22 (aa) describing 2 or more 

23 experiential learning options, pro24 vided to the individual for not 

25 less than 2 weeks of each year 


erowe on PRODPC61 with BILLS
87 

•S 3112 IS

1 for which the agency employs the 

2 individual; 

3 (bb) reporting on the experi4 ence provided through the experi5 ential learning options, including 

6 goals for creating individualized 

7 employment results based on the 

8 unique strengths, resources, pri9 orities, concerns, abilities, capa10 bilities, interests, and informed 

11 choice of the individual; 

12 (cc) describing individualized 

13 training activities offered that 

14 the employee participates in to 

15 try to achieve the desired individ16 ualized employment results; and 

17 (dd) describing an overall 

18 assessment of the experience, 

19 identifying the data described in 

20 subsection (e)(2)(J); and 

21 (III) within the file, an annual 

22 report based on information described 

23 in subclause (II), describing the abil24 ity of the individual to engage in com25 petitive employment, which shall be 


erowe on PRODPC61 with BILLS
88 

•S 3112 IS

1 prepared and signed by an individual 

2 qualified by training or experience to 

3 determine that ability; and 

4 (ii) for individuals with other signifi5 cant disabilities— 

6 (I) a file for each such individual 

7 performing direct labor with a written 

8 report signed by a licensed physician, 

9 psychiatrist, or qualified psychologist, 

10 reflecting the nature and extent of 

11 each disability that causes such indi12 vidual to qualify as a individual with 

13 another significant disability, or a cer14 tification of each such disability by a 

15 State or local government entity; 

16 (II) within the file, information 

17 pertaining to the individual— 

18 (aa) describing 2 or more 

19 experiential learning options, pro20 vided to the individual for not 

21 less than 2 weeks of each year 

22 for which the agency employs the 

23 individual; 

24 (bb) reporting on the experi25 ence provided through the experiVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
89 

•S 3112 IS

1 ential learning options, including 

2 goals for creating individualized 

3 employment results based on the 

4 unique strengths, resources, pri5 orities, concerns, abilities, capa6 bilities, interests, and informed 

7 choice of the individual; 

8 (cc) describing individualized 

9 training activities offered that 

10 the employee participates in to 

11 try to achieve the desired individ12 ualized employment results; and 

13 (dd) describing an overall 

14 assessment of the experience, 

15 identifying the data described in 

16 subsection (e)(2)(J); and 

17 (III) within the file, annual re18 ports based on information described 

19 in subclause (II), describing the abil20 ity of the individual to engage in com21 petitive employment, which shall be 

22 prepared and signed by an individual 

23 qualified by training and experience to 

24 evaluate the work potential, interests, 

25 aptitudes, and abilities of individuals 


erowe on PRODPC61 with BILLS
90 

•S 3112 IS

1 with disabilities and shall normally 

2 consist of— 

3 (aa) for individuals who 

4 have been employed by the quali5 fied nonprofit agency for less 

6 than 2 years, a preadmission 

7 evaluation and (if appropriate) 1 

8 annual reevaluation; or 

9 (bb) for individuals who 

10 have been employed by the quali11 fied nonprofit agency for not less 

12 than 2 years, at least the 2 most 

13 recent annual reevaluations; 

14 (F) maintain an ongoing training and 

15 placement program, operated by or for the 

16 agency, that— 

17 (i) shall include liaison with entities 

18 providing appropriate community services 

19 such as the one-stop partners described in 

20 section 121(b) of the Workforce Invest21 ment Act of 1998 (29 U.S.C. 2841(b)), 

22 agencies carrying out programs under the 

23 Rehabilitation Act of 1973 (29 U.S.C. 701 

24 et seq.), employer groups, and others; and 


erowe on PRODPC61 with BILLS
91 

•S 3112 IS

1 (ii) shall assist those individuals that 

2 are determined to be capable and desirous 

3 of competitive employment in obtaining 

4 such employment; 

5 (G) upon receipt of payment by the Gov6 ernment for products or services furnished 

7 under the program carried out under this title, 

8 pay to the central nonprofit agency a fee in ac9 cordance with section 105(a)(4)(J)(v); 

10 (H)(i) in the case of a qualified nonprofit 

11 agency that receives a Federal award under this 

12 title in an annual amount that is not less than 

13 $1,000,000, have an audit performed by an 

14 independent accountant; 

15 (ii) in the case of a qualified nonprofit 

16 agency that is required to file a Federal return 

17 of organization exempt from income tax, file 

18 such a return; 

19 (iii) in the case of a qualified nonprofit 

20 agency that receives a Federal award under this 

21 title in an annual amount that is not less than 

22 the amount specified by the Director of the Of23 fice of Management and Budget as described in 

24 section 7502(a)(1)(A) of title 31, United States 


erowe on PRODPC61 with BILLS
92 

•S 3112 IS

1 Code, comply with the Single Audit Act of 1984 

2 and the amendments made by that Act; and 

3 (iv) submit to the associated central non4 profit agency copies of reports of audits, and 

5 returns, described in this subparagraph; 

6 (I) ensure that Federal returns of organi7 zations exempt from income tax reflect all ma8 terial correcting adjustments that have been 

9 identified in accordance with generally accepted 

10 accounting principles; 

11 (J) adopt and comply with the Internal 

12 Revenue Service regulations relating to inter13 mediate sanctions, issued under section 4958 of 

14 the Internal Revenue Code of 1986; and 

15 (K) comply with assurances made under 

16 subsection (c)(3). 

17 (3) APPLICATION OF PROVISIONS.—An entity 

18 that is a qualified nonprofit agency on the date of 

19 enactment of the Javits-Wagner-O’Day and Ran20 dolph-Sheppard Modernization Act of 2008 shall not 

21 be required to establish eligibility in accordance with 

22 subsection (c) but shall be required to maintain eli23 gibility in accordance with this subsection. 

24 (e) ANNUAL REPORT.— 


erowe on PRODPC61 with BILLS
93 

•S 3112 IS

1 (1) IN GENERAL.—Not later than November 1 

2 of the first full fiscal year after the date of enact3 ment of the Javits-Wagner-O’Day and Randolph4 Sheppard Modernization Act of 2008, and each No5 vember 1 thereafter, each qualified nonprofit agency 

6 shall report data for the fiscal year ending the pre7 ceding September 30 and provide an annual report 

8 to the Committee, through the associated central 

9 nonprofit agency, to enable the Committee to pre10 pare the Committee report described in section 

11 103(j). If the qualified nonprofit agency has the ca12 pability, the agency shall report the data and provide 

13 the agency report electronically. 

14 (2) CONTENTS.—Such agency report shall in15 clude information, for the qualified nonprofit agen16 cy— 

17 (A) on procurement, including— 

18 (i) how long it took for an item pro19 duced or provided by the qualified non20 profit agency to be added to the procure21 ment list from the time the associated cen22 tral nonprofit agency sent a pricing memo23 randum to the Committee; 


erowe on PRODPC61 with BILLS
94 

•S 3112 IS

1 (ii) the number of such items pro2 posed to be added to the procurement list 

3 that were denied; 

4 (iii) justifications for price changes 

5 and other modifications to products and 

6 services of the qualified nonprofit agency 

7 on the procurement list; 

8 (iv) total number of appeals by the 

9 qualified nonprofit agency of determina10 tions described in section 103(b)(2)(D)(i); 

11 and 

12 (v) the number of, and information 

13 identifying, the products and services of 

14 the qualified nonprofit agency on the pro15 curement list that have not been purchased 

16 in the last 12, 24, and 36 months; 

17 (B) on sales (including sales through base 

18 supply stores) under this title, including total 

19 sales and sales disaggregated by products and 

20 services; 

21 (C) on participation in information, assist22 ance, training, or technical assistance activities 

23 offered by the associated central nonprofit 

24 agency, including information on— 


erowe on PRODPC61 with BILLS
95 

•S 3112 IS

1 (i) that participation, in total and 

2 disaggregated by employees who are blind, 

3 employees with other significant disabil4 ities, and other employees of the qualified 

5 nonprofit agency; and 

6 (ii) that participation, in total and 

7 disaggregated— 

8 (I) by training, technical assist9 ance, and rehabilitation activities; 

10 (II) by topic; and 

11 (III) by method of delivery (such 

12 as through videos, seminars, or web13 based technologies); 

14 (D)(i) on the number of employees that are 

15 individuals who are blind or individuals with 

16 other significant disabilities, disaggregated— 

17 (I) by disability type; 

18 (II) by whether the individuals in19 volved are veterans, persons transitioning 

20 from institutions or schools, students, indi21 viduals acquiring disabilities as adults, or 

22 members of other populations; or 

23 (III) by demographic information; and 

24 (ii) on the number of direct labor employ25 ees that are individuals who are blind or indiVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
96 

•S 3112 IS

1 viduals with other significant disabilities, 

2 disaggregated as described in clause (i); 

3 (E) on the number of individuals who are 

4 blind or individuals with other significant dis5 abilities that were outplaced or advanced in em6 ployment within the qualified nonprofit agency; 

7 (F) on wages and benefits, including infor8 mation on— 

9 (i) average wages of direct labor em10 ployees, for individuals who are blind, indi11 viduals with other significant disabilities, 

12 and individuals who do not have significant 

13 disabilities; 

14 (ii) average wages and total number 

15 of direct labor employees, for individuals 

16 who are blind making commensurate 

17 wages, individuals with other significant 

18 disabilities making commensurate wages, 

19 and individuals who do not have significant 

20 disabilities; 

21 (iii) average wages and total number 

22 of direct labor employees, for individuals 

23 who are blind making commensurate wages 

24 at less than the minimum wage rate, indi25 viduals with other significant disabilities 


erowe on PRODPC61 with BILLS
97 

•S 3112 IS

1 making commensurate wages at less than 

2 the minimum wage rate, and individuals 

3 who do not have significant disabilities, 

4 making commensurate wages at less than 

5 the minimum wage rate; and 

6 (iv) the percentage increase in wages, 

7 for each group of employees described in 

8 clauses (i) through (iii), compared to the 

9 wage for that group in each of the pre10 ceding 2 years; 

11 (G) on the number of contracts of the 

12 qualified nonprofit agency with— 

13 (i) other qualified nonprofit agencies; 

14 (ii) other nonprofit agencies; 

15 (iii) small businesses; and 

16 (iv) small businesses owned by indi17 viduals with disabilities, disaggregated by 

18 whether the individual with a disability was 

19 an employee of, and trained by, a qualified 

20 nonprofit agency; 

21 (H) the costs incurred under this title by 

22 the qualified nonprofit agency preparing the re23 port to conduct administration, and provide as24 sessment services, counseling and guidance, and 

25 other direct services; 


erowe on PRODPC61 with BILLS
98 

•S 3112 IS

1 (I)(i) development of new employment op2 portunities for employees that are individuals 

3 who are blind or individuals with other signifi4 cant disabilities, including opportunities 

5 through— 

6 (I) electronic commerce; 

7 (II) subcontracting by the qualified 

8 nonprofit agency to employees that are in9 dividuals who are blind, or individuals with 

10 other significant disabilities, trained by the 

11 agency; 

12 (III) outplacement (as provided for in 

13 clause (i) or (ii) of section 103(g)(1)(B)); 

14 and 

15 (IV) promotion (as provided for in 

16 section 103(g)(1)(B)(iii); 

17 (ii) the success rate for the opportunities 

18 described in each of subclauses (I) through (IV) 

19 of clause (i); and 

20 (iii) the number of jobs lost by the quali21 fied nonprofit agency during the fiscal year cov22 ered by the report; 

23 (J) on data regarding experiential learning 

24 options— 


erowe on PRODPC61 with BILLS
99 

•S 3112 IS

1 (i) describing obstacles that individ2 uals who are blind or individuals with 

3 other significant disabilities participating 

4 in the options encountered while trying to 

5 achieve desired employment results and de6 scribing whether the obstacles were over7 come; and 

8 (ii) describing strategies, solutions, 

9 and methods of individuals experiencing 

10 positive outcomes through the experiential 

11 learning options; 

12 (K) on data regarding meeting goals de13 scribed in section 103(k); 

14 (L) on whether the qualified nonprofit 

15 agency had an audit performed by an inde16 pendent accountant, or filed a Federal return of 

17 organization exempt from income tax; and 

18 (M) on other items as determined nec19 essary by the associated central nonprofit agen20 cy or the Committee. 

21 (3) AVAILABILITY ON WEBSITE.—The qualified 

22 nonprofit agency shall make the agency report avail23 able to the public on the agency’s website. 

24 (4) DEFINITIONS.—In this subsection: 


erowe on PRODPC61 with BILLS
100 

•S 3112 IS

1 (A) COMMENSURATE WAGE.—The term 

2 ‘‘commensurate wage’’ means a commensurate 

3 wage as described in section 14(c) of the Fair 

4 Labor Standards Act of 1938 (29 U.S.C. 

5 214(c)). 

6 (B) MINIMUM WAGE RATE.—The term 

7 ‘‘minimum wage rate’’ means the minimum 

8 wage rate set forth in section 6(a)(1) of the 

9 Fair Labor Standards Act of 1938 (29 U.S.C. 

10 206(a)(1)). 

11 (f) EXECUTIVE COMPENSATION.— 

12 (1) LIMITATION ON RATE.—Revenues generated 

13 through this title and funds made available under 

14 this title shall not be used to pay staff employed by 

15 a qualified nonprofit agency, either as a direct cost 

16 or through any proration as an indirect cost, at a 

17 rate in excess of the rate payable for level II of the 

18 Executive Schedule under section 5313 of title 5, 

19 United States Code, as in effect on the date of en20 actment of the Javits-Wagner-O’Day and Randolph21 Sheppard Modernization Act of 2008. 

22 (2) CONSTRUCTION.—Nothing in this sub23 section shall be construed to forbid a qualified non24 profit agency from using revenue or funds not de25 scribed in paragraph (1) to contribute to the salary 


erowe on PRODPC61 with BILLS
101 

•S 3112 IS

1 of staff employed by the qualified nonprofit agency, 

2 even if the resulting total rate for that salary ex3 ceeds the rate allowable under paragraph (1). 

4 (g) CORRECTIVE ACTION PLAN AND SANCTIONS.— 

5 (1) CORRECTIVE ACTION PLAN.— 

6 (A) INVESTIGATION.—Any alleged violation 

7 of this title by a qualified nonprofit agency shall 

8 be investigated by the Committee, with the as9 sistance of the associated central nonprofit 

10 agency. The central nonprofit agency shall no11 tify the qualified nonprofit agency and afford 

12 the agency an opportunity to submit a state13 ment of facts and evidence. The central non14 profit agency shall prepare and submit to the 

15 Committee a report containing the findings re16 sulting from the agency’s investigation, together 

17 with its recommendations. 

18 (B) DEVELOPMENT OF PLAN.—If the 

19 Committee determines that a qualified non20 profit agency fails to comply with the require21 ments of this title, or to make progress toward 

22 carrying out the agency’s duties under this title, 

23 not later than 90 days after making that deter24 mination, the Committee shall assist the agen25 cy, through technical assistance or other means, 


erowe on PRODPC61 with BILLS
102 

•S 3112 IS

1 to develop a corrective action plan, for the year 

2 following the date of the determination. 

3 (2) SANCTIONS FOR NONCOMPLIANCE WITH

4 PLAN.— 

5 (A) FIRST YEAR.—If the Committee deter6 mines that the qualified nonprofit agency fails 

7 to develop and comply with the corrective action 

8 plan described in paragraph (1) for a year, the 

9 associated central nonprofit agency, acting at 

10 the direction of the Committee, shall— 

11 (i) partially suspend an affected order 

12 of the Government described in subsection 

13 (a) for a product or service, until the quali14 fied nonprofit agency develops and com15 plies with the plan; and 

16 (ii) redistribute the order to another 

17 qualified nonprofit agency until the agency 

18 with the suspended order develops and 

19 complies with the plan. 

20 (B) SECOND YEAR.—If the Committee de21 termines that the qualified nonprofit agency 

22 fails to develop and comply with the corrective 

23 action plan for 2 consecutive years, the central 

24 nonprofit agency, acting at the direction of the 

25 Committee, shall— 


erowe on PRODPC61 with BILLS
103 

•S 3112 IS

1 (i) partially or completely suspend an 

2 affected order of the Government described 

3 in subsection (a) for a product or service, 

4 and suspend the qualified nonprofit agen5 cy’s authority to receive any additional 

6 order of the Government described in sub7 section (a), until the qualified nonprofit 

8 agency develops and complies with the 

9 plan; and 

10 (ii) redistribute the affected order to 

11 another qualified nonprofit agency until 

12 the agency with the suspended order devel13 ops and complies with the plan. 

14 (C) THIRD YEAR.— 

15 (i) IN GENERAL.—If the Committee 

16 determines that the qualified nonprofit 

17 agency fails to develop and comply with 

18 the corrective action plan for 3 consecutive 

19 years, the central nonprofit agency, acting 

20 at the direction of the Committee, shall— 

21 (I) terminate the agency’s quali22 fication as a qualified nonprofit agen23 cy, including termination of authority 

24 to receive an order of the Government 

25 described in subsection (a); and 


erowe on PRODPC61 with BILLS
104 

•S 3112 IS

1 (II) redistribute the orders re2 ceived by the qualified nonprofit agen3 cy to another qualified nonprofit agen4 cy. 

5 (ii) IMPACT OF TERMINATION.—If the 

6 central nonprofit agency terminates the 

7 agency’s qualification as a qualified non8 profit agency under clause (i)(I), the 

9 former agency may not apply for qualifica10 tion as such an agency under this title 

11 until— 

12 (I) 5 years after the date of the 

13 termination; and 

14 (II) the former agency dem15 onstrates that it has complied with 

16 the corrective action plan. 

17 (3) DETERMINATION.—The Committee shall 

18 determine, prior to terminating the qualification of 

19 a qualified nonprofit agency under paragraph 

20 (2)(C), if the product produced or service provided 

21 by the agency through the order can be purchased 

22 through another qualified nonprofit agency, another 

23 nonprofit agency, or commercially. To assist the 

24 Committee in making the determination, the entity 

25 of the Government ordering such product or service 


erowe on PRODPC61 with BILLS
105 

•S 3112 IS

1 shall state in writing whether such product or serv2 ice can be so purchased. If the product or service 

3 cannot be so purchased, the Committee shall not ter4 minate the qualification. 

5 (4) EGREGIOUS VIOLATION AT ANY TIME.—If 

6 the Committee determines that the qualified non7 profit agency has committed an egregious violation 

8 of this title, the central nonprofit agency, acting at 

9 the direction of the Committee, shall— 

10 (A) suspend the agency’s qualification as a 

11 qualified nonprofit agency, including suspension 

12 of authority to receive an order of the Govern13 ment described in subsection (a); and 

14 (B) redistribute the orders received by the 

15 qualified nonprofit agency to another qualified 

16 nonprofit agency. 

17 (5) APPEALS PROCEDURES.—The Committee 

18 shall establish appeals procedures for qualified non19 profit agencies that are determined to— 

20 (A) have failed to comply or make progress 

21 as described in paragraph (1); 

22 (B) have failed to develop and comply with 

23 a corrective action plan under paragraph (2); or 

24 (C) have committed an egregious violation 

25 of this title, as described in paragraph (4). 


erowe on PRODPC61 with BILLS
106 

•S 3112 IS

1 (6) COMMITTEE ACTION.—As part of the an2 nual reports required under section 103(j), the Com3 mittee shall describe each action taken under para4 graph (1), (2), or (4) and the outcomes of each such 

5 action. 

6 (7) PUBLIC NOTIFICATION.—The Committee 

7 shall notify the public of each action taken by the 

8 Committee (or the central nonprofit agency, acting 

9 at the direction of the Committee) under paragraph 

10 (1), (2), or (4) by making available information 

11 about the action on the website of the Committee. 

12 As a part of such notification, the Committee shall 

13 describe each such action taken under paragraph 

14 (1), (2), or (4) and the outcomes of each such ac15 tion. 

16 (8) RULES OF CONSTRUCTION.— 

17 (A) PHASE-IN REQUESTS.—A qualified 

18 nonprofit agency shall not be considered to be 

19 out of compliance with the direct labor hour 

20 percentage requirements of paragraph (11)(C) 

21 or (12)(C) of section 2 or section 103(g) if a 

22 phase-in request was approved by the Com23 mittee for the agency and is in effect under sec24 tion 103(g). 


erowe on PRODPC61 with BILLS
107 

•S 3112 IS

1 (B) TIMING OF SANCTIONS.—Nothing in 

2 this section shall be construed to require the 

3 Committee to sanction a qualified nonprofit 

4 agency upon enactment of the Javits-Wagner5 O’Day and Randolph-Sheppard Modernization 

6 Act of 2008. 

7 SEC. 107. DEMONSTRATION PROJECTS. 

8 (a) TYPES OF DEMONSTRATION PROJECTS.—Pursu9 ant to section 105(a)(4)(J)(ii), each central nonprofit 

10 agency shall conduct the following demonstration projects. 

11 (1) DEMONSTRATION PROJECTS FOR EMPLOY12 MENT OF STUDENTS WITH SIGNIFICANT DISABIL13 ITIES.— 

14 (A) PURPOSE.—The purpose of this para15 graph is to support model demonstration 

16 projects to provide employment experiences for 

17 students with disabilities in order to enable 

18 such students to gain employment skills and ex19 perience that will promote the student’s effec20 tive transition from school to employment. 

21 (B) DEFINITIONS.—In this paragraph: 

22 (i) STUDENT WITH A SIGNIFICANT

23 DISABILITY.—The term ‘‘student with a 

24 significant disability’’ means an individual 

25 with a significant disability who— 


erowe on PRODPC61 with BILLS
108 

•S 3112 IS

1 (I)(aa) receives special education 

2 and related services in accordance 

3 with an individualized education pro4 gram; or 

5 (bb) receives services under a 

6 plan under section 504 of the Reha7 bilitation Act of 1973 (29 U.S.C. 794; 

8 referred to in this paragraph as a 

9 ‘‘504 plan’’); 

10 (II) meets the definition of dis11 ability under paragraphs (1) and (9) 

12 of section 2; and 

13 (III) has attained the age of 16 

14 but has not attained the age of 22. 

15 (ii) INDIVIDUALIZED EDUCATION PRO16 GRAM.—The term ‘‘individualized edu17 cation program’’ has the meaning given 

18 the term in section 614(d) of the Individ19 uals with Disabilities Education Act (20 

20 U.S.C. 1414(d)). 

21 (C) PROGRAM AUTHORIZED.— 

22 (i) IN GENERAL.—A central nonprofit 

23 agency may, on a competitive basis, award 

24 grants or contracts to, or enter into coop25 erative agreements with, qualified nonVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
109 

•S 3112 IS

1 profit agencies to enable the qualified non2 profit agencies to carry out a demonstra3 tion project under this paragraph. 

4 (ii) REPRESENTATION.—A central 

5 nonprofit agency making awards or enter6 ing into cooperative agreements under 

7 clause (i) shall ensure, to the extent prac8 ticable, an equitable geographic distribu9 tion of such awards or agreements across 

10 the United States. 

11 (iii) DURATION.—A grant, contract, 

12 or cooperative agreement awarded or en13 tered into under clause (i) by a central 

14 nonprofit agency shall be for a period of 

15 not less than 3 nor more than 5 years. 

16 (D) APPLICATIONS.—Each qualified non17 profit agency desiring to receive a grant, con18 tract, or cooperative agreement under subpara19 graph (C) shall submit an application to the 

20 central nonprofit agency at such time, in such 

21 manner, and including such information as the 

22 central nonprofit agency or the Committee may 

23 reasonably require. Each application shall in24 clude— 


erowe on PRODPC61 with BILLS
110 

•S 3112 IS

1 (i) a description of how the qualified 

2 nonprofit agency plans to carry out the ac3 tivities described in subparagraph (E); 

4 (ii) a description of how the qualified 

5 nonprofit agency will work with the central 

6 nonprofit agency to disseminate informa7 tion about— 

8 (I) the activities described in sub9 paragraph (E) that will be carried out 

10 by the qualified nonprofit agency; and 

11 (II) the impact of such activities 

12 on the lives of the students with dis13 abilities served by the demonstration 

14 project; 

15 (iii) a description of how the qualified 

16 nonprofit agency will coordinate activities 

17 with schools and any other relevant service 

18 providers in the locality where the qualified 

19 nonprofit agency is based; 

20 (iv) a plan for an evaluation that 

21 meets the requirements of subparagraph 

22 (F); and 

23 (v) any other information that the 

24 central nonprofit agency or the Committee 

25 may reasonably require. 


erowe on PRODPC61 with BILLS
111 

•S 3112 IS

1 (E) AUTHORIZED ACTIVITIES.—A qualified 

2 nonprofit agency that receives a grant or con3 tract, or enters into a cooperative agreement, 

4 under subparagraph (C) shall use the funds 

5 made available through the grant, contract, or 

6 cooperative agreement to carry out the fol7 lowing activities for students with disabilities: 

8 (i) Assess the employment and post9 secondary needs of students with signifi10 cant disabilities who have completed, or 

11 are nearing completion of, an individual12 ized education program or a plan under 

13 section 504 of the Rehabilitation Act of 

14 1973 (29 U.S.C. 794). The employment 

15 and postsecondary needs assessment of 

16 such a student may include— 

17 (I) participating (as appropriate 

18 when vocational goals are discussed) 

19 in a meeting regarding the individual20 ized education program or 504 plan 

21 for the student; and 

22 (II) providing the specific transi23 tion needed to achieve the individual’s 

24 employment outcome or projected em25 ployment outcome, as identified in the 


erowe on PRODPC61 with BILLS
112 

•S 3112 IS

1 student’s individualized education pro2 gram or a similar result as identified 

3 in the student’s 504 plan. 

4 (ii) Conduct outreach to students with 

5 significant disabilities, including students 

6 with significant disabilities attending pri7 vate schools, in order to coordinate services 

8 designed to facilitate the transition of such 

9 students to postsecondary life, including 

10 employment. 

11 (iii) Enter into employment contracts 

12 of not more than 3 years with the parents 

13 of such students with significant disabil14 ities— 

15 (I) to provide the students with 

16 employment, through contracts ob17 tained by the qualified nonprofit agen18 cy, as well as experiential learning op19 tions (to be provided for not less than 

20 2 weeks of each year for which the 

21 agency employs the students) and 

22 training to build the skills of the stu23 dents; 

24 (II) to assist the students in ob25 taining the students’ proposed postVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
113 

•S 3112 IS

1 secondary goals identified in the stu2 dents’ individualized education pro3 grams or similar results identified in 

4 the students’ 504 plans; and 

5 (III) that specify that, if such a 

6 contract for employment of a student 

7 is terminated, the student may not be 

8 employed by the qualified nonprofit 

9 agency after the termination. 

10 (iv) Carry out outplacement programs 

11 designed to facilitate the transition of stu12 dents with significant disabilities who are 

13 employed by the qualified nonprofit agency 

14 into competitive community employment or 

15 postsecondary education, based on the 

16 unique strengths, resources, priorities, con17 cerns, abilities, capabilities, interests, and 

18 informed choice of each student, by pro19 viding— 

20 (I) opportunities for upward mo21 bility for such students within the 

22 qualified nonprofit agency; 

23 (II) career, technical, and edu24 cational guidance; 

25 (III) career exploration services; 


erowe on PRODPC61 with BILLS
114 

•S 3112 IS

1 (IV) job searches and training re2 garding job searches; and 

3 (V) transition to competitive em4 ployment described in section 

5 103(g)(1)(B)(i) or postsecondary edu6 cation, based on the student’s pro7 posed postsecondary goals identified 

8 in the student’s individualized edu9 cation program (if applicable) or simi10 lar results identified in the student’s 

11 504 plan (if applicable), following the 

12 conclusion of the student’s employ13 ment contract with the agency. 

14 (F) MANDATED EVALUATION AND DIS15 SEMINATION ACTIVITIES.— 

16 (i) ANNUAL REPORT.—Not later than 

17 2 years after the date on which the central 

18 nonprofit agency awards a grant or con19 tract, or enters into a cooperative agree20 ment, under subparagraph (C), and annu21 ally thereafter for the duration of such 

22 grant, contract, or cooperative agreement, 

23 the qualifying nonprofit agency receiving 

24 the grant or contract, or entering into the 

25 cooperative agreement, shall submit to the 


erowe on PRODPC61 with BILLS
115 

•S 3112 IS

1 central nonprofit agency a report, resulting 

2 from an evaluation, containing information 

3 on— 

4 (I) the number of students with 

5 significant disabilities who participate 

6 in the demonstration project; 

7 (II) the nature of employment 

8 and other skills being taught to the 

9 students with significant disabilities 

10 through the project; 

11 (III) the number of students with 

12 significant disabilities participating in 

13 the project that are placed in competi14 tive employment described in section 

15 103(g)(1)(B)(i); 

16 (IV) the worksites, and types of 

17 jobs, in which students with signifi18 cant disabilities are placed through 

19 the project; 

20 (V) the number of students with 

21 significant disabilities who dropped 

22 out of the project and the reasons the 

23 students terminated participation in 

24 the project; and 


erowe on PRODPC61 with BILLS
116 

•S 3112 IS

1 (VI) such other subjects as the 

2 central nonprofit agency or the Com3 mittee may specify. 

4 (2) CORPORATE PARTNERSHIP DEMONSTRATION

5 PROJECTS.— 

6 (A) PURPOSE.—The purpose of this para7 graph is to establish a new model for projects, 

8 open to participation by qualified partnerships, 

9 that will expand integrated and competitive 

10 work opportunities beyond the opportunities 

11 otherwise provided under this title, in order to 

12 obtain employment for individuals with signifi13 cant disabilities in traditional and nontradi14 tional industries. 

15 (B) DEFINITIONS.—In this paragraph: 

16 (i) CORPORATE PARTNERSHIP.—The 

17 term ‘‘corporate partnership’’ means a 

18 partnership between or among 1 or more 

19 eligible qualified nonprofit agencies and 1 

20 or more private entities, in traditional or 

21 nontraditional industries. 

22 (ii) ELIGIBLE QUALIFIED NONPROFIT

23 AGENCY.—In this paragraph, the term ‘‘el24 igible qualified nonprofit agency’’ means a 

25 qualified nonprofit agency for individuals 


erowe on PRODPC61 with BILLS
117 

•S 3112 IS

1 who are blind, or a qualified nonprofit 

2 agency for individuals with other signifi3 cant disabilities, that meets or exceeds the 

4 goals described in section 103(k). 

5 (iii) NONTRADITIONAL INDUSTRY.— 

6 The term ‘‘nontraditional industry’’ means 

7 an industry that produces a product, or 

8 provides a service, that the Committee 

9 typically determines is not suitable for pro10 duction or provision by qualified nonprofit 

11 agencies, such as technology or a product 

12 or service of another high-growth industry. 

13 (C) IN GENERAL.— 

14 (i) AWARDS.—For each of fiscal years 

15 2009 through 2013, a central nonprofit 

16 agency may distribute not more than 5 or17 ders for products or services a year to cor18 porate partnerships in the same manner as 

19 orders are distributed to qualified non20 profit agencies under this title. 

21 (ii) REPRESENTATION.—A central 

22 nonprofit agency distributing orders under 

23 this subparagraph shall ensure, to the ex24 tent practicable, an equitable geographic 


erowe on PRODPC61 with BILLS
118 

•S 3112 IS

1 distribution of the orders across the United 

2 States. 

3 (D) REQUIREMENTS.—A central nonprofit 

4 agency shall distribute orders under subpara5 graph (C) to a corporate partnership only if the 

6 members of the corporate partnership enter into 

7 a binding agreement that has been approved by 

8 the central nonprofit agency and the Committee 

9 and meets the following requirements: 

10 (i) CONTENTS.—The binding agree11 ment includes a description of— 

12 (I) how each private entity and 

13 eligible qualified nonprofit agency in 

14 the corporate partnership plan to 

15 produce the product or provide the 

16 service identified in the order distrib17 uted under subparagraph (C); 

18 (II) how the private entity and 

19 eligible qualified nonprofit agency will 

20 coordinate activities and distribute the 

21 functions related to the order; 

22 (III) the partnership model de23 scribed in subparagraph (F) that will 

24 be used; 


erowe on PRODPC61 with BILLS
119 

•S 3112 IS

1 (IV) if the central nonprofit 

2 agency or the Committee determines 

3 appropriate, whether the private enti4 ty may compensate the eligible quali5 fied nonprofit agency for administra6 tive or training expenses resulting 

7 from the partnership; and 

8 (V) the evaluation plan, in ac9 cordance with subparagraph (G), for 

10 the activities carried out by the cor11 porate partnership under this para12 graph. 

13 (ii) SUBMISSION.—A copy of the bind14 ing agreement accompanies any documents 

15 required as part of the bidding process for 

16 an order under this paragraph. 

17 (iii) DIRECT LABOR HOUR PERCENT18 AGE REQUIREMENTS.—The binding agree19 ment provides that any product or service 

20 produced or provided under the order by 

21 employees who are individuals with signifi22 cant disabilities shall be subject to the 

23 same direct labor hour percentage require24 ments that apply, under paragraphs 

25 (11)(C) and (12)(C) of section 2, and secVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
120 

•S 3112 IS

1 tion 103(g), to qualified nonprofit agencies 

2 producing such products or providing such 

3 services under this title. 

4 (iv) LONG-TERM EMPLOYMENT.—The 

5 binding agreement provides for long-term 

6 employment opportunities, with a private 

7 entity participating in the corporate part8 nership, for individuals with significant 

9 disabilities employed by the private entity 

10 who would otherwise be employees of a 

11 qualified nonprofit agency. 

12 (v) PRICE SAVINGS.—The binding 

13 agreement offers the product or service 

14 that is to be produced or provided under 

15 an order under this paragraph at a price 

16 equal to or less than the price that other17 wise would be charged by a qualified non18 profit agency. 

19 (E) PREFERRED SOURCE STATUS.—An en20 tity of the Government that is purchasing a 

21 product or service that is produced or provided 

22 by a corporate partnership under an order 

23 under this paragraph shall treat the corporate 

24 partnership as a preferred source for such prod25 uct or service. 


erowe on PRODPC61 with BILLS
121 

•S 3112 IS

1 (F) PARTNERSHIP MODELS.—A corporate 

2 partnership that receives an order under this 

3 paragraph shall carry out 1 or more partner4 ship models in fulfilling the terms of the order, 

5 which models may include the following: 

6 (i) PRIVATE ENTITY EMPLOYMENT.— 

7 Under this model— 

8 (I) a private entity shall directly 

9 employ individuals with significant 

10 disabilities; 

11 (II) such employees shall work at 

12 the worksite of the private entity; and 

13 (III) the private entity may place 

14 such employees on the payroll of the 

15 private entity with salaries and bene16 fits equivalent to the salaries and ben17 efits made available to employees of 

18 the private entity who are not individ19 uals with significant disabilities. 

20 (ii) PRIVATE ENTITY CONTRACT.— 

21 Under this model— 

22 (I) a private entity may assign a 

23 number of the employees of the pri24 vate entity who are individuals with25 out significant disabilities to work as 


erowe on PRODPC61 with BILLS
122 

•S 3112 IS

1 part of a production unit with as2 signed employees of an eligible quali3 fied nonprofit agency that are individ4 uals with significant disabilities to 

5 produce the product, or provide the 

6 service, specified in the binding agree7 ment; 

8 (II) the individuals with signifi9 cant disabilities shall work at the 

10 worksite of the eligible qualified non11 profit agency or at an alternate com12 munity setting; and 

13 (III) the private entity may place 

14 employees who are individuals with 

15 significant disabilities on the payroll 

16 of the private entity, or such individ17 uals may be paid by the eligible quali18 fied nonprofit agency, with salaries 

19 and benefits equivalent to the salaries 

20 and benefits made available to em21 ployees of the private entity who are 

22 not individuals with significant dis23 abilities. 

24 (iii) PRIVATE ENTITY SUB25 CONTRACT.—Under this model— 


erowe on PRODPC61 with BILLS
123 

•S 3112 IS

1 (I) the private entity may sub2 contract to an eligible qualified non3 profit agency the majority of the work 

4 required to produce the product or 

5 service; 

6 (II) employees of the eligible 

7 qualified nonprofit agency who are in8 dividuals with significant disabilities 

9 may work under such subcontract at 

10 the private entity’s worksite, the eligi11 ble qualified nonprofit agency’s work12 site, or an alternate community set13 ting; and 

14 (III) employees who are individ15 uals with significant disabilities shall 

16 be paid by the eligible qualified non17 profit agency, with salaries and bene18 fits equivalent to the salaries and ben19 efits made available to employees of 

20 the private entity who are not individ21 uals with significant disabilities. 

22 (G) EVALUATION AND DISSEMINATION AC23 TIVITIES.— 

24 (i) ANNUAL REPORT.—Not later than 

25 2 years after the date on which a central 


erowe on PRODPC61 with BILLS
124 

•S 3112 IS

1 nonprofit agency distributes an order 

2 under subparagraph (C) to a corporate 

3 partnership, and annually thereafter for 

4 the duration of the order, an eligible quali5 fied nonprofit agency participating in the 

6 corporate partnership shall submit to the 

7 central nonprofit agency and the Com8 mittee a report containing information 

9 on— 

10 (I) the number of private entities 

11 participating in the corporate partner12 ship and the products and services 

13 being produced and provided as a re14 sult of the demonstration project 

15 under this paragraph; 

16 (II) the number of individuals 

17 with significant disabilities who are 

18 employed as a result of the project; 

19 (III) the employment and other 

20 skills being taught to the individuals 

21 with significant disabilities partici22 pating in the project; 

23 (IV) the number of individuals 

24 with significant disabilities partici25 pating in the project who are hired by 


erowe on PRODPC61 with BILLS
125 

•S 3112 IS

1 a private entity participating in the 

2 corporate partnership; 

3 (V) the worksites at which indi4 viduals with significant disabilities 

5 participating in the project are placed, 

6 and the types of jobs in which such 

7 individuals are placed; 

8 (VI) the number of private enti9 ties and individuals with significant 

10 disabilities that have dropped out of 

11 the project, and the reasons the pri12 vate entities or individuals with sig13 nificant disabilities have dropped out 

14 of the project; 

15 (VII) whether the project should 

16 be concluded or made a permanent 

17 part of the activities carried out under 

18 this title and, if included in the activi19 ties, a detailed plan for how the 

20 project should be expanded; and 

21 (VIII) such other subjects as the 

22 central nonprofit agency or the Com23 mittee may specify. 

24 (b) EVALUATION OF PROJECTS.—Not later than 180 

25 days after all demonstration projects under subsection (a) 


erowe on PRODPC61 with BILLS
126 

•S 3112 IS

1 are completed, the central nonprofit agencies participating 

2 in the demonstration projects under this section and the 

3 Committee shall submit a joint statement to Congress in4 dicating whether any of the demonstration projects should 

5 become permanent programs under the Act, including any 

6 recommendations for legislative or administrative action. 

7 SEC. 108. RECORDS AND AUDITS. 

8 (a) RECORDS.—The Committee, each central non9 profit agency, and each qualified nonprofit agency shall 

10 keep records that fully disclose the amount and disposition 

11 of funds (including fees) made available under this title, 

12 the cost of providing activities authorized by this title (in13 cluding how the funds are used), and the share of that 

14 cost provided from other sources, and such other records 

15 as will facilitate an effective financial or programmatic 

16 audit. The Committee, and each central nonprofit agency 

17 and qualified nonprofit agency that receives funds (includ18 ing fees) under this title for an activity, shall maintain 

19 such records for 5 years after the completion of the activ20 ity. 

21 (b) ACCESS TO RECORDS BY THE COMMITTEE.—The 

22 Committee shall have access, for the purpose of audit and 

23 examination, to any books, documents, papers, and other 

24 records that— 


erowe on PRODPC61 with BILLS
127 

•S 3112 IS

1 (1) are maintained by a central nonprofit agen2 cy or qualified nonprofit agency; and 

3 (2) may be related or pertinent to activities au4 thorized under, or compliance with requirements of, 

5 this title. 

6 (c) ACCESS TO RECORDS BY COMPTROLLER GEN7 ERAL OF THE UNITED STATES.—The Comptroller Gen8 eral of the United States, or any of the duly authorized 

9 representatives of the Comptroller General, shall have ac10 cess, for the purpose of audit and examination, to any 

11 books, documents, papers, and other records of the Com12 mittee and of each central nonprofit agency. This sub13 section shall also apply to any qualified nonprofit agency 

14 for individuals who are blind and any qualified nonprofit 

15 agency for individuals with other significant disabilities 

16 that has sold products or services under this title but only 

17 with respect to the books, documents, papers, and other 

18 records of such agency that relate to the agency’s activities 

19 in a fiscal year in which a sale was made under this title. 

20 The Committee, and each central nonprofit agency and 

21 qualified nonprofit agency to which this subsection applies, 

22 shall maintain such records for 5 years after the comple23 tion of the activity involved. 

24 (d) NONDISCLOSURE.—For purposes of any audit or 

25 examination, the Committee or Comptroller General of the 


erowe on PRODPC61 with BILLS
128 

•S 3112 IS

1 United States shall not disclose or require a central non2 profit agency or qualified nonprofit agency to disclose the 

3 identity of, or any other personally identifiable informa4 tion related to, any individual participating in an activity 

5 authorized under this title. 

6 SEC. 109. STUDY OF FEDERAL GOVERNMENT UTILIZATION. 

7 (a) IN GENERAL.—The Comptroller General of the 

8 United States shall conduct a study investigating Govern9 ment compliance with and the effectiveness of this title. 

10 (b) CONDUCT OF STUDY.—In conducting the study 

11 under subsection (a), the Comptroller General of the 

12 United States shall consult with participants in the pro13 gram carried out under this title and the entities of the 

14 Government and conduct a study addressing— 

15 (1) the frequency with which this title is being 

16 utilized or circumvented; 

17 (2) the reasons for the circumvention; 

18 (3) the extent to which Federal purchasers, in 

19 particular those using government credit cards, are 

20 aware of the requirement of section 104 to procure 

21 products and services on the procurement list from 

22 qualified nonprofit agencies (referred to in this sec23 tion as the ‘‘JWOD mandate’’); 

24 (4) the efforts undertaken by the General Serv25 ices Administration to incorporate the JWOD manVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
129 

•S 3112 IS

1 date into its process, website, catalogs, and guidance 

2 for Federal buyers, and ensure compliance with the 

3 mandate; 

4 (5) the efforts undertaken by the Committee to 

5 promote awareness of the JWOD mandate among 

6 Federal buyers; 

7 (6) compliance rates with the JWOD mandate 

8 among different entities of the Government; 

9 (7) whether and how often products and serv10 ices on the procurement list are being bought 

11 through multiple award schedules; 

12 (8) the length and effectiveness of the process 

13 by which products and services are added to the pro14 curement list by the Committee, and the extent to 

15 which Federal buyers and contractors (other than 

16 central nonprofit agencies and qualified nonprofit 

17 agencies) are involved in the process; 

18 (9) specific data relating to dropping sales and 

19 employment rates among qualified nonprofit agen20 cies selling products and services through the pro21 gram carried out under this title; and 

22 (10) recommendations about making the pro23 gram more effective. 

24 (c) REPORT TO CONGRESS.—Not later than 18 

25 months after the date of enactment of the Javits-WagnerVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
130 

•S 3112 IS

1 O’Day and Randolph-Sheppard Modernization Act of 

2 2008, the Comptroller General of the United States shall 

3 prepare and submit to the appropriate committees of Con4 gress a report containing the outcomes of the study con5 ducted under subsection (a). 

6 SEC. 110. AUTHORIZATION OF APPROPRIATIONS. 

7 There are authorized to be appropriated to the Com8 mittee to carry out this title, in addition to amounts made 

9 available through fees made available under section 

10 105(f), $2,500,000 for fiscal year 2009 and such sums 

11 as may be necessary for each of the next succeeding 9 

12 fiscal years. 

13 TITLE II—RANDOLPH-SHEPPARD 

14 ACT 

15 SEC. 201. SHORT TITLE. 

16 This title may be cited as the ‘‘Randolph-Sheppard 

17 Act’’. 

18 SEC. 202. DEFINITIONS. 

19 In this title: 

20 (1) FEDERAL PROPERTY.—The term ‘‘Federal 

21 property’’ means any building, land, or other real 

22 property owned, leased, or occupied by any entity of 

23 the Government. 

24 (2) LICENSED VENDOR.—The term ‘‘licensed 

25 vendor’’ means a vendor who receives a license from 


erowe on PRODPC61 with BILLS
131 

•S 3112 IS

1 a State licensing agency under this title to operate 

2 a vending facility on Federal property. 

3 (3) STATE LICENSING AGENCY.—The term 

4 ‘‘State licencing agency’’ means an agency described 

5 in section 204(b). 

6 (4) VENDING FACILITY.—The term ‘‘vending 

7 facility’’ means an automatic vending machine, cafe8 teria (but not including cafeteria attendant services), 

9 snack bar, cart service, shelter, and counter, and 

10 such other appropriate auxiliary equipment as the 

11 Committee may by regulation prescribe as being nec12 essary for the sale of an article or service described 

13 in section 204(b)(1), and which may be operated by 

14 a licensed vendor. 

15 (5) VENDING MACHINE INCOME.—The term 

16 ‘‘vending machine income’’ means— 

17 (A) receipts (other than those of a licensed 

18 vendor) from vending machine operations on 

19 Federal property, after costs of goods sold (in20 cluding reasonable service and maintenance 

21 costs), in a case in which the machines are op22 erated, serviced, or maintained by, or with the 

23 approval of, an entity of the Government; or 

24 (B) commissions paid (other than to a li25 censed vendor) by a commercial vending conVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00131 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
132 

•S 3112 IS

1 cern that operates, services, and maintains 

2 vending machines on Federal property for, or 

3 with the approval of, an entity of the Govern4 ment. 

5 SEC. 203. OPERATION OF VENDING FACILITIES. 

6 (a) IN GENERAL.— 

7 (1) IN GENERAL.—For the purposes of pro8 viding remunerative employment for individuals with 

9 disabilities, enlarging the economic opportunities of 

10 individuals with disabilities, and inspiring individuals 

11 with disabilities to greater efforts in striving to make 

12 themselves self-supporting, licensed vendors shall be 

13 authorized to operate vending facilities on any Fed14 eral property. 

15 (2) PRIORITY.— 

16 (A) IN GENERAL.—In authorizing the op17 eration of a vending facility on Federal prop18 erty, the head of the entity of the Government 

19 that owns, leases, or occupies such property 

20 shall give priority to State licensing agencies on 

21 behalf of licensed vendors. 

22 (B) DECLINE TO EXERCISE.—A State li23 censing agency may decline to exercise the pri24 ority under subparagraph (A) on behalf of the 


erowe on PRODPC61 with BILLS
133 

•S 3112 IS

1 licensed vendors licensed by such State licens2 ing agency. 

3 (b) OBLIGATION OF FEDERAL ENTITIES.— 

4 (1) IN GENERAL.— 

5 (A) IN GENERAL.—No entity of the Gov6 ernment shall undertake to acquire by owner7 ship, rent, lease, or to otherwise occupy, in 

8 whole or in part, any building unless, after con9 sultation with the head of such entity and the 

10 State licensing agency, it is determined by the 

11 Committee that— 

12 (i) such building includes a satisfac13 tory site for the location and operation of 

14 a vending facility by a licensed vendor; or 

15 (ii) if a building is to be constructed, 

16 substantially altered, or renovated, the de17 sign for such construction, substantial al18 teration, or renovation includes a satisfac19 tory site for the location and operation of 

20 a vending facility by a licensed vendor. 

21 (B) NOTICE.—Each entity of the Govern22 ment shall provide notice to the Committee and 

23 the appropriate State licensing agency of its 

24 plans for occupation, acquisition, renovation, or 

25 relocation of a building adequate to permit such 


erowe on PRODPC61 with BILLS
134 

•S 3112 IS

1 State licensing agency to determine whether 

2 such building includes a satisfactory site for a 

3 vending facility. 

4 (2) NONAPPLICATION.—The provisions of para5 graph (1) shall not apply— 

6 (A) when the Committee and the State li7 censing agency determine that the number of 

8 people using the property is or will be insuffi9 cient to support a vending facility; or 

10 (B) to any privately owned building, any 

11 part of which is leased by any entity of the Gov12 ernment and in which— 

13 (i) prior to the execution of such 

14 lease, the lessor or any of the tenants of 

15 the lessor had in operation a restaurant or 

16 other food facility in a part of the building 

17 not included in such lease; and 

18 (ii) the operation of a vending facility 

19 by a licensed vendor would be in proximate 

20 and substantial direct competition with 

21 such restaurant or other food facility. 

22 (3) EFFORT TO LEASE IN BUILDINGS CAPABLE

23 OF ACCOMMODATING A VENDING FACILITY.—Each 

24 entity of the Government shall make every effort to 


erowe on PRODPC61 with BILLS
135 

•S 3112 IS

1 lease property in privately owned buildings capable 

2 of accommodating a vending facility. 

3 (4) SATISFACTORY SITE DEFINED.—In this 

4 subsection, the term ‘‘satisfactory site’’ means an 

5 area determined by the Committee to have sufficient 

6 space, electrical and plumbing outlets, and such 

7 other facilities as the Committee may by regulation 

8 prescribe, for the location and operation of a vending 

9 facility by a licensed vendor. 

10 (c) VENDING MACHINE INCOME.— 

11 (1) IN GENERAL.—Vending machine income ob12 tained from the operation of vending machines on 

13 Federal property shall accrue as follows: 

14 (A) PROPERTY WITH A LICENSED VEN15 DOR.— 

16 (i) IN GENERAL.— 

17 (I) IN GENERAL.—Vending ma18 chine income obtained from the oper19 ation of vending machines on Federal 

20 property shall accrue to the licensed 

21 vendor operating a vending facility on 

22 such property subject to subclause 

23 (II). 

24 (II) AMOUNT.—One hundred per25 cent of all vending machine income 


erowe on PRODPC61 with BILLS
136 

•S 3112 IS

1 from vending machines on Federal 

2 property that are in direct competition 

3 with a vending facility operated by a 

4 licensed vendor shall accrue to such li5 censed vendor subject to clause (ii). In 

6 this subclause, the term ‘‘direct com7 petition’’ means the existence of any 

8 vending machines or vending facilities 

9 operated on the same premises as a 

10 vending facility operated by a licensed 

11 vendor except both of the following 

12 shall not be considered in direct com13 petition with the vending facility oper14 ated by a licensed vendor: 

15 (aa) Vending machines or 

16 vending facilities operated in 

17 areas serving employees, the ma18 jority of whom normally do not 

19 have direct access to the vending 

20 facility operated by a licensed 

21 vendor. 

22 (bb) The vending machine 

23 or vending facility in competition 

24 is operated by another licensed 

25 vendor. 


erowe on PRODPC61 with BILLS
137 

•S 3112 IS

1 (ii) CEILING.—The Committee may 

2 prescribe regulations imposing a ceiling on 

3 income from such vending machines for a 

4 licensed vendor. In the event such a ceiling 

5 is imposed, no licensed vendor shall receive 

6 less vending machine income under such 

7 ceiling than the vendor was receiving on 

8 January 1, 1974. Any amounts received by 

9 a licensed vendor that are in excess of the 

10 amount permitted to accrue any ceiling im11 posed by the Committee shall be disbursed 

12 to the State licensing agency under sub13 paragraph (B) and shall be used by such 

14 agency in accordance with paragraph (3). 

15 No limitation shall be imposed on income 

16 from vending machines, combined to create 

17 a vending facility, which are maintained, 

18 serviced, or operated by a licensed vendor. 

19 (B) PROPERTY WITH NO LICENSED VEN20 DOR.— 

21 (i) IN GENERAL.—In the event there 

22 is no licensed vendor operating a vending 

23 facility on Federal property, vending ma24 chine income obtained from the operation 

25 of vending machines on such property shall 


erowe on PRODPC61 with BILLS
138 

•S 3112 IS

1 accrue to the State licensing agency in 

2 whose State the Federal property is lo3 cated, for the uses designated in paragraph 

4 (3), subject to clause (ii). 

5 (ii) AMOUNT.—Fifty percent of all 

6 vending machine income from vending ma7 chines on Federal property that are not in 

8 direct competition (as defined in subpara9 graph (A)(i)(II)) with a vending facility 

10 operated by a licensed vendor on such 

11 property shall accrue as specified in clause 

12 (i), except that with respect to Federal 

13 property at which at least 50 percent of 

14 the total hours worked on the premises oc15 curs during periods other than normal 

16 working hours, 30 percent of such income 

17 shall accrue as specified in clause (i). 

18 (2) COMPLIANCE.—The head of each entity of 

19 the Government shall— 

20 (A) ensure compliance with this subsection 

21 with respect to buildings, installations, and fa22 cilities under the control of such head; and 

23 (B) be responsible for collection of, and ac24 counting for, such vending machine income. 

25 (3) USE OF INCOME.— 


erowe on PRODPC61 with BILLS
139 

•S 3112 IS

1 (A) IN GENERAL.—All vending machine in2 come that accrues to a State licensing agency 

3 pursuant to paragraph (1) shall— 

4 (i) first be used for the maintenance 

5 and replacement of equipment, the pur6 chase of new equipment, management serv7 ices, and assuring a fair minimum return 

8 to operators of vending facilities, as de9 scribed in section 205(d)(1)(C); and 

10 (ii) then be used to establish retire11 ment or pension plans, for health insur12 ance contributions, and for provision of 

13 paid sick leave and vacation time for li14 censed vendors in such State, subject to a 

15 vote by the Committee of Vendors as pro16 vided under section 205(d)(1)(C). 

17 (B) INCOME REMAINING.—Any vending 

18 machine income remaining after application of 

19 subparagraph (A) shall be used for the vending 

20 of newspapers, periodicals, confections, tobacco 

21 products, foods (including cafeterias but not in22 cluding cafeteria attendant services), beverages, 

23 and other articles or services dispensed auto24 matically or manually prepared on or off the 


erowe on PRODPC61 with BILLS
140 

•S 3112 IS

1 premises in accordance with all applicable 

2 health laws. 

3 (4) NONAPPLICATION.—Paragraph (1) shall not 

4 apply to income from vending machines within retail 

5 sales outlets under the control of exchange or ships’ 

6 stores systems authorized by title 10, United States 

7 Code, or to income from vending machines operated 

8 by the Veterans Canteen Service, or to income from 

9 vending machines not in direct competition with a li10 censed vending facility at individual locations, instal11 lations, or facilities on Federal property the total of 

12 which at such individual locations, installations, or 

13 facilities does not exceed $3,000 annually. 

14 SEC. 204. DUTIES AND POWERS OF THE COMMITTEE. 

15 (a) IN GENERAL.—In carrying out the purposes of 

16 this title, the Committee shall— 

17 (1) identify new vending facility sites for li18 censed vendors; 

19 (2) consult with the Administrator of General 

20 Services and other heads of entities of the Govern21 ment with responsibility for the maintenance, oper22 ation, and protection of Federal property, and in23 form such heads about the requirement to give pri24 ority under section 203(a)(2); 


erowe on PRODPC61 with BILLS
141 

•S 3112 IS

1 (3) promote the activities authorized under this 

2 title to entities of the Government; 

3 (4) enforce the requirement to give priority and 

4 monitor the compliance of entities of the Govern5 ment with the requirements of this title; 

6 (5) assist the State licensing agencies in con7 tacting procurement and contracting offices within 

8 the General Services Administration, and other enti9 ties of the Government with responsibility for the 

10 maintenance, operation, and protection of Federal 

11 property, regarding potential vending facilities; 

12 (6) establish and maintain— 

13 (A) standards for filling vending facility 

14 vacancies; and 

15 (B) criteria for evaluating and promoting 

16 licensed vendors based on their— 

17 (i) skills; 

18 (ii) education; 

19 (iii) prior work experience; and 

20 (iv) additional training or accredita21 tion; 

22 (7) provide technical assistance to State licens23 ing agencies and training to State licensing agencies 

24 and licensed vendors; 


erowe on PRODPC61 with BILLS
142 

•S 3112 IS

1 (8) establish, promote, and administer pro2 grams to enable the expansion and growth of vend3 ing facility opportunities, and employment and en4 trepreneurship opportunities, including opportunities 

5 for— 

6 (A) franchising; and 

7 (B) developing partnerships with private 

8 sector entities and business ownership in the 

9 private sector; 

10 (9) develop program reporting and account11 ability standards for activities authorized under this 

12 title; 

13 (10) develop criteria for, and assist State licens14 ing agencies in collecting data for, monitoring com15 pliance with this title by entities of the Government 

16 and licensed vendors, and enforcing the payment 

17 and collection of vending machine income and set18 aside dues; 

19 (11) develop or update, not less often than 

20 every 5 years, a strategic business development plan, 

21 pursuant to subsection (h)(5); 

22 (12) create an advisory body comprised of 

23 members of the Committee of Vendors described in 

24 section 205(c) and State licensing agencies; 


erowe on PRODPC61 with BILLS
143 

•S 3112 IS

1 (13) prepare and submit to the President and 

2 Congress annual reports on outcomes and achieve3 ments resulting from the implementation of the pro4 grams and policies required under this title; 

5 (14) respond to requests from licensed vendors 

6 for assistance in improving financial management 

7 procedures to correct material weaknesses identified 

8 during audits, and filing Federal business income 

9 tax returns; and 

10 (15) collect— 

11 (A) financial audits performed pursuant to 

12 section 206(c)(6); and 

13 (B) tax returns filed pursuant to section 

14 206(c)(7). 

15 (b) DESIGNATING STATE LICENSING AGENCIES.— 

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the Committee shall designate the State 

18 agency for the blind in each State, or, in any State 

19 in which there is no such agency, some other public 

20 agency as the State licensing agency to issue licenses 

21 to individuals with disabilities for the operating of 

22 vending facilities on Federal and other property in 

23 such State for the vending of newspapers, periodi24 cals, confections, foods (including cafeterias but not 

25 including cafeteria attendant services), beverages, 


erowe on PRODPC61 with BILLS
144 

•S 3112 IS

1 and other articles or services dispensed automati2 cally or manually prepared on or off the premises in 

3 accordance with all applicable health laws, as deter4 mined by the State licensing agency, and including 

5 the vending or exchange of chances for any lottery 

6 authorized by State law and conducted by an agency 

7 of a State. 

8 (2) STATES WITH APPROVED PLANS FOR VOCA9 TIONAL REHABILITATION.—In any State having an 

10 approved plan for vocational rehabilitation services 

11 pursuant to section 101(a)(1)(A) of the Rehabilita12 tion Act of 1973 (29 U.S.C. 721(a)(1)(A)), the 

13 State licensing agency designated under paragraph 

14 (1) shall be the State agency designated under sec15 tion 101(a)(2)(A) of such Act. 

16 (c) REGULATIONS AND POLICIES.— 

17 (1) IN GENERAL.—The Committee shall develop 

18 and issue regulations and policies for the adminis19 tration and management of the vending facility pro20 gram carried out under this title to ensure that— 

21 (A) the priority described in section 

22 203(a)(2) is given to State licensing agencies on 

23 behalf of licensed vendors as described in such 

24 section (and shall ensure that vending machine 

25 income accrues pursuant to section 203(c)); 


erowe on PRODPC61 with BILLS
145 

•S 3112 IS

1 (B) wherever feasible, 1 or more vending 

2 facilities are established on each Federal prop3 erty to the extent that the placement and oper4 ation of any such facilities would not adversely 

5 affect the interests of the United States; and 

6 (C) provisions of training, reviewing, moni7 toring, evaluating, reporting by, awarding facili8 ties to, promoting, and auditing the State li9 censing agencies and licensed vendors are ap10 propriate to carry out the Committee’s duties 

11 under this title. 

12 (2) PLACEMENT OR OPERATION OF VENDING

13 FACILITIES.—If an entity of the Government estab14 lishes a limitation or prohibition on the placement or 

15 operation of a vending facility, based on a deter16 mination that such placement or operation would ad17 versely affect the interests of the United States, as 

18 described in paragraph (1)(B), the entity shall jus19 tify the limitation or prohibition to the Committee. 

20 The entity shall submit the justification in writing to 

21 the Committee, who shall determine whether such 

22 limitation or prohibition is justified. The determina23 tion shall be binding on any entity affected by such 

24 determination. The Committee shall publish such deVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
146 

•S 3112 IS

1 termination, along with supporting documentation, 

2 in the Federal Register. 

3 (d) PROVISION OF TRAINING.— 

4 (1) PROVISION.—The Committee shall ensure 

5 that the provision of training is uniform and effec6 tive, including on-the-job training and training on 

7 vacancy and promotion procedures, is provided for 

8 individuals with disabilities, through State licensing 

9 agencies designated under subsection (b) and 

10 through the provision of services under the Rehabili11 tation Act of 1973 (29 U.S.C. 701 et seq.). 

12 (2) TRANSFERABLE SKILL DEVELOPMENT.— 

13 The Committee shall ensure that the provision of 

14 training includes transferable skill development in 

15 order to maximize the vocational potential of individ16 uals with disabilities interested in self-employment, 

17 entrepreneurship, or management opportunities 

18 available through programs carried out under this 

19 title or through other sources. 

20 (e) REVIEWS AND MONITORING.— 

21 (1) DUTIES.—In carrying out the Committee’s 

22 duties under this title, the Committee shall conduct 

23 a review annually, and on-site monitoring once every 

24 2 years, of the State licensing agencies and licensed 

25 vendors. 


erowe on PRODPC61 with BILLS
147 

•S 3112 IS

1 (2) PROCEDURES FOR REVIEWS.—In con2 ducting an annual review of State licensing agencies 

3 and licensed vendors under this subsection, the Com4 mittee shall consider, at a minimum— 

5 (A) the policies and procedures of the 

6 State licensing agencies; 

7 (B) regulations and guidance materials; 

8 (C) the number of licensed vendors and 

9 employees with disabilities working for the li10 censed vendors; 

11 (D) the goals described in subsection 

12 (a)(11) and the extent to which the State li13 censing agencies and licensed vendors have met 

14 such goals; 

15 (E) reports, and information supporting 

16 reports, prepared under subsections (a)(13) and 

17 (g); and 

18 (F) information filed by the State licensing 

19 agencies with the Internal Revenue Service, and 

20 budget, financial management, and audit data. 

21 (3) PROCEDURES FOR MONITORING.—In con22 ducting monitoring under this subsection, the Com23 mittee shall— 

24 (A) conduct— 


erowe on PRODPC61 with BILLS
148 

•S 3112 IS

1 (i) on-site visits, including on-site re2 views of records to verify that the State li3 censing agencies and licensed vendors are 

4 following the requirements of this title; 

5 (ii) meetings with the State licensing 

6 agencies and licensed vendors; 

7 (iii) reviews of licensed vendors’ indi8 vidualized plans for employment; and 

9 (iv) meetings with staff and employees 

10 of the State licensing agencies or licensed 

11 vendors, including employees with disabil12 ities; and 

13 (B) determine whether the State licensing 

14 agencies or licensed vendors involved are com15 plying with the reporting requirements and 

16 evaluation standards of this title, and meeting 

17 the goals described in subsection (a)(11). 

18 (4) AREAS OF INQUIRY.—In conducting a re19 view or monitoring under this subsection with re20 spect to a State licensing agency or licensed vendor, 

21 the Committee shall examine— 

22 (A) the eligibility process used by the 

23 agency; 


erowe on PRODPC61 with BILLS
149 

•S 3112 IS

1 (B) the provision of training, filling va2 cancy and promotional procedures, and other 

3 services provided by the agency; 

4 (C) the procedures for locating new vend5 ing facilities; 

6 (D) the hiring practices of the licensed 

7 vendor; 

8 (E) the State licensing agency or licensed 

9 vendor activities in such other areas of inquiry 

10 as the Committee may consider appropriate; 

11 and 

12 (F) the State licensing agency or licensed 

13 vendor activities in such other areas as may be 

14 identified through meetings with a State licens15 ing agency or licensed vendor. 

16 (5) NONDISCLOSURE.—For purposes of any re17 view or monitoring carried out under this subsection, 

18 the Committee shall not disclose or require a State 

19 licensing agency or licensed vendor to disclose the 

20 identity of, or any other personally identifiable infor21 mation related to, any individual participating in an 

22 activity authorized under this title. 

23 (6) AVAILABILITY ON WEBSITE.—The Com24 mittee shall make available to the public on the 

25 Committee’s website, in an accessible format, each 


erowe on PRODPC61 with BILLS
150 

•S 3112 IS

1 report resulting from a review or monitoring carried 

2 out under this subsection. 

3 (f) ENFORCEMENT.—At the request of the Com4 mittee, the Inspector General of the General Services Ad5 ministration shall assist the Committee in determining if 

6 entities of the Government, State licensing agencies, and 

7 licensed vendors are complying with this title. 

8 (g) INFORMATION COLLECTION AND REPORT.— 

9 (1) IN GENERAL.—Not later than December 31 

10 of each year, the Committee shall collect information 

11 described in this subsection, including the informa12 tion provided by the State licensing agencies and li13 censed vendors in annual reports submitted by such 

14 agencies and vendors. The Committee shall prepare 

15 an overall summary of the information collected 

16 under this subsection, including compiling and pre17 paring a summary of the information provided by 

18 the State licensing agencies and licensed vendors. 

19 The Committee shall annually prepare and submit to 

20 the President and Congress a report that includes 

21 the overall summary. 

22 (2) COLLECTION OF INFORMATION.— 

23 (A) STATE LICENSING AGENCY AND LI24 CENSED VENDORS.— 


erowe on PRODPC61 with BILLS
151 

•S 3112 IS

1 (i) RECORDS.—Each State licensing 

2 agency, and licensed vendor operating a 

3 vending facility pursuant to this title, shall 

4 keep records prescribed by the Committee 

5 as required by this title and shall partici6 pate in data collection as required by this 

7 title, including data collection required for 

8 preparation of the reports described in 

9 clause (ii). The Committee shall have ac10 cess to such records and to any other 

11 records of the State licensing agencies that 

12 relate to activities of the agencies and com13 pliance by the agencies with any require14 ment of this title. 

15 (ii) REPORTS.—The Committee shall 

16 require that each State licensing agency 

17 and licensed vendor annually prepare and 

18 submit to the Committee the reports de19 scribed in sections 205(e) and 206(d). 

20 (B) COMMITTEE.—The Committee shall 

21 collect information to determine whether the 

22 purposes of this title are being met and to as23 sess the performance of programs carried out 

24 under this title, including information related to 

25 audits, performance, and compliance. 


erowe on PRODPC61 with BILLS
152 

•S 3112 IS

1 (3) INFORMATION.—The information required 

2 to be collected under this subsection (including infor3 mation provided in annual reports submitted under 

4 subsection (a)(13)) includes information— 

5 (A) collected from State licensing agencies 

6 and licensed vendors pursuant to sections 

7 205(e) and 206(d), aggregated for the United 

8 States; 

9 (B) on the number of new vending facility 

10 locations identified and disaggregated by State; 

11 (C) on the number of vending facility loca12 tions that State licensing agencies did not de13 velop and the rationale for not developing such 

14 sites; 

15 (D) on the development of new markets for 

16 vending facility services; 

17 (E) on a comparison of the number of li18 censed vendors contracts and sales under this 

19 title to sales through Government contracts 

20 with small businesses; and 

21 (F) other items as determined necessary by 

22 the Committee. 

23 (4) SUBMISSION OF REPORT.—The Committee 

24 shall submit the report described in paragraph (1) to 

25 the President, the Committee on Oversight and GovVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
153 

•S 3112 IS

1 ernment Reform, and the Committee on Education 

2 and Labor, of the House of Representatives, and the 

3 Committee on Homeland Security and Governmental 

4 Affairs, and the Committee on Health, Education, 

5 Labor, and Pensions of the Senate. 

6 (5) AVAILABILITY ON WEBSITE.—The Com7 mittee shall make the annual report available to the 

8 public on the Committee’s website, in an accessible 

9 format. 

10 (6) NONDISCLOSURE.—For purposes of this 

11 title, the Committee shall not disclose or require a 

12 State licensing agency or licensed vendor to disclose, 

13 the identity of, or any other personally identifiable 

14 information related to, any individual participating 

15 in an activity authorized under this title. 

16 (7) CONSEQUENCES FOR FAILURE TO RE17 PORT.— 

18 (A) LICENSED VENDOR.—If the Com19 mittee has not received the annual report of a 

20 licensed vendor for a year under section 206(d), 

21 the Committee, through the State licensing 

22 agency, shall ban the vendor from participating 

23 in activities carried out under this title, and 

24 award the vending facility site to a new vendor, 


erowe on PRODPC61 with BILLS
154 

•S 3112 IS

1 until the Committee has received the report 

2 from the licensed vendor. 

3 (B) STATE LICENSING AGENCY.—If the 

4 Committee has not received the annual report 

5 of a State licensing agency for a year under 

6 section 205(e), the Committee shall request to 

7 the appropriate vocational rehabilitation agency 

8 that the agency suspend the State licensing 

9 agency’s allotment under section 110 of the Re10 habilitation Act of 1973 (29 U.S.C. 730), until 

11 the Committee has received the report. 

12 (h) SURVEYS, STUDIES, AND STANDARDS OF THE

13 COMMITTEE FOR THE ADVANCEMENT OF INDIVIDUALS

14 WITH DISABILITIES.— 

15 (1) 180 DAYS.—Not later than 180 days after 

16 the date of enactment of the Javits-Wagner-O’Day 

17 and Randolph-Sheppard Modernization Act of 2008, 

18 the Committee shall— 

19 (A) establish requirements for the uniform 

20 application of this title by each State licensing 

21 agency, including appropriate accounting proce22 dures, policies on the selection and establish23 ment of new vending facilities, distribution of 

24 income to licensed vendors, and the use and 


erowe on PRODPC61 with BILLS
155 

•S 3112 IS

1 control of set-aside funds under section 

2 205(d)(1)(C); 

3 (B) after consultation with, and consider4 ation of the views of licensed vendors and State 

5 licensing agencies, promulgate standards for 

6 funds set aside pursuant to section 

7 205(d)(1)(C), which includes maximum and 

8 minimum amounts for such funds, and appro9 priate contributions, to such funds by licensed 

10 vendors; and 

11 (C) submit to the President and Congress 

12 a report, with appropriate supporting docu13 mentation, which shows the actions taken by 

14 each such State licensing agency to meet the re15 quirements of subparagraphs (A) and (B). 

16 (2) ONE YEAR.—Not later than 1 year after the 

17 date of enactment of the Javits-Wagner-O’Day and 

18 Randolph-Sheppard Modernization Act of 2008, the 

19 Comptroller General of the United States, with the 

20 assistance of the Committee, State licensing agen21 cies, and licensed vendors, shall conduct a survey 

22 to— 

23 (A) quantify the untapped market share of 

24 vending facility opportunities on Federal prop25 erty and other property in the United States for 


erowe on PRODPC61 with BILLS
156 

•S 3112 IS

1 a third of States and collect information about 

2 similar State laws and programs; 

3 (B) assist with the identification of vend4 ing facilities on Federal property where there is 

5 no licensed vendor operating such facility; and 

6 (C) assist with the enforcement of col7 lecting vending machine income. 

8 (3) TWO YEARS.—Not later than 2 years after 

9 the date of enactment of the Javits-Wagner-O’Day 

10 and Randolph-Sheppard Modernization Act of 2008, 

11 the Committee shall follow-up and conduct further 

12 analysis of the survey described in paragraph (2) 

13 and in a report provide such analysis to the Presi14 dent, Congress, and State licensing agencies. The 

15 Committee shall provide within such report for each 

16 site identified contact information for procurement 

17 and contract officers and contract length for the 

18 current vendor. 

19 (4) EACH YEAR THEREAFTER.—Beginning 3 

20 years after the date of enactment of the Javits-Wag21 ner-O’Day and Randolph-Sheppard Modernization 

22 Act of 2008, and each year thereafter, the Com23 mittee shall make annual surveys consistent with the 

24 information collected in the analysis under para25 graph (3) of vending facility opportunities for liVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00156 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
157 

•S 3112 IS

1 censed vendors on Federal property and other prop2 erty in the United States. The Committee shall 

3 make such surveys available to State licensing agen4 cies and licensed vendors. 

5 (5) STRATEGIC BUSINESS DEVELOPMENT

6 PLAN.—Not later than 3 years after the date of en7 actment of the Javits-Wagner-O’Day and Randolph8 Sheppard Modernization Act of 2008, and not less 

9 often than every 5 years thereafter, the Committee, 

10 in consultation with State licensing agencies and the 

11 advisory body authorized in subsection (a)(12), shall 

12 develop or update a comprehensive strategic business 

13 development plan that— 

14 (A) includes— 

15 (i) establishing implementation re16 sponsibilities of State licensing agencies 

17 and licensed vendors; 

18 (ii) setting goals for the program and 

19 measures toward meeting such goals; 

20 (iii) monitoring progress toward meet21 ing the purposes of this title and meas22 uring success toward meeting the purposes; 

23 (iv) reassessing the provision of train24 ing for licensed vendors, establishing qual25 ity standards, designing appropriate cerVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
158 

•S 3112 IS

1 tifications, and developing best practices 

2 manuals; 

3 (v) improving data collection; 

4 (vi) enhancing business skill develop5 ment and training for vendors and tech6 nical assistance for State licensing agencies 

7 and licensed vendors; 

8 (vii) creating employment opportuni9 ties for individuals with disabilities and in10 creasing wages for such persons; and 

11 (viii) developing action steps for— 

12 (I) ongoing relationships with 

13 various Federal agencies and private 

14 sector businesses; 

15 (II) identifying new Federal and 

16 private sector customers; 

17 (III) conducting an in-depth mar18 ket analysis inside and outside of the 

19 Federal Government to determine 

20 which markets to enter and which 

21 Federal agencies to pursue; 

22 (IV) establishing business goals 

23 for job growth based on the new lines 

24 of business; 


erowe on PRODPC61 with BILLS
159 

•S 3112 IS

1 (V) locating new vending facility 

2 sites and enhancing employment and 

3 entrepreneurship opportunities offered 

4 within and outside of this title; 

5 (VI) increasing licensed vendors 

6 sales revenues and marketing of the 

7 program; 

8 (VII) improving activities author9 ized under this title; and 

10 (VIII) other information that the 

11 Committee, State licensing agencies, 

12 and the advisory body requires; and 

13 (B) is developed or updated in conjunction 

14 with the State plans submitted under section 

15 101 of the Rehabilitation Act of 1973 (29 

16 U.S.C. 721). 

17 (6) AVAILABLE TO THE PUBLIC.—The Com18 mittee shall make available to the public, and espe19 cially to persons and organizations engaged in work 

20 for individuals with disabilities, information obtained 

21 as a result of such surveys under this subsection. 

22 (i) RECORDS AND AUDITS.— 

23 (1) RECORDS.—The Committee, each State li24 censing agency, and each licensed vendor operating 

25 a vending facility pursuant to this title shall keep 


erowe on PRODPC61 with BILLS
160 

•S 3112 IS

1 records that fully disclose the amount and disposi2 tion of funds (including fees) made available under 

3 this title, the cost of providing activities authorized 

4 by this title (including how the funds are used), the 

5 share of that cost provided from other sources, and 

6 such other records as will facilitate an effective fi7 nancial or programmatic audit. The Committee, each 

8 State licensing agency, and each licensed vendor op9 erating a vending facility pursuant to this title, shall 

10 maintain such records for 5 years after the comple11 tion of the activity. 

12 (2) ACCESS TO RECORDS BY THE COM13 MITTEE.—The Committee shall have access, for the 

14 purpose of audit and examination, to any books, doc15 uments, papers, and other records that— 

16 (A) are maintained by a State licensing 

17 agency or licensed vendor; and 

18 (B) may be related or pertinent to activi19 ties authorized under, or in compliance with re20 quirements of, this title. 

21 (3) ACCESS TO RECORDS BY COMPTROLLER

22 GENERAL OF THE UNITED STATES.—The Comp23 troller General of the United States, or any of the 

24 duly authorized representatives of the Comptroller 

25 General, shall have access, for the purpose of audit 


erowe on PRODPC61 with BILLS
161 

•S 3112 IS

1 and examination, to any books, documents, papers, 

2 and other records of the Committee and each State 

3 licensing agency. This paragraph shall also apply to 

4 any licensed vendor operating a vending facility pur5 suant to this title but only with respect to the books, 

6 documents, papers, and other records of such vendor 

7 that relate to the licensed vendor’s activities in a fis8 cal year in which a sale was made under this title. 

9 The Committee and each State licensing agency and 

10 licensed vendor to which this paragraph applies, 

11 shall maintain such records for 5 years after the 

12 completion of the activity involved. 

13 (4) NONDISCLOSURE.—For purposes of any 

14 audit or examination, the Committee or Comptroller 

15 General of the United States shall not disclose or re16 quire a State licensing agency or licensed vendor to 

17 disclose the identity of, or any other personally iden18 tifiable information related to, any individual partici19 pating in an activity authorized under this title. 

20 (j) COMPLIANCE.— 

21 (1) STATE LICENSING AGENCY REPORTS.—In 

22 accordance with regulations established by the Com23 mittee, each State licensing agency shall report to 

24 the Committee after the end of each fiscal year the 


erowe on PRODPC61 with BILLS
162 

•S 3112 IS

1 extent to which the State licensing agency is in com2 pliance with activities authorized under this title. 

3 (2) PROGRAM IMPROVEMENT.— 

4 (A) PLAN.—If the Committee determines 

5 that any State licensing agency is out of com6 pliance with this title, the Committee shall pro7 vide technical assistance to the State licensing 

8 agency, and the State licensing agency and the 

9 Committee shall jointly develop a program im10 provement plan outlining the specific actions to 

11 be taken by the State licensing agency to im12 prove program performance. 

13 (B) REVIEW.—The Committee shall— 

14 (i) review the program improvement 

15 efforts of the State licensing agency on a 

16 biannual basis and, if necessary, request 

17 the State licensing agency to make further 

18 revisions to the plan to improve perform19 ance; and 

20 (ii) continue to conduct such reviews 

21 and request such revisions until the State 

22 licensing agency sustains satisfactory per23 formance over a period of more than 1 

24 year. 


erowe on PRODPC61 with BILLS
163 

•S 3112 IS

1 (C) WITHHOLDING.—If the Committee de2 termines that a State licensing agency whose 

3 performance falls below the established stand4 ards has failed to enter into a program im5 provement plan, or is not complying with the 

6 terms and conditions of such a program im7 provement plan, the Committee shall request to 

8 the appropriate vocational rehabilitation agency 

9 that— 

10 (i) the vocational rehabilitation agency 

11 suspend the State licensing agency’s allot12 ment under section 110 of the Rehabilita13 tion Act of 1973 (29 U.S.C. 730); or 

14 (ii) the vocational rehabilitation agen15 cy designate another entity as the State li16 censing agency until the State licensing 

17 agency has entered into an approved pro18 gram improvement plan, or satisfies the 

19 Committee that the State licensing agency 

20 is complying with the terms and conditions 

21 of such a program improvement plan, as 

22 appropriate. 

23 (D) REPORTS.—The Committee shall in24 clude in each annual report to the President 

25 and Congress under subsection (a)(13) an analVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00163 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
164 

•S 3112 IS

1 ysis of program performance, including relative 

2 State licensing agency performance. 

3 (E) PUBLIC NOTIFICATION.—The Com4 mittee shall notify the public of each action 

5 taken by the Committee under this paragraph 

6 by making available information about the ac7 tion on the website of the Committee, in an ac8 cessible format. As a part of such notification, 

9 the Committee shall describe each such action 

10 taken under this section and the outcomes of 

11 each such action. 

12 (k) GRIEVANCES.— 

13 (1) IN GENERAL.—Any licensed vendor who is 

14 dissatisfied with any action arising from the oper15 ation or administration of the vending facility pro16 gram may submit a grievance to a State licensing 

17 agency in accordance with section 205(d)(1)(F). If 

18 such licensed vendor is dissatisfied with any action 

19 taken or decision rendered as a result of a hearing 

20 resulting from such grievance, the licensed vendor 

21 may file a complaint with the Committee that shall 

22 convene a panel to arbitrate the dispute pursuant to 

23 subsection (l), to specify a corrective action. The de24 cision of such panel shall be final and binding on the 

25 parties except as otherwise provided under this title. 


erowe on PRODPC61 with BILLS
165 

•S 3112 IS

1 (2) GRIEVANCE AGAINST FEDERAL ENTITIES.— 

2 Whenever any State licensing agency determines 

3 that any entity of the Government that has control 

4 of the maintenance, operation, and protection of 

5 Federal property is failing to comply with the provi6 sions of this title or any regulations issued pursuant 

7 to this title (including a limitation on the placement 

8 or operation of a vending facility as described in 

9 subsection (c)(2) and the Committee’s determination 

10 of such limitation), such State licensing agency may 

11 file a complaint with the Committee that shall con12 vene a panel to arbitrate the dispute pursuant to 

13 subsection (l), and the decision of such panel shall 

14 be final and binding on the parties except as other15 wise provided under this title. 

16 (3) COMPLIANCE WITH DECISION.—The Com17 mittee and State licensing agency shall enforce a de18 cision made by a panel pursuant to this subsection 

19 and the party against whom a decision is rendered 

20 shall abide by the decision. 

21 (l) ARBITRATION.— 

22 (1) IN GENERAL.—Upon receipt of a complaint 

23 filed pursuant to paragraph (1) or (2) of subsection 

24 (k), the Committee shall convene an ad hoc arbitra25 tion panel. Such panel shall, in accordance with the 


erowe on PRODPC61 with BILLS
166 

•S 3112 IS

1 provisions of this subsection, give notice, conduct a 

2 hearing, and render its decision, which shall be sub3 ject to appeal and review as a final agency action for 

4 purposes of chapter 7 of title 5, United States Code. 

5 (2) COMPOSITION OF PANELS.— 

6 (A) COMPOSITION OF PANEL TO HEAR

7 GRIEVANCES OF LICENSED VENDORS.— 

8 (i) IN GENERAL.—The arbitration 

9 panel, convened by the Committee to hear 

10 grievances of licensed vendors, shall be 

11 composed of 3 members appointed as fol12 lows: 

13 (I) One individual designated by 

14 the State licensing agency. 

15 (II) One individual designated by 

16 the licensed vendor. 

17 (III) One individual, not em18 ployed by the State licensing agency 

19 or, where appropriate, its parent 

20 agency, who shall serve as chairman, 

21 jointly designated by the members ap22 pointed under subclauses (I) and (II). 

23 (ii) FAILURE TO DESIGNATE.—If any 

24 party fails to designate a member under 


erowe on PRODPC61 with BILLS
167 

•S 3112 IS

1 clause (i), the Committee shall designate 

2 such member on behalf of such party. 

3 (B) COMPOSITION OF PANEL TO HEAR

4 COMPLAINTS OF STATE LICENSING AGENCIES.— 

5 (i) IN GENERAL.—The arbitration 

6 panel, convened by the Committee to hear 

7 complaints filed by a State licensing agen8 cy, shall be composed of 3 members as fol9 lows: 

10 (I) One individual, designated by 

11 the State licensing agency. 

12 (II) One individual, designated 

13 by the head of the entity of the Gov14 ernment controlling the Federal prop15 erty over which the dispute arose. 

16 (III) One individual, not em17 ployed by the entity of the Govern18 ment controlling the Federal property 

19 over which the dispute arose, who 

20 shall serve as chairman, jointly des21 ignated by the members appointed 

22 under subclauses (I) and (II). 

23 (ii) FAILURE TO DESIGNATE.—If any 

24 party fails to designate a member under 

25 clause (i), the Committee shall designate 


erowe on PRODPC61 with BILLS
168 

•S 3112 IS

1 such member on behalf of such party. If 

2 the panel appointed pursuant to clause (i) 

3 finds that the acts or practices of any such 

4 entity of the Government are in violation 

5 of this title, or any regulation issued under 

6 this title, the head of any such entity of 

7 the Government shall cause such acts or 

8 practices to be terminated promptly and 

9 shall take such other action as may be nec10 essary to carry out the decision of the 

11 panel. 

12 (3) PUBLICATION OF DECISIONS IN FEDERAL

13 REGISTER.—The decisions of a panel convened by 

14 the Committee pursuant to this subsection shall be 

15 matters of public record and shall be published in 

16 the Federal Register. 

17 (4) PAYMENT OF COSTS BY THE COMMITTEE.— 

18 The Committee shall pay all reasonable costs of ar19 bitration under this subsection in accordance with a 

20 schedule of fees and expenses published in the Fed21 eral Register. 

22 (5) PENALTIES.—An entity of the Government 

23 against whom a decision is rendered by a panel con24 vened by the Committee pursuant to this subsection 

25 shall be subject to a fee for not complying with this 


erowe on PRODPC61 with BILLS
169 

•S 3112 IS

1 title. Such penalty shall be determined by the Com2 mittee, which shall be subject to appeal and review 

3 as a final agency action for purposes of chapter 7 

4 of title 5, United States Code. 

5 SEC. 205. STATE LICENSING AGENCY POWERS AND DUTIES. 

6 (a) IN GENERAL.—Each State licensing agency shall 

7 carry out each of the following: 

8 (1) ISSUANCE OF LICENSES.— 

9 (A) IN GENERAL.—Each State licensing 

10 agency shall issue, pursuant to this subsection, 

11 licenses for the operation of a vending facility. 

12 Such licenses shall be issued only to applicants 

13 who are citizens of the United States and— 

14 (i) are eligible for vocational rehabili15 tation services under section 102 of the 

16 Rehabilitation Act of 1973 (29 U.S.C. 

17 722); and 

18 (ii) have completed the provision of 

19 training core competencies authorized in 

20 subsection (b). 

21 (B) DURATION.—Each license described in 

22 subparagraph (A) shall be issued for an indefi23 nite period but may be terminated by the State 

24 licensing agency if the agency is satisfied that 

25 the vending facility is not being operated in acVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00169 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
170 

•S 3112 IS

1 cordance with the rules and regulations pre2 scribed by such State licensing agency. 

3 (C) PARTICIPATION OF INDIVIDUALS WITH

4 DISABILITIES WHO ARE NOT BLIND.— 

5 (i) IN GENERAL.—Beginning 3 years 

6 after the date of enactment of the Javits7 Wagner-O’Day and Randolph-Sheppard 

8 Modernization Act of 2008, a State licens9 ing agency shall— 

10 (I) permit individuals with dis11 abilities who are not blind to— 

12 (aa) participate in the provi13 sion of training core com14 petencies under subsection (b); 

15 and 

16 (bb) receive licenses under 

17 subparagraph (A); or 

18 (II) merge the general State Vo19 cational Rehabilitation agency self-em20 ployment program (if one exists) with 

21 the State licensing agency vending fa22 cility program to create 1 entrepre23 neurial, self-employment program for 

24 individuals with disabilities. 


erowe on PRODPC61 with BILLS
171 

•S 3112 IS

1 (ii) MERGING OF PROGRAMS.—A 

2 State licensing agency that merges the pro3 grams described in clause (i)(II) shall sub4 mit a memorandum to the Committee that 

5 includes the following: 

6 (I) If the programs are adminis7 tered by 2 different agencies, a memo8 randum of understanding with the 

9 general State agency responsible for 

10 the self-employment program de11 scribed in clause (i)(II), that describes 

12 how the agencies will provide financial 

13 support and accommodations for indi14 viduals coming through the self-em15 ployment program. 

16 (II) A description of how the pro17 grams will combine entrepreneurship 

18 trainings. 

19 (III) A description of how the 

20 State licensing agency will provide to 

21 an individual with a disability inter22 ested in becoming a licensed vendor 

23 the necessary coursework needed to 

24 fulfill Federal and State food service 

25 requirements. 


erowe on PRODPC61 with BILLS
172 

•S 3112 IS

1 (IV) A description of how the 

2 State licensing agency will grand3 father in existing licensed vendors op4 erating a vending facility into the pro5 gram. 

6 (D) RESERVATION.— 

7 (i) IN GENERAL.—A State licensing 

8 agency shall reserve 50 percent of new 

9 vending facility sites for individuals who 

10 are blind and 50 percent of new vending 

11 facility sites for individuals who are blind 

12 and individuals with other disabilities. 

13 (ii) NEW SITES DEFINED.—In this 

14 subparagraph, the term ‘‘new vending fa15 cility sites’’ means a vending facility site— 

16 (I) that is first identified after 

17 the date of enactment of the Javits18 Wagner-O’Day and Randolph19 Sheppard Modernization Act of 2008 

20 and not under contract with the State 

21 licensing agency; or 

22 (II) with respect to which the li23 censed vendor has ceased operating 

24 such site after the date of enactment 

25 of the Javits-Wagner-O’Day and RanVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
173 

•S 3112 IS

1 dolph-Sheppard Modernization Act of 

2 2008. 

3 (2) SELECT LOCATIONS.—Each State licensing 

4 agency shall select a location for a vending facility 

5 and the type of facility to be provided with the ap6 proval of the head of the entity of the Government 

7 in control of the maintenance, operation, and protec8 tion of the Federal property on which the facility is 

9 to be located but subject to regulations prescribed 

10 pursuant to section 204(c). 

11 (3) SELF-EMPLOYMENT AND MANAGEMENT

12 TRAINING.—Each State licensing agency shall estab13 lish, promote, and implement provisions of training 

14 for self-employment and management in order to ex15 pand employment and entrepreneurship opportuni16 ties (including franchising) for individuals with dis17 abilities. 

18 (4) STANDARDS AND AWARDING OF SITES.— 

19 Each State licensing agency shall— 

20 (A) implement the Committee’s standards 

21 for filling vending facility vacancies, and cri22 teria for evaluating and promoting qualified li23 censed vendors; and 

24 (B) enter into subcontracts for vending fa25 cility sites with licensed vendors. 


erowe on PRODPC61 with BILLS
174 

•S 3112 IS

1 (5) EXPANSION AND GROWTH.—Each State li2 censing agency shall enable the expansion and 

3 growth of licensed vendors by— 

4 (A) developing partnerships with private 

5 sector entities; 

6 (B) developing programs for business own7 ership in the private sector; 

8 (C) assisting licensed vendors in bidding 

9 competitively for vending facility contracts on 

10 Federal property and locating funding sources 

11 (including loans) when the priority granted to 

12 State licensing agencies on behalf of licensed 

13 vendors pursuant to section 203(a)(2) does not 

14 apply because the State licensing agency— 

15 (i) determines that a vending facility 

16 site is not satisfactory; 

17 (ii) determines that a vending facility 

18 site is satisfactory but declines to exercise 

19 the priority; or 

20 (iii) does not have the funding nec21 essary to renovate a vending facility site; 

22 and 

23 (D) assisting licensed vendors in pursuing 

24 opportunities pursuant to this title and business 

25 ownership in the private sector. 


erowe on PRODPC61 with BILLS
175 

•S 3112 IS

1 (6) NEW SITES.—Each State licensing agency 

2 shall identify and establish new vending facility sites 

3 for licensed vendors, including— 

4 (A) contacting procurement and con5 tracting offices within the General Services Ad6 ministration and working with members of the 

7 Committee to contact other entities of the Gov8 ernment in control of the maintenance, oper9 ation, and protection of Federal property re10 garding potential vending facilities; and 

11 (B) financial plans for identifying and es12 tablishing new vending facilities. 

13 (7) INFORM ENTITIES.—Each State licensing 

14 agency shall work with the Committee to inform en15 tities of the Government about the requirements of 

16 this title. 

17 (8) PRIORITY.—Each State licensing agency 

18 shall work with the Committee to enforce the pri19 ority granted to State licensing agencies on behalf of 

20 licensed vendors pursuant to section 203(a)(2). 

21 (9) PROGRAM MEASURES AND ACCOUNTABILITY

22 STANDARDS.—Each State licensing agency shall de23 velop program reporting measures and assist the 

24 Committee with administering accountability stand25 ards with all licensed vendors. 


erowe on PRODPC61 with BILLS
176 

•S 3112 IS

1 (10) EVALUATION OF QUALIFICATIONS AND CA2 PABILITIES.—Each State licensing agency shall 

3 evaluate the qualifications and capabilities of li4 censed vendors and provide the Committee with per5 tinent data concerning the licensed vendors, the 

6 agency’s status as a qualified nonprofit agency, the 

7 agency’s manufacturing or service capabilities, and 

8 other information as required by the Committee. 

9 (11) ENSURE COMPLIANCE.—Each State licens10 ing agency shall oversee and assist the licensed ven11 dors to ensure compliance with vending facility con12 tract requirements and compliance with this title, in13 cluding appropriate regulations. 

14 (12) REVIEWS, MONITORING, EVALUATIONS, 

15 AND REPORTS.—Each State licensing agency shall 

16 carry out reviews, monitoring, and evaluations, and 

17 prepare reports, in accordance with this title. 

18 (13) PROMOTE POSITION VACANCIES.—Each 

19 State licensing agency shall promote position vacan20 cies within the Federal Government to individuals 

21 who are blind, or individuals with other disabilities. 

22 (14) COLLECT INCOME.—Each State licensing 

23 agency shall collect vending machine income and set24 aside funds in accordance with section 203(c) and 

25 subsection (d)(1)(C). 


erowe on PRODPC61 with BILLS
177 

•S 3112 IS

1 (15) GATHER DATA AND REPORTS.—Each 

2 State licensing agency shall gather data and reports 

3 from licensed vendors in accordance with subsection 

4 (e)(2), and sections 204(a)(13) and 206(d), to deter5 mine if the agencies have met the goals described in 

6 section 204(a)(11). 

7 (16) BIENNIAL ELECTION.—Each State licens8 ing agency shall conduct the biennial election of a 

9 Committee of Vendors. 

10 (17) ANNUAL REPORTS.—Each State licensing 

11 agency shall submit to the Committee annual reports 

12 on outcomes and achievements pursuant to sub13 section (e)(2) and sections 204(a)(13) and 206(d). 

14 (18) OTHER ACTIVITIES.—Each State licensing 

15 agency shall carry out other activities requested by 

16 the Committee. 

17 (b) PROVISION OF TRAINING CORE COM18 PETENCIES.— 

19 (1) IN GENERAL.—Each State licensing agency 

20 shall establish, promote, and implement the provi21 sion of training for self-employment and manage22 ment for individuals with disabilities either— 

23 (A) directly; or 

24 (B) indirectly, through one-stop centers as 

25 authorized in the Workforce Investment Act of 


erowe on PRODPC61 with BILLS
178 

•S 3112 IS

1 1998 (29 U.S.C. 2801 et seq.), community col2 leges, 4-year institutions of higher education, or 

3 through third parties. 

4 (2) TRAINING CORE COMPETENCIES.—The pro5 vision of training for self-employment and manage6 ment in paragraph (1) shall— 

7 (A) include training specific for the oper8 ation of vending facilities on Federal property, 

9 as authorized under this title, for persons inter10 ested in becoming licensed vendors; 

11 (B) include transferable skill development 

12 in specific areas of study, including— 

13 (i) starting a business and business 

14 plan development; 

15 (ii) business operations (including cus16 tomer service skills); 

17 (iii) financial management, budgeting, 

18 and accounting; 

19 (iv) marketing; 

20 (v) management; and 

21 (vi) audits; and 

22 (C) specifically for licensed vendors, in23 clude— 

24 (i) on-the-job training; 


erowe on PRODPC61 with BILLS
179 

•S 3112 IS

1 (ii) Federal and State food service re2 quirements; and 

3 (iii) reporting requirements for this 

4 title. 

5 (3) WAIVER.—A State licensing agency may 

6 grant a vendor a waiver from taking particular 

7 coursework or participating in the provision of train8 ing under this subsection if the vendor— 

9 (A) has completed the provision of train10 ing, as authorized under this title or another 

11 program, in another State; 

12 (B) has experience in food service manage13 ment from the public or private sector; 

14 (C) has a pertinent degree, accreditation, 

15 or certification; or 

16 (D) has other qualifications as approved by 

17 the Committee. 

18 (4) ADDITIONAL TRAINING.—A State licensing 

19 agency may reserve smaller vending facility locations 

20 that do not generate enough revenue for a licensed 

21 vendor to become self-sufficient, as training sites for 

22 vendors who believe they could benefit from addi23 tional training. Such sites— 

24 (A) shall be available to individuals who 

25 successfully complete the training course deVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
180 

•S 3112 IS

1 scribed in this subsection and are licensed by 

2 the State as a licensed vendor; 

3 (B) shall not be operated by the same li4 censed vendor for longer than 2 years; and 

5 (C) shall be the responsibility of the State 

6 licensing agency, and such agency shall be re7 sponsible for reporting and other requirements 

8 of section 206(d) in providing such training op9 portunity for licensed vendors. 

10 (c) ACCESS TO INFORMATION WITH THE STATE LI11 CENSING AGENCIES; ELECTION AND RESPONSIBILITIES

12 OF COMMITTEE OF VENDORS.—In addition to other re13 quirements of this title, each State licensing agency 

14 shall— 

15 (1) provide to each licensed vendor access to all 

16 relevant financial data, including quarterly and an17 nual financial reports, on the operation of the State 

18 vending facility program; 

19 (2) conduct the biennial election of a Committee 

20 of Vendors of all licensed vendors in the State vend21 ing facility program, which Committee shall include 

22 representatives of individuals who are blind and indi23 viduals with other disabilities; 

24 (3) ensure that the responsibilities of the Com25 mittee of Vendors include— 


erowe on PRODPC61 with BILLS
181 

•S 3112 IS

1 (A) advising the State licensing agency re2 garding major administrative decisions and pol3 icy and program development; 

4 (B) receiving grievances of licensed ven5 dors and serving as advocates for such licensed 

6 vendors; 

7 (C) advising the State licensing agency re8 garding the development and administration of 

9 a transfer and promotion system for licensed 

10 vendors; and 

11 (D) advising the State licensing agency re12 garding the provision of training and retrain13 ing; and 

14 (4) make available on the website of the State 

15 licensing agency, in an accessible format, all require16 ments for, and decisions made regarding, pro17 motions. 

18 (d) APPLICATION FOR DESIGNATION AS STATE LI19 CENSING AGENCY; COOPERATION WITH THE COMMITTEE; 

20 FURNISHING INITIAL STOCK.— 

21 (1) IN GENERAL.—A State agency for the blind 

22 or other State agency desiring to be designated as 

23 the State licensing agency pursuant to section 

24 204(b) shall, with the approval of the Governor of 


erowe on PRODPC61 with BILLS
182 

•S 3112 IS

1 the State, make application to the Committee and 

2 agree to carry out the following: 

3 (A) To comply with the Committee in car4 rying out the purposes of this title. 

5 (B) To provide for each licensed vendor 

6 such vending facility equipment, and adequate 

7 initial stock of suitable articles and supplies to 

8 be vended from such facility, as may be nec9 essary. Such equipment and stock may be 

10 owned by the State licensing agency for use of 

11 the individual to whom the license is issued. If 

12 ownership of such equipment is vested— 

13 (i) in the licensed vendor— 

14 (I) the State licensing agency 

15 shall retain a first option to repur16 chase such equipment; and 

17 (II) in the event such individual 

18 dies or for any other reason ceases to 

19 be a licensed vendor or transfers to 

20 another vending facility, ownership of 

21 such equipment shall become vested in 

22 the State licensing agency (for trans23 fer to a successor licensed vendor) 

24 subject to an obligation on the part of 

25 the State licensing agency to pay to 


erowe on PRODPC61 with BILLS
183 

•S 3112 IS

1 such individual or to the estate of the 

2 individual the fair value of interest, as 

3 later determined in accordance with 

4 regulations of the State licensing 

5 agency and after opportunity for a 

6 fair hearing; and 

7 (ii) in the State licensing agency— 

8 (I) the licensed vendor shall rent 

9 or purchase such equipment from the 

10 State; and 

11 (II) the State licensing agency 

12 shall charge the market rate for rent13 ing or fair value selling such equip14 ment to the licensed vendor. 

15 (C) That if any funds are set aside, or 

16 caused to be set aside, from the net proceeds of 

17 the operation of the vending facilities, such 

18 funds shall be set aside, or caused to be set 

19 aside, only to the extent necessary for and may 

20 be used only for the purposes of maintenance 

21 and replacement of equipment, the purchase of 

22 new equipment, management services, assuring 

23 a fair minimum return to operators of vending 

24 facilities, and retirement or pension funds, 

25 health insurance contributions, and provision 


erowe on PRODPC61 with BILLS
184 

•S 3112 IS

1 for paid sick leave and vacation time if it is de2 termined by a majority vote of the Committee 

3 of Vendors, after such agency provides to each 

4 member of the Committee of Vendors full infor5 mation on all matters relevant to such proposed 

6 program, that funds under this subparagraph 

7 shall be set aside for such purposes. In no event 

8 shall the amount of such funds to be set aside 

9 from the net proceeds of any vending facility 

10 exceed a reasonable amount which shall be de11 termined by the Committee. 

12 (D) To make reports, pursuant to sub13 section (e), in such form and containing such 

14 information as the Committee requires and to 

15 comply with such provisions as the Committee 

16 finds necessary to ensure the correctness and 

17 verification of such reports. 

18 (E) To issue such regulations, consistent 

19 with the provisions of this title, as may be nec20 essary for the operation of the vending facility 

21 program. 

22 (F) To provide to any licensed vendor dis23 satisfied with any action arising from the oper24 ation or administration of the vending facility 

25 program an opportunity to a fair hearing, and 


erowe on PRODPC61 with BILLS
185 

•S 3112 IS

1 to agree to submit the grievances of any li2 censed vendor not otherwise resolved by such 

3 hearing to arbitration as provided in section 

4 204(l). 

5 (2) RESERVATION FOR ADMINISTRATION.—Not6 withstanding paragraph (1)(C), a State licensing 

7 agency may reserve 1 percent of set-aside funds for 

8 the purpose of administering the program. Nothing 

9 in this paragraph shall be construed to affect State 

10 statutes, rules, or official policies relating to col11 lecting a portion of the set aside for agencies that 

12 administer the program. Licensed vendors shall as13 sume the cost of paying for services listed in para14 graph (1)(C) not covered by the set aside. 

15 (3) RULE OF CONSTRUCTION.—Nothing in this 

16 subsection shall be construed to modify any require17 ment under any State law governing a State pro18 gram for providing opportunities for licensed ven19 dors. 

20 (e) REPORTING, REVIEWS, MONITORING, EVALU21 ATING, AND AUDITING.— 

22 (1) IN GENERAL.—Not later than December 1 

23 of each year, each State licensing agency shall report 

24 data and provide an annual report to the ComVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00185 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
186 

•S 3112 IS

1 mittee, to enable the Committee to prepare the re2 ports described in section 204(a)(13). 

3 (2) CONTENTS.—An annual report described in 

4 paragraph (1) shall include— 

5 (A) information collected from licensed 

6 vendors associated with the State licensing 

7 agency pursuant to section 206(d), aggregated 

8 for the State licensing agency, and in the case 

9 of information described under subparagraphs 

10 (B) and (H) of section 206(d)(2), disaggregated 

11 by licensed vendor; 

12 (B) data regarding the progress of meeting 

13 goals described in section 204(a)(11); and 

14 (C) other items as determined necessary by 

15 the Committee. 

16 (3) REVIEWS, MONITORING, AND EVALUA17 TIONS.—Each State licensing agency shall— 

18 (A) conduct reviews and monitoring in ac19 cordance with section 204(e); and 

20 (B) provide such other information to the 

21 Committee in such time and manner as the 

22 Committee may require. 

23 (f) COMPLIANCE.— 

24 (1) LICENSED VENDOR REPORTS.—In accord25 ance with regulations established by the Committee 


erowe on PRODPC61 with BILLS
187 

•S 3112 IS

1 and State licensing agency, each State licensing 

2 agency shall report to the Committee after the end 

3 of each fiscal year the extent to which licensed ven4 dors operating a vending facility are in compliance 

5 with activities authorized under this title. 

6 (2) PROGRAM IMPROVEMENT.— 

7 (A) PLAN.—If the Committee determines 

8 that any licensed vendor is out of compliance 

9 with this title, the Committee and State licens10 ing agency shall provide technical assistance to 

11 the licensed vendor, and the Committee, State 

12 licensing agency, and licensed vendor shall 

13 jointly develop an improvement plan outlining 

14 the specific actions to be taken by the licensed 

15 vendor to improve performance. 

16 (B) REVIEW.—The Committee and State 

17 licensing agency shall— 

18 (i) review the program improvement 

19 efforts of the licensed vendor on a quar20 terly basis and, if necessary, request the li21 censed vendor make further revisions to 

22 the plan to improve performance; and 

23 (ii) continue to conduct such reviews 

24 and request such revisions until the li25 censed vendor sustains satisfactory perVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00187 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
188 

•S 3112 IS

1 formance over a period of more than 1 

2 year. 

3 (C) WITHHOLDING.—If the Committee de4 termines that a licensed vendor’s performance 

5 falls below the established standards, has failed 

6 to enter into a program improvement plan, or 

7 is not complying with the terms and conditions 

8 of such an improvement plan, the Committee 

9 and State licensing agency shall suspend the li10 censed vendor’s license until the licensed vendor 

11 has entered into an approved improvement 

12 plan, or satisfies the Committee that the li13 censed vendor is able to comply with the terms 

14 and conditions of such an improvement plan, as 

15 appropriate. 

16 (D) REPORTS.—The Committee shall in17 clude in each annual report to the President 

18 and Congress under section 204(a)(13) a de19 scription of action taken under this subsection 

20 and the outcomes of such action. 

21 (E) PUBLIC NOTIFICATION.—The Com22 mittee and each State licensing agency shall no23 tify the public of each action taken under this 

24 subsection by making available information 

25 about the action on their websites, in an accesVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00188 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
189 

•S 3112 IS

1 sible format. As a part of such notification, the 

2 Committee and State licensing agency shall de3 scribe each such action taken under this sub4 section and the outcomes of each such action. 

5 SEC. 206. VENDORS’ DUTIES. 

6 (a) IN GENERAL.—A licensed vendor operating a 

7 vending facility shall— 

8 (1) fulfill the requirements of operating such 

9 vending facility for the vending of newspapers, peri10 odicals, confections, foods (including cafeterias but 

11 not including cafeteria attendant services), bev12 erages, and other articles or services dispensed auto13 matically or manually prepared on or off the prem14 ises in accordance with all applicable health laws, as 

15 determined by the State licensing agency, and in16 cluding the vending or exchange of chances for any 

17 lottery authorized by State law and conducted by an 

18 agency of a State; 

19 (2) make such reports, pursuant to subsection 

20 (d), in such form and containing such information 

21 as the State licensing agency and Committee require 

22 and to comply with such provisions as the State li23 censing agency and Committee find necessary to en24 sure the correctness and verification of such reports; 


erowe on PRODPC61 with BILLS
190 

•S 3112 IS

1 (3) meet the goals described in section 

2 204(a)(11); 

3 (4) provide employment for individuals with dis4 abilities; and 

5 (5) if a State licensing agency establishes a set6 aside program, pursuant to section 205(d)(1)(C), 

7 participate in such a program. 

8 (b) REQUIREMENTS.— 

9 (1) IN GENERAL.—A licensed vendor operating 

10 a vending facility shall be responsible for the fol11 lowing: 

12 (A) All costs associated with the facility to 

13 meet the facility’s operational requirements, in14 cluding— 

15 (i) administrative, management, and 

16 equipment maintenance costs not covered 

17 by the set aside; 

18 (ii) payment for utilities; and 

19 (iii) commercial telephone/communica20 tion requirements. 

21 (B) Compliance with all applicable regula22 tions pertaining to the health and safety of per23 sonnel during the execution of work. The li24 censed vendor shall hold the Government harm25 less for any action on the vendor’s part or that 


erowe on PRODPC61 with BILLS
191 

•S 3112 IS

1 of the vendor’s employees or subcontractors 

2 that results in illness, injury, or death. 

3 (C) Supervision, performance, and conduct 

4 of the licensed vendor’s employees at all times 

5 while on the facility performing work under this 

6 title. The licensed vendor shall be responsible 

7 for selecting personnel who are well-qualified to 

8 perform the required services. 

9 (D) Furnishing to the State licensing 

10 agency and Federal contracting officer a certifi11 cate of insurance. 

12 (E) Provision of data to the State licensing 

13 agency to show the licensed vendor’s effective14 ness and progress in achieving operational im15 provements, and reports as described in sub16 section (d). 

17 (F) Compliance with all applicable Federal, 

18 State, and local laws, Executive orders, rules, 

19 and regulations applicable to the licensed ven20 dor’s performance under the contract. 

21 (G) Risk of loss or damage to the supplies 

22 provided under the contract. 

23 (H) Provision of access to the Comptroller 

24 General of the United States, or an authorized 

25 representative of the Comptroller General, to 


erowe on PRODPC61 with BILLS
192 

•S 3112 IS

1 examine any of the licensed vendor’s directly 

2 pertinent records involving transactions related 

3 to this title. 

4 (I) Making available records, materials, 

5 and other evidence for examination, audit, or 

6 reproduction, until 3 years after final payment 

7 under this title. 

8 (2) AVAILABILITY OF RECORDS.— 

9 (A) IN GENERAL.—A licensed vendor for 

10 whom the license to operate a vending facility 

11 has been completely or partially terminated, 

12 shall make available to the Committee and the 

13 State licensing agency the records relating to 

14 the work terminated for 3 years after any re15 sulting final termination settlement. A licensed 

16 vendor shall make available to the Committee 

17 and the State licensing agency records relating 

18 to appeals, litigation, or the settlement of 

19 claims arising under or relating to a contract to 

20 operate a vending facility pursuant to this title 

21 until such appeals, litigation, or claims are fi22 nally resolved. 

23 (B) RECORDS DEFINED.—In this para24 graph, the term ‘‘records’’ includes books, docu25 ments, accounting procedures and practices, 


erowe on PRODPC61 with BILLS
193 

•S 3112 IS

1 and other data, regardless of type and regard2 less of form. 

3 (C) RULE OF CONSTRUCTION.—Nothing in 

4 this paragraph shall be construed to require the 

5 licensed vendor to create or maintain any 

6 record that the licensed vendor does not main7 tain in the ordinary course of business or pur8 suant to a provision of law. 

9 (c) MAINTAINING QUALIFICATION.—To maintain 

10 qualification as a licensed vendor under this title, an indi11 vidual shall carry out the following: 

12 (1) Operate a vending facility in strict accord13 ance with Government specifications. 

14 (2) Be the principal manager of the work per15 formed. 

16 (3) Comply with the applicable compensation, 

17 employment, and occupational health and safety 

18 standards prescribed by the Secretary of Labor, in19 cluding procedures to encourage filling of vacancies 

20 within the business by individuals with disabilities. A 

21 licensed vendor with annual sales of more than 

22 $500,000 and who has a workforce of not less than 

23 8 employees shall have a workforce in which a min24 imum of one third of such employees are individuals 

25 with disabilities. 


erowe on PRODPC61 with BILLS
194 

•S 3112 IS

1 (4) Comply with directives or requests issued by 

2 the Committee in furtherance of the objectives of 

3 this title, including regulations issued under this 

4 title. 

5 (5) Make business records, pertinent to activi6 ties authorized or compliance required under this 

7 title, available for inspection at any reasonable time 

8 to representatives of the Committee. 

9 (6) A licensed vendor with annual sales of more 

10 than $500,000 shall have a financial audit per11 formed by an independent accountant. 

12 (7) File a Federal business income tax return. 

13 (8) Submit to the Committee copies of reports 

14 of audits, and returns, described in paragraphs (6) 

15 and (7). 

16 (d) ANNUAL REPORT.— 

17 (1) IN GENERAL.—Not later than November 1 

18 of each year, each licensed vendor operating a vend19 ing facility shall report data and provide an annual 

20 report to the Committee, through the licensed ven21 dor’s State licensing agency, to enable the Com22 mittee to prepare the reports described in section 

23 204(a)(13). 


erowe on PRODPC61 with BILLS
195 

•S 3112 IS

1 (2) CONTENTS.—The report described in para2 graph (1) shall include, with respect to the licensed 

3 vendor— 

4 (A) the Office of Management and Budget 

5 approved Report of Randolph-Sheppard Vend6 ing Facility Program (SC) AGENCY FORM 

7 NUMBER RSA–15 or other appropriate form 

8 approved by the Office of Management and 

9 Budget; 

10 (B) data on vending facilities by location 

11 and by type (stand, vending machines, cafe12 teria), including the amount of business income, 

13 expenditures, and distribution of income; 

14 (C) the number of administrative non15 compliance grievances and complaints filed 

16 under section 204(k), including the entity 

17 against whom such action was filed; 

18 (D) participation in Committee and State 

19 licensing agency training and technical assist20 ance activities, including information on partici21 pation of the licensed vendor and the vendor’s 

22 employees in total and disaggregated by— 

23 (i) employees with and without dis24 abilities; 

25 (ii) training and technical assistance; 


erowe on PRODPC61 with BILLS
196 

•S 3112 IS

1 (iii) topic; and 

2 (iv) method of delivery (such as 

3 through videos, seminars, or web-based 

4 technologies); 

5 (E) the number of employees of the li6 censed vendor who are individuals with disabil7 ities, disaggregated using 911 disability report8 ing taxonomy of the vocational rehabilitation 

9 program; 

10 (F) wages and benefits, including informa11 tion on— 

12 (i) wages of the licensed vendor, in13 cluding the average wage of employees of 

14 the licensed vendor with disabilities and 

15 without disabilities; 

16 (ii) how many individuals under clause 

17 (i) have— 

18 (I) health insurance; 

19 (II) pensions or retirement plans; 

20 and 

21 (III) other benefits; and 

22 (iii) the number of persons with dis23 abilities employed by the licensed vendor 

24 who have been promoted or moved into 

25 management positions; 


erowe on PRODPC61 with BILLS
197 

•S 3112 IS

1 (G) data regarding the progress of meeting 

2 goals described in section 204(a)(11); 

3 (H) if the licensed vendor has entered into 

4 an operational support agreement pursuant to 

5 subsection (e), the identity of the teaming part6 ner, the terms of the agreement (including the 

7 financial terms), and the services the teaming 

8 partner is providing; and 

9 (I) other items as determined necessary by 

10 the Committee. 

11 (e) OPERATIONAL SUPPORT AGREEMENTS.— 

12 (1) IN GENERAL.—A licensed vendor, in con13 junction with the licensed vendor’s State licensing 

14 agency, may enter into an operational support agree15 ment with an entity (a ‘‘teaming partner’’) that has 

16 an extensive background in— 

17 (A) Federal procurement; and 

18 (B) delivery of military dining or large19 scale food services. 

20 (2) TEAMING PARTNER.—The teaming partner 

21 may, with respect to the licensed vendor— 

22 (A) provide training in managing large23 scale food service contracts; 

24 (B) identify potential, or directly provide, 

25 employees; 


erowe on PRODPC61 with BILLS
198 

•S 3112 IS

1 (C) provide start-up funding; and 

2 (D) post bond. 

3 (3) LIMITATION.—A partnership under this 

4 subsection shall be limited to the first 3 years of the 

5 initial contract of the licensed vendor to operate a 

6 vending facility pursuant to this title. The licensed 

7 vendor shall be the principal manager of work per8 formed under the contract. The licensed vendor shall 

9 be required to retire capital advances provided by 

10 the teaming partner prior to the end of the contract. 

11 (4) INFORMATION.—Each operational support 

12 agreement entered into pursuant to this subsection 

13 shall be provided to the Committee at such a time 

14 and in such manner as the Committee may require. 

15 Such agreement shall include functional duties and 

16 financial arrangements and, if a workforce is pro17 vided by the teaming partner under such agreement, 

18 the percentage of such workforce who have a dis19 ability. 

20 (5) CONSTRUCTION CLAUSE.—Nothing in this 

21 subsection shall prohibit a licensed vendor from con22 tracting with a teaming partner, after the initial 

23 agreement expires, for personnel and financial man24 agement services or for providing services regarding 

25 contracts and opportunities outside of this title. 


erowe on PRODPC61 with BILLS
199 

•S 3112 IS

1 SEC. 207. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated to the Com3 mittee to carry out this title, $2,000,000 for fiscal year 

4 2009 and such sums as may be necessary for each of the 

5 7 succeeding fiscal years. 

6 TITLE III—JAVITS-WAGNER-O’

7 DAY AND RANDOLPH8 SHEPPARD VENDORS CON9 TRACTING WITH THE DE10 PARTMENT OF DEFENSE 

11 SEC. 301. DEFINITIONS. 

12 In this title: 

13 (1) ALASKA NATIVE CORPORATION.—The term 

14 ‘‘Alaska Native Corporation’’ means a Native Cor15 poration, as defined in section 3 of the Alaska Na16 tive Claims Settlement Act (43 U.S.C. 1602). 

17 (2) HUBZONE ENTITY.—The term ‘‘HUBZone 

18 entity’’ means an entity that is a qualified 

19 HUBZone small business concern, as defined in sec20 tion 3 of the Small Business Act (15 U.S.C. 632). 

21 (3) LICENSED VENDOR.—The term ‘‘licensed 

22 vendor’’ has the meaning given the term in section 

23 202 of the Randolph-Sheppard Act. 

24 (4) SECTION 8(A) ENTITY.—The term ‘‘section 

25 8(a) entity’’ means a small business concern (within 

26 the meaning given that term under section 3 of the 


erowe on PRODPC61 with BILLS
200 

•S 3112 IS

1 Small Business Act (15 U.S.C. 632)) that is eligible 

2 to participate in a program, activity, or contract, 

3 under section 8(a) of the Small Business Act (15 

4 U.S.C. 637(a)). 

5 (5) STATE LICENSING AGENCY.—The term 

6 ‘‘State licensing agency’’ has the meaning given the 

7 term in section 202 of the Randolph-Sheppard Act. 

8 SEC. 302. JAVITS-WAGNER-O’DAY PROGRAM. 

9 (a) PROCUREMENT REQUIREMENTS.— 

10 (1) INAPPLICABILITY.—In the case of a con11 tract for the operation of a full food service military 

12 dining facility, the requirements of section 104 of 

13 the Javits-Wagner-O’Day Act (relating to procure14 ment requirements for the Government) shall not 

15 apply. 

16 (2) PROCUREMENT LIST.—Products and serv17 ices specifically relating to the operation of a full 

18 food service military dining facility— 

19 (A) shall not be added to the procurement 

20 list referred to in that section 104; and 

21 (B) that are on the procurement list on the 

22 date of enactment of this Act shall be removed 

23 from the procurement list 5 years after that 

24 date of enactment. 


erowe on PRODPC61 with BILLS
201 

•S 3112 IS

1 (3) RELATED CONTRACTS.—Contracts for prod2 ucts and services described in paragraph (2) that are 

3 removed from the procurement list shall be rebid in 

4 accordance with Department of Defense contracting 

5 rules. 

6 (b) PROPOSAL REVISIONS.—In bidding for a contract 

7 for the operation of a full food service military dining facil8 ity, under the Javits-Wagner-O’Day Act, a central non9 profit agency and a qualified nonprofit agency shall com10 ply with the provisions of section 15.307 of title 48, Code 

11 of Federal Regulations (or any corresponding similar reg12 ulation or ruling), regarding proposal revisions. 

13 (c) RECORDS.—In the event that a qualified non14 profit agency receives a contract described in subsection 

15 (a), under the Javits-Wagner-O’Day Act, the qualified 

16 nonprofit agency, the corresponding central nonprofit 

17 agency, and any partner working with the qualified non18 profit agency to carry out the contract shall make avail19 able to the Secretary of Defense and the Inspector General 

20 of the Department of Defense all records relating to the 

21 contract. 

22 (d) FAIR LABOR STANDARDS.—Section 14(c) of the 

23 Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)) 

24 shall not apply to qualified nonprofit agencies that receive 


erowe on PRODPC61 with BILLS
202 

•S 3112 IS

1 contracts for the operation of full food service military din2 ing facilities under the Javits-Wagner-O’Day Act. 

3 SEC. 303. RANDOLPH-SHEPPARD PROGRAM. 

4 (a) CAFETERIA SERVICES.—For purposes of the 

5 Randolph-Sheppard Act, the term ‘‘cafeteria’’, used with 

6 respect to military dining services under a contract award7 ed by the Secretary of Defense, does not include mess at8 tendant, dining facility attendant, dining support, or other 

9 services supporting the Department of Defense operations 

10 of a cafeteria, and means only services pertaining to a full 

11 food service military dining facility. 

12 (b) BIDDING.—Each contract for the operation of a 

13 full food service military dining facility under the Ran14 dolph-Sheppard Act shall be rebid at the end of the con15 tract period. 

16 (c) PRIORITY.—Notwithstanding section 

17 203(a)(2)(A), for purposes of awarding a contract for the 

18 operation of a full food service military dining facility, 

19 equal priority shall be given to— 

20 (1) a State licensing agency (acting on behalf of 

21 a licensed vendor) bidding for the contract under the 

22 Randolph-Sheppard Act; and 

23 (2) a section 8(a) entity, a HUBZone entity, an 

24 Alaska Native Corporation, and other socially disVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00202 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
203 

•S 3112 IS

1 advantaged groups, as defined by the Secretary of 

2 Defense. 

3 (d) PROPOSAL REVISIONS.—In bidding for a contract 

4 for the operation of a full food service military dining facil5 ity, under the Randolph-Sheppard Act, a State licensing 

6 agency (acting on behalf of a licensed vendor) shall comply 

7 with the provisions of section 15.307 of title 48, Code of 

8 Federal Regulations (or any corresponding similar regula9 tion or ruling), regarding proposal revisions. 

10 (e) ARBITRATION.—The arbitration provisions of the 

11 Randolph-Sheppard Act shall not apply to a decision of 

12 the Secretary of Defense pertaining to modifying or clos13 ing a full food service military dining facility due to a 

14 budget reduction, if the facility does not become solely a 

15 vending facility on Federal property, within the meaning 

16 of section 203(a) of the Randolph-Sheppard Act. If a 

17 State licensing agency (acting on behalf of a licensed ven18 dor) submits a bid for a contract described in subsection 

19 (b), under the Randolph-Sheppard Act, declines an offer 

20 for such contract, and submits a subsequent bid for the 

21 contract in the same contract bidding cycle, the arbitra22 tion provisions shall not apply to a decision of the Sec23 retary of Defense relating to the subsequent bid. 

24 (f) RECORDS.—In the event that a State licensing 

25 agency (acting on behalf of a licensed vendor) receives a 


erowe on PRODPC61 with BILLS
204 

•S 3112 IS

1 contract described in subsection (b), under the Randolph2 Sheppard Act, the State licensing agency, the vendor, and 

3 any partner working with the vendor to carry out the con4 tract shall make available to the Secretary of Defense and 

5 the Inspector General of the Department of Defense all 

6 records relating to the contract. 

7 TITLE IV—TRANSFER OF FUNC8 TIONS AND SAVINGS PROVI9 SIONS 

10 SEC. 401. DEFINITIONS. 

11 For purposes of this title, unless otherwise provided 

12 or indicated by the context— 

13 (1) the term ‘‘Federal agency’’ has the meaning 

14 given to the term ‘‘agency’’ by section 551(1) of title 

15 5, United States Code; 

16 (2) the term ‘‘function’’ means any duty, obli17 gation, power, authority, responsibility, right, privi18 lege, activity, or program; and 

19 (3) the term ‘‘office’’ includes any office, ad20 ministration, agency, institute, unit, organizational 

21 entity, or component thereof. 

22 SEC. 402. TRANSFER OF FUNCTIONS. 

23 (a) IN GENERAL.—There are transferred to the Com24 mittee, established under section 3, all functions which the 

25 Commissioner of the Rehabilitation Services AdministraVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00204 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
205 

•S 3112 IS

1 tion of the Department of Education (referred to in this 

2 title as the ‘‘Administration’’) exercised before the date 

3 of enactment of the Javits-Wagner-O’Day and Randolph4 Sheppard Modernization Act of 2008 (including all related 

5 functions of any officer or employee of the Administration) 

6 relating to the Randolph-Sheppard Act, as in effect before 

7 the date of enactment of the Javits-Wagner-O’Day and 

8 Randolph-Sheppard Modernization Act of 2008. 

9 (b) EFFECTIVE DATE.—The transfer provision pro10 vided under subsection (a) shall take effect 90 days after 

11 the date of enactment of the Javits-Wagner-O’Day and 

12 Randolph-Sheppard Modernization Act of 2008. 

13 SEC. 403. DETERMINATIONS OF CERTAIN FUNCTIONS BY 

14 THE OFFICE OF MANAGEMENT AND BUDGET. 

15 If necessary, the Office of Management and Budget 

16 shall make any determination of the functions that are 

17 transferred under section 402. 

18 SEC. 404. PERSONNEL PROVISIONS. 

19 (a) APPOINTMENTS.—Except as otherwise provided 

20 by law, the Chairman of the Committee may appoint and 

21 fix the compensation of such officers and employees, in22 cluding investigators, attorneys, and administrative law 

23 judges, as may be necessary to carry out the respective 

24 functions transferred under this title. Except as otherwise 

25 provided by law, such officers and employees shall be apVerDate Aug 31 2005 03:40 Jun 12, 2008 Jkt 069200 PO 00000 Frm 00205 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

erowe on PRODPC61 with BILLS
206 

•S 3112 IS

1 pointed in accordance with the civil service laws and their 

2 compensation fixed in accordance with title 5, United 

3 States Code. 

4 (b) EXPERTS AND CONSULTANTS.—The Chairman of 

5 the Committee may obtain the services of experts and con6 sultants in accordance with section 3109 of title 5, United 

7 States Code, and compensate such experts and consultants 

8 for each day (including travel time) at rates not in excess 

9 of the rate of pay for level IV of the Executive Schedule 

10 under section 5315 of such title. The Chairman of the 

11 Committee may pay experts and consultants who are serv12 ing away from their homes or regular place of business 

13 travel expenses and per diem in lieu of subsistence at rates 

14 authorized by sections 5702 and 5703 of such title for 

15 persons in Government service employed intermittently. 

16 SEC. 405. DELEGATION AND ASSIGNMENT. 

17 Except where otherwise expressly prohibited by law 

18 or otherwise provided by this title, the Committee may del19 egate any of the functions transferred to the Committee 

20 by this title and any function transferred or granted to 

21 such Committee after the effective date of this title to such 

22 members and employees of the Committee as the Com23 mittee may designate, and may authorize successive re24 delegations of such functions as may be necessary or ap25 propriate. No delegation of functions by the Committee 


erowe on PRODPC61 with BILLS
207 

•S 3112 IS

1 under this section or under any other provision of this title 

2 shall relieve such Committee of responsibility for the ad3 ministration of such functions. 

4 SEC. 406. REORGANIZATION. 

5 The Committee is authorized to allocate or reallocate 

6 any function transferred under section 402 among the 

7 members of the Committee, and to establish, consolidate, 

8 alter, or discontinue such organizational entities in the 

9 Committee as may be necessary or appropriate. 

10 SEC. 407. RULES. 

11 The Committee is authorized to prescribe, in accord12 ance with the provisions of chapters 5 and 6 of title 5, 

13 United States Code, such rules and regulations as the 

14 Committee determines necessary or appropriate to admin15 ister and manage the functions of the Committee. 

16 SEC. 408. TRANSFER AND ALLOCATIONS OF APPROPRIA17 TIONS AND PERSONNEL. 

18 Except as otherwise provided in this title, the per19 sonnel employed in connection with, and the assets, liabil20 ities, contracts, property, records, and unexpended bal21 ances of appropriations, authorizations, allocations, and 

22 other funds employed, used, held, arising from, available 

23 to, or to be made available in connection with the func24 tions transferred by this title, subject to section 1531 of 

25 title 31, United States Code, shall be transferred to the 


erowe on PRODPC61 with BILLS
208 

•S 3112 IS

1 Committee. Unexpended funds transferred pursuant to 

2 this section shall be used only for the purposes for which 

3 the funds were originally authorized and appropriated. 

4 SEC. 409. INCIDENTAL TRANSFERS. 

5 The Director of the Office of Management and Budg6 et, at such time or times as the Director shall provide, 

7 is authorized to make such determinations as may be nec8 essary with regard to the functions transferred by this 

9 title, and to make such additional incidental dispositions 

10 of personnel, assets, liabilities, grants, contracts, property, 

11 records, and unexpended balances of appropriations, au12 thorizations, allocations, and other funds held, used, aris13 ing from, available to, or to be made available in connec14 tion with such functions, as may be necessary to carry out 

15 the provisions of this title. The Director of the Office of 

16 Management and Budget shall provide for the termination 

17 of the affairs of all entities terminated by this title and 

18 for such further measures and dispositions as may be nec19 essary to effectuate the purposes of this title. 

20 SEC. 410. EFFECT ON PERSONNEL. 

21 (a) IN GENERAL.—Except as otherwise provided by 

22 this title, the transfer pursuant to this title of full-time 

23 personnel (except special Government employees) and 

24 part-time personnel holding permanent positions shall not 

25 cause any such employee to be separated or reduced in 


erowe on PRODPC61 with BILLS
209 

•S 3112 IS

1 grade or compensation for one year after the date of trans2 fer of such employee under this title. 

3 (b) EXECUTIVE SCHEDULE POSITIONS.—Except as 

4 otherwise provided in this title, any person who, on the 

5 day preceding the effective date of this title, held a posi6 tion compensated in accordance with the Executive Sched7 ule prescribed in chapter 53 of title 5, United States Code, 

8 and who, without a break in service, is appointed in the 

9 Committee to a position having duties comparable to the 

10 duties performed immediately preceding such appointment 

11 shall continue to be compensated in such new position at 

12 not less than the rate provided for such previous position, 

13 for the duration of the service of such person in such new 

14 position. 

15 (c) TERMINATION OF CERTAIN POSITIONS.—Posi16 tions whose incumbents are appointed by the President, 

17 by and with the advice and consent of the Senate, the 

18 functions of which are transferred by this title, shall termi19 nate on the effective date of this title. 

20 SEC. 411. SAVINGS PROVISIONS. 

21 (a) CONTINUING EFFECT OF LEGAL DOCUMENTS.— 

22 All orders, determinations, rules, regulations, permits, 

23 agreements, grants, contracts, certificates, licenses, reg24 istrations, privileges, and other administrative actions— 


erowe on PRODPC61 with BILLS
210 

•S 3112 IS

1 (1) which have been issued, made, granted, or 

2 allowed to become effective by the President, any 

3 Federal agency or official thereof, or by a court of 

4 competent jurisdiction, in the performance of func5 tions which are transferred under this title; and 

6 (2) which are in effect at the time this title 

7 takes effect, or were final before the effective date 

8 of this title and are to become effective on or after 

9 the effective date of this title, 

10 shall continue in effect according to their terms until 

11 modified, terminated, superseded, set aside, or revoked in 

12 accordance with law by the President, the Committee or 

13 an authorized official, a court of competent jurisdiction, 

14 or by operation of law. 

15 (b) PROCEEDINGS NOT AFFECTED.—The provisions 

16 of this title shall not affect any proceedings, including no17 tices of proposed rulemaking, or any application for any 

18 license, permit, certificate, or financial assistance pending 

19 before the Administration at the time this title takes ef20 fect, with respect to functions transferred by this title but 

21 such proceedings and applications shall be continued. Or22 ders shall be issued in such proceedings, appeals shall be 

23 taken therefrom, and payments shall be made pursuant 

24 to such orders, as if this title had not been enacted, and 

25 orders issued in any such proceedings shall continue in 


erowe on PRODPC61 with BILLS
211 

•S 3112 IS

1 effect until modified, terminated, superseded, or revoked 

2 by a duly authorized official, by a court of competent juris3 diction, or by operation of law. Nothing in this subsection 

4 shall be deemed to prohibit the discontinuance or modi5 fication of any such proceeding under the same terms and 

6 conditions and to the same extent that such proceeding 

7 could have been discontinued or modified if this title had 

8 not been enacted. 

9 (c) SUITS NOT AFFECTED.—The provisions of this 

10 title shall not affect suits commenced before the effective 

11 date of this title, and in all such suits, proceedings shall 

12 be had, appeals taken, and judgments rendered in the 

13 same manner and with the same effect as if this title had 

14 not been enacted. 

15 (d) NONABATEMENT OF ACTIONS.—No suit, action, 

16 or other proceeding commenced by or against the Adminis17 tration, or by or against any individual in the official ca18 pacity of such individual as an officer of the Administra19 tion, shall abate by reason of the enactment of this title. 

20 (e) ADMINISTRATIVE ACTIONS RELATING TO PRO21 MULGATION OF REGULATIONS.—Any administrative ac22 tion relating to the preparation or promulgation of a regu23 lation by the Administration relating to a function trans24 ferred under this title may be continued by the Committee 

25 with the same effect as if this title had not been enacted. 


erowe on PRODPC61 with BILLS
212 

•S 3112 IS

1 SEC. 412. SEPARABILITY. 

2 If a provision of this title or its application to any 

3 person or circumstance is held invalid, neither the remain4 der of this title nor the application of the provision to 

5 other persons or circumstances shall be affected. 

6 SEC. 413. TRANSITION. 

7 The Committee is authorized to utilize— 

8 (a) the services of such officers, employees, and other 

9 personnel of the Administration with respect to functions 

10 transferred to the Committee by this title; and 

11 (b) funds appropriated to such functions for such pe12 riod of time, 

13 as may reasonably be needed to facilitate the orderly im14 plementation of this title. 

15 SEC. 414. REFERENCES. 

16 Reference in any other Federal law, Executive order, 

17 rule, regulation, or delegation of authority, or any docu18 ment of or relating to— 

19 (1) the Commissioner of the Administration 

20 with regard to functions transferred under section 

21 402, shall be deemed to refer to the Committee; and 

22 (2) the Administration with regard to functions 

23 transferred under section 402, shall be deemed to 

24 refer to the Committee. 


erowe on PRODPC61 with BILLS
213 

•S 3112 IS

1 SEC. 415. ADDITIONAL CONFORMING AMENDMENTS. 

2 (a) RECOMMENDED LEGISLATION.—After consulta3 tion with the appropriate committees of Congress and the 

4 Director of the Office of Management and Budget, the 

5 Committee shall prepare and submit to Congress rec6 ommended legislation containing technical and conforming 

7 amendments to reflect the changes made by this title. 

8 (b) SUBMISSION TO CONGRESS.—No later than 6 

9 months after the effective date of this title, the Committee 

10 shall submit the recommended legislation referred to 

11 under subsection (a). 

12 TITLE V—REPEALS OF FORMER 

13 PROVISIONS 

14 SEC. 501. REPEALS. 

15 (a) REPEAL OF FORMER JAVITS-WAGNER-O’DAY

16 ACT.—The Javits-Wagner-O’Day Act, enacted as the Act 

17 entitled ‘‘An Act to create a Committee on Purchases of 

18 Blind-made Products, and for other purposes’’, approved 

19 June 25, 1938 (41 U.S.C. 46 et seq.) is repealed. 

20 (b) REPEAL OF FORMER RANDOLPH-SHEPPARD

21 ACT.—The Randolph-Sheppard Act, enacted as the Act 

22 entitled ‘‘An Act to authorize the operation of stands in 

23 Federal buildings by blind persons, to enlarge the eco24 nomic opportunities of the blind, and for other purposes’’, 


erowe on PRODPC61 with BILLS
214 

•S 3112 IS

1 approved June 20, 1936 (20 U.S.C. 107 et seq.) is re2 pealed. 

Æ 


erowe on PRODPC61 with BILLS