Source: https://www.federalregister.gov/documents/2009/11/27/E9-28356/vending-facility-program-for-the-blind-on-dod-controlled-federal-property
Timestamp: 2019-07-23 17:53:28
Document Index: 301729558

Matched Legal Cases: ['art 260', '§\u2009107', 'art 260', 'art 260', 'art 260', 'art 395', 'art 260', 'art 260', 'art 395', '§\u2009260', '§\u2009260', '§\u2009260', '§\u2009260', '§\u2009260', '§\u2009260']

Federal Register :: Vending Facility Program for the Blind on DoD-Controlled Federal Property
A Rule by the Defense Department on 11/27/2009
62234-62239 (6 pages)
32 CFR 260
DoD-2008-OS-0009
RIN 0790-AH77
B. Identical Comments
List of Subjects in 32 CFR Part 260
https://www.federalregister.gov/d/E9-28356 https://www.federalregister.gov/d/E9-28356
Effective Date: This rule is effective December 28, 2009.
Olivia Smith, 703-602-4601.
The proposed rule was published in the Federal Register on January 16, 2009 (74 FR 2932-2935). In response to the proposed rule, the DoD received 93 submissions with 310 comments during the 60-day comment period. 87 of the submissions contained three identical comments. Other comments fell into one of the following categories: Expanding the scope of the rule beyond the Randolph-Sheppard Act (R-SA) as implemented by the Department of Education (DoEd) in 34 CFR 395; the military dining exclusion; definitions; the military exchange exemption; references to DoD policies; allocation and billing of costs; leasing of privately-owned buildings with existing food facilities; and arbitration.
1. Comment: Make a statement that the DoD intends to comply with the letter and the spirit of the R-SA.
Response: DoD's policy to extend priority to the blind when implementing the R-SA is contained in section 260.4.
2. Ensure that the language of the final regulations is consistent with and preferably identical to regulations issued by the DoEd and with the language of the R-SA.
Response: The language in the rule is consistent with the DoED regulations. One variation is the definition of “cafeteria,” which uses the exact definition contained in the R-SA and 34 CFR 395.1(d), and adds, “The DoD Component food dispensing facilities that conduct cafeteria-type operations during part of their normal operating day and full table-service operations during the remainder of their normal operating day are not “cafeterias” if they engage primarily in full table service operations.” DoD added this language to ensure that DoD food dispensing facilities that use a serving line for only a brief portion of the day are not considered cafeterias for the purpose of the Final Rule.
3. Clarify that the R-SA priority applies to all vending operations, even when the DoD would not be required to provide a suitable location, and that when there is a change in the contract or permit, the vending opportunity must be re-offered to the State Licensing Agency (SLA) even if that agency has previously declined to exercise the R-SA priority.
Response: Section 260.4 gives the blind priority in the establishment and operation of vending facilities, except those vending facilities to which the R-SA does not apply. An SLA shall not forfeit the R-SA priority for future contract solicitations or permits by declining the priority for an earlier solicitation. However, there is no requirement in the R-SA that the DoD terminate an existing contract because an SLA that previously declined a priority asserts the priority at a later date.”
1. Expanding the Scope of the Rule. Several comments suggested changes to expand the scope of the rule beyond the provisions of the R-SA and the DoEd's implementing rule (34 CFR 395).
Response: The DoD rule is consistent with 34 CFR 395, and DoD does not have the authority to expand the scope beyond the RSA. One comment proposed expanding the rule to establish a priority in the operation of vending operations even when the proposed location does not contain a suitable location. This suggestion, which would apparently cover situations when DoD is leasing space in privately owned buildings, is inconsistent with 20 USC 107a(d)(2). A second comment proposed changing the definition of “individual installation, location or facility,” but the DoD rule uses the definition contained at 34 CFR 395.1(h). A third comment asked DoD to alter the arbitration procedures delineated at 34 CFR 395.37 by deleting the word “all” from section 260.6(f) of the proposed rule. However, section 395.37(a) specifically uses the word “all” when referring to informal efforts to resolve issues of noncompliance.
2. Military Dining Exclusion. Several of the comments recommended deletion of references to and the definition of military dining facilities.
Response: Section 260.4(b) has been modified to exclude reference to Section 856 of the John Warner National Defense Authorization Act for Fiscal Year 2007, since it only applies to military dining facilities. The definition of military dining facilities is necessary to explain that the rule does not apply to such facilities.
3. Definitions. Several of the comments recommended changes to definitions.
Response: The definitions are consistent with the definitions in 34 CFR 395. The one variation occurs in the definition of “cafeteria,” where the proposed rule uses the same definition as 34 CFR 395.1(d), but adds, “the DoD Component food dispensing facilities that conduct cafeteria-type operations during part of their normal operating day and full table-service operations during the remainder of their normal operating day are not “cafeterias” if they engage primarily in full table service operations.” DoD added this language to ensure that DoD food dispensing facilities that use a serving line for only a brief portion of the day are not considered cafeterias for the purpose of the Final Rule. A second comment proposed changing the definition of “individual installation, location or facility.” However, the final rule uses the same definition contained at 34 CFR 395.1(h).
4. Military Exchange Exemption. Several of the comments recommended limitations on the income-sharing exemption for vending machines operated by or for the military exchanges or ships store systems.
Response: The income-sharing exemption for vending machines operated by or for the military exchanges or ships store systems is codified at § 107d-3(d) of the R-SA and 34 CFR 395.32(h)(1), and the rule is consistent with both.
5. References to DoD Policies. Several of the comments recommended deleting references to DoD policies that may be changed without public notice, comment, or other opportunity for stakeholders to be consulted.
Response: Any DoD publication that grants a right or privilege to the public or has a substantial or direct impact on any significant portion of the public is required to be published. Since 32 CFR 260 prescribes implementation of the R-SA within the DoD, it is necessary to reference applicable DoD policies and publications. The DoD publications referenced in the Final Rule are available on the internet at http://www.dtic.mil/​whs/​directives. Start Printed Page 62235
6. Allocation and Billing of Costs. One commenter recommended using more explicit language in 260.6(b)(4) to specify the methodology for allocating costs, prohibiting retroactive or prospective billing, limiting costs to similar costs charged to other food vendors, including military exchanges and commercial enterprises, and adapting charges as the number of people using the facility fluctuates.
Response: Pursuant to the comment, we have removed the language at section 260.6(b)(4) of the final rule and inserted language consistent with 34 CFR 395.35, which provides that the permit shall state (1) no charge shall be made to the State Licensing agency for the cost of normal cleaning, maintenance, and repair of the building structure in and adjacent to the vending facility areas, and (2) no charge shall be made to the DoD for the cost of sanitation and the maintenance of vending facilities and vending machines in an orderly condition at all times, and the installation, maintenance, repair, replacement, servicing, and removal of vending facility equipment.
7. Leasing of Privately-Owned Buildings with Existing Food Facilities. One comment recommended adding language that DoD components should avoid leasing all or part of a privately-owned building in which there is an existing food facility that would be in direct competition with a R-SA operation, resulting in the absence of a requirement to provide a satisfactory site.
Response: This comment is inconsistent with 20 U.S.C. 107a(d)(2)(B), which exempts from the R-SA privately owned buildings “any part of which is leased by any department, agency or instrumentality of the United States and in which, (i) prior to the execution of such lease, the lessor or any of his tenants had in operation a restaurant or other food facility in a part of the building no included in such lease, and (ii) the operation of such a vending facility by a blind person would be in proximate and substantial direct competition with such restaurant or other food facility except that each such department, agency and instrumentality shall make every effort to lease property in privately owned buildings capable of accommodating a vending facility.” Moreover, the suggested language would overly restrict the DoD's ability to lease facilities.
8. Arbitration. One comment recommended deleting the word “all” in section 260.6(f) to clarify who has the authority to determine that all informal attempts to resolve the issues have been unsuccessful.
Response: The final rule is consistent with 34 CFR 395.37(a), which specifically uses the word “all” when referring to informal efforts to resolve issues.
It has been certified that 32 CFR part 260 does not:
It has been certified that 32 CFR part 260 does not contain a Federal mandate that may result in the expenditure by State, local and tribunal governments, in aggregate, or by the private sector, of $100 million or more in any 1 year.
It has been certified that 32 CFR part 260 is not subject to the Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if promulgated, have a significant economic impact on a substantial number of small entities. This rule is consistent with the Randolph-Sheppard Act (20 U.S.C. 107), the implementing regulations of the U.S. Department of Education (34 CFR part 395), and Section 856 of the John Warner National Defense Authorization Act for Fiscal Year 2007.
It has been certified that 32 CFR part 260 does not impose reporting or recordkeeping requirements under the Paperwork Reduction Act of 1995.
It has been certified that 32 CFR part 260 does not have federalism implications, as set forth in Executive Order 13132. This rule does not have substantial direct effects on:
Blind licensee. A blind person licensed by the State licensing agency to Start Printed Page 62236operate a vending facility on DoD-controlled property.
(a) The Principal Deputy Under Secretary of Defense for Personnel and Readiness (PDUSD(P&R)), under the Under Secretary of Defense for Personnel and Readiness, shall establish policies and procedures and monitor the Vending Facility Program.Start Printed Page 62237
(4) Ensure appropriate real property outgrants are accomplished in accordance with DoDI 4165.70, “Real Property Management,” [1] and consistent with the Randolph-Sheppard Act (20 U.S.C. 107) and the implementing regulations (34 CFR part 395).
(iv) Negotiate with State licensing agencies on other matters and adhere to guidance provided in § 260.6 of this part.
(c) Any DoD Component-acquired (purchased, rented, leased, or constructed), substantially altered, or renovated building is required to have one or more satisfactory sites for a blind-operated vending facility, except as provided in paragraph (c)(1) of this section.Start Printed Page 62238
(i) The Heads of the DoD Components shall notify the appropriate State licensing agency [2] by certified or registered mail, return receipt requested, of buildings to be acquired or substantially altered or renovated. This notification shall be provided at least 60 days in advance of the intended acquisition date or the initiation of actual construction, alteration, or renovation. As a practical matter, the State licensing agency should be contacted early in the planning or design stage of a project. This notification shall:
(i) When fewer than 100 Federal employees (as defined in § 260.3 of this part) are located in the building during normal working hours; or
(d) Vending machine income generated by the Department of Defense shall be shared with State licensing agencies as prescribed in paragraph (d)(1) of this section. The on-site official is responsible for collecting and accounting for such vending machine income (as defined in § 260.3 of this part) and for ensuring compliance with the requirements of this paragraph.
(iii) Notwithstanding paragraph (d)(1)(ii) of this section, thirty percent of the vending machine income from vending machines not in direct competition with blind-operated vending facilities and located where at least fifty percent of the total hours worked on the premises occurs during other than normal working hours (as defined in § 260.3 of this part) shall be provided to the State licensing agency.
Within 90 days after the end of each fiscal year, the DoD Components shall forward to the PDUSD(P&R) the total number of applications for vending facility locations received from State licensing agencies, the number accepted, the number denied, the number still pending, the total amount of vending machine income collected (as defined in § 260.3 of this part, excluding income exempt from the income sharing requirements by § 260.6(d)(3) of this part), and the amount of such vending machine income disbursed to State licensing agencies in each State. These reporting requirements have been assigned Report Control Symbol DD-P&R(A)2210, according to DoD 8910.1-M, “Department of Defense Procedures for Start Printed Page 62239Management of Information Requirements.” [3]
1. Available from http://www.dtic.mil/​whs/​directives/​corres/​html/​416570.htm.
2. See the U.S. Department of Education Web site, Office of Special Education and Rehabilitative Services at http://www.ed.gov.
3. Available from http://www.dtic.mil/​whs/​directives/​corres/​pdf/​891001m.pdf.
[FR Doc. E9-28356 Filed 11-25-09; 8:45 am]