[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3112 Introduced in Senate (IS)]







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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Javits-Wagner-
O'Day and Randolph-Sheppard Modernization Act of 2008''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Establishment of Committee.
                          TITLE I--PROCUREMENT

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.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Blind.--The term ``blind'', used with respect to an 
        individual or a class of individuals, means an individual or 
        class of individuals, respectively, whose central visual acuity 
        does not exceed 20/200 in the better eye with correcting lenses 
        or whose visual acuity, if better than 20/200, is accompanied 
        by a limit to the field of vision in the better eye to such a 
        degree that its widest diameter subtends an angle of no greater 
        than 20 degrees. For purposes of this paragraph, to determine 
        whether an individual is blind, a physician skilled in diseases 
        of the eye, or an optometrist, whichever the individual shall 
        select, shall conduct an examination.
            (2) Central nonprofit agency.--The term ``central nonprofit 
        agency'' means an agency designated under section 103(d), that 
        meets the requirements for such designation under section 105.
            (3) Committee.--The term ``Committee'', except when used as 
        part of another term, means the Committee for the Advancement 
        of Individuals with Disabilities established under section 3.
            (4) Direct labor.--The term ``direct labor'' includes all 
        work required for preparation, processing, and packing of a 
        product, or work directly relating to the performance of a 
        service, but not supervision, administration, inspection, or 
        shipping.
            (5) Electronic commerce.--The term ``electronic commerce'' 
        means buying, selling, producing, or working in an electronic 
        medium.
            (6) Experiential learning option.--The term ``experiential 
        learning option'' means an option for acquiring firsthand 
        knowledge of, and building social and vocational problem 
        solving skills for, integrated competitive employment through 
        active, direct participation in individualized work activities, 
        including the use of supported employment services, in an 
        integrated competitive employment environment.
            (7) Fiscal year.--The term ``fiscal year'' means the 12-
        month period beginning on October 1 of each year.
            (8) Government; entity of the government.--The terms 
        ``Government'' and ``entity of the Government'' include any 
        entity of the legislative branch or the judicial branch, any 
        military department or Executive agency (as such department and 
        agency are respectively defined by sections 102 and 105 of 
        title 5, United States Code), the United States Postal Service, 
        and any nonappropriated fund instrumentality under the 
        jurisdiction of the Armed Forces.
            (9) Other significant disability.--The term ``other 
        significant disability'', used with respect to an individual or 
        a class of individuals, means an individual or class of 
        individuals, respectively, who has an impairment that--
                    (A) is a physical or cognitive impairment, or 
                combination of physical and cognitive impairments, 
                other than blindness;
                    (B) results in a work function barrier or 
                employment activity limitation, including the need for 
                ongoing services or supports over an extended period of 
                time; and
                    (C) results in substantial employment functional 
                limitations in 2 or more of the following major life 
                activities:
                            (i) Self-care.
                            (ii) Receptive and expressive language.
                            (iii) Cognitive functioning, including 
                        learning.
                            (iv) Mobility.
                            (v) Self-direction.
                            (vi) Capacity for independent living.
                            (vii) Economic self-sufficiency.
                            (viii) Emotional adjustment.
                            (ix) Work tolerance, productivity, or 
                        quality.
            (10) Qualified nonprofit agency.--The term ``qualified 
        nonprofit agency'' means an agency selected by a central 
        nonprofit agency to serve as a qualified nonprofit agency, that 
        meets the requirements for such qualification under section 
        106.
            (11) Qualified nonprofit agency for individuals who are 
        blind.--The term ``qualified nonprofit agency for individuals 
        who are blind'' means an agency--
                    (A) organized under the laws of the United States 
                or of any State, operated in the interest of 
                individuals who are blind, and the net income of which 
                does not inure in whole or in part to the benefit of 
                any shareholder or other individual;
                    (B) that complies with any applicable occupational 
                health and safety standard prescribed by the Secretary 
                of Labor; and
                    (C) that--
                            (i) produces products or provides services 
                        (whether or not the products or services are 
                        procured under this Act); and
                            (ii) during a fiscal year, employs 
                        individuals who are blind for not less than 75 
                        percent of the person-hours of direct labor 
                        (adjusted in accordance with section 103(g)) 
                        required to produce the products or provide the 
                        services.
            (12) Qualified nonprofit agency for individuals with other 
        significant disabilities.--The term ``qualified nonprofit 
        agency for individuals with other significant disabilities'' 
        means an agency--
                    (A) organized under the laws of the United States 
                or of any State, operated in the interest of 
                individuals with other significant disabilities, and 
                the net income of which does not inure in whole or in 
                part to the benefit of any shareholder or other 
                individual;
                    (B) that complies with any applicable occupational 
                health and safety standard prescribed by the Secretary 
                of Labor; and
                    (C) that--
                            (i) produces products or provides services 
                        (whether or not the products or services are 
                        procured under this Act); and
                            (ii) during a fiscal year, employs 
                        individuals who are blind or individuals with 
                        other significant disabilities for not less 
                        than 75 percent of the person-hours of direct 
                        labor (adjusted in accordance with section 
                        103(g)) required to produce the products or 
                        provide the services.
            (13) Significant disability.--The term ``significant 
        disability'', used with respect to an individual or a class of 
        individuals, means an individual or class of individuals, 
        respectively, each of whom is--
                    (A) an individual who is blind; or
                    (B) an individual with another significant 
                disability.
            (14) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.

SEC. 3. ESTABLISHMENT OF COMMITTEE.

    (a) Establishment.--There is established a committee to be known as 
the Committee for the Advancement of Individuals with Disabilities. The 
Committee shall be composed of 21 voting members, and 5 ex officio 
nonvoting members, appointed as follows:
            (1) Voting numbers from federal departments or agencies.--
                    (A) In general.--Each head of a Federal department 
                or agency described in subparagraph (C) shall appoint 
                as a member of the Committee 1 officer or employee from 
                an office of administration and management, acquisition 
                policy, procurement, contracting, or finance, or 
                another similar office, of that Federal department or 
                agency.
                    (B) Rehabilitation services administration and 
                office of disability employment policy.--The 
                Commissioner of the Rehabilitation Services 
                Administration of the Department of Education and the 
                Assistant Secretary for Disability Employment Policy of 
                the Department of Labor shall also serve as members of 
                the Committee.
                    (C) Federal departments and agencies.--The Federal 
                departments and agencies referred to in subparagraph 
                (A) are the Department of Agriculture, the Department 
                of Defense, the Department of the Army, the Department 
                of the Navy, the Department of the Air Force, the 
                Department of Veterans Affairs, the Department of 
                Justice, the Department of Homeland Security, the 
                Department of Housing and Urban Development, and the 
                General Services Administration.
            (2) Voting members appointed by president.--The President 
        shall appoint to the Committee, by and with the advice and 
        consent of the Senate--
                    (A) 1 member from persons who are not officers or 
                employees of the Government and who are conversant with 
                the problems incident to the employment of individuals 
                who are blind;
                    (B) 1 member from persons who are not officers or 
                employees of the Government and who are conversant with 
                the problems incident to the employment of individuals 
                with other significant disabilities;
                    (C) 1 member from persons who--
                            (i) are not officers or employees of the 
                        Government;
                            (ii) are individuals who are blind or 
                        represent such individuals; and
                            (iii) are employed in qualified nonprofit 
                        agencies for individuals who are blind;
                    (D) 1 member from persons who--
                            (i) are not officers or employees of the 
                        Government;
                            (ii) are individuals with other significant 
                        disabilities or represent such individuals; and
                            (iii) are employed in qualified nonprofit 
                        agencies for individuals with other significant 
                        disabilities;
                    (E) 1 member from persons who are not officers or 
                employees of the Government and who represent a central 
                nonprofit agency for individuals who are blind, a 
                qualified nonprofit agency for individuals who are 
                blind, or a national association representing qualified 
                nonprofit agencies described in this subparagraph;
                    (F) 1 member from persons who are not officers or 
                employees of the Government and who represent a central 
                nonprofit agency for individuals who have other 
                significant disabilities, a qualified nonprofit agency 
                for individuals who have other significant 
                disabilities, or a national association representing 
                qualified nonprofit agencies described in this 
                subparagraph;
                    (G) 1 member from persons who are not officers or 
                employees of the Government and who represent the small 
                business community, the service sector, the product 
                sector, the labor sector, the manufacturing sector, or 
                a national association of small business communities or 
                sectors described in this subparagraph;
                    (H) 1 member from persons who are not officers or 
                employees of the Government and who represent a 
                licensed vendor (as defined in section 202) who is 
                blind, a State agency described in section 
                101(a)(2)(A)(i) of the Rehabilitation Act of 1973 (29 
                U.S.C. 721(a)(2)(A)(i)), or a national association of 
                vendors or agencies described in this subparagraph; and
                    (I) 1 member from persons who are not officers or 
                employees of the Government and who represent a 
                licensed vendor (as defined in section 202) with a 
                disability other than blindness, a State agency 
                described in section 101(a)(2)(A) of the Rehabilitation 
                Act of 1973 (29 U.S.C. 721(a)(2)(A)) (other than clause 
                (i) of such section), or a national association of 
                vendors or agencies described in this subparagraph.
            (3) Ex officio, nonvoting members.--The Administrator of 
        the Small Business Administration and the Secretary of Commerce 
        shall appoint as ex officio, nonvoting members of the Committee 
        1 officer or employee of the Small Business Administration and 
        the Department of Commerce, respectively. The Secretary of 
        Education shall appoint as an ex officio, nonvoting member of 
        the Committee the Assistant Secretary for Vocational and Adult 
        Education or the Assistant Secretary for Postsecondary 
        Education. The Director of the Office on Disability of the 
        Department of Health and Human Services and the Chairperson of 
        the National Council on Disability shall also serve as ex 
        officio, nonvoting members of the Committee.
            (4) Transition rules.--
                    (A) Definitions.--In this paragraph:
                            (i) Current committee.--The term ``current 
                        Committee'' means the Committee for the 
                        Advancement of Individuals with Disabilities.
                            (ii) Former committee.--The term ``former 
                        Committee'' means the Committee for Purchase 
                        From People Who Are Blind or Severely Disabled.
                    (B) Continuation of members.--If the head of a 
                Federal department or agency appointed an officer or 
                employee described in subparagraph (A) or (B) of 
                paragraph (1) to the former Committee, under section 
                1(a)(1) of the Javits-Wagner-O'Day Act, and the officer 
                or employee was serving on the former Committee on the 
                date of enactment of the Javits-Wagner-O'Day and 
                Randolph-Sheppard Modernization Act of 2008, that 
                officer or employee shall be considered to have been 
                appointed to the current Committee under paragraph (1). 
                If the President appointed an individual described in 
                any of subparagraphs (A) through (D) of paragraph (2) 
                to the former Committee, under section 1(a)(2) of the 
                Javits-Wagner-O'Day Act, and the individual was serving 
                on the former Committee on the date of enactment of the 
                Javits-Wagner-O'Day and Randolph-Sheppard Modernization 
                Act of 2008, that individual shall be considered to 
                have been appointed to the current Committee under the 
                corresponding subparagraph of paragraph (2).
                    (C) Treatment.--An appointment to the current 
                Committee described in subparagraph (B) shall--
                            (i) be treated as a first appointment to 
                        the current Committee;
                            (ii) take effect on the date that the first 
                        appointments made under any of subparagraphs 
                        (E) through (I) of paragraph (2) take effect; 
                        and
                            (iii) in the case of an individual 
                        initially appointed by the President to the 
                        former Committee, end on the same date as the 
                        initial appointment would have ended.
                    (D) Actions and authorities.--This Act shall not 
                affect any action or authority of any member of the 
                former Committee, or of that Committee.
    (b) Vacancy.--A vacancy in the membership of the Committee for the 
Advancement of Individuals with Disabilities shall not affect its 
powers but shall be filled in the manner in which the original 
appointment was made.
    (c) Chairman.--The members of the Committee shall elect 1 of their 
number to be Chairman.
    (d) Terms.--
            (1) Length and number.--Except as provided in subsection 
        (a)(4)(B) and paragraphs (2) and (3), members appointed under 
        paragraph (2) of subsection (a) shall be appointed for terms of 
        5 years. No member of the Committee appointed under such 
        paragraph may serve more than 2 consecutive full terms, 
        beginning on the date of commencement of the member's first 
        full term on the Committee.
            (2) Staggered terms.--Of the members first appointed under 
        subparagraphs (E), (F), (G), (H), and (I) of subsection 
        (a)(2)--
                    (A) the member appointed under subparagraph (H) of 
                that subsection shall be appointed for a term that ends 
                on the same date as the term of the member appointed 
                under subparagraph (A) of that subsection;
                    (B) the member appointed under subparagraph (I) of 
                that subsection shall be appointed for a term that ends 
                on the same date as the term of the member appointed 
                under subparagraph (B) of that subsection;
                    (C) the member appointed under subparagraph (G) of 
                that subsection shall be appointed for a term that ends 
                on the same date as the term of the member appointed 
                under subparagraph (C) of that subsection;
                    (D) the member appointed under subparagraph (F) of 
                that subsection shall be appointed for a term that ends 
                on the same date as the term of the member appointed 
                under subparagraph (D) of that subsection; and
                    (E) the member appointed under subparagraph (E) of 
                that subsection shall be appointed for a term that ends 
                1 year after the date on which the term of the member 
                appointed under subparagraph (B) of that subsection 
                ends.
            (3) Midterm vacancies and expired terms.--Any member 
        appointed under paragraph (2) of subsection (a) to fill a 
        vacancy occurring prior to the expiration of the term for which 
        his predecessor was appointed shall be appointed only for the 
        remainder of such term. A member appointed under such paragraph 
        may serve after the expiration of the member's term until the 
        member's successor has taken office.
    (e) Quorum.--Ten voting members of the Committee, including not 
less than 5 members appointed under subsection (a)(2), shall constitute 
a quorum.
    (f) Pay and Travel Expenses.--
            (1) Pay for members not officers or employees of 
        government.--Except as provided in paragraph (2), members of 
        the Committee shall each be entitled to receive the daily 
        equivalent of the maximum rate payable for a position at GS-15 
        of the General Schedule for each day (including traveltime) 
        during which they are engaged in the actual performance of 
        services for the Committee.
            (2) No pay for officers or employees of government.--
        Members of the Committee who are officers or employees of the 
        Government shall receive no additional pay on account of their 
        service on the Committee.
            (3) Travel expenses.--While away from their homes or 
        regular places of business in the performance of services for 
        the Committee, members of the Committee shall be allowed travel 
        expenses, including per diem in lieu of subsistence, in the 
        same manner as persons employed intermittently in the 
        Government service are allowed expenses under section 5703 of 
        title 5 of the United States Code.
    (g) Staff.--
            (1) Executive director.--
                    (A) In general.--The Committee, by a majority vote 
                of the voting members of the Committee, shall appoint 
                (including having the authority to remove) and shall 
                fix the pay of an Executive Director to assist the 
                Committee, at the direction of the Committee, in 
                carrying out the Committee's duties and powers under 
                this Act.
                    (B) Applicable provisions.--The rate of pay for the 
                Executive Director shall not exceed the rate payable 
                for level II of the Executive Schedule under section 
                5313 of title 5, United States Code. The Committee 
                shall otherwise appoint and fix the pay of the 
                Executive Director without regard to the provisions of 
                title 5, United States Code, governing appointments in 
                the competitive service, and the provisions of chapter 
                75 of such title (relating to adverse actions), chapter 
                77 of such title (relating to appeals), and chapter 51 
                and subchapter III of chapter 53 (relating to 
                classification of positions and General Schedule pay 
                rates.)
                    (C) Effect of removal.--An Executive Director who 
                is removed by the Committee shall not be eligible to 
                serve as a member of the Committee for 10 years after 
                the date of the removal.
            (2) Personnel.--Subject to such rules as may be adopted by 
        the Committee, the Chairman may appoint (including having the 
        authority to remove) and fix the pay of such personnel as the 
        Committee determines are necessary to assist it in carrying out 
        its duties and powers under this Act. The personnel of the 
        Committee appointed under this paragraph shall be appointed 
        subject to the provisions of title 5, United States Code, 
        governing appointments in the competitive service, and shall be 
        paid in accordance with the provisions of chapter 51 and 
        subchapter III of chapter 53 of such title (relating to 
        classification of positions and General Schedule pay rates).
    (h) Obtaining Official Data.--
            (1) In general.--The Committee may secure directly from any 
        entity of the Government information necessary to enable the 
        Committee to carry out this Act. Upon request of the Chairman 
        of the Committee, the head of such Government entity shall 
        furnish such information to the Committee in a timely and 
        reasonable fashion.
            (2) Exceptions.--Paragraph (1) shall not apply to--
                    (A) any classified information; or
                    (B) information from any entity of the Government 
                that discloses the identity of, or any other personally 
                identifiable information related to, any individual.
    (i) Recusal.--Members of the Committee appointed under subparagraph 
(E), (F), (H), or (I) of subsection (a)(2) shall recuse themselves from 
voting on any matters that could directly benefit them, or the 
agencies, associations, or vendors they represent, including the 
addition of an item to the procurement list. Members of the Committee 
appointed under any of subparagraphs (A) through (G) of subsection 
(a)(2) shall recuse themselves from voting on any matters regarding 
title II. Members of the Committee appointed under subparagraph (H) or 
(I) of subsection (a)(2) shall recuse themselves from voting on any 
matters regarding title I.

                          TITLE I--PROCUREMENT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Javits-Wagner-O'Day Act''.

SEC. 102. PURPOSES.

    The purposes of this title are--
            (1) to deliver to entities of the Government, at a fair 
        price, products and services of high quality that such an 
        entity would ordinarily procure to meet the entity's mission;
            (2) to provide employment to individuals with significant 
        disabilities; and
            (3) to empower individuals with significant disabilities, 
        through informed choice, to maximize employment, economic self-
        sufficiency, independence, and inclusion in and integration 
        into society, by providing for--
                    (A) a network of nonprofit agencies utilizing 
                comprehensive and coordinated state-of-the-art 
                employment technologies, strategies, and approaches;
                    (B) training and skill development; and
                    (C) research.

SEC. 103. DUTIES AND POWERS OF THE COMMITTEE RELATING TO PROCUREMENT.

    (a) In General.--In carrying out the purposes of this title--
            (1) the Committee shall--
                    (A) identify products and services offered for sale 
                by qualified nonprofit agencies and appropriate for 
                addition to the procurement list established under 
                subsection (b);
                    (B) inform entities of the Government about the 
                statutory mandate of section 104 that items on the 
                procurement list be purchased from qualified nonprofit 
                agencies; and
                    (C) promote such products and services offered for 
                sale by qualified nonprofit agencies and the activities 
                of such agencies pursuant to this title;
            (2) the Committee shall monitor the compliance of entities 
        of the Government with the requirements of this title, and 
        enforce the requirements; and
            (3) the Committee shall, not less often than every 5 years, 
        develop or update a strategic plan that establishes the 
        implementation responsibilities and goals of central nonprofit 
        agencies, and qualified nonprofit agencies, for improving 
        activities carried out under this title and related activities, 
        including--
                    (A) improving data collection;
                    (B) creating employment opportunities for 
                individuals who are blind and individuals with other 
                significant disabilities through activities carried out 
                under this title;
                    (C) creating competitive employment opportunities 
                for individuals who are blind and individuals with 
                other significant disabilities through activities in 
                this title through experiential learning options and 
                activities (such as outplacement and promotion 
                described in subsection (g)(1)(B)) that are related to 
                activities carried out under this title;
                    (D) increasing wages for individuals described in 
                subparagraph (B);
                    (E) meeting career advancement indicators for such 
                individuals;
                    (F) increasing sales revenues;
                    (G) monitoring progress toward meeting the 
                objectives of this title; and
                    (H) measuring success toward meeting the 
                objectives.
    (b) Procurement List.--
            (1) In general.--The Committee shall establish and publish 
        in the Federal Register a list (referred to in this Act as the 
        ``procurement list'') of--
                    (A) the products produced by any qualified 
                nonprofit agency for individuals who are blind or by 
                any qualified nonprofit agency for individuals with 
                other significant disabilities; and
                    (B) the services provided by any such agency,
        that the Committee determines are suitable for procurement by 
        the Government pursuant to this title. Such list shall 
        initially consist of the procurement list in effect under the 
        Javits-Wagner-O'Day Act on the day before the date of enactment 
        of the Javits-Wagner-O'Day and Randolph-Sheppard Modernization 
        Act of 2008.
            (2) Additions and removals.--
                    (A) In general.--The Committee may, by rule made in 
                accordance with the requirements of subsections (b), 
                (c), (d), and (e) of section 553 of title 5, United 
                States Code, add to and remove from the procurement 
                list products so produced and services so provided.
                    (B) Sales prior to additions.--If an entity of the 
                Government solicits a qualified nonprofit agency to 
                sell a product or service that such agency is producing 
                commercially, and the entity of the Government is 
                interested in adding the product or service to the 
                procurement list, the Committee may allow the qualified 
                nonprofit agency to sell the product or service to the 
                Government prior to adding such item to the procurement 
                list. After that sale, the qualified nonprofit agency 
                may continue to sell the product or service to the 
                Government under this title only if the product or 
                service is added to the procurement list under 
                subparagraph (A).
                    (C) Removals.--
                            (i) In general.--If a product or service is 
                        on the procurement list but has not been 
                        purchased by the Government within the last 36 
                        months, the Committee shall remove the product 
                        or service from the procurement list, except as 
                        provided in clause (ii).
                            (ii) Agency justification.--The qualified 
                        nonprofit agency responsible for producing the 
                        product or providing the service may submit a 
                        justification to the Committee, in writing and 
                        prior to the removal, for the continued listing 
                        of such product or service. If the Committee 
                        determines that the justification is sufficient 
                        to warrant the continued listing, the Committee 
                        shall not remove the product or service from 
                        the procurement list.
                    (D) Procedures for appeals and presentations.--The 
                Committee shall create procedures--
                            (i) for qualified nonprofit agencies to 
                        appeal a determination--
                                    (I) by a central nonprofit agency 
                                about the distribution of products and 
                                services among such agencies;
                                    (II) by the Committee that a 
                                product or service will be removed from 
                                the procurement list;
                                    (III) by the Committee that a 
                                product or service will not be added to 
                                the procurement list; and
                                    (IV) by the Committee that a 
                                product or service will be sold to the 
                                Government at a revised price; and
                            (ii) for businesses, resellers, and 
                        manufacturing companies, to give oral 
                        presentations at Committee meetings--
                                    (I) describing the potential impact 
                                of products or services proposed to be 
                                added to the procurement list; and
                                    (II) for the potential removal of 
                                products or services from the 
                                procurement list.
                    (E) Construction.--Nothing in this section shall 
                prohibit a qualified nonprofit agency from selling a 
                product or service commercially to an entity of the 
                Government, rather than selling the product or service 
                through the program carried out under this title. The 
                Committee shall not treat the item involved as if the 
                item were added to the procurement list, and the 
                qualified nonprofit agency may not label or identify 
                the item in a manner that associates the item with the 
                program, unless the Committee adds the item to the 
                procurement list under subparagraph (A).
    (c) Price.--The Committee shall determine the fair market price of 
products and services that are on the procurement list and that are 
offered for sale to the Government by any qualified nonprofit agency 
for individuals who are blind or any such agency for individuals with 
other significant disabilities. The Committee shall also revise from 
time to time in accordance with changing market conditions its price 
determinations with respect to such products and services. The 
Committee will prepare a notice stating the Committee's justification 
for such a revision, and send the notice to the appropriate central 
nonprofit agency and qualified nonprofit agency.
    (d) Designation of Central Nonprofit Agencies.--
            (1) In general.--The Committee shall designate a central 
        nonprofit agency or agencies to facilitate the distribution (by 
        direct allocation, subcontract, or any other means) of orders 
        of the Government for products and services on the procurement 
        list among qualified nonprofit agencies for individuals who are 
        blind or qualified nonprofit agencies for individuals with 
        other significant disabilities.
            (2) Functions.--Agencies designated under paragraph (1) 
        shall carry out functions that are not inherently governmental 
        functions.
    (e) Regulations.--
            (1) In general.--The Committee shall prescribe such 
        regulations, including regulations regarding specifications for 
        products and services on the procurement list, the time of 
        their delivery, direct labor hour percentages, experiential 
        learning options, governance standards including accreditation 
        standards, and reviewing, monitoring, and auditing of the 
        central nonprofit agencies and qualified nonprofit agencies, as 
        the Committee considers to be appropriate to carry out this 
        title. In prescribing the regulations, the Committee shall take 
        into account the interests of small qualified nonprofit 
        agencies, and the needs of qualified nonprofit agencies that 
        enter into several contracts, but receive only a small 
        percentage of their contract award amounts through contracts 
        entered into under this title.
            (2) Priority.--The Committee shall prescribe regulations 
        providing that, in the purchase by the Government of products 
        produced and offered for sale by qualified nonprofit agencies 
        for individuals who are blind or qualified nonprofit agencies 
        for individuals with other significant disabilities, priority 
        shall be accorded to products produced and offered for sale by 
        qualified nonprofit agencies for individuals who are blind.
            (3) Exclusions.--The Committee shall not prescribe 
        regulations for central nonprofit agencies or qualified 
        nonprofit agencies that specify board size, board practices 
        such as having certain committees, or rotation of board 
        members.
            (4) Proposed regulations.--Not later than 180 days after 
        the date of enactment of the Javits-Wagner-O'Day and Randolph-
        Sheppard Modernization Act of 2008, the Committee shall issue 
        proposed regulations to implement that Act, provide an 
        opportunity for public comment, and prescribe final regulations 
        to implement the amendments.
    (f) Study and Evaluation.--The Committee shall make a continuing 
study and evaluation of its activities under this title for the purpose 
of assuring effective and efficient administration of this title. The 
Committee may study (on its own or in cooperation with other public or 
nonprofit private agencies)--
            (1) problems related to the employment of individuals who 
        are blind and of individuals with other significant 
        disabilities;
            (2) the development and adaptation of production methods 
        that would enable a greater utilization of individuals who are 
        blind and of individuals with other significant disabilities; 
        and
            (3) areas relating to providing informed choice, supported 
        employment, customized employment, self-employment, and 
        individualized experiential learning options in the community 
        involved to direct labor employees of qualified nonprofit 
        agencies, promoting job placement and retention of the workers, 
        promoting consumer satisfaction with products and services 
        produced or provided for sale under this title, establishing 
        standards and certification (which may include accreditation) 
        for community rehabilitation programs, and converting from 
        providing nonintegrated community rehabilitation programs to 
        providing integrated community-based employment.
    (g) Direct Labor Hour Percentage.--
            (1) Modifications.--
                    (A) In general.--In the case of a qualified 
                nonprofit agency, with a product- or service-related 
                order performed by the qualified nonprofit agency, that 
                has obtained approval for a request under paragraph 
                (5), the Committee shall modify the direct labor hours 
                percentage requirement described in paragraph (11)(C) 
                or (12)(C) of section 2, as described in this 
                paragraph.
                    (B) Employees.--The Committee shall allow the 
                agency to count towards the percentage, for the agency 
                overall or a specific order, up to 24 percent of the 
                hours performed by persons that were formerly direct 
                labor employees of the agency and that are individuals 
                who are blind or individuals with other significant 
                disabilities, as appropriate, if such persons were--
                            (i) outplaced into competitive employment, 
                        with compensation at a rate not less than the 
                        minimum wage rate set forth in section 6(a)(1) 
                        of the Fair Labor Standards Act of 1938 (29 
                        U.S.C. 206(a)(1)), and with benefits offered by 
                        the employee involved, for at least 90 days;
                            (ii) outplaced into self-employment in 
                        which the agency subcontracted a portion of the 
                        order to a direct labor employee that is an 
                        individual who is blind or an individual with 
                        another significant disability, as appropriate; 
                        or
                            (iii) promoted from nonsupervisory, 
                        nonmanagement positions into initial 
                        supervisory and management positions within the 
                        qualified nonprofit agency, through promotions 
                        that involved changes in work duties, titles, 
                        and wages.
                    (C) Hours.--The hours counted under paragraph (1) 
                shall be--
                            (i) for a former employee described in 
                        subparagraph (B)(ii), hours of self-employment 
                        as a subcontractor described in that 
                        subparagraph, but the hours may only be counted 
                        for the length of the subcontract for that 
                        order; and
                            (ii) for a former employee described in 
                        subparagraph (B)(iii), hours in an initial 
                        supervisory or management position described in 
                        that subparagraph.
            (2) Job coaches.--The Committee may authorize a qualified 
        nonprofit agency that has obtained approval for a request under 
        paragraph (5) to exclude job coaches from the workers used to 
        calculate the agency overall and specific order direct labor 
        hour percentage counts if--
                    (A) the job coaches are providing job coaching 
                functions;
                    (B) the job coaches are not paid by funds generated 
                through orders authorized under this title; and
                    (C) all direct labor employees of the agency that 
                are individuals who are blind or individuals with other 
                significant disabilities (including direct labor 
                employees making commensurate wages) are compensated at 
                a rate not less than the minimum wage rate described in 
                paragraph (1)(B)(i).
            (3) Phase-in period.--If a qualified nonprofit agency is 
        unable to initially perform a project while meeting the 
        appropriate direct labor hour percentage requirement, the 
        Committee may allow the qualified nonprofit agency a 1-year 
        phase-in period in order to meet the requirement, subject to 
        the following conditions:
                    (A) Overall percentage.--A request by the qualified 
                nonprofit agency for a phase-in period shall include 
                information on whether or not the phase-in period will 
                cause the nonprofit agency's cumulative overall direct 
                labor hour percentage to drop below 75 percent.
                    (B) Plan.--If the agency's cumulative overall 
                direct labor hour percentage will drop below 75 percent 
                as a result of the phase-in period, the agency shall 
                submit a phase-in plan and include a description of the 
                method that the agency will use to ensure that, and the 
                timeframe in which, the agency will meet the 75 percent 
                direct labor hour percentage requirement.
                    (C) No requests after project beginning.--A 
                qualified nonprofit agency may not request, and the 
                Committee may not permit, a phase-in period for a 
                project after beginning work on that project.
            (4) Training hours counted toward direct labor hours.--For 
        purposes of computing the direct labor hour percentage 
        described in paragraph (11)(C) or (12)(C) of section 2, a 
        qualified nonprofit agency may count an hour that an employee 
        spends in training under section 105(a)(3)(B) or 106(b)(3), or 
        in an experiential learning option (including individualized 
        training activities) described in clause (i)(II) or (ii)(II) of 
        section 106(d)(2)(E), as an hour of direct labor under such 
        paragraph (11)(C) or (12)(C), respectively.
            (5) Adjustments to direct labor hour percentage counts.--To 
        be eligible for an adjustment to a direct labor hour percentage 
        count under paragraph (1) or (2), a qualified nonprofit agency 
        shall submit a request to the Committee. The request shall 
        contain information demonstrating that the agency meets such 
        requirements as the Committee shall establish with respect to 
        the number of employees of the agency that are outplaced or 
        promoted as described in clause (i), (ii), or (iii) of 
        paragraph (1)(B), relative to the agency's years of experience 
        with the program carved out under this title, and the success 
        rate of the agency in making such outplacements or promotions. 
        The Committee may approve such a request for the second full 
        fiscal year after the date of enactment of the Javits-Wagner-
        O'Day and Randolph-Sheppard Modernization Act of 2008, and any 
        subsequent fiscal year.
            (6) Definition.--In this subsection, the term 
        ``commensurate wage'' means a commensurate wage as described in 
        section 14(c) of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 214(c)).
    (h) Reviews and Monitoring.--
            (1) Duties.--In carrying out the Committee's duties under 
        this title, the Committee shall conduct a review annually, and 
        onsite monitoring once every 2 years, for programs carried out 
        through central nonprofit agencies or by qualified nonprofit 
        agencies under this title.
            (2) Procedures for reviews.--In conducting an annual review 
        under this subsection of a program carried out through a 
        central nonprofit agency or by a qualified nonprofit agency, 
        the Committee shall consider, at a minimum--
                    (A) the process used by the agency reviewed to 
                determine the eligibility of employees with significant 
                disabilities;
                    (B) the production of products or provision of 
                services by the agency;
                    (C) the direct labor hour percentage for the 
                agency;
                    (D) the goals described in subsection (k) and the 
                extent to which the agency has met such goals;
                    (E) reports, and information supporting reports, 
                prepared under sections 105(d)(2) and 106(e);
                    (F) information filed by the agency with the 
                Internal Revenue Service, and budget, financial 
                management, and audit data; and
                    (G) the agency's activities in such other areas of 
                inquiry as the Committee may consider to be 
                appropriate.
            (3) Procedures for monitoring.--In conducting monitoring 
        under this subsection the Committee shall--
                    (A) conduct--
                            (i) onsite visits, including onsite reviews 
                        of records to verify that the central nonprofit 
                        agency or qualified nonprofit agency involved 
                        is following the requirements of this title;
                            (ii) meetings with the central nonprofit 
                        agency or qualified nonprofit agency;
                            (iii) reviews of individual case files, 
                        including eligibility determinations; and
                            (iv) meetings with staff and employees of 
                        the central nonprofit agency or qualified 
                        nonprofit agency, including employees that are 
                        individuals who are blind or individuals with 
                        other significant disabilities; and
                    (B) determine whether the central nonprofit agency 
                or qualified nonprofit agency involved is complying 
                with the reporting requirements of this title, and 
                meeting the goals described in subsection (k).
            (4) Nondisclosure.--For purposes of any review or 
        monitoring carried out under this subsection the Committee 
        shall not disclose or require a central nonprofit agency or 
        qualified nonprofit agency to disclose the identity of, or any 
        other personally identifiable information related to, any 
        individual participating in an activity authorized under this 
        title.
            (5) Availability on website.--The Committee shall make 
        available to the public on the Committee's website each report 
        resulting from a review or monitoring carried out under this 
        subsection.
    (i) Enforcement.--
            (1) Sales data.--Pursuant to section 3(h), not later than 
        90 days after the date of enactment of the Javits-Wagner-O'Day 
        and Randolph-Sheppard Modernization Act of 2008, the Chairman 
        of the Committee and the Administrator of General Services 
        shall enter into an agreement, under which the Administrator, 
        in consultation with the Chairman, shall identify and provide 
        to the Committee relevant sales data on sales of products and 
        services through the General Services Administration, to assist 
        the Committee in identifying--
                    (A) areas in which the Committee and central 
                nonprofit agencies shall target marketing of products 
                and services on the procurement list, to encourage 
                entities of the Government to purchase such products 
                and services; and
                    (B) training and outreach opportunities regarding 
                the procurement requirements specified in section 104 
                and information about products and services on the 
                procurement list.
            (2) General services administration.--At the request of the 
        Committee, the Inspector General of the General Services 
        Administration shall assist the Committee in determining if 
        entities of the Government (in the executive branch), central 
        nonprofit agencies, and qualified nonprofit agencies are 
        complying with this title.
    (j) Information Collection and Report.--
            (1) In general.--Not later than December 31 of the first 
        full fiscal year after the date of enactment of the Javits-
        Wagner-O'Day and Randolph-Sheppard Modernization Act of 2008, 
        and each December 31 thereafter, the Committee shall collect 
        information described in this subsection for the fiscal year 
        ending the preceding September 30, including the information 
        provided by the central nonprofit agencies and qualified 
        nonprofit agencies in annual reports submitted under sections 
        105(d)(2) and 106(e). The Committee shall prepare an overall 
        summary of the information collected under this subsection, 
        including compiling and preparing a summary of the information 
        provided by the central nonprofit agencies and qualified 
        nonprofit agencies. The Committee shall annually prepare and 
        submit to the President and Congress a report that includes the 
        overall summary.
            (2) Collection of information.--
                    (A) Central nonprofit agencies and qualified 
                nonprofit agencies.--
                            (i) Records.--Central nonprofit agencies, 
                        and qualified nonprofit agencies, receiving 
                        funds under this title shall keep records 
                        prescribed by the Committee as required by this 
                        title and shall participate in data collection 
                        as required by this title, including data 
                        collection required for preparation of the 
                        reports described in clause (ii). The Committee 
                        shall have access to such records of agencies 
                        described in this subparagraph and to any other 
                        records of the agencies that relate to 
                        activities of the agencies and compliance by 
                        the agencies with any requirement of this 
                        title.
                            (ii) Reports.--The Committee shall require 
                        that each central nonprofit agency, and 
                        qualified nonprofit agency, receiving funds 
                        under this title annually prepare and submit to 
                        the Committee the reports described in sections 
                        105(d)(2) and 106(e), respectively.
                    (B) Committee.--The Committee shall collect 
                information to determine whether the purposes of this 
                title are being met and to assess the performance of 
                programs carried out under this title, including 
                information related to audits, performance, and 
                compliance. In particular, the Committee shall collect 
                and maintain audit reports and Federal returns of 
                organizations exempt from income tax submitted by the 
                central nonprofit agencies.
            (3) Information.--The information required to be collected 
        under this subsection and summarized for the Committee report 
        described in paragraph (1) shall include--
                    (A) information collected from central nonprofit 
                agencies and qualified nonprofit agencies pursuant to 
                sections 105(d)(2) and 106(e), aggregated for the 
                United States;
                    (B)(i) details on decisions, about whether to add 
                items to the procurement list, that take longer than 
                120 days from the time the central nonprofit agencies 
                involved submit pricing memoranda to the Committee; and
                    (ii) justifications for any denials of proposals 
                for additions to the procurement list;
                    (C) information on the development of new markets 
                for products and services of qualified nonprofit 
                agencies, including electronic commerce;
                    (D) an analysis of the direct and indirect impacts 
                this title has on the small business community;
                    (E) a description of the steps taken to minimize 
                the negative impacts of the programs carried out under 
                this title on businesses, resellers, and manufacturing 
                companies;
                    (F) an analysis of the progress of the central 
                nonprofit agencies and qualified nonprofit agencies in 
                meeting the goals described in subsection (k); and
                    (G) information on the number of requests made of 
                the Committee, and the number of responses made by the 
                Committee to requests, under section 552 of title 5, 
                United States Code (commonly known as the ``Freedom of 
                Information Act''); and
                    (H) information on other items as determined 
                necessary by the Committee.
            (4) Submission of report.--Not later than February 28 of 
        the fiscal year following the fiscal year for which the 
        Committee collects information for the Committee report 
        described in paragraph (1), the Committee shall submit the 
        Committee report to the President, the Committee on Government 
        Reform and the Committee on Education and the Workforce of the 
        House of Representatives, and the Committee on Homeland 
        Security and Governmental Affairs and the Committee on Health, 
        Education, Labor, and Pensions of the Senate.
            (5) Availability on website.--The Committee shall make the 
        Committee report available to the public on the Committee's 
        website.
            (6) Nondisclosure.--For purposes of this subsection, and 
        sections 105(d)(2) and 106(e), the Committee shall not disclose 
        or require a central nonprofit agency or qualified nonprofit 
        agency to disclose, and a central nonprofit agency shall not 
        require a qualified nonprofit agency to disclose, the identity 
        of, or any other personally identifiable information related 
        to, any individual participating in an activity authorized 
        under this title.
            (7) Consequences for failure to report.--
                    (A) Qualified nonprofit agencies.--If the Committee 
                has not received the annual report of a qualified 
                nonprofit agency for a year under section 106(e), the 
                Committee may ban the agency from participating in 
                activities carried out under this title, or 
                redistribute orders to other qualified nonprofit 
                agencies, until the Committee has received the report.
                    (B) Central nonprofit agencies.--If the Committee 
                has not received the annual report of a central 
                nonprofit agency for a year under section 105(d)(2), 
                the Committee may suspend the agency's authority to 
                collect or use a portion of the fee authorized in 
                section 105(a)(4)(J)(v), and may direct the use of the 
                fee, until the Committee has received the report.
    (k) Goals.--Not later than 1 year after the date of enactment of 
the Javits-Wagner-O'Day and Randolph-Sheppard Modernization Act of 
2008, the Committee, with the assistance of the central nonprofit 
agencies and qualified nonprofit agencies, shall establish goals for 
the combined results achieved by all entities participating in 
activities authorized by this title with respect to performance 
indicators including the following performance indicators:
            (1) Outplacement of employees into competitive employment, 
        as described in subsection (g)(1)(B)(i).
            (2) Outplacement of employees into self-employment 
        described in subsection (g)(1)(B)(ii).
            (3) Promotion of employees into supervisory and management 
        positions within the qualified nonprofit agency, as described 
        in subsection (g)(1)(B)(iii).
            (4) Establishment of wages for all employees that are 
        individuals who are blind or individuals with other significant 
        disabilities, including individuals employed under special 
        certificates under section 14(c) of the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 214(c)), at a rate for each employee 
        that is not less than the minimum wage rate set forth in 
        section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 206(a)(1)) during such employment.
    (l) Freedom of Information Act.--The Committee is subject to 
section 552 of title 5, United States Code (commonly known as the 
``Freedom of Information Act'').
    (m) Amounts Made Available From Fees.--The Committee may accept 
funds made available from fees under section 105(f) and use the funds 
for the purposes of carrying out activities described in subsection 
(a)(3), subsections (f) through (j), and section 108 (relating to 
conducting planning, information collection, reviews, monitoring, 
reporting, auditing, and enforcement of this title).

SEC. 104. PROCUREMENT REQUIREMENTS FOR THE GOVERNMENT.

    If any entity of the Government intends to procure any product or 
service on the procurement list, that entity shall, in accordance with 
rules and regulations of the Committee, procure such product or 
service, at the price established by the Committee, from a qualified 
nonprofit agency for individuals who are blind or qualified nonprofit 
agency for individuals with other significant disabilities if the 
product or service is available within the period required by that 
Government entity. This section shall not apply with respect to the 
procurement of any product that is available for procurement from an 
industry established under chapter 307 of title 18, United States Code, 
and that, under section 4124 of such title, is required to be procured 
from such industry.

SEC. 105. CENTRAL NONPROFIT AGENCIES.

    (a) In General.--
            (1) Designation and coordination.--In accordance with 
        section 103(d) the Committee shall designate a central 
        nonprofit agency or agencies to facilitate the distribution of 
        orders to qualified nonprofit agencies as described in section 
        103(d). If the Committee designates more than 1 central 
        nonprofit agency, the central nonprofit agencies shall, to the 
        maximum extent possible, as determined by the Committee, 
        coordinate activities authorized under this section.
            (2) Preferences and facilitation of orders.--In 
        facilitating the distribution of the orders, each central 
        nonprofit agency--
                    (A) shall give preference to qualified nonprofit 
                agencies that--
                            (i) meet the goals described in section 
                        103(k); and
                            (ii) establish partnerships with smaller 
                        qualified nonprofit agencies and small 
                        businesses, particularly small businesses owned 
                        by individuals with disabilities;
                    (B) may distribute large orders of products and 
                services among multiple qualified nonprofit agencies; 
                and
                    (C) shall make the decisions regarding the 
                facilitation of distribution of orders among the 
                qualified nonprofit agencies available on a secured 
                portion of the central nonprofit agency's website, 
                accessible only to individuals associated with the 
                qualified nonprofit agencies and the Committee.
            (3) Information, assistance, training, and technical 
        assistance.--
                    (A) Information and assistance.--Each central 
                nonprofit agency shall respond to requests for 
                information or assistance from qualified nonprofit 
                agencies, employees of such agencies that are 
                individuals who are blind or individuals with other 
                significant disabilities, and businesses wanting to 
                employ either of such types of individuals, including--
                            (i) requests for information or assistance 
                        concerning expanding self-employment, business 
                        ownership, and business development 
                        opportunities, and other types of 
                        entrepreneurial employment opportunities for 
                        individuals who are blind, or individuals with 
                        other significant disabilities, employed by 
                        qualified nonprofit agencies;
                            (ii) requests for information or assistance 
                        concerning expanding and improving transition 
                        services to facilitate the transition of 
                        students with disabilities from school to 
                        employment;
                            (iii) requests for assistance or 
                        information on effective approaches to enhance 
                        informed choice in employment, or provide 
                        person-centered community-based experiential 
                        learning options, for individuals who are 
                        blind, or individuals with other significant 
                        disabilities, employed by qualified nonprofit 
                        agencies;
                            (iv) requests for assistance in developing 
                        corrective action plans, improving financial 
                        management procedures to correct material 
                        weaknesses identified during audits, and filing 
                        Federal returns of organizations exempt from 
                        income tax;
                            (v) requests for assistance in developing 
                        and implementing effective data collection and 
                        reporting systems that measure the outcomes of 
                        the activities authorized under this title, and 
                        preparing reports for the Committee required 
                        under sections 103(j) and 106(e);
                            (vi) requests for information on effective 
                        approaches that enhance employment results for 
                        individuals with disabilities, including 
                        conducting outreach and forming partnerships 
                        with business and industry; and
                            (vii) requests for assistance on acquiring 
                        additional orders from the Federal Government 
                        and expanding business lines.
                    (B) Training and technical assistance.--Each 
                central nonprofit agency shall develop and provide 
                State-specific, regional, and national training and 
                technical assistance concerning the employment of 
                individuals who are blind or individuals with other 
                significant disabilities through qualified nonprofit 
                agencies, including--
                            (i) facilitating on-site and electronic 
                        information sharing using state-of-the-art 
                        Internet technologies such as real-time on-line 
                        discussions, multipoint video conferencing, and 
                        web-based audio/video broadcasts, on emerging 
                        topics that affect--
                                    (I) the employment of individuals 
                                who are blind or individuals with other 
                                significant disabilities; and
                                    (II) activities carried out under 
                                this title;
                            (ii) providing information on benefits 
                        planning, work incentives, and protections that 
                        exist in benefits programs such as the 
                        supplemental security income program 
                        established under title XVI of the Social 
                        Security Act (42 U.S.C. 1381 et seq.), the 
                        disability insurance benefits program 
                        established under title II of the Social 
                        Security Act (42 U.S.C. 401 et seq.), the 
                        Ticket to Work and Self-Sufficiency Program 
                        established under 1148 of the Social Security 
                        Act (42 U.S.C. 1320b-19), and the Medicaid 
                        program established under title XVIII of the 
                        Social Security Act (42 U.S.C. 1395 et seq.) 
                        that help beneficiaries work at a higher level 
                        with fair compensation and still retain 
                        essential supports;
                            (iii) providing information and assistance 
                        in converting qualified nonprofit agencies 
                        providing community rehabilitation programs to 
                        integrated community-based employment 
                        providers, including supported employment, 
                        customized employment, and self-employment 
                        providers;
                            (iv) promoting sharing of evidence-based 
                        and promising practices among qualified 
                        nonprofit agencies;
                            (v) providing training to enhance upward 
                        mobility, self-employment, business ownership, 
                        and business development opportunities, and 
                        other types of entrepreneurial employment 
                        opportunities for individuals who are blind and 
                        individuals with other significant 
                        disabilities, based on identified obstacles to 
                        employment and solutions from data regarding 
                        experiential learning options described in 
                        section 106(e)(2)(J), and related findings;
                            (vi) enhancing competitive employment 
                        options and outcomes for individuals with 
                        mental illness and individuals with cognitive 
                        disabilities;
                            (vii) enabling the qualified nonprofit 
                        agencies to provide practical information on 
                        effective approaches for business and industry 
                        to use in employing individuals with 
                        disabilities, including the provision of 
                        reasonable accommodations;
                            (viii)(I) coordinating--
                                    (aa) qualified nonprofit agency 
                                training, experiential learning 
                                options, outplacement, and upward 
                                mobility activities, for direct labor 
                                employees; with
                                    (bb) the activities of the one-stop 
                                partners described in section 121(b) of 
                                the Workforce Investment Act of 1998 
                                (29 U.S.C. 2841(b)) and agencies 
                                carrying out programs under the 
                                Rehabilitation Act of 1973 (29 U.S.C. 
                                701 et seq.); or
                            (II) providing financial assistance 
                        directly for the opportunities described in 
                        subclause (I)(aa);
                            (ix) providing information on other 
                        emerging workforce issues concerning the 
                        delivery of publicly funded employment and 
                        training services and supports to assist 
                        individuals who are blind and individuals with 
                        other significant disabilities to enter the 
                        workforce, achieve improved employment results, 
                        and become economically self-sufficient;
                            (x) providing training on how to reach 
                        goals described in section 103(k); and
                            (xi) carrying out other activities 
                        requested by the Committee or qualified 
                        nonprofit agencies.
            (4) Administrative duties.--Each central nonprofit agency 
        shall--
                    (A) represent the interests of the qualified 
                nonprofit agencies;
                    (B) evaluate the qualifications and capabilities of 
                the qualified nonprofit agencies associated with the 
                central nonprofit agency and provide the Committee with 
                pertinent data concerning the qualified nonprofit 
                agencies, their status as qualified nonprofit agencies, 
                their manufacturing or service capabilities, and other 
                information as required by the Committee;
                    (C) obtain such procurement information relating to 
                Federal contracting activities as is required by the 
                Committee to--
                            (i) determine the suitability of a product 
                        or service proposed to the Committee for 
                        addition to the procurement list;
                            (ii) establish an initial fair market price 
                        for a product or service proposed for addition 
                        to the procurement list or make a change in the 
                        fair market price;
                            (iii) recommend to the Committee suitable 
                        products or services for procurement from the 
                        qualified nonprofit agencies; and
                            (iv) recommend to the Committee initial 
                        fair market prices for products or services 
                        proposed for addition to the procurement list;
                    (D) collect and maintain the necessary records and 
                data for qualified nonprofit agencies to distribute 
                orders, and collect and maintain audit reports and 
                Federal returns of organizations exempt from income tax 
                submitted by the qualified nonprofit agencies;
                    (E) oversee and assist qualified nonprofit agencies 
                to ensure compliance with contract terms in furnishing 
                a product or a service and compliance with this title, 
                including appropriate regulations;
                    (F) recommend price changes with appropriate 
                justification for products or services on the 
                procurement list for which the central nonprofit agency 
                has distributed orders;
                    (G) submit initial certifications for qualified 
                nonprofit agencies;
                    (H) assist the Committee to obtain and review the 
                annual certification for each of the qualified 
                nonprofit agencies for the most recent full fiscal 
                year;
                    (I) promote position vacancies within the Federal 
                Government to individuals who are blind, or individuals 
                with other significant disabilities, that are employed 
                by the qualified nonprofit agencies; and
                    (J) perform other nongovernmental administrative 
                functions, subject to the oversight and direction of 
                the Committee, including--
                            (i) carrying out communications and public 
                        relations activities to increase Government and 
                        public awareness of this title, in accordance 
                        with the strategic plan described in section 
                        103(a)(3);
                            (ii) carrying out research and pilot 
                        programs and demonstration projects to 
                        determine the impact of activities on 
                        individuals who are blind and individuals with 
                        other significant disabilities;
                            (iii) gathering data and reports from 
                        qualified nonprofit agencies in accordance with 
                        sections 103(j) and 106(e)(1) to determine if 
                        the agencies have met the goals described in 
                        section 103(k);
                            (iv) assisting the Committee in carrying 
                        out reviews and monitoring and preparing 
                        reports, in accordance with section 103; and
                            (v) collecting a fee of up to 4 percent of 
                        the amount of each contract for an order 
                        awarded to the qualified nonprofit agencies 
                        associated with the central nonprofit agency, 
                        for facilitating their participation in 
                        activities carried out under this title.
    (b) Initial Designation.--
            (1) Eligible entities.--To be eligible to be designated as 
        a central nonprofit agency under section 103(d) (and distribute 
        orders of the Government through direct allocation, 
        subcontract, or any other means) a nonprofit agency shall 
        have--
                    (A) experience and expertise in administering and 
                facilitating the distribution of Government contracts;
                    (B) experience and expertise in providing training 
                and technical assistance to individuals with 
                disabilities, nonprofit agencies, and businesses;
                    (C) documented experience with and knowledge 
                about--
                            (i) supported employment, vocational 
                        training, customized employment, self-
                        employment, and other types of entrepreneurial 
                        employment opportunities and outcomes for 
                        individuals with disabilities;
                            (ii) providing transition services for 
                        students with disabilities; and
                            (iii) assistive technology; and
                    (D) the expertise necessary to identify the 
                additional data elements needed to provide 
                comprehensive reports on activities and outcomes of the 
                qualified nonprofit agencies authorized under section 
                106(e), and experience in utilizing data to prepare 
                annual reports.
            (2) Application and assurances.--To be eligible to be 
        designated as a central nonprofit agency under section 103(d), 
        an agency shall submit an application to the Committee at such 
        time, in such manner, and containing such information as the 
        Committee may require. The agency shall include in the 
        application satisfactory assurances that--
                    (A) the agency will establish clear priorities 
                through annual and 3-year program and financial 
                planning objectives for fulfilling the requirements of 
                subsection (a), and meeting the overall strategic plan 
                responsibilities and goals of the Committee pursuant to 
                subsections (a)(3) and (k) of section 103(a)(3) that 
                are related or pertinent to activities authorized or 
                compliance required under this title, and a work plan 
                for carrying out the responsibilities and achieving the 
                goals, including responsibilities relating to the types 
                of services to be provided;
                    (B) the agency will use sound organizational and 
                personnel assignment practices, including making 
                nondiscriminatory decisions to employ and advance in 
                employment qualified individuals who are blind and 
                qualified individuals with other significant 
                disabilities throughout the agency on the same terms 
                and conditions required with respect to the employment 
                of individuals with disabilities under section 503 of 
                the Rehabilitation Act of 1973 (29 U.S.C. 793);
                    (C) the agency will practice sound fiscal 
                management; and
                    (D) the agency will conduct annual self-
                evaluations, prepare an annual report, and maintain 
                records adequate to measure performance with respect to 
                the goals described in section 103(k), that contain 
                information, including information regarding--
                            (i) the extent to which the agency is 
                        meeting the goals;
                            (ii) the number and types of individuals 
                        who are blind, or individuals with other 
                        significant disabilities, receiving employment 
                        and other services through the agency;
                            (iii) the types of training, technical 
                        assistance, and other services provided through 
                        the agency and the number of individuals who 
                        are blind or individuals with other significant 
                        disabilities receiving each type of service;
                            (iv) the sources and amounts of funding for 
                        the agency, other than funding provided through 
                        this title; and
                            (v) the number of individuals who are 
                        blind, or individuals with other significant 
                        disabilities, who are employed by or are 
                        subcontractors of the agency, including the 
                        number who are in management, are in 
                        decisionmaking positions, or are subcontractors 
                        trained by the agency.
    (c) Maintaining Designation.--
            (1) In general.--To maintain its designation each central 
        nonprofit agency shall comply with the requirements of this 
        subsection.
            (2) Specific qualifications.--In addition to meeting the 
        requirements of subsection (b), each central nonprofit agency 
        shall--
                    (A) comply with the applicable compensation, 
                employment, and occupational health and safety 
                standards prescribed by the Secretary of Labor, 
                including procedures to encourage filling of vacancies 
                within the agency by promotion of qualified employees 
                that are individuals who are blind or individuals with 
                other significant disabilities;
                    (B) comply with directives or requests issued by 
                the Committee in furtherance of the objectives of this 
                title, including regulations issued under this title;
                    (C) make the agency's records, pertinent to 
                activities authorized or compliance required under this 
                title, available for inspection at any reasonable time 
                by representatives of the Committee or an entity 
                representing the Committee;
                    (D) in a case in which the central nonprofit agency 
                is authorized to supply products or services, maintain 
                records of direct labor hours performed for the agency 
                by each worker pursuant to subparagraph (E) of section 
                106(d)(2);
                    (E)(i) have a financial audit performed by an 
                independent accountant;
                    (ii) in the case of a central nonprofit agency that 
                is required to file a Federal return of organization 
                exempt from income tax, file such a return;
                    (iii) in the case of a central nonprofit agency 
                that receives a Federal award under this title in an 
                annual amount that is not less than the amount 
                specified by the Director of the Office of Management 
                and Budget as described in section 7502(a)(1)(A) of 
                title 31, United States Code, comply with the Single 
                Audit Act of 1984 and the amendments made by that Act; 
                and
                    (iv) submit to the Committee copies of reports of 
                audits, and returns, described in this subparagraph;
                    (F) ensure that Federal returns of organizations 
                exempt from income tax reflect all material correcting 
                adjustments that have been identified in accordance 
                with generally accepted accounting principles;
                    (G) adopt and comply with the Internal Revenue 
                Service regulations relating to excess benefit 
                transactions, issued under section 4958 of the Internal 
                Revenue Code of 1986; and
                    (H) comply with assurances made under subsection 
                (b)(2).
    (d) Reviews, Monitoring, Reporting, and Auditing.--
            (1) Access.--Each central nonprofit agency shall give the 
        Committee access, for the purpose of reviews, monitoring, and 
        audits and examinations, to any records maintained by the 
        central nonprofit agency that may be related or pertinent to 
        activities authorized or compliance required under this title.
            (2) Annual report.--
                    (A) In general.--Not later than December 1 of the 
                first full fiscal year after the date of enactment of 
                the Javits-Wagner-O'Day and Randolph-Sheppard 
                Modernization Act of 2008, and each December 1 
                thereafter, each central nonprofit agency shall report 
                data for the fiscal year ending the preceding September 
                30 and provide an annual report to the Committee to 
                enable the Committee to prepare the Committee report 
                described in section 103(j). If the agency has the 
                capability, the agency shall report the data and 
                provide the agency report electronically.
                    (B) Contents.--Such agency report shall include--
                            (i) information collected from qualified 
                        nonprofit agencies associated with the central 
                        nonprofit agency pursuant to section 106(e), 
                        aggregated for the central nonprofit agency;
                            (ii) information about the associated 
                        qualified nonprofit agencies, aggregated for 
                        the central nonprofit agency, consisting of--
                                    (I) information on the number of 
                                oral presentations given at Committee 
                                meetings described in section 
                                106(e)(2)(A) by businesses, resellers, 
                                and manufacturing companies;
                                    (II) a comparison of sales of items 
                                under this title by the qualified 
                                nonprofit agencies to sales of similar 
                                items through Government contracts with 
                                small businesses; and
                                    (III) information on--
                                            (aa) the frequency of the 
                                        provision of, and the nature 
                                        of, the training or technical 
                                        assistance described in section 
                                        106(e)(2)(C) and provided to 
                                        employees of the qualified 
                                        nonprofit agencies who are 
                                        blind, employees of the 
                                        agencies with other significant 
                                        disabilities, other employees 
                                        of the agencies, and 
                                        businesses;
                                            (bb) participation in 
                                        information, assistance, 
                                        training, or technical 
                                        assistance activities, 
                                        described in section 
                                        106(e)(2)(C), by businesses; 
                                        and
                                            (cc) total number of 
                                        appeals of determinations 
                                        described in section 
                                        103(b)(2)(D)(i);
                            (iii) information about the associated 
                        qualified nonprofit agencies, disaggregated by 
                        State, consisting of--
                                    (I) information on sales under this 
                                title;
                                    (II) information on the number of 
                                employees (and of direct labor 
                                employees) that are individuals who are 
                                blind or individuals with other 
                                significant disabilities, disaggregated 
                                for each State as described in section 
                                106(e)(2)(D)(i);
                                    (III) information on the number of 
                                individuals described in section 
                                106(e)(2)(E); and
                                    (IV) information on wages and 
                                benefits, including the information 
                                described in section 106(e)(2)(F);
                            (iv) information about the central 
                        nonprofit agency, consisting of--
                                    (I) information on assets, 
                                liabilities, and reserves, and income 
                                generated by the endowment fund 
                                disclosed in subsection (e);
                                    (II) a summary of an analysis of 
                                economic impact studies performed by 
                                the central nonprofit agency on 
                                businesses, resellers, and 
                                manufacturing companies when 
                                determining if services and products 
                                should be proposed to the Committee for 
                                addition to the procurement list;
                                    (III) information on the results of 
                                any demonstration projects conducted 
                                under section 107 in which the central 
                                nonprofit agency participated; and
                                    (IV) information on whether the 
                                central nonprofit agency had audits, or 
                                filed returns, described in section 
                                106(e)(2)(L); and
                            (v) information on other items as 
                        determined necessary by the Committee.
            (3) Availability on website.--The central nonprofit agency 
        shall make the agency report available to the public on the 
        agency's website.
    (e) Endowment Funds.--
            (1) Establishment.--Each central nonprofit agency is 
        authorized, using a portion of the fees collected under 
        subsection (a)(4)(J)(v), to establish a Javits-Wagner-O'Day 
        Endowment Fund as a permanent endowment fund, to enable the 
        central nonprofit agency to provide information, assistance, 
        training, and technical assistance under subsection (a)(3).
            (2) Types of investments.--The central nonprofit agency may 
        invest amounts in the endowment fund in instruments and 
        securities offered through 1 or more cooperative service 
        organizations of operating educational organizations under 
        section 501(f) of the Internal Revenue Code of 1986, or in low-
        risk instruments and securities in which a regulated insurance 
        company may invest under the laws of the State in which the 
        central nonprofit agency is located.
            (3) Management.--In managing the investments of the 
        endowment fund, the central nonprofit agency shall exercise the 
        judgment and care, under the prevailing circumstances, that a 
        person of prudence, discretion, and intelligence would exercise 
        in the management of that person's own business affairs.
            (4) Limitations.--The central nonprofit agency may not 
        invest amounts in the endowment fund in real estate, or in 
        instruments or securities issued by an organization in which an 
        executive officer or member of the central nonprofit agency is 
        a controlling shareholder, director, or owner within the 
        meaning of securities laws (as defined in section 3(a) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) and other 
        applicable laws. The central nonprofit agency may not assign 
        amounts in, hypothecate, encumber, or create a lien on the 
        endowment fund without specific written authorization of the 
        Committee.
            (5) Withdrawals and expenditures.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the central nonprofit agency may not withdraw or 
                expend any amount in the endowment fund.
                    (B) Withdrawal for necessary expenses.--Except as 
                provided in subparagraph (E), the central nonprofit 
                agency may, each fiscal year, withdraw or expend not 
                more than 50 percent of the income generated by the 
                endowment fund for the prior fiscal year to provide 
                information, assistance, training, and technical 
                assistance under subsection (a)(3).
                    (C) No commercial purposes.--The central nonprofit 
                agency may not withdraw or expend the income generated 
                by the endowment fund for any commercial purpose.
                    (D) Maintenance of records.--Each fiscal year, the 
                central nonprofit agency shall maintain records of the 
                income generated by the endowment fund for the prior 
                fiscal year and shall include the amount of the income 
                in the Committee report under subsection 
                (d)(2)(B)(iv)(I).
                    (E) Exception to withdrawal limit.--The Committee 
                may permit the central nonprofit agency to withdraw or 
                expend a portion of the amounts in the endowment fund 
                in excess of 50 percent of the income generated by the 
                endowment fund for the prior fiscal year if the agency 
                demonstrates, to the Committee's satisfaction, that 
                such withdrawal or expenditure is necessary because 
                of--
                            (i) a financial emergency, such as a 
                        pending insolvency or temporary liquidity 
                        problem;
                            (ii) a natural disaster or similarly 
                        dangerous situation; or
                            (iii) another unusual occurrence or exigent 
                        circumstance.
            (6) Redistribution of fee.--After providing notice and an 
        opportunity for a hearing, the Committee is authorized to 
        request that the central nonprofit agency deposit additional 
        funding, in excess of the portion described in paragraph (1), 
        from the fees collected under subsection (a)(4)(J)(v) into the 
        endowment fund if the central nonprofit agency--
                    (A) makes a withdrawal or expenditure of an amount 
                in the endowment fund that is not consistent with this 
                subsection;
                    (B) fails to comply with the investment standards 
                and limitations described in this subsection; or
                    (C) fails to account properly to the Committee 
                concerning the investment of, or a withdrawal or 
                expenditure of, an amount in the endowment fund.
            (7) Definitions.--In this section:
                    (A) Endowment fund.--The term ``endowment fund'' 
                means a fund established and maintained pursuant to 
                this subsection by a central nonprofit agency, for the 
                purpose of generating income to provide services under 
                subsection (a).
                    (B) Income.--The term ``income'', used with respect 
                to an endowment fund under this subsection, means an 
                amount equal to the dividends and interest accruing 
                from investments of amounts in such fund.
    (f) Committee Portion of Fees.--The central nonprofit agencies 
shall make available to the Committee 5 percent of the fees collected 
under subsection (a)(4)(J)(v), but the agencies, collectively, shall 
not make available more than a total of $5,000,000 from such fees to 
the Committee for a fiscal year. The Committee shall use the funds made 
available under this paragraph as described in section 103(m).
    (g) Corrective Action Plan and Sanctions.--
            (1) Corrective action plan.--If the Committee determines 
        that a central nonprofit agency fails to comply with the 
        requirements of this title, or to make progress toward carrying 
        out the agency's duties under this title, not later than 90 
        days after making that determination, the Committee shall 
        assist the agency, through technical assistance or other means, 
        to develop a corrective action plan, for the year following the 
        date of the determination.
            (2) Sanctions for noncompliance with plan.--
                    (A) First year.--If the Committee determines that 
                the central nonprofit agency fails to develop and 
                comply with a corrective action plan described in 
                paragraph (1) for a year, the Committee shall--
                            (i) partially or completely suspend the 
                        agency's authority to collect or use the fee 
                        authorized in subsection (a)(4)(J)(v), and 
                        shall direct the use of the fee, until the 
                        central nonprofit agency develops and complies 
                        with such a plan; or
                            (ii) establish a proportion of the fee 
                        authorized in subsection (a)(4)(J)(v) that may 
                        be used for indirect costs, and establish a 
                        proportion of the fee that shall be deposited 
                        in the endowment fund authorized in subsection 
                        (e) and used for information, assistance, 
                        training, and technical assistance under 
                        subsection (a)(3), for the following year.
                    (B) Second year.--If the Committee determines that 
                the central nonprofit agency fails to develop and 
                comply with the corrective action plan for 2 
                consecutive years, the Committee shall suspend the 
                agency's designation as a central nonprofit agency for 
                the following year, including suspension of authority 
                to collect or use the fee authorized in subsection 
                (a)(4)(J)(v), and shall direct the use of the fee for 
                that year.
                    (C) Third year.--
                            (i) In general.--If the Committee 
                        determines that the central nonprofit agency 
                        fails to develop and comply with the corrective 
                        action plan for 3 consecutive years, the 
                        Committee shall designate a new central 
                        nonprofit agency.
                            (ii) Impact of redesignation.--If the 
                        Committee designates a new agency to replace a 
                        former central nonprofit agency under clause 
                        (i), the former agency may not apply for 
                        designation as a central nonprofit agency under 
                        this title until--
                                    (I) 5 years after the date of the 
                                designation of the new agency; and
                                    (II) the former agency demonstrates 
                                that it has complied with the 
                                corrective action plan.
            (3) Egregious violation at any time.--If the Committee 
        determines that the central nonprofit agency has committed an 
        egregious violation of this title, the Committee shall suspend 
        the agency's designation as a central nonprofit agency, 
        including suspension of authority to collect or use the fee 
        authorized in subsection (a)(4)(J)(v), and shall direct the use 
        of the fee.
            (4) Appeals procedures.--The Committee shall establish 
        appeals procedures for central nonprofit agencies that are 
        determined to--
                    (A) have failed to comply or make progress as 
                described in paragraph (1);
                    (B) have failed to develop and comply with a 
                corrective action plan under paragraph (2); or
                    (C) have committed an egregious violation of this 
                title, as described in paragraph (3).
            (5) Committee action.--As part of the annual reports 
        required under section 103(j), the Committee shall describe 
        each action taken under paragraph (1), (2), or (3) and the 
        outcomes of each such action.
            (6) Public notification.--The Committee shall notify the 
        public of each action taken by the Committee under paragraph 
        (1), (2), or (3) by making available information about the 
        action on the website of the Committee. As a part of such 
        notification, the Committee shall describe each such action 
        taken under paragraph (1), (2), or (3) and the outcomes of each 
        such action.
            (7) Rule of construction.--Nothing in this section shall be 
        construed to require the Committee to sanction a central 
        nonprofit agency (including designating a new agency to replace 
        a central nonprofit agency) upon enactment of the Javits-
        Wagner-O'Day and Randolph-Sheppard Modernization Act of 2008.

SEC. 106. QUALIFIED NONPROFIT AGENCIES.

    (a) In General.--In accordance with section 103(d), the central 
nonprofit agencies shall facilitate the distribution of orders of the 
Government for products and services on the procurement list among 
qualified nonprofit agencies for individuals who are blind and 
qualified nonprofit agencies for individuals with other significant 
disabilities.
    (b) Duties.--The qualified nonprofit agencies that receive such 
orders shall--
            (1) fulfill the requirements of the orders from the 
        Government for products and services;
            (2) provide employment for individuals who are blind or 
        individuals with other significant disabilities; and
            (3) provide skill development, training, technical 
        assistance, and experiential learning options to help such 
        employees maintain, regain, or advance in employment--
                    (A) with the assistance of the central nonprofit 
                agencies pursuant to subparagraphs (A) and (B) of 
                section 105(a)(3), one-stop partners described in 
                section 121(b) of the Workforce Investment Act of 1998 
                (29 U.S.C. 2841(b)), and agencies carrying out programs 
                under the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
                seq.); and
                    (B) to meet the goals described in section 103(k).
    (c) Initial Qualification.--In order to be qualified as a qualified 
nonprofit agency under this title, a nonprofit agency shall submit an 
application to a central nonprofit agency at such time, in such manner, 
and containing such information as the central nonprofit agency or the 
Committee shall require, and shall meet the following requirements:
            (1) Documents of privately incorporated nonprofit agency.--
        A privately incorporated nonprofit agency shall submit to the 
        Committee through the associated central nonprofit agency the 
        following documents, transmitted with a letter signed by a 
        chief executive or other officer of the corporation:
                    (A) A copy of the articles of incorporation, 
                showing the date of filing and the signature of an 
                appropriate State official.
                    (B) A copy of the bylaws for the corporation, 
                certified by an officer of the corporation.
                    (C) If the articles of incorporation or bylaws do 
                not include wording to the effect that no part of the 
                net income of the nonprofit agency may inure to the 
                benefit of any shareholder or other individual, 1 of 
                the following:
                            (i) A certified copy of the State statute 
                        under which the nonprofit agency was 
                        incorporated that includes wording to the 
                        effect that no part of the net income of the 
                        nonprofit agency may inure to the benefit of 
                        any shareholder or other individual.
                            (ii) A copy of a resolution approved by the 
                        governing body of the corporation, certified by 
                        an officer of the corporation, with wording to 
                        the effect that no part of the net income of 
                        the nonprofit agency may inure to the benefit 
                        of any shareholder or other individual.
            (2) Documents of state-owned or state-operated nonprofit 
        agency.--A State-owned or State-operated nonprofit agency, or a 
        nonprofit agency established or authorized by a State statute 
        other than the State corporation laws and not privately 
        incorporated, shall submit to the Committee through the 
        associated central nonprofit agency 1 of the following 
        documents, transmitted with a letter signed by an official of 
        the agency that directs the operations of the nonprofit agency 
        or, in the case of a State-owned nonprofit agency, an officer 
        of the agency, as applicable:
                    (A) A certified true copy of the State statute 
                establishing or authorizing qualified nonprofit 
                agencies for individuals who are blind or qualified 
                nonprofit agencies for individuals with other 
                significant disabilities.
                    (B)(i) In the case of a State-owned nonprofit 
                agency, a certified true copy of the corporation 
                bylaws.
                    (ii) In the case of a State or local government 
                agency, a certified true copy of implementing 
                regulations, operating procedures, notice of 
                establishment of the nonprofit agency, or other similar 
                documents.
            (3) Assurances.--The agency shall include in the 
        application satisfactory assurances that--
                    (A) the agency will establish clear priorities 
                through annual and 3-year program and financial 
                planning objectives for fulfilling the requirements of 
                subsections (a) and (b), and meeting the overall 
                strategic plan responsibilities and goals of the 
                Committee pursuant to subsections (a)(3) and (k) of 
                section 103 that are related or pertinent to activities 
                authorized or compliance required under this title, and 
                a work plan for carrying out the responsibilities and 
                achieving the goals, including responsibilities 
                relating to the types of services to be provided;
                    (B) the agency will use sound organizational and 
                personnel assignment practices, including making 
                nondiscriminatory decisions to employ and advance in 
                employment qualified individuals with significant 
                disabilities throughout the agency on the same terms 
                and conditions required with respect to the employment 
                of individuals with disabilities under section 503 of 
                the Rehabilitation Act of 1973 (29 U.S.C. 793);
                    (C) the agency will practice sound fiscal 
                management; and
                    (D) the agency will conduct annual self-
                evaluations, prepare an annual report, and maintain 
                records adequate to measure performance with respect to 
                the goals described in section 103(k), that contain 
                information, including information regarding--
                            (i) the extent to which the agency is 
                        meeting the goals;
                            (ii) the number and types of individuals 
                        who are blind, or individuals with other 
                        significant disabilities, receiving employment 
                        and other services through the agency;
                            (iii) the number of individuals who are 
                        blind or individuals with other significant 
                        disabilities that received training, technical 
                        assistance or other services, and the type of 
                        services they received;
                            (iv) the sources and amounts of funding for 
                        the agency, other than funding provided through 
                        this title; and
                            (v) the number of individuals who are 
                        blind, or individuals with other significant 
                        disabilities, who are employed by or are 
                        subcontractors of the agency, including the 
                        number who are in management, are in 
                        decisionmaking positions, or are subcontractors 
                        trained by the agency.
    (d) Maintaining Qualification.--
            (1) In general.--To maintain its qualification each 
        qualified nonprofit agency shall comply with the requirements 
        of this subsection. In addition, each qualified nonprofit 
        agency shall submit to the associated central nonprofit agency 
        by November 1 of each year, 2 completed copies of the annual 
        certification described in subparagraph (G) or (H) of section 
        105(a)(4) covering the preceding full fiscal year. If the 
        agency has the capability, the agency shall submit the copies 
        of the certification electronically.
            (2) Specific qualifications.--In addition to meeting the 
        requirements of subsection (c), each nonprofit agency shall--
                    (A) furnish products or services in strict 
                accordance with Government orders;
                    (B) comply with the applicable compensation, 
                employment, and occupational health and safety 
                standards prescribed by the Secretary of Labor, 
                including procedures to encourage filling of vacancies 
                within the agency by promotion of qualified employees 
                that are individuals who are blind or individuals with 
                other significant disabilities;
                    (C) comply with directives or requests issued by 
                the Committee in furtherance of the objectives of this 
                title, including regulations issued under this title;
                    (D)(i) make the agency's records, pertinent to 
                activities authorized or compliance required under this 
                title, available for inspection at any reasonable time 
                by representatives of the Committee or the central 
                nonprofit agency associated with the nonprofit agency, 
                or by an entity representing the Committee or central 
                nonprofit agency; and
                    (ii) if the agency has the capability, make the 
                records available electronically;
                    (E) maintain records of direct labor hours 
                performed for the agency by each worker, including--
                            (i) for individuals who are blind--
                                    (I) a file for each such individual 
                                performing direct labor that contains a 
                                written report reflecting visual acuity 
                                and field of vision of each eye, with 
                                best correction, signed by a person 
                                licensed to evaluate such acuity and 
                                field of vision, or a certification of 
                                blindness by a State or local 
                                government entity; and
                                    (II) within the file, information 
                                pertaining to the individual--
                                            (aa) describing 2 or more 
                                        experiential learning options, 
                                        provided to the individual for 
                                        not less than 2 weeks of each 
                                        year for which the agency 
                                        employs the individual;
                                            (bb) reporting on the 
                                        experience provided through the 
                                        experiential learning options, 
                                        including goals for creating 
                                        individualized employment 
                                        results based on the unique 
                                        strengths, resources, 
                                        priorities, concerns, 
                                        abilities, capabilities, 
                                        interests, and informed choice 
                                        of the individual;
                                            (cc) describing 
                                        individualized training 
                                        activities offered that the 
                                        employee participates in to try 
                                        to achieve the desired 
                                        individualized employment 
                                        results; and
                                            (dd) describing an overall 
                                        assessment of the experience, 
                                        identifying the data described 
                                        in subsection (e)(2)(J); and
                                    (III) within the file, an annual 
                                report based on information described 
                                in subclause (II), describing the 
                                ability of the individual to engage in 
                                competitive employment, which shall be 
                                prepared and signed by an individual 
                                qualified by training or experience to 
                                determine that ability; and
                            (ii) for individuals with other significant 
                        disabilities--
                                    (I) a file for each such individual 
                                performing direct labor with a written 
                                report signed by a licensed physician, 
                                psychiatrist, or qualified 
                                psychologist, reflecting the nature and 
                                extent of each disability that causes 
                                such individual to qualify as a 
                                individual with another significant 
                                disability, or a certification of each 
                                such disability by a State or local 
                                government entity;
                                    (II) within the file, information 
                                pertaining to the individual--
                                            (aa) describing 2 or more 
                                        experiential learning options, 
                                        provided to the individual for 
                                        not less than 2 weeks of each 
                                        year for which the agency 
                                        employs the individual;
                                            (bb) reporting on the 
                                        experience provided through the 
                                        experiential learning options, 
                                        including goals for creating 
                                        individualized employment 
                                        results based on the unique 
                                        strengths, resources, 
                                        priorities, concerns, 
                                        abilities, capabilities, 
                                        interests, and informed choice 
                                        of the individual;
                                            (cc) describing 
                                        individualized training 
                                        activities offered that the 
                                        employee participates in to try 
                                        to achieve the desired 
                                        individualized employment 
                                        results; and
                                            (dd) describing an overall 
                                        assessment of the experience, 
                                        identifying the data described 
                                        in subsection (e)(2)(J); and
                                    (III) within the file, annual 
                                reports based on information described 
                                in subclause (II), describing the 
                                ability of the individual to engage in 
                                competitive employment, which shall be 
                                prepared and signed by an individual 
                                qualified by training and experience to 
                                evaluate the work potential, interests, 
                                aptitudes, and abilities of individuals 
                                with disabilities and shall normally 
                                consist of--
                                            (aa) for individuals who 
                                        have been employed by the 
                                        qualified nonprofit agency for 
                                        less than 2 years, a 
                                        preadmission evaluation and (if 
                                        appropriate) 1 annual 
                                        reevaluation; or
                                            (bb) for individuals who 
                                        have been employed by the 
                                        qualified nonprofit agency for 
                                        not less than 2 years, at least 
                                        the 2 most recent annual 
                                        reevaluations;
                    (F) maintain an ongoing training and placement 
                program, operated by or for the agency, that--
                            (i) shall include liaison with entities 
                        providing appropriate community services such 
                        as the one-stop partners described in section 
                        121(b) of the Workforce Investment Act of 1998 
                        (29 U.S.C. 2841(b)), agencies carrying out 
                        programs under the Rehabilitation Act of 1973 
                        (29 U.S.C. 701 et seq.), employer groups, and 
                        others; and
                            (ii) shall assist those individuals that 
                        are determined to be capable and desirous of 
                        competitive employment in obtaining such 
                        employment;
                    (G) upon receipt of payment by the Government for 
                products or services furnished under the program 
                carried out under this title, pay to the central 
                nonprofit agency a fee in accordance with section 
                105(a)(4)(J)(v);
                    (H)(i) in the case of a qualified nonprofit agency 
                that receives a Federal award under this title in an 
                annual amount that is not less than $1,000,000, have an 
                audit performed by an independent accountant;
                    (ii) in the case of a qualified nonprofit agency 
                that is required to file a Federal return of 
                organization exempt from income tax, file such a 
                return;
                    (iii) in the case of a qualified nonprofit agency 
                that receives a Federal award under this title in an 
                annual amount that is not less than the amount 
                specified by the Director of the Office of Management 
                and Budget as described in section 7502(a)(1)(A) of 
                title 31, United States Code, comply with the Single 
                Audit Act of 1984 and the amendments made by that Act; 
                and
                    (iv) submit to the associated central nonprofit 
                agency copies of reports of audits, and returns, 
                described in this subparagraph;
                    (I) ensure that Federal returns of organizations 
                exempt from income tax reflect all material correcting 
                adjustments that have been identified in accordance 
                with generally accepted accounting principles;
                    (J) adopt and comply with the Internal Revenue 
                Service regulations relating to intermediate sanctions, 
                issued under section 4958 of the Internal Revenue Code 
                of 1986; and
                    (K) comply with assurances made under subsection 
                (c)(3).
            (3) Application of provisions.--An entity that is a 
        qualified nonprofit agency on the date of enactment of the 
        Javits-Wagner-O'Day and Randolph-Sheppard Modernization Act of 
        2008 shall not be required to establish eligibility in 
        accordance with subsection (c) but shall be required to 
        maintain eligibility in accordance with this subsection.
    (e) Annual Report.--
            (1) In general.--Not later than November 1 of the first 
        full fiscal year after the date of enactment of the Javits-
        Wagner-O'Day and Randolph-Sheppard Modernization Act of 2008, 
        and each November 1 thereafter, each qualified nonprofit agency 
        shall report data for the fiscal year ending the preceding 
        September 30 and provide an annual report to the Committee, 
        through the associated central nonprofit agency, to enable the 
        Committee to prepare the Committee report described in section 
        103(j). If the qualified nonprofit agency has the capability, 
        the agency shall report the data and provide the agency report 
        electronically.
            (2) Contents.--Such agency report shall include 
        information, for the qualified nonprofit agency--
                    (A) on procurement, including--
                            (i) how long it took for an item produced 
                        or provided by the qualified nonprofit agency 
                        to be added to the procurement list from the 
                        time the associated central nonprofit agency 
                        sent a pricing memorandum to the Committee;
                            (ii) the number of such items proposed to 
                        be added to the procurement list that were 
                        denied;
                            (iii) justifications for price changes and 
                        other modifications to products and services of 
                        the qualified nonprofit agency on the 
                        procurement list;
                            (iv) total number of appeals by the 
                        qualified nonprofit agency of determinations 
                        described in section 103(b)(2)(D)(i); and
                            (v) the number of, and information 
                        identifying, the products and services of the 
                        qualified nonprofit agency on the procurement 
                        list that have not been purchased in the last 
                        12, 24, and 36 months;
                    (B) on sales (including sales through base supply 
                stores) under this title, including total sales and 
                sales disaggregated by products and services;
                    (C) on participation in information, assistance, 
                training, or technical assistance activities offered by 
                the associated central nonprofit agency, including 
                information on--
                            (i) that participation, in total and 
                        disaggregated by employees who are blind, 
                        employees with other significant disabilities, 
                        and other employees of the qualified nonprofit 
                        agency; and
                            (ii) that participation, in total and 
                        disaggregated--
                                    (I) by training, technical 
                                assistance, and rehabilitation 
                                activities;
                                    (II) by topic; and
                                    (III) by method of delivery (such 
                                as through videos, seminars, or web-
                                based technologies);
                    (D)(i) on the number of employees that are 
                individuals who are blind or individuals with other 
                significant disabilities, disaggregated--
                            (I) by disability type;
                            (II) by whether the individuals involved 
                        are veterans, persons transitioning from 
                        institutions or schools, students, individuals 
                        acquiring disabilities as adults, or members of 
                        other populations; or
                            (III) by demographic information; and
                    (ii) on the number of direct labor employees that 
                are individuals who are blind or individuals with other 
                significant disabilities, disaggregated as described in 
                clause (i);
                    (E) on the number of individuals who are blind or 
                individuals with other significant disabilities that 
                were outplaced or advanced in employment within the 
                qualified nonprofit agency;
                    (F) on wages and benefits, including information 
                on--
                            (i) average wages of direct labor 
                        employees, for individuals who are blind, 
                        individuals with other significant 
                        disabilities, and individuals who do not have 
                        significant disabilities;
                            (ii) average wages and total number of 
                        direct labor employees, for individuals who are 
                        blind making commensurate wages, individuals 
                        with other significant disabilities making 
                        commensurate wages, and individuals who do not 
                        have significant disabilities;
                            (iii) average wages and total number of 
                        direct labor employees, for individuals who are 
                        blind making commensurate wages at less than 
                        the minimum wage rate, individuals with other 
                        significant disabilities making commensurate 
                        wages at less than the minimum wage rate, and 
                        individuals who do not have significant 
                        disabilities, making commensurate wages at less 
                        than the minimum wage rate; and
                            (iv) the percentage increase in wages, for 
                        each group of employees described in clauses 
                        (i) through (iii), compared to the wage for 
                        that group in each of the preceding 2 years;
                    (G) on the number of contracts of the qualified 
                nonprofit agency with--
                            (i) other qualified nonprofit agencies;
                            (ii) other nonprofit agencies;
                            (iii) small businesses; and
                            (iv) small businesses owned by individuals 
                        with disabilities, disaggregated by whether the 
                        individual with a disability was an employee 
                        of, and trained by, a qualified nonprofit 
                        agency;
                    (H) the costs incurred under this title by the 
                qualified nonprofit agency preparing the report to 
                conduct administration, and provide assessment 
                services, counseling and guidance, and other direct 
                services;
                    (I)(i) development of new employment opportunities 
                for employees that are individuals who are blind or 
                individuals with other significant disabilities, 
                including opportunities through--
                            (I) electronic commerce;
                            (II) subcontracting by the qualified 
                        nonprofit agency to employees that are 
                        individuals who are blind, or individuals with 
                        other significant disabilities, trained by the 
                        agency;
                            (III) outplacement (as provided for in 
                        clause (i) or (ii) of section 103(g)(1)(B)); 
                        and
                            (IV) promotion (as provided for in section 
                        103(g)(1)(B)(iii);
                    (ii) the success rate for the opportunities 
                described in each of subclauses (I) through (IV) of 
                clause (i); and
                    (iii) the number of jobs lost by the qualified 
                nonprofit agency during the fiscal year covered by the 
                report;
                    (J) on data regarding experiential learning 
                options--
                            (i) describing obstacles that individuals 
                        who are blind or individuals with other 
                        significant disabilities participating in the 
                        options encountered while trying to achieve 
                        desired employment results and describing 
                        whether the obstacles were overcome; and
                            (ii) describing strategies, solutions, and 
                        methods of individuals experiencing positive 
                        outcomes through the experiential learning 
                        options;
                    (K) on data regarding meeting goals described in 
                section 103(k);
                    (L) on whether the qualified nonprofit agency had 
                an audit performed by an independent accountant, or 
                filed a Federal return of organization exempt from 
                income tax; and
                    (M) on other items as determined necessary by the 
                associated central nonprofit agency or the Committee.
            (3) Availability on website.--The qualified nonprofit 
        agency shall make the agency report available to the public on 
        the agency's website.
            (4) Definitions.--In this subsection:
                    (A) Commensurate wage.--The term ``commensurate 
                wage'' means a commensurate wage as described in 
                section 14(c) of the Fair Labor Standards Act of 1938 
                (29 U.S.C. 214(c)).
                    (B) Minimum wage rate.--The term ``minimum wage 
                rate'' means the minimum wage rate set forth in section 
                6(a)(1) of the Fair Labor Standards Act of 1938 (29 
                U.S.C. 206(a)(1)).
    (f) Executive Compensation.--
            (1) Limitation on rate.--Revenues generated through this 
        title and funds made available under this title shall not be 
        used to pay staff employed by a qualified nonprofit agency, 
        either as a direct cost or through any proration as an indirect 
        cost, at a rate in excess of the rate payable for level II of 
        the Executive Schedule under section 5313 of title 5, United 
        States Code, as in effect on the date of enactment of the 
        Javits-Wagner-O'Day and Randolph-Sheppard Modernization Act of 
        2008.
            (2) Construction.--Nothing in this subsection shall be 
        construed to forbid a qualified nonprofit agency from using 
        revenue or funds not described in paragraph (1) to contribute 
        to the salary of staff employed by the qualified nonprofit 
        agency, even if the resulting total rate for that salary 
        exceeds the rate allowable under paragraph (1).
    (g) Corrective Action Plan and Sanctions.--
            (1) Corrective action plan.--
                    (A) Investigation.--Any alleged violation of this 
                title by a qualified nonprofit agency shall be 
                investigated by the Committee, with the assistance of 
                the associated central nonprofit agency. The central 
                nonprofit agency shall notify the qualified nonprofit 
                agency and afford the agency an opportunity to submit a 
                statement of facts and evidence. The central nonprofit 
                agency shall prepare and submit to the Committee a 
                report containing the findings resulting from the 
                agency's investigation, together with its 
                recommendations.
                    (B) Development of plan.--If the Committee 
                determines that a qualified nonprofit agency fails to 
                comply with the requirements of this title, or to make 
                progress toward carrying out the agency's duties under 
                this title, not later than 90 days after making that 
                determination, the Committee shall assist the agency, 
                through technical assistance or other means, to develop 
                a corrective action plan, for the year following the 
                date of the determination.
            (2) Sanctions for noncompliance with plan.--
                    (A) First year.--If the Committee determines that 
                the qualified nonprofit agency fails to develop and 
                comply with the corrective action plan described in 
                paragraph (1) for a year, the associated central 
                nonprofit agency, acting at the direction of the 
                Committee, shall--
                            (i) partially suspend an affected order of 
                        the Government described in subsection (a) for 
                        a product or service, until the qualified 
                        nonprofit agency develops and complies with the 
                        plan; and
                            (ii) redistribute the order to another 
                        qualified nonprofit agency until the agency 
                        with the suspended order develops and complies 
                        with the plan.
                    (B) Second year.--If the Committee determines that 
                the qualified nonprofit agency fails to develop and 
                comply with the corrective action plan for 2 
                consecutive years, the central nonprofit agency, acting 
                at the direction of the Committee, shall--
                            (i) partially or completely suspend an 
                        affected order of the Government described in 
                        subsection (a) for a product or service, and 
                        suspend the qualified nonprofit agency's 
                        authority to receive any additional order of 
                        the Government described in subsection (a), 
                        until the qualified nonprofit agency develops 
                        and complies with the plan; and
                            (ii) redistribute the affected order to 
                        another qualified nonprofit agency until the 
                        agency with the suspended order develops and 
                        complies with the plan.
                    (C) Third year.--
                            (i) In general.--If the Committee 
                        determines that the qualified nonprofit agency 
                        fails to develop and comply with the corrective 
                        action plan for 3 consecutive years, the 
                        central nonprofit agency, acting at the 
                        direction of the Committee, shall--
                                    (I) terminate the agency's 
                                qualification as a qualified nonprofit 
                                agency, including termination of 
                                authority to receive an order of the 
                                Government described in subsection (a); 
                                and
                                    (II) redistribute the orders 
                                received by the qualified nonprofit 
                                agency to another qualified nonprofit 
                                agency.
                            (ii) Impact of termination.--If the central 
                        nonprofit agency terminates the agency's 
                        qualification as a qualified nonprofit agency 
                        under clause (i)(I), the former agency may not 
                        apply for qualification as such an agency under 
                        this title until--
                                    (I) 5 years after the date of the 
                                termination; and
                                    (II) the former agency demonstrates 
                                that it has complied with the 
                                corrective action plan.
            (3) Determination.--The Committee shall determine, prior to 
        terminating the qualification of a qualified nonprofit agency 
        under paragraph (2)(C), if the product produced or service 
        provided by the agency through the order can be purchased 
        through another qualified nonprofit agency, another nonprofit 
        agency, or commercially. To assist the Committee in making the 
        determination, the entity of the Government ordering such 
        product or service shall state in writing whether such product 
        or service can be so purchased. If the product or service 
        cannot be so purchased, the Committee shall not terminate the 
        qualification.
            (4) Egregious violation at any time.--If the Committee 
        determines that the qualified nonprofit agency has committed an 
        egregious violation of this title, the central nonprofit 
        agency, acting at the direction of the Committee, shall--
                    (A) suspend the agency's qualification as a 
                qualified nonprofit agency, including suspension of 
                authority to receive an order of the Government 
                described in subsection (a); and
                    (B) redistribute the orders received by the 
                qualified nonprofit agency to another qualified 
                nonprofit agency.
            (5) Appeals procedures.--The Committee shall establish 
        appeals procedures for qualified nonprofit agencies that are 
        determined to--
                    (A) have failed to comply or make progress as 
                described in paragraph (1);
                    (B) have failed to develop and comply with a 
                corrective action plan under paragraph (2); or
                    (C) have committed an egregious violation of this 
                title, as described in paragraph (4).
            (6) Committee action.--As part of the annual reports 
        required under section 103(j), the Committee shall describe 
        each action taken under paragraph (1), (2), or (4) and the 
        outcomes of each such action.
            (7) Public notification.--The Committee shall notify the 
        public of each action taken by the Committee (or the central 
        nonprofit agency, acting at the direction of the Committee) 
        under paragraph (1), (2), or (4) by making available 
        information about the action on the website of the Committee. 
        As a part of such notification, the Committee shall describe 
        each such action taken under paragraph (1), (2), or (4) and the 
        outcomes of each such action.
            (8) Rules of construction.--
                    (A) Phase-in requests.--A qualified nonprofit 
                agency shall not be considered to be out of compliance 
                with the direct labor hour percentage requirements of 
                paragraph (11)(C) or (12)(C) of section 2 or section 
                103(g) if a phase-in request was approved by the 
                Committee for the agency and is in effect under section 
                103(g).
                    (B) Timing of sanctions.--Nothing in this section 
                shall be construed to require the Committee to sanction 
                a qualified nonprofit agency upon enactment of the 
                Javits-Wagner-O'Day and Randolph-Sheppard Modernization 
                Act of 2008.

SEC. 107. DEMONSTRATION PROJECTS.

    (a) Types of Demonstration Projects.--Pursuant to section 
105(a)(4)(J)(ii), each central nonprofit agency shall conduct the 
following demonstration projects.
            (1) Demonstration projects for employment of students with 
        significant disabilities.--
                    (A) Purpose.--The purpose of this paragraph is to 
                support model demonstration projects to provide 
                employment experiences for students with disabilities 
                in order to enable such students to gain employment 
                skills and experience that will promote the student's 
                effective transition from school to employment.
                    (B) Definitions.--In this paragraph:
                            (i) Student with a significant 
                        disability.--The term ``student with a 
                        significant disability'' means an individual 
                        with a significant disability who--
                                    (I)(aa) receives special education 
                                and related services in accordance with 
                                an individualized education program; or
                                    (bb) receives services under a plan 
                                under section 504 of the Rehabilitation 
                                Act of 1973 (29 U.S.C. 794; referred to 
                                in this paragraph as a ``504 plan'');
                                    (II) meets the definition of 
                                disability under paragraphs (1) and (9) 
                                of section 2; and
                                    (III) has attained the age of 16 
                                but has not attained the age of 22.
                            (ii) Individualized education program.--The 
                        term ``individualized education program'' has 
                        the meaning given the term in section 614(d) of 
                        the Individuals with Disabilities Education Act 
                        (20 U.S.C. 1414(d)).
                    (C) Program authorized.--
                            (i) In general.--A central nonprofit agency 
                        may, on a competitive basis, award grants or 
                        contracts to, or enter into cooperative 
                        agreements with, qualified nonprofit agencies 
                        to enable the qualified nonprofit agencies to 
                        carry out a demonstration project under this 
                        paragraph.
                            (ii) Representation.--A central nonprofit 
                        agency making awards or entering into 
                        cooperative agreements under clause (i) shall 
                        ensure, to the extent practicable, an equitable 
                        geographic distribution of such awards or 
                        agreements across the United States.
                            (iii) Duration.--A grant, contract, or 
                        cooperative agreement awarded or entered into 
                        under clause (i) by a central nonprofit agency 
                        shall be for a period of not less than 3 nor 
                        more than 5 years.
                    (D) Applications.--Each qualified nonprofit agency 
                desiring to receive a grant, contract, or cooperative 
                agreement under subparagraph (C) shall submit an 
                application to the central nonprofit agency at such 
                time, in such manner, and including such information as 
                the central nonprofit agency or the Committee may 
                reasonably require. Each application shall include--
                            (i) a description of how the qualified 
                        nonprofit agency plans to carry out the 
                        activities described in subparagraph (E);
                            (ii) a description of how the qualified 
                        nonprofit agency will work with the central 
                        nonprofit agency to disseminate information 
                        about--
                                    (I) the activities described in 
                                subparagraph (E) that will be carried 
                                out by the qualified nonprofit agency; 
                                and
                                    (II) the impact of such activities 
                                on the lives of the students with 
                                disabilities served by the 
                                demonstration project;
                            (iii) a description of how the qualified 
                        nonprofit agency will coordinate activities 
                        with schools and any other relevant service 
                        providers in the locality where the qualified 
                        nonprofit agency is based;
                            (iv) a plan for an evaluation that meets 
                        the requirements of subparagraph (F); and
                            (v) any other information that the central 
                        nonprofit agency or the Committee may 
                        reasonably require.
                    (E) Authorized activities.--A qualified nonprofit 
                agency that receives a grant or contract, or enters 
                into a cooperative agreement, under subparagraph (C) 
                shall use the funds made available through the grant, 
                contract, or cooperative agreement to carry out the 
                following activities for students with disabilities:
                            (i) Assess the employment and postsecondary 
                        needs of students with significant disabilities 
                        who have completed, or are nearing completion 
                        of, an individualized education program or a 
                        plan under section 504 of the Rehabilitation 
                        Act of 1973 (29 U.S.C. 794). The employment and 
                        postsecondary needs assessment of such a 
                        student may include--
                                    (I) participating (as appropriate 
                                when vocational goals are discussed) in 
                                a meeting regarding the individualized 
                                education program or 504 plan for the 
                                student; and
                                    (II) providing the specific 
                                transition needed to achieve the 
                                individual's employment outcome or 
                                projected employment outcome, as 
                                identified in the student's 
                                individualized education program or a 
                                similar result as identified in the 
                                student's 504 plan.
                            (ii) Conduct outreach to students with 
                        significant disabilities, including students 
                        with significant disabilities attending private 
                        schools, in order to coordinate services 
                        designed to facilitate the transition of such 
                        students to postsecondary life, including 
                        employment.
                            (iii) Enter into employment contracts of 
                        not more than 3 years with the parents of such 
                        students with significant disabilities--
                                    (I) to provide the students with 
                                employment, through contracts obtained 
                                by the qualified nonprofit agency, as 
                                well as experiential learning options 
                                (to be provided for not less than 2 
                                weeks of each year for which the agency 
                                employs the students) and training to 
                                build the skills of the students;
                                    (II) to assist the students in 
                                obtaining the students' proposed 
                                postsecondary goals identified in the 
                                students' individualized education 
                                programs or similar results identified 
                                in the students' 504 plans; and
                                    (III) that specify that, if such a 
                                contract for employment of a student is 
                                terminated, the student may not be 
                                employed by the qualified nonprofit 
                                agency after the termination.
                            (iv) Carry out outplacement programs 
                        designed to facilitate the transition of 
                        students with significant disabilities who are 
                        employed by the qualified nonprofit agency into 
                        competitive community employment or 
                        postsecondary education, based on the unique 
                        strengths, resources, priorities, concerns, 
                        abilities, capabilities, interests, and 
                        informed choice of each student, by providing--
                                    (I) opportunities for upward 
                                mobility for such students within the 
                                qualified nonprofit agency;
                                    (II) career, technical, and 
                                educational guidance;
                                    (III) career exploration services;
                                    (IV) job searches and training 
                                regarding job searches; and
                                    (V) transition to competitive 
                                employment described in section 
                                103(g)(1)(B)(i) or postsecondary 
                                education, based on the student's 
                                proposed postsecondary goals identified 
                                in the student's individualized 
                                education program (if applicable) or 
                                similar results identified in the 
                                student's 504 plan (if applicable), 
                                following the conclusion of the 
                                student's employment contract with the 
                                agency.
                    (F) Mandated evaluation and dissemination 
                activities.--
                            (i) Annual report.--Not later than 2 years 
                        after the date on which the central nonprofit 
                        agency awards a grant or contract, or enters 
                        into a cooperative agreement, under 
                        subparagraph (C), and annually thereafter for 
                        the duration of such grant, contract, or 
                        cooperative agreement, the qualifying nonprofit 
                        agency receiving the grant or contract, or 
                        entering into the cooperative agreement, shall 
                        submit to the central nonprofit agency a 
                        report, resulting from an evaluation, 
                        containing information on--
                                    (I) the number of students with 
                                significant disabilities who 
                                participate in the demonstration 
                                project;
                                    (II) the nature of employment and 
                                other skills being taught to the 
                                students with significant disabilities 
                                through the project;
                                    (III) the number of students with 
                                significant disabilities participating 
                                in the project that are placed in 
                                competitive employment described in 
                                section 103(g)(1)(B)(i);
                                    (IV) the worksites, and types of 
                                jobs, in which students with 
                                significant disabilities are placed 
                                through the project;
                                    (V) the number of students with 
                                significant disabilities who dropped 
                                out of the project and the reasons the 
                                students terminated participation in 
                                the project; and
                                    (VI) such other subjects as the 
                                central nonprofit agency or the 
                                Committee may specify.
            (2) Corporate partnership demonstration projects.--
                    (A) Purpose.--The purpose of this paragraph is to 
                establish a new model for projects, open to 
                participation by qualified partnerships, that will 
                expand integrated and competitive work opportunities 
                beyond the opportunities otherwise provided under this 
                title, in order to obtain employment for individuals 
                with significant disabilities in traditional and 
                nontraditional industries.
                    (B) Definitions.--In this paragraph:
                            (i) Corporate partnership.--The term 
                        ``corporate partnership'' means a partnership 
                        between or among 1 or more eligible qualified 
                        nonprofit agencies and 1 or more private 
                        entities, in traditional or nontraditional 
                        industries.
                            (ii) Eligible qualified nonprofit agency.--
                        In this paragraph, the term ``eligible 
                        qualified nonprofit agency'' means a qualified 
                        nonprofit agency for individuals who are blind, 
                        or a qualified nonprofit agency for individuals 
                        with other significant disabilities, that meets 
                        or exceeds the goals described in section 
                        103(k).
                            (iii) Nontraditional industry.--The term 
                        ``nontraditional industry'' means an industry 
                        that produces a product, or provides a service, 
                        that the Committee typically determines is not 
                        suitable for production or provision by 
                        qualified nonprofit agencies, such as 
                        technology or a product or service of another 
                        high-growth industry.
                    (C) In general.--
                            (i) Awards.--For each of fiscal years 2009 
                        through 2013, a central nonprofit agency may 
                        distribute not more than 5 orders for products 
                        or services a year to corporate partnerships in 
                        the same manner as orders are distributed to 
                        qualified nonprofit agencies under this title.
                            (ii) Representation.--A central nonprofit 
                        agency distributing orders under this 
                        subparagraph shall ensure, to the extent 
                        practicable, an equitable geographic 
                        distribution of the orders across the United 
                        States.
                    (D) Requirements.--A central nonprofit agency shall 
                distribute orders under subparagraph (C) to a corporate 
                partnership only if the members of the corporate 
                partnership enter into a binding agreement that has 
                been approved by the central nonprofit agency and the 
                Committee and meets the following requirements:
                            (i) Contents.--The binding agreement 
                        includes a description of--
                                    (I) how each private entity and 
                                eligible qualified nonprofit agency in 
                                the corporate partnership plan to 
                                produce the product or provide the 
                                service identified in the order 
                                distributed under subparagraph (C);
                                    (II) how the private entity and 
                                eligible qualified nonprofit agency 
                                will coordinate activities and 
                                distribute the functions related to the 
                                order;
                                    (III) the partnership model 
                                described in subparagraph (F) that will 
                                be used;
                                    (IV) if the central nonprofit 
                                agency or the Committee determines 
                                appropriate, whether the private entity 
                                may compensate the eligible qualified 
                                nonprofit agency for administrative or 
                                training expenses resulting from the 
                                partnership; and
                                    (V) the evaluation plan, in 
                                accordance with subparagraph (G), for 
                                the activities carried out by the 
                                corporate partnership under this 
                                paragraph.
                            (ii) Submission.--A copy of the binding 
                        agreement accompanies any documents required as 
                        part of the bidding process for an order under 
                        this paragraph.
                            (iii) Direct labor hour percentage 
                        requirements.--The binding agreement provides 
                        that any product or service produced or 
                        provided under the order by employees who are 
                        individuals with significant disabilities shall 
                        be subject to the same direct labor hour 
                        percentage requirements that apply, under 
                        paragraphs (11)(C) and (12)(C) of section 2, 
                        and section 103(g), to qualified nonprofit 
                        agencies producing such products or providing 
                        such services under this title.
                            (iv) Long-term employment.--The binding 
                        agreement provides for long-term employment 
                        opportunities, with a private entity 
                        participating in the corporate partnership, for 
                        individuals with significant disabilities 
                        employed by the private entity who would 
                        otherwise be employees of a qualified nonprofit 
                        agency.
                            (v) Price savings.--The binding agreement 
                        offers the product or service that is to be 
                        produced or provided under an order under this 
                        paragraph at a price equal to or less than the 
                        price that otherwise would be charged by a 
                        qualified nonprofit agency.
                    (E) Preferred source status.--An entity of the 
                Government that is purchasing a product or service that 
                is produced or provided by a corporate partnership 
                under an order under this paragraph shall treat the 
                corporate partnership as a preferred source for such 
                product or service.
                    (F) Partnership models.--A corporate partnership 
                that receives an order under this paragraph shall carry 
                out 1 or more partnership models in fulfilling the 
                terms of the order, which models may include the 
                following:
                            (i) Private entity employment.--Under this 
                        model--
                                    (I) a private entity shall directly 
                                employ individuals with significant 
                                disabilities;
                                    (II) such employees shall work at 
                                the worksite of the private entity; and
                                    (III) the private entity may place 
                                such employees on the payroll of the 
                                private entity with salaries and 
                                benefits equivalent to the salaries and 
                                benefits made available to employees of 
                                the private entity who are not 
                                individuals with significant 
                                disabilities.
                            (ii) Private entity contract.--Under this 
                        model--
                                    (I) a private entity may assign a 
                                number of the employees of the private 
                                entity who are individuals without 
                                significant disabilities to work as 
                                part of a production unit with assigned 
                                employees of an eligible qualified 
                                nonprofit agency that are individuals 
                                with significant disabilities to 
                                produce the product, or provide the 
                                service, specified in the binding 
                                agreement;
                                    (II) the individuals with 
                                significant disabilities shall work at 
                                the worksite of the eligible qualified 
                                nonprofit agency or at an alternate 
                                community setting; and
                                    (III) the private entity may place 
                                employees who are individuals with 
                                significant disabilities on the payroll 
                                of the private entity, or such 
                                individuals may be paid by the eligible 
                                qualified nonprofit agency, with 
                                salaries and benefits equivalent to the 
                                salaries and benefits made available to 
                                employees of the private entity who are 
                                not individuals with significant 
                                disabilities.
                            (iii) Private entity subcontract.--Under 
                        this model--
                                    (I) the private entity may 
                                subcontract to an eligible qualified 
                                nonprofit agency the majority of the 
                                work required to produce the product or 
                                service;
                                    (II) employees of the eligible 
                                qualified nonprofit agency who are 
                                individuals with significant 
                                disabilities may work under such 
                                subcontract at the private entity's 
                                worksite, the eligible qualified 
                                nonprofit agency's worksite, or an 
                                alternate community setting; and
                                    (III) employees who are individuals 
                                with significant disabilities shall be 
                                paid by the eligible qualified 
                                nonprofit agency, with salaries and 
                                benefits equivalent to the salaries and 
                                benefits made available to employees of 
                                the private entity who are not 
                                individuals with significant 
                                disabilities.
                    (G) Evaluation and dissemination activities.--
                            (i) Annual report.--Not later than 2 years 
                        after the date on which a central nonprofit 
                        agency distributes an order under subparagraph 
                        (C) to a corporate partnership, and annually 
                        thereafter for the duration of the order, an 
                        eligible qualified nonprofit agency 
                        participating in the corporate partnership 
                        shall submit to the central nonprofit agency 
                        and the Committee a report containing 
                        information on--
                                    (I) the number of private entities 
                                participating in the corporate 
                                partnership and the products and 
                                services being produced and provided as 
                                a result of the demonstration project 
                                under this paragraph;
                                    (II) the number of individuals with 
                                significant disabilities who are 
                                employed as a result of the project;
                                    (III) the employment and other 
                                skills being taught to the individuals 
                                with significant disabilities 
                                participating in the project;
                                    (IV) the number of individuals with 
                                significant disabilities participating 
                                in the project who are hired by a 
                                private entity participating in the 
                                corporate partnership;
                                    (V) the worksites at which 
                                individuals with significant 
                                disabilities participating in the 
                                project are placed, and the types of 
                                jobs in which such individuals are 
                                placed;
                                    (VI) the number of private entities 
                                and individuals with significant 
                                disabilities that have dropped out of 
                                the project, and the reasons the 
                                private entities or individuals with 
                                significant disabilities have dropped 
                                out of the project;
                                    (VII) whether the project should be 
                                concluded or made a permanent part of 
                                the activities carried out under this 
                                title and, if included in the 
                                activities, a detailed plan for how the 
                                project should be expanded; and
                                    (VIII) such other subjects as the 
                                central nonprofit agency or the 
                                Committee may specify.
    (b) Evaluation of Projects.--Not later than 180 days after all 
demonstration projects under subsection (a) are completed, the central 
nonprofit agencies participating in the demonstration projects under 
this section and the Committee shall submit a joint statement to 
Congress indicating whether any of the demonstration projects should 
become permanent programs under the Act, including any recommendations 
for legislative or administrative action.

SEC. 108. RECORDS AND AUDITS.

    (a) Records.--The Committee, each central nonprofit agency, and 
each qualified nonprofit agency shall keep records that fully disclose 
the amount and disposition of funds (including fees) made available 
under this title, the cost of providing activities authorized by this 
title (including how the funds are used), and the share of that cost 
provided from other sources, and such other records as will facilitate 
an effective financial or programmatic audit. The Committee, and each 
central nonprofit agency and qualified nonprofit agency that receives 
funds (including fees) under this title for an activity, shall maintain 
such records for 5 years after the completion of the activity.
    (b) Access to Records by the Committee.--The Committee shall have 
access, for the purpose of audit and examination, to any books, 
documents, papers, and other records that--
            (1) are maintained by a central nonprofit agency or 
        qualified nonprofit agency; and
            (2) may be related or pertinent to activities authorized 
        under, or compliance with requirements of, this title.
    (c) Access to Records by Comptroller General of the United 
States.--The Comptroller General of the United States, or any of the 
duly authorized representatives of the Comptroller General, shall have 
access, for the purpose of audit and examination, to any books, 
documents, papers, and other records of the Committee and of each 
central nonprofit agency. This subsection shall also apply to any 
qualified nonprofit agency for individuals who are blind and any 
qualified nonprofit agency for individuals with other significant 
disabilities that has sold products or services under this title but 
only with respect to the books, documents, papers, and other records of 
such agency that relate to the agency's activities in a fiscal year in 
which a sale was made under this title. The Committee, and each central 
nonprofit agency and qualified nonprofit agency to which this 
subsection applies, shall maintain such records for 5 years after the 
completion of the activity involved.
    (d) Nondisclosure.--For purposes of any audit or examination, the 
Committee or Comptroller General of the United States shall not 
disclose or require a central nonprofit agency or qualified nonprofit 
agency to disclose the identity of, or any other personally 
identifiable information related to, any individual participating in an 
activity authorized under this title.

SEC. 109. STUDY OF FEDERAL GOVERNMENT UTILIZATION.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study investigating Government compliance with and the 
effectiveness of this title.
    (b) Conduct of Study.--In conducting the study under subsection 
(a), the Comptroller General of the United States shall consult with 
participants in the program carried out under this title and the 
entities of the Government and conduct a study addressing--
            (1) the frequency with which this title is being utilized 
        or circumvented;
            (2) the reasons for the circumvention;
            (3) the extent to which Federal purchasers, in particular 
        those using government credit cards, are aware of the 
        requirement of section 104 to procure products and services on 
        the procurement list from qualified nonprofit agencies 
        (referred to in this section as the ``JWOD mandate'');
            (4) the efforts undertaken by the General Services 
        Administration to incorporate the JWOD mandate into its 
        process, website, catalogs, and guidance for Federal buyers, 
        and ensure compliance with the mandate;
            (5) the efforts undertaken by the Committee to promote 
        awareness of the JWOD mandate among Federal buyers;
            (6) compliance rates with the JWOD mandate among different 
        entities of the Government;
            (7) whether and how often products and services on the 
        procurement list are being bought through multiple award 
        schedules;
            (8) the length and effectiveness of the process by which 
        products and services are added to the procurement list by the 
        Committee, and the extent to which Federal buyers and 
        contractors (other than central nonprofit agencies and 
        qualified nonprofit agencies) are involved in the process;
            (9) specific data relating to dropping sales and employment 
        rates among qualified nonprofit agencies selling products and 
        services through the program carried out under this title; and
            (10) recommendations about making the program more 
        effective.
    (c) Report to Congress.--Not later than 18 months after the date of 
enactment of the Javits-Wagner-O'Day and Randolph-Sheppard 
Modernization Act of 2008, the Comptroller General of the United States 
shall prepare and submit to the appropriate committees of Congress a 
report containing the outcomes of the study conducted under subsection 
(a).

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Committee to carry 
out this title, in addition to amounts made available through fees made 
available under section 105(f), $2,500,000 for fiscal year 2009 and 
such sums as may be necessary for each of the next succeeding 9 fiscal 
years.

                    TITLE II--RANDOLPH-SHEPPARD ACT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Randolph-Sheppard Act''.

SEC. 202. DEFINITIONS.

    In this title:
            (1) Federal property.--The term ``Federal property'' means 
        any building, land, or other real property owned, leased, or 
        occupied by any entity of the Government.
            (2) Licensed vendor.--The term ``licensed vendor'' means a 
        vendor who receives a license from a State licensing agency 
        under this title to operate a vending facility on Federal 
        property.
            (3) State licensing agency.--The term ``State licencing 
        agency'' means an agency described in section 204(b).
            (4) Vending facility.--The term ``vending facility'' means 
        an automatic vending machine, cafeteria (but not including 
        cafeteria attendant services), snack bar, cart service, 
        shelter, and counter, and such other appropriate auxiliary 
        equipment as the Committee may by regulation prescribe as being 
        necessary for the sale of an article or service described in 
        section 204(b)(1), and which may be operated by a licensed 
        vendor.
            (5) Vending machine income.--The term ``vending machine 
        income'' means--
                    (A) receipts (other than those of a licensed 
                vendor) from vending machine operations on Federal 
                property, after costs of goods sold (including 
                reasonable service and maintenance costs), in a case in 
                which the machines are operated, serviced, or 
                maintained by, or with the approval of, an entity of 
                the Government; or
                    (B) commissions paid (other than to a licensed 
                vendor) by a commercial vending concern that operates, 
                services, and maintains vending machines on Federal 
                property for, or with the approval of, an entity of the 
                Government.

SEC. 203. OPERATION OF VENDING FACILITIES.

    (a) In General.--
            (1) In general.--For the purposes of providing remunerative 
        employment for individuals with disabilities, enlarging the 
        economic opportunities of individuals with disabilities, and 
        inspiring individuals with disabilities to greater efforts in 
        striving to make themselves self-supporting, licensed vendors 
        shall be authorized to operate vending facilities on any 
        Federal property.
            (2) Priority.--
                    (A) In general.--In authorizing the operation of a 
                vending facility on Federal property, the head of the 
                entity of the Government that owns, leases, or occupies 
                such property shall give priority to State licensing 
                agencies on behalf of licensed vendors.
                    (B) Decline to exercise.--A State licensing agency 
                may decline to exercise the priority under subparagraph 
                (A) on behalf of the licensed vendors licensed by such 
                State licensing agency.
    (b) Obligation of Federal Entities.--
            (1) In general.--
                    (A) In general.--No entity of the Government shall 
                undertake to acquire by ownership, rent, lease, or to 
                otherwise occupy, in whole or in part, any building 
                unless, after consultation with the head of such entity 
                and the State licensing agency, it is determined by the 
                Committee that--
                            (i) such building includes a satisfactory 
                        site for the location and operation of a 
                        vending facility by a licensed vendor; or
                            (ii) if a building is to be constructed, 
                        substantially altered, or renovated, the design 
                        for such construction, substantial alteration, 
                        or renovation includes a satisfactory site for 
                        the location and operation of a vending 
                        facility by a licensed vendor.
                    (B) Notice.--Each entity of the Government shall 
                provide notice to the Committee and the appropriate 
                State licensing agency of its plans for occupation, 
                acquisition, renovation, or relocation of a building 
                adequate to permit such State licensing agency to 
                determine whether such building includes a satisfactory 
                site for a vending facility.
            (2) Nonapplication.--The provisions of paragraph (1) shall 
        not apply--
                    (A) when the Committee and the State licensing 
                agency determine that the number of people using the 
                property is or will be insufficient to support a 
                vending facility; or
                    (B) to any privately owned building, any part of 
                which is leased by any entity of the Government and in 
                which--
                            (i) prior to the execution of such lease, 
                        the lessor or any of the tenants of the lessor 
                        had in operation a restaurant or other food 
                        facility in a part of the building not included 
                        in such lease; and
                            (ii) the operation of a vending facility by 
                        a licensed vendor would be in proximate and 
                        substantial direct competition with such 
                        restaurant or other food facility.
            (3) Effort to lease in buildings capable of accommodating a 
        vending facility.--Each entity of the Government shall make 
        every effort to lease property in privately owned buildings 
        capable of accommodating a vending facility.
            (4) Satisfactory site defined.--In this subsection, the 
        term ``satisfactory site'' means an area determined by the 
        Committee to have sufficient space, electrical and plumbing 
        outlets, and such other facilities as the Committee may by 
        regulation prescribe, for the location and operation of a 
        vending facility by a licensed vendor.
    (c) Vending Machine Income.--
            (1) In general.--Vending machine income obtained from the 
        operation of vending machines on Federal property shall accrue 
        as follows:
                    (A) Property with a licensed vendor.--
                            (i) In general.--
                                    (I) In general.--Vending machine 
                                income obtained from the operation of 
                                vending machines on Federal property 
                                shall accrue to the licensed vendor 
                                operating a vending facility on such 
                                property subject to subclause (II).
                                    (II) Amount.--One hundred percent 
                                of all vending machine income from 
                                vending machines on Federal property 
                                that are in direct competition with a 
                                vending facility operated by a licensed 
                                vendor shall accrue to such licensed 
                                vendor subject to clause (ii). In this 
                                subclause, the term ``direct 
                                competition'' means the existence of 
                                any vending machines or vending 
                                facilities operated on the same 
                                premises as a vending facility operated 
                                by a licensed vendor except both of the 
                                following shall not be considered in 
                                direct competition with the vending 
                                facility operated by a licensed vendor:
                                            (aa) Vending machines or 
                                        vending facilities operated in 
                                        areas serving employees, the 
                                        majority of whom normally do 
                                        not have direct access to the 
                                        vending facility operated by a 
                                        licensed vendor.
                                            (bb) The vending machine or 
                                        vending facility in competition 
                                        is operated by another licensed 
                                        vendor.
                            (ii) Ceiling.--The Committee may prescribe 
                        regulations imposing a ceiling on income from 
                        such vending machines for a licensed vendor. In 
                        the event such a ceiling is imposed, no 
                        licensed vendor shall receive less vending 
                        machine income under such ceiling than the 
                        vendor was receiving on January 1, 1974. Any 
                        amounts received by a licensed vendor that are 
                        in excess of the amount permitted to accrue any 
                        ceiling imposed by the Committee shall be 
                        disbursed to the State licensing agency under 
                        subparagraph (B) and shall be used by such 
                        agency in accordance with paragraph (3). No 
                        limitation shall be imposed on income from 
                        vending machines, combined to create a vending 
                        facility, which are maintained, serviced, or 
                        operated by a licensed vendor.
                    (B) Property with no licensed vendor.--
                            (i) In general.--In the event there is no 
                        licensed vendor operating a vending facility on 
                        Federal property, vending machine income 
                        obtained from the operation of vending machines 
                        on such property shall accrue to the State 
                        licensing agency in whose State the Federal 
                        property is located, for the uses designated in 
                        paragraph (3), subject to clause (ii).
                            (ii) Amount.--Fifty percent of all vending 
                        machine income from vending machines on Federal 
                        property that are not in direct competition (as 
                        defined in subparagraph (A)(i)(II)) with a 
                        vending facility operated by a licensed vendor 
                        on such property shall accrue as specified in 
                        clause (i), except that with respect to Federal 
                        property at which at least 50 percent of the 
                        total hours worked on the premises occurs 
                        during periods other than normal working hours, 
                        30 percent of such income shall accrue as 
                        specified in clause (i).
            (2) Compliance.--The head of each entity of the Government 
        shall--
                    (A) ensure compliance with this subsection with 
                respect to buildings, installations, and facilities 
                under the control of such head; and
                    (B) be responsible for collection of, and 
                accounting for, such vending machine income.
            (3) Use of income.--
                    (A) In general.--All vending machine income that 
                accrues to a State licensing agency pursuant to 
                paragraph (1) shall--
                            (i) first be used for the maintenance and 
                        replacement of equipment, the purchase of new 
                        equipment, management services, and assuring a 
                        fair minimum return to operators of vending 
                        facilities, as described in section 
                        205(d)(1)(C); and
                            (ii) then be used to establish retirement 
                        or pension plans, for health insurance 
                        contributions, and for provision of paid sick 
                        leave and vacation time for licensed vendors in 
                        such State, subject to a vote by the Committee 
                        of Vendors as provided under section 
                        205(d)(1)(C).
                    (B) Income remaining.--Any vending machine income 
                remaining after application of subparagraph (A) shall 
                be used for the vending of newspapers, periodicals, 
                confections, tobacco products, foods (including 
                cafeterias but not including cafeteria attendant 
                services), beverages, and other articles or services 
                dispensed automatically or manually prepared on or off 
                the premises in accordance with all applicable health 
                laws.
            (4) Nonapplication.--Paragraph (1) shall not apply to 
        income from vending machines within retail sales outlets under 
        the control of exchange or ships' stores systems authorized by 
        title 10, United States Code, or to income from vending 
        machines operated by the Veterans Canteen Service, or to income 
        from vending machines not in direct competition with a licensed 
        vending facility at individual locations, installations, or 
        facilities on Federal property the total of which at such 
        individual locations, installations, or facilities does not 
        exceed $3,000 annually.

SEC. 204. DUTIES AND POWERS OF THE COMMITTEE.

    (a) In General.--In carrying out the purposes of this title, the 
Committee shall--
            (1) identify new vending facility sites for licensed 
        vendors;
            (2) consult with the Administrator of General Services and 
        other heads of entities of the Government with responsibility 
        for the maintenance, operation, and protection of Federal 
        property, and inform such heads about the requirement to give 
        priority under section 203(a)(2);
            (3) promote the activities authorized under this title to 
        entities of the Government;
            (4) enforce the requirement to give priority and monitor 
        the compliance of entities of the Government with the 
        requirements of this title;
            (5) assist the State licensing agencies in contacting 
        procurement and contracting offices within the General Services 
        Administration, and other entities of the Government with 
        responsibility for the maintenance, operation, and protection 
        of Federal property, regarding potential vending facilities;
            (6) establish and maintain--
                    (A) standards for filling vending facility 
                vacancies; and
                    (B) criteria for evaluating and promoting licensed 
                vendors based on their--
                            (i) skills;
                            (ii) education;
                            (iii) prior work experience; and
                            (iv) additional training or accreditation;
            (7) provide technical assistance to State licensing 
        agencies and training to State licensing agencies and licensed 
        vendors;
            (8) establish, promote, and administer programs to enable 
        the expansion and growth of vending facility opportunities, and 
        employment and entrepreneurship opportunities, including 
        opportunities for--
                    (A) franchising; and
                    (B) developing partnerships with private sector 
                entities and business ownership in the private sector;
            (9) develop program reporting and accountability standards 
        for activities authorized under this title;
            (10) develop criteria for, and assist State licensing 
        agencies in collecting data for, monitoring compliance with 
        this title by entities of the Government and licensed vendors, 
        and enforcing the payment and collection of vending machine 
        income and set-aside dues;
            (11) develop or update, not less often than every 5 years, 
        a strategic business development plan, pursuant to subsection 
        (h)(5);
            (12) create an advisory body comprised of members of the 
        Committee of Vendors described in section 205(c) and State 
        licensing agencies;
            (13) prepare and submit to the President and Congress 
        annual reports on outcomes and achievements resulting from the 
        implementation of the programs and policies required under this 
        title;
            (14) respond to requests from licensed vendors for 
        assistance in improving financial management procedures to 
        correct material weaknesses identified during audits, and 
        filing Federal business income tax returns; and
            (15) collect--
                    (A) financial audits performed pursuant to section 
                206(c)(6); and
                    (B) tax returns filed pursuant to section 
                206(c)(7).
    (b) Designating State Licensing Agencies.--
            (1) In general.--Except as provided in paragraph (2), the 
        Committee shall designate the State agency for the blind in 
        each State, or, in any State in which there is no such agency, 
        some other public agency as the State licensing agency to issue 
        licenses to individuals with disabilities for the operating of 
        vending facilities on Federal and other property in such State 
        for the vending of newspapers, periodicals, confections, foods 
        (including cafeterias but not including cafeteria attendant 
        services), beverages, and other articles or services dispensed 
        automatically or manually prepared on or off the premises in 
        accordance with all applicable health laws, as determined by 
        the State licensing agency, and including the vending or 
        exchange of chances for any lottery authorized by State law and 
        conducted by an agency of a State.
            (2) States with approved plans for vocational 
        rehabilitation.--In any State having an approved plan for 
        vocational rehabilitation services pursuant to section 
        101(a)(1)(A) of the Rehabilitation Act of 1973 (29 U.S.C. 
        721(a)(1)(A)), the State licensing agency designated under 
        paragraph (1) shall be the State agency designated under 
        section 101(a)(2)(A) of such Act.
    (c) Regulations and Policies.--
            (1) In general.--The Committee shall develop and issue 
        regulations and policies for the administration and management 
        of the vending facility program carried out under this title to 
        ensure that--
                    (A) the priority described in section 203(a)(2) is 
                given to State licensing agencies on behalf of licensed 
                vendors as described in such section (and shall ensure 
                that vending machine income accrues pursuant to section 
                203(c));
                    (B) wherever feasible, 1 or more vending facilities 
                are established on each Federal property to the extent 
                that the placement and operation of any such facilities 
                would not adversely affect the interests of the United 
                States; and
                    (C) provisions of training, reviewing, monitoring, 
                evaluating, reporting by, awarding facilities to, 
                promoting, and auditing the State licensing agencies 
                and licensed vendors are appropriate to carry out the 
                Committee's duties under this title.
            (2) Placement or operation of vending facilities.--If an 
        entity of the Government establishes a limitation or 
        prohibition on the placement or operation of a vending 
        facility, based on a determination that such placement or 
        operation would adversely affect the interests of the United 
        States, as described in paragraph (1)(B), the entity shall 
        justify the limitation or prohibition to the Committee. The 
        entity shall submit the justification in writing to the 
        Committee, who shall determine whether such limitation or 
        prohibition is justified. The determination shall be binding on 
        any entity affected by such determination. The Committee shall 
        publish such determination, along with supporting 
        documentation, in the Federal Register.
    (d) Provision of Training.--
            (1) Provision.--The Committee shall ensure that the 
        provision of training is uniform and effective, including on-
        the-job training and training on vacancy and promotion 
        procedures, is provided for individuals with disabilities, 
        through State licensing agencies designated under subsection 
        (b) and through the provision of services under the 
        Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
            (2) Transferable skill development.--The Committee shall 
        ensure that the provision of training includes transferable 
        skill development in order to maximize the vocational potential 
        of individuals with disabilities interested in self-employment, 
        entrepreneurship, or management opportunities available through 
        programs carried out under this title or through other sources.
    (e) Reviews and Monitoring.--
            (1) Duties.--In carrying out the Committee's duties under 
        this title, the Committee shall conduct a review annually, and 
        on-site monitoring once every 2 years, of the State licensing 
        agencies and licensed vendors.
            (2) Procedures for reviews.--In conducting an annual review 
        of State licensing agencies and licensed vendors under this 
        subsection, the Committee shall consider, at a minimum--
                    (A) the policies and procedures of the State 
                licensing agencies;
                    (B) regulations and guidance materials;
                    (C) the number of licensed vendors and employees 
                with disabilities working for the licensed vendors;
                    (D) the goals described in subsection (a)(11) and 
                the extent to which the State licensing agencies and 
                licensed vendors have met such goals;
                    (E) reports, and information supporting reports, 
                prepared under subsections (a)(13) and (g); and
                    (F) information filed by the State licensing 
                agencies with the Internal Revenue Service, and budget, 
                financial management, and audit data.
            (3) Procedures for monitoring.--In conducting monitoring 
        under this subsection, the Committee shall--
                    (A) conduct--
                            (i) on-site visits, including on-site 
                        reviews of records to verify that the State 
                        licensing agencies and licensed vendors are 
                        following the requirements of this title;
                            (ii) meetings with the State licensing 
                        agencies and licensed vendors;
                            (iii) reviews of licensed vendors' 
                        individualized plans for employment; and
                            (iv) meetings with staff and employees of 
                        the State licensing agencies or licensed 
                        vendors, including employees with disabilities; 
                        and
                    (B) determine whether the State licensing agencies 
                or licensed vendors involved are complying with the 
                reporting requirements and evaluation standards of this 
                title, and meeting the goals described in subsection 
                (a)(11).
            (4) Areas of inquiry.--In conducting a review or monitoring 
        under this subsection with respect to a State licensing agency 
        or licensed vendor, the Committee shall examine--
                    (A) the eligibility process used by the agency;
                    (B) the provision of training, filling vacancy and 
                promotional procedures, and other services provided by 
                the agency;
                    (C) the procedures for locating new vending 
                facilities;
                    (D) the hiring practices of the licensed vendor;
                    (E) the State licensing agency or licensed vendor 
                activities in such other areas of inquiry as the 
                Committee may consider appropriate; and
                    (F) the State licensing agency or licensed vendor 
                activities in such other areas as may be identified 
                through meetings with a State licensing agency or 
                licensed vendor.
            (5) Nondisclosure.--For purposes of any review or 
        monitoring carried out under this subsection, the Committee 
        shall not disclose or require a State licensing agency or 
        licensed vendor to disclose the identity of, or any other 
        personally identifiable information related to, any individual 
        participating in an activity authorized under this title.
            (6) Availability on website.--The Committee shall make 
        available to the public on the Committee's website, in an 
        accessible format, each report resulting from a review or 
        monitoring carried out under this subsection.
    (f) Enforcement.--At the request of the Committee, the Inspector 
General of the General Services Administration shall assist the 
Committee in determining if entities of the Government, State licensing 
agencies, and licensed vendors are complying with this title.
    (g) Information Collection and Report.--
            (1) In general.--Not later than December 31 of each year, 
        the Committee shall collect information described in this 
        subsection, including the information provided by the State 
        licensing agencies and licensed vendors in annual reports 
        submitted by such agencies and vendors. The Committee shall 
        prepare an overall summary of the information collected under 
        this subsection, including compiling and preparing a summary of 
        the information provided by the State licensing agencies and 
        licensed vendors. The Committee shall annually prepare and 
        submit to the President and Congress a report that includes the 
        overall summary.
            (2) Collection of information.--
                    (A) State licensing agency and licensed vendors.--
                            (i) Records.--Each State licensing agency, 
                        and licensed vendor operating a vending 
                        facility pursuant to this title, shall keep 
                        records prescribed by the Committee as required 
                        by this title and shall participate in data 
                        collection as required by this title, including 
                        data collection required for preparation of the 
                        reports described in clause (ii). The Committee 
                        shall have access to such records and to any 
                        other records of the State licensing agencies 
                        that relate to activities of the agencies and 
                        compliance by the agencies with any requirement 
                        of this title.
                            (ii) Reports.--The Committee shall require 
                        that each State licensing agency and licensed 
                        vendor annually prepare and submit to the 
                        Committee the reports described in sections 
                        205(e) and 206(d).
                    (B) Committee.--The Committee shall collect 
                information to determine whether the purposes of this 
                title are being met and to assess the performance of 
                programs carried out under this title, including 
                information related to audits, performance, and 
                compliance.
            (3) Information.--The information required to be collected 
        under this subsection (including information provided in annual 
        reports submitted under subsection (a)(13)) includes 
        information--
                    (A) collected from State licensing agencies and 
                licensed vendors pursuant to sections 205(e) and 
                206(d), aggregated for the United States;
                    (B) on the number of new vending facility locations 
                identified and disaggregated by State;
                    (C) on the number of vending facility locations 
                that State licensing agencies did not develop and the 
                rationale for not developing such sites;
                    (D) on the development of new markets for vending 
                facility services;
                    (E) on a comparison of the number of licensed 
                vendors contracts and sales under this title to sales 
                through Government contracts with small businesses; and
                    (F) other items as determined necessary by the 
                Committee.
            (4) Submission of report.--The Committee shall submit the 
        report described in paragraph (1) to the President, the 
        Committee on Oversight and Government Reform, and the Committee 
        on Education and Labor, of the House of Representatives, and 
        the Committee on Homeland Security and Governmental Affairs, 
        and the Committee on Health, Education, Labor, and Pensions of 
        the Senate.
            (5) Availability on website.--The Committee shall make the 
        annual report available to the public on the Committee's 
        website, in an accessible format.
            (6) Nondisclosure.--For purposes of this title, the 
        Committee shall not disclose or require a State licensing 
        agency or licensed vendor to disclose, the identity of, or any 
        other personally identifiable information related to, any 
        individual participating in an activity authorized under this 
        title.
            (7) Consequences for failure to report.--
                    (A) Licensed vendor.--If the Committee has not 
                received the annual report of a licensed vendor for a 
                year under section 206(d), the Committee, through the 
                State licensing agency, shall ban the vendor from 
                participating in activities carried out under this 
                title, and award the vending facility site to a new 
                vendor, until the Committee has received the report 
                from the licensed vendor.
                    (B) State licensing agency.--If the Committee has 
                not received the annual report of a State licensing 
                agency for a year under section 205(e), the Committee 
                shall request to the appropriate vocational 
                rehabilitation agency that the agency suspend the State 
                licensing agency's allotment under section 110 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 730), until the 
                Committee has received the report.
    (h) Surveys, Studies, and Standards of the Committee for the 
Advancement of Individuals With Disabilities.--
            (1) 180 days.--Not later than 180 days after the date of 
        enactment of the Javits-Wagner-O'Day and Randolph-Sheppard 
        Modernization Act of 2008, the Committee shall--
                    (A) establish requirements for the uniform 
                application of this title by each State licensing 
                agency, including appropriate accounting procedures, 
                policies on the selection and establishment of new 
                vending facilities, distribution of income to licensed 
                vendors, and the use and control of set-aside funds 
                under section 205(d)(1)(C);
                    (B) after consultation with, and consideration of 
                the views of licensed vendors and State licensing 
                agencies, promulgate standards for funds set aside 
                pursuant to section 205(d)(1)(C), which includes 
                maximum and minimum amounts for such funds, and 
                appropriate contributions, to such funds by licensed 
                vendors; and
                    (C) submit to the President and Congress a report, 
                with appropriate supporting documentation, which shows 
                the actions taken by each such State licensing agency 
                to meet the requirements of subparagraphs (A) and (B).
            (2) One year.--Not later than 1 year after the date of 
        enactment of the Javits-Wagner-O'Day and Randolph-Sheppard 
        Modernization Act of 2008, the Comptroller General of the 
        United States, with the assistance of the Committee, State 
        licensing agencies, and licensed vendors, shall conduct a 
        survey to--
                    (A) quantify the untapped market share of vending 
                facility opportunities on Federal property and other 
                property in the United States for a third of States and 
                collect information about similar State laws and 
                programs;
                    (B) assist with the identification of vending 
                facilities on Federal property where there is no 
                licensed vendor operating such facility; and
                    (C) assist with the enforcement of collecting 
                vending machine income.
            (3) Two years.--Not later than 2 years after the date of 
        enactment of the Javits-Wagner-O'Day and Randolph-Sheppard 
        Modernization Act of 2008, the Committee shall follow-up and 
        conduct further analysis of the survey described in paragraph 
        (2) and in a report provide such analysis to the President, 
        Congress, and State licensing agencies. The Committee shall 
        provide within such report for each site identified contact 
        information for procurement and contract officers and contract 
        length for the current vendor.
            (4) Each year thereafter.--Beginning 3 years after the date 
        of enactment of the Javits-Wagner-O'Day and Randolph-Sheppard 
        Modernization Act of 2008, and each year thereafter, the 
        Committee shall make annual surveys consistent with the 
        information collected in the analysis under paragraph (3) of 
        vending facility opportunities for licensed vendors on Federal 
        property and other property in the United States. The Committee 
        shall make such surveys available to State licensing agencies 
        and licensed vendors.
            (5) Strategic business development plan.--Not later than 3 
        years after the date of enactment of the Javits-Wagner-O'Day 
        and Randolph-Sheppard Modernization Act of 2008, and not less 
        often than every 5 years thereafter, the Committee, in 
        consultation with State licensing agencies and the advisory 
        body authorized in subsection (a)(12), shall develop or update 
        a comprehensive strategic business development plan that--
                    (A) includes--
                            (i) establishing implementation 
                        responsibilities of State licensing agencies 
                        and licensed vendors;
                            (ii) setting goals for the program and 
                        measures toward meeting such goals;
                            (iii) monitoring progress toward meeting 
                        the purposes of this title and measuring 
                        success toward meeting the purposes;
                            (iv) reassessing the provision of training 
                        for licensed vendors, establishing quality 
                        standards, designing appropriate 
                        certifications, and developing best practices 
                        manuals;
                            (v) improving data collection;
                            (vi) enhancing business skill development 
                        and training for vendors and technical 
                        assistance for State licensing agencies and 
                        licensed vendors;
                            (vii) creating employment opportunities for 
                        individuals with disabilities and increasing 
                        wages for such persons; and
                            (viii) developing action steps for--
                                    (I) ongoing relationships with 
                                various Federal agencies and private 
                                sector businesses;
                                    (II) identifying new Federal and 
                                private sector customers;
                                    (III) conducting an in-depth market 
                                analysis inside and outside of the 
                                Federal Government to determine which 
                                markets to enter and which Federal 
                                agencies to pursue;
                                    (IV) establishing business goals 
                                for job growth based on the new lines 
                                of business;
                                    (V) locating new vending facility 
                                sites and enhancing employment and 
                                entrepreneurship opportunities offered 
                                within and outside of this title;
                                    (VI) increasing licensed vendors 
                                sales revenues and marketing of the 
                                program;
                                    (VII) improving activities 
                                authorized under this title; and
                                    (VIII) other information that the 
                                Committee, State licensing agencies, 
                                and the advisory body requires; and
                    (B) is developed or updated in conjunction with the 
                State plans submitted under section 101 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 721).
            (6) Available to the public.--The Committee shall make 
        available to the public, and especially to persons and 
        organizations engaged in work for individuals with 
        disabilities, information obtained as a result of such surveys 
        under this subsection.
    (i) Records and Audits.--
            (1) Records.--The Committee, each State licensing agency, 
        and each licensed vendor operating a vending facility pursuant 
        to this title shall keep records that fully disclose the amount 
        and disposition of funds (including fees) made available under 
        this title, the cost of providing activities authorized by this 
        title (including how the funds are used), the share of that 
        cost provided from other sources, and such other records as 
        will facilitate an effective financial or programmatic audit. 
        The Committee, each State licensing agency, and each licensed 
        vendor operating a vending facility pursuant to this title, 
        shall maintain such records for 5 years after the completion of 
        the activity.
            (2) Access to records by the committee.--The Committee 
        shall have access, for the purpose of audit and examination, to 
        any books, documents, papers, and other records that--
                    (A) are maintained by a State licensing agency or 
                licensed vendor; and
                    (B) may be related or pertinent to activities 
                authorized under, or in compliance with requirements 
                of, this title.
            (3) Access to records by comptroller general of the united 
        states.--The Comptroller General of the United States, or any 
        of the duly authorized representatives of the Comptroller 
        General, shall have access, for the purpose of audit and 
        examination, to any books, documents, papers, and other records 
        of the Committee and each State licensing agency. This 
        paragraph shall also apply to any licensed vendor operating a 
        vending facility pursuant to this title but only with respect 
        to the books, documents, papers, and other records of such 
        vendor that relate to the licensed vendor's activities in a 
        fiscal year in which a sale was made under this title. The 
        Committee and each State licensing agency and licensed vendor 
        to which this paragraph applies, shall maintain such records 
        for 5 years after the completion of the activity involved.
            (4) Nondisclosure.--For purposes of any audit or 
        examination, the Committee or Comptroller General of the United 
        States shall not disclose or require a State licensing agency 
        or licensed vendor to disclose the identity of, or any other 
        personally identifiable information related to, any individual 
        participating in an activity authorized under this title.
    (j) Compliance.--
            (1) State licensing agency reports.--In accordance with 
        regulations established by the Committee, each State licensing 
        agency shall report to the Committee after the end of each 
        fiscal year the extent to which the State licensing agency is 
        in compliance with activities authorized under this title.
            (2) Program improvement.--
                    (A) Plan.--If the Committee determines that any 
                State licensing agency is out of compliance with this 
                title, the Committee shall provide technical assistance 
                to the State licensing agency, and the State licensing 
                agency and the Committee shall jointly develop a 
                program improvement plan outlining the specific actions 
                to be taken by the State licensing agency to improve 
                program performance.
                    (B) Review.--The Committee shall--
                            (i) review the program improvement efforts 
                        of the State licensing agency on a biannual 
                        basis and, if necessary, request the State 
                        licensing agency to make further revisions to 
                        the plan to improve performance; and
                            (ii) continue to conduct such reviews and 
                        request such revisions until the State 
                        licensing agency sustains satisfactory 
                        performance over a period of more than 1 year.
                    (C) Withholding.--If the Committee determines that 
                a State licensing agency whose performance falls below 
                the established standards has failed to enter into a 
                program improvement plan, or is not complying with the 
                terms and conditions of such a program improvement 
                plan, the Committee shall request to the appropriate 
                vocational rehabilitation agency that--
                            (i) the vocational rehabilitation agency 
                        suspend the State licensing agency's allotment 
                        under section 110 of the Rehabilitation Act of 
                        1973 (29 U.S.C. 730); or
                            (ii) the vocational rehabilitation agency 
                        designate another entity as the State licensing 
                        agency until the State licensing agency has 
                        entered into an approved program improvement 
                        plan, or satisfies the Committee that the State 
                        licensing agency is complying with the terms 
                        and conditions of such a program improvement 
                        plan, as appropriate.
                    (D) Reports.--The Committee shall include in each 
                annual report to the President and Congress under 
                subsection (a)(13) an analysis of program performance, 
                including relative State licensing agency performance.
                    (E) Public notification.--The Committee shall 
                notify the public of each action taken by the Committee 
                under this paragraph by making available information 
                about the action on the website of the Committee, in an 
                accessible format. As a part of such notification, the 
                Committee shall describe each such action taken under 
                this section and the outcomes of each such action.
    (k) Grievances.--
            (1) In general.--Any licensed vendor who is dissatisfied 
        with any action arising from the operation or administration of 
        the vending facility program may submit a grievance to a State 
        licensing agency in accordance with section 205(d)(1)(F). If 
        such licensed vendor is dissatisfied with any action taken or 
        decision rendered as a result of a hearing resulting from such 
        grievance, the licensed vendor may file a complaint with the 
        Committee that shall convene a panel to arbitrate the dispute 
        pursuant to subsection (l), to specify a corrective action. The 
        decision of such panel shall be final and binding on the 
        parties except as otherwise provided under this title.
            (2) Grievance against federal entities.--Whenever any State 
        licensing agency determines that any entity of the Government 
        that has control of the maintenance, operation, and protection 
        of Federal property is failing to comply with the provisions of 
        this title or any regulations issued pursuant to this title 
        (including a limitation on the placement or operation of a 
        vending facility as described in subsection (c)(2) and the 
        Committee's determination of such limitation), such State 
        licensing agency may file a complaint with the Committee that 
        shall convene a panel to arbitrate the dispute pursuant to 
        subsection (l), and the decision of such panel shall be final 
        and binding on the parties except as otherwise provided under 
        this title.
            (3) Compliance with decision.--The Committee and State 
        licensing agency shall enforce a decision made by a panel 
        pursuant to this subsection and the party against whom a 
        decision is rendered shall abide by the decision.
    (l) Arbitration.--
            (1) In general.--Upon receipt of a complaint filed pursuant 
        to paragraph (1) or (2) of subsection (k), the Committee shall 
        convene an ad hoc arbitration panel. Such panel shall, in 
        accordance with the provisions of this subsection, give notice, 
        conduct a hearing, and render its decision, which shall be 
        subject to appeal and review as a final agency action for 
        purposes of chapter 7 of title 5, United States Code.
            (2) Composition of panels.--
                    (A) Composition of panel to hear grievances of 
                licensed vendors.--
                            (i) In general.--The arbitration panel, 
                        convened by the Committee to hear grievances of 
                        licensed vendors, shall be composed of 3 
                        members appointed as follows:
                                    (I) One individual designated by 
                                the State licensing agency.
                                    (II) One individual designated by 
                                the licensed vendor.
                                    (III) One individual, not employed 
                                by the State licensing agency or, where 
                                appropriate, its parent agency, who 
                                shall serve as chairman, jointly 
                                designated by the members appointed 
                                under subclauses (I) and (II).
                            (ii) Failure to designate.--If any party 
                        fails to designate a member under clause (i), 
                        the Committee shall designate such member on 
                        behalf of such party.
                    (B) Composition of panel to hear complaints of 
                state licensing agencies.--
                            (i) In general.--The arbitration panel, 
                        convened by the Committee to hear complaints 
                        filed by a State licensing agency, shall be 
                        composed of 3 members as follows:
                                    (I) One individual, designated by 
                                the State licensing agency.
                                    (II) One individual, designated by 
                                the head of the entity of the 
                                Government controlling the Federal 
                                property over which the dispute arose.
                                    (III) One individual, not employed 
                                by the entity of the Government 
                                controlling the Federal property over 
                                which the dispute arose, who shall 
                                serve as chairman, jointly designated 
                                by the members appointed under 
                                subclauses (I) and (II).
                            (ii) Failure to designate.--If any party 
                        fails to designate a member under clause (i), 
                        the Committee shall designate such member on 
                        behalf of such party. If the panel appointed 
                        pursuant to clause (i) finds that the acts or 
                        practices of any such entity of the Government 
                        are in violation of this title, or any 
                        regulation issued under this title, the head of 
                        any such entity of the Government shall cause 
                        such acts or practices to be terminated 
                        promptly and shall take such other action as 
                        may be necessary to carry out the decision of 
                        the panel.
            (3) Publication of decisions in federal register.--The 
        decisions of a panel convened by the Committee pursuant to this 
        subsection shall be matters of public record and shall be 
        published in the Federal Register.
            (4) Payment of costs by the committee.--The Committee shall 
        pay all reasonable costs of arbitration under this subsection 
        in accordance with a schedule of fees and expenses published in 
        the Federal Register.
            (5) Penalties.--An entity of the Government against whom a 
        decision is rendered by a panel convened by the Committee 
        pursuant to this subsection shall be subject to a fee for not 
        complying with this title. Such penalty shall be determined by 
        the Committee, which shall be subject to appeal and review as a 
        final agency action for purposes of chapter 7 of title 5, 
        United States Code.

SEC. 205. STATE LICENSING AGENCY POWERS AND DUTIES.

    (a) In General.--Each State licensing agency shall carry out each 
of the following:
            (1) Issuance of licenses.--
                    (A) In general.--Each State licensing agency shall 
                issue, pursuant to this subsection, licenses for the 
                operation of a vending facility. Such licenses shall be 
                issued only to applicants who are citizens of the 
                United States and--
                            (i) are eligible for vocational 
                        rehabilitation services under section 102 of 
                        the Rehabilitation Act of 1973 (29 U.S.C. 722); 
                        and
                            (ii) have completed the provision of 
                        training core competencies authorized in 
                        subsection (b).
                    (B) Duration.--Each license described in 
                subparagraph (A) shall be issued for an indefinite 
                period but may be terminated by the State licensing 
                agency if the agency is satisfied that the vending 
                facility is not being operated in accordance with the 
                rules and regulations prescribed by such State 
                licensing agency.
                    (C) Participation of individuals with disabilities 
                who are not blind.--
                            (i) In general.--Beginning 3 years after 
                        the date of enactment of the Javits-Wagner-
                        O'Day and Randolph-Sheppard Modernization Act 
                        of 2008, a State licensing agency shall--
                                    (I) permit individuals with 
                                disabilities who are not blind to--
                                            (aa) participate in the 
                                        provision of training core 
                                        competencies under subsection 
                                        (b); and
                                            (bb) receive licenses under 
                                        subparagraph (A); or
                                    (II) merge the general State 
                                Vocational Rehabilitation agency self-
                                employment program (if one exists) with 
                                the State licensing agency vending 
                                facility program to create 1 
                                entrepreneurial, self-employment 
                                program for individuals with 
                                disabilities.
                            (ii) Merging of programs.--A State 
                        licensing agency that merges the programs 
                        described in clause (i)(II) shall submit a 
                        memorandum to the Committee that includes the 
                        following:
                                    (I) If the programs are 
                                administered by 2 different agencies, a 
                                memorandum of understanding with the 
                                general State agency responsible for 
                                the self-employment program described 
                                in clause (i)(II), that describes how 
                                the agencies will provide financial 
                                support and accommodations for 
                                individuals coming through the self-
                                employment program.
                                    (II) A description of how the 
                                programs will combine entrepreneurship 
                                trainings.
                                    (III) A description of how the 
                                State licensing agency will provide to 
                                an individual with a disability 
                                interested in becoming a licensed 
                                vendor the necessary coursework needed 
                                to fulfill Federal and State food 
                                service requirements.
                                    (IV) A description of how the State 
                                licensing agency will grandfather in 
                                existing licensed vendors operating a 
                                vending facility into the program.
                    (D) Reservation.--
                            (i) In general.--A State licensing agency 
                        shall reserve 50 percent of new vending 
                        facility sites for individuals who are blind 
                        and 50 percent of new vending facility sites 
                        for individuals who are blind and individuals 
                        with other disabilities.
                            (ii) New sites defined.--In this 
                        subparagraph, the term ``new vending facility 
                        sites'' means a vending facility site--
                                    (I) that is first identified after 
                                the date of enactment of the Javits-
                                Wagner-O'Day and Randolph-Sheppard 
                                Modernization Act of 2008 and not under 
                                contract with the State licensing 
                                agency; or
                                    (II) with respect to which the 
                                licensed vendor has ceased operating 
                                such site after the date of enactment 
                                of the Javits-Wagner-O'Day and 
                                Randolph-Sheppard Modernization Act of 
                                2008.
            (2) Select locations.--Each State licensing agency shall 
        select a location for a vending facility and the type of 
        facility to be provided with the approval of the head of the 
        entity of the Government in control of the maintenance, 
        operation, and protection of the Federal property on which the 
        facility is to be located but subject to regulations prescribed 
        pursuant to section 204(c).
            (3) Self-employment and management training.--Each State 
        licensing agency shall establish, promote, and implement 
        provisions of training for self-employment and management in 
        order to expand employment and entrepreneurship opportunities 
        (including franchising) for individuals with disabilities.
            (4) Standards and awarding of sites.--Each State licensing 
        agency shall--
                    (A) implement the Committee's standards for filling 
                vending facility vacancies, and criteria for evaluating 
                and promoting qualified licensed vendors; and
                    (B) enter into subcontracts for vending facility 
                sites with licensed vendors.
            (5) Expansion and growth.--Each State licensing agency 
        shall enable the expansion and growth of licensed vendors by--
                    (A) developing partnerships with private sector 
                entities;
                    (B) developing programs for business ownership in 
                the private sector;
                    (C) assisting licensed vendors in bidding 
                competitively for vending facility contracts on Federal 
                property and locating funding sources (including loans) 
                when the priority granted to State licensing agencies 
                on behalf of licensed vendors pursuant to section 
                203(a)(2) does not apply because the State licensing 
                agency--
                            (i) determines that a vending facility site 
                        is not satisfactory;
                            (ii) determines that a vending facility 
                        site is satisfactory but declines to exercise 
                        the priority; or
                            (iii) does not have the funding necessary 
                        to renovate a vending facility site; and
                    (D) assisting licensed vendors in pursuing 
                opportunities pursuant to this title and business 
                ownership in the private sector.
            (6) New sites.--Each State licensing agency shall identify 
        and establish new vending facility sites for licensed vendors, 
        including--
                    (A) contacting procurement and contracting offices 
                within the General Services Administration and working 
                with members of the Committee to contact other entities 
                of the Government in control of the maintenance, 
                operation, and protection of Federal property regarding 
                potential vending facilities; and
                    (B) financial plans for identifying and 
                establishing new vending facilities.
            (7) Inform entities.--Each State licensing agency shall 
        work with the Committee to inform entities of the Government 
        about the requirements of this title.
            (8) Priority.--Each State licensing agency shall work with 
        the Committee to enforce the priority granted to State 
        licensing agencies on behalf of licensed vendors pursuant to 
        section 203(a)(2).
            (9) Program measures and accountability standards.--Each 
        State licensing agency shall develop program reporting measures 
        and assist the Committee with administering accountability 
        standards with all licensed vendors.
            (10) Evaluation of qualifications and capabilities.--Each 
        State licensing agency shall evaluate the qualifications and 
        capabilities of licensed vendors and provide the Committee with 
        pertinent data concerning the licensed vendors, the agency's 
        status as a qualified nonprofit agency, the agency's 
        manufacturing or service capabilities, and other information as 
        required by the Committee.
            (11) Ensure compliance.--Each State licensing agency shall 
        oversee and assist the licensed vendors to ensure compliance 
        with vending facility contract requirements and compliance with 
        this title, including appropriate regulations.
            (12) Reviews, monitoring, evaluations, and reports.--Each 
        State licensing agency shall carry out reviews, monitoring, and 
        evaluations, and prepare reports, in accordance with this 
        title.
            (13) Promote position vacancies.--Each State licensing 
        agency shall promote position vacancies within the Federal 
        Government to individuals who are blind, or individuals with 
        other disabilities.
            (14) Collect income.--Each State licensing agency shall 
        collect vending machine income and set-aside funds in 
        accordance with section 203(c) and subsection (d)(1)(C).
            (15) Gather data and reports.--Each State licensing agency 
        shall gather data and reports from licensed vendors in 
        accordance with subsection (e)(2), and sections 204(a)(13) and 
        206(d), to determine if the agencies have met the goals 
        described in section 204(a)(11).
            (16) Biennial election.--Each State licensing agency shall 
        conduct the biennial election of a Committee of Vendors.
            (17) Annual reports.--Each State licensing agency shall 
        submit to the Committee annual reports on outcomes and 
        achievements pursuant to subsection (e)(2) and sections 
        204(a)(13) and 206(d).
            (18) Other activities.--Each State licensing agency shall 
        carry out other activities requested by the Committee.
    (b) Provision of Training Core Competencies.--
            (1) In general.--Each State licensing agency shall 
        establish, promote, and implement the provision of training for 
        self-employment and management for individuals with 
        disabilities either--
                    (A) directly; or
                    (B) indirectly, through one-stop centers as 
                authorized in the Workforce Investment Act of 1998 (29 
                U.S.C. 2801 et seq.), community colleges, 4-year 
                institutions of higher education, or through third 
                parties.
            (2) Training core competencies.--The provision of training 
        for self-employment and management in paragraph (1) shall--
                    (A) include training specific for the operation of 
                vending facilities on Federal property, as authorized 
                under this title, for persons interested in becoming 
                licensed vendors;
                    (B) include transferable skill development in 
                specific areas of study, including--
                            (i) starting a business and business plan 
                        development;
                            (ii) business operations (including 
                        customer service skills);
                            (iii) financial management, budgeting, and 
                        accounting;
                            (iv) marketing;
                            (v) management; and
                            (vi) audits; and
                    (C) specifically for licensed vendors, include--
                            (i) on-the-job training;
                            (ii) Federal and State food service 
                        requirements; and
                            (iii) reporting requirements for this 
                        title.
            (3) Waiver.--A State licensing agency may grant a vendor a 
        waiver from taking particular coursework or participating in 
        the provision of training under this subsection if the vendor--
                    (A) has completed the provision of training, as 
                authorized under this title or another program, in 
                another State;
                    (B) has experience in food service management from 
                the public or private sector;
                    (C) has a pertinent degree, accreditation, or 
                certification; or
                    (D) has other qualifications as approved by the 
                Committee.
            (4) Additional training.--A State licensing agency may 
        reserve smaller vending facility locations that do not generate 
        enough revenue for a licensed vendor to become self-sufficient, 
        as training sites for vendors who believe they could benefit 
        from additional training. Such sites--
                    (A) shall be available to individuals who 
                successfully complete the training course described in 
                this subsection and are licensed by the State as a 
                licensed vendor;
                    (B) shall not be operated by the same licensed 
                vendor for longer than 2 years; and
                    (C) shall be the responsibility of the State 
                licensing agency, and such agency shall be responsible 
                for reporting and other requirements of section 206(d) 
                in providing such training opportunity for licensed 
                vendors.
    (c) Access to Information With the State Licensing Agencies; 
Election and Responsibilities of Committee of Vendors.--In addition to 
other requirements of this title, each State licensing agency shall--
            (1) provide to each licensed vendor access to all relevant 
        financial data, including quarterly and annual financial 
        reports, on the operation of the State vending facility 
        program;
            (2) conduct the biennial election of a Committee of Vendors 
        of all licensed vendors in the State vending facility program, 
        which Committee shall include representatives of individuals 
        who are blind and individuals with other disabilities;
            (3) ensure that the responsibilities of the Committee of 
        Vendors include--
                    (A) advising the State licensing agency regarding 
                major administrative decisions and policy and program 
                development;
                    (B) receiving grievances of licensed vendors and 
                serving as advocates for such licensed vendors;
                    (C) advising the State licensing agency regarding 
                the development and administration of a transfer and 
                promotion system for licensed vendors; and
                    (D) advising the State licensing agency regarding 
                the provision of training and retraining; and
            (4) make available on the website of the State licensing 
        agency, in an accessible format, all requirements for, and 
        decisions made regarding, promotions.
    (d) Application for Designation as State Licensing Agency; 
Cooperation With the Committee; Furnishing Initial Stock.--
            (1) In general.--A State agency for the blind or other 
        State agency desiring to be designated as the State licensing 
        agency pursuant to section 204(b) shall, with the approval of 
        the Governor of the State, make application to the Committee 
        and agree to carry out the following:
                    (A) To comply with the Committee in carrying out 
                the purposes of this title.
                    (B) To provide for each licensed vendor such 
                vending facility equipment, and adequate initial stock 
                of suitable articles and supplies to be vended from 
                such facility, as may be necessary. Such equipment and 
                stock may be owned by the State licensing agency for 
                use of the individual to whom the license is issued. If 
                ownership of such equipment is vested--
                            (i) in the licensed vendor--
                                    (I) the State licensing agency 
                                shall retain a first option to 
                                repurchase such equipment; and
                                    (II) in the event such individual 
                                dies or for any other reason ceases to 
                                be a licensed vendor or transfers to 
                                another vending facility, ownership of 
                                such equipment shall become vested in 
                                the State licensing agency (for 
                                transfer to a successor licensed 
                                vendor) subject to an obligation on the 
                                part of the State licensing agency to 
                                pay to such individual or to the estate 
                                of the individual the fair value of 
                                interest, as later determined in 
                                accordance with regulations of the 
                                State licensing agency and after 
                                opportunity for a fair hearing; and
                            (ii) in the State licensing agency--
                                    (I) the licensed vendor shall rent 
                                or purchase such equipment from the 
                                State; and
                                    (II) the State licensing agency 
                                shall charge the market rate for 
                                renting or fair value selling such 
                                equipment to the licensed vendor.
                    (C) That if any funds are set aside, or caused to 
                be set aside, from the net proceeds of the operation of 
                the vending facilities, such funds shall be set aside, 
                or caused to be set aside, only to the extent necessary 
                for and may be used only for the purposes of 
                maintenance and replacement of equipment, the purchase 
                of new equipment, management services, assuring a fair 
                minimum return to operators of vending facilities, and 
                retirement or pension funds, health insurance 
                contributions, and provision for paid sick leave and 
                vacation time if it is determined by a majority vote of 
                the Committee of Vendors, after such agency provides to 
                each member of the Committee of Vendors full 
                information on all matters relevant to such proposed 
                program, that funds under this subparagraph shall be 
                set aside for such purposes. In no event shall the 
                amount of such funds to be set aside from the net 
                proceeds of any vending facility exceed a reasonable 
                amount which shall be determined by the Committee.
                    (D) To make reports, pursuant to subsection (e), in 
                such form and containing such information as the 
                Committee requires and to comply with such provisions 
                as the Committee finds necessary to ensure the 
                correctness and verification of such reports.
                    (E) To issue such regulations, consistent with the 
                provisions of this title, as may be necessary for the 
                operation of the vending facility program.
                    (F) To provide to any licensed vendor dissatisfied 
                with any action arising from the operation or 
                administration of the vending facility program an 
                opportunity to a fair hearing, and to agree to submit 
                the grievances of any licensed vendor not otherwise 
                resolved by such hearing to arbitration as provided in 
                section 204(l).
            (2) Reservation for administration.--Notwithstanding 
        paragraph (1)(C), a State licensing agency may reserve 1 
        percent of set-aside funds for the purpose of administering the 
        program. Nothing in this paragraph shall be construed to affect 
        State statutes, rules, or official policies relating to 
        collecting a portion of the set aside for agencies that 
        administer the program. Licensed vendors shall assume the cost 
        of paying for services listed in paragraph (1)(C) not covered 
        by the set aside.
            (3) Rule of construction.--Nothing in this subsection shall 
        be construed to modify any requirement under any State law 
        governing a State program for providing opportunities for 
        licensed vendors.
    (e) Reporting, Reviews, Monitoring, Evaluating, and Auditing.--
            (1) In general.--Not later than December 1 of each year, 
        each State licensing agency shall report data and provide an 
        annual report to the Committee, to enable the Committee to 
        prepare the reports described in section 204(a)(13).
            (2) Contents.--An annual report described in paragraph (1) 
        shall include--
                    (A) information collected from licensed vendors 
                associated with the State licensing agency pursuant to 
                section 206(d), aggregated for the State licensing 
                agency, and in the case of information described under 
                subparagraphs (B) and (H) of section 206(d)(2), 
                disaggregated by licensed vendor;
                    (B) data regarding the progress of meeting goals 
                described in section 204(a)(11); and
                    (C) other items as determined necessary by the 
                Committee.
            (3) Reviews, monitoring, and evaluations.--Each State 
        licensing agency shall--
                    (A) conduct reviews and monitoring in accordance 
                with section 204(e); and
                    (B) provide such other information to the Committee 
                in such time and manner as the Committee may require.
    (f) Compliance.--
            (1) Licensed vendor reports.--In accordance with 
        regulations established by the Committee and State licensing 
        agency, each State licensing agency shall report to the 
        Committee after the end of each fiscal year the extent to which 
        licensed vendors operating a vending facility are in compliance 
        with activities authorized under this title.
            (2) Program improvement.--
                    (A) Plan.--If the Committee determines that any 
                licensed vendor is out of compliance with this title, 
                the Committee and State licensing agency shall provide 
                technical assistance to the licensed vendor, and the 
                Committee, State licensing agency, and licensed vendor 
                shall jointly develop an improvement plan outlining the 
                specific actions to be taken by the licensed vendor to 
                improve performance.
                    (B) Review.--The Committee and State licensing 
                agency shall--
                            (i) review the program improvement efforts 
                        of the licensed vendor on a quarterly basis 
                        and, if necessary, request the licensed vendor 
                        make further revisions to the plan to improve 
                        performance; and
                            (ii) continue to conduct such reviews and 
                        request such revisions until the licensed 
                        vendor sustains satisfactory performance over a 
                        period of more than 1 year.
                    (C) Withholding.--If the Committee determines that 
                a licensed vendor's performance falls below the 
                established standards, has failed to enter into a 
                program improvement plan, or is not complying with the 
                terms and conditions of such an improvement plan, the 
                Committee and State licensing agency shall suspend the 
                licensed vendor's license until the licensed vendor has 
                entered into an approved improvement plan, or satisfies 
                the Committee that the licensed vendor is able to 
                comply with the terms and conditions of such an 
                improvement plan, as appropriate.
                    (D) Reports.--The Committee shall include in each 
                annual report to the President and Congress under 
                section 204(a)(13) a description of action taken under 
                this subsection and the outcomes of such action.
                    (E) Public notification.--The Committee and each 
                State licensing agency shall notify the public of each 
                action taken under this subsection by making available 
                information about the action on their websites, in an 
                accessible format. As a part of such notification, the 
                Committee and State licensing agency shall describe 
                each such action taken under this subsection and the 
                outcomes of each such action.

SEC. 206. VENDORS' DUTIES.

    (a) In General.--A licensed vendor operating a vending facility 
shall--
            (1) fulfill the requirements of operating such vending 
        facility for the vending of newspapers, periodicals, 
        confections, foods (including cafeterias but not including 
        cafeteria attendant services), beverages, and other articles or 
        services dispensed automatically or manually prepared on or off 
        the premises in accordance with all applicable health laws, as 
        determined by the State licensing agency, and including the 
        vending or exchange of chances for any lottery authorized by 
        State law and conducted by an agency of a State;
            (2) make such reports, pursuant to subsection (d), in such 
        form and containing such information as the State licensing 
        agency and Committee require and to comply with such provisions 
        as the State licensing agency and Committee find necessary to 
        ensure the correctness and verification of such reports;
            (3) meet the goals described in section 204(a)(11);
            (4) provide employment for individuals with disabilities; 
        and
            (5) if a State licensing agency establishes a set-aside 
        program, pursuant to section 205(d)(1)(C), participate in such 
        a program.
    (b) Requirements.--
            (1) In general.--A licensed vendor operating a vending 
        facility shall be responsible for the following:
                    (A) All costs associated with the facility to meet 
                the facility's operational requirements, including--
                            (i) administrative, management, and 
                        equipment maintenance costs not covered by the 
                        set aside;
                            (ii) payment for utilities; and
                            (iii) commercial telephone/communication 
                        requirements.
                    (B) Compliance with all applicable regulations 
                pertaining to the health and safety of personnel during 
                the execution of work. The licensed vendor shall hold 
                the Government harmless for any action on the vendor's 
                part or that of the vendor's employees or 
                subcontractors that results in illness, injury, or 
                death.
                    (C) Supervision, performance, and conduct of the 
                licensed vendor's employees at all times while on the 
                facility performing work under this title. The licensed 
                vendor shall be responsible for selecting personnel who 
                are well-qualified to perform the required services.
                    (D) Furnishing to the State licensing agency and 
                Federal contracting officer a certificate of insurance.
                    (E) Provision of data to the State licensing agency 
                to show the licensed vendor's effectiveness and 
                progress in achieving operational improvements, and 
                reports as described in subsection (d).
                    (F) Compliance with all applicable Federal, State, 
                and local laws, Executive orders, rules, and 
                regulations applicable to the licensed vendor's 
                performance under the contract.
                    (G) Risk of loss or damage to the supplies provided 
                under the contract.
                    (H) Provision of access to the Comptroller General 
                of the United States, or an authorized representative 
                of the Comptroller General, to examine any of the 
                licensed vendor's directly pertinent records involving 
                transactions related to this title.
                    (I) Making available records, materials, and other 
                evidence for examination, audit, or reproduction, until 
                3 years after final payment under this title.
            (2) Availability of records.--
                    (A) In general.--A licensed vendor for whom the 
                license to operate a vending facility has been 
                completely or partially terminated, shall make 
                available to the Committee and the State licensing 
                agency the records relating to the work terminated for 
                3 years after any resulting final termination 
                settlement. A licensed vendor shall make available to 
                the Committee and the State licensing agency records 
                relating to appeals, litigation, or the settlement of 
                claims arising under or relating to a contract to 
                operate a vending facility pursuant to this title until 
                such appeals, litigation, or claims are finally 
                resolved.
                    (B) Records defined.--In this paragraph, the term 
                ``records'' includes books, documents, accounting 
                procedures and practices, and other data, regardless of 
                type and regardless of form.
                    (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to require the licensed 
                vendor to create or maintain any record that the 
                licensed vendor does not maintain in the ordinary 
                course of business or pursuant to a provision of law.
    (c) Maintaining Qualification.--To maintain qualification as a 
licensed vendor under this title, an individual shall carry out the 
following:
            (1) Operate a vending facility in strict accordance with 
        Government specifications.
            (2) Be the principal manager of the work performed.
            (3) Comply with the applicable compensation, employment, 
        and occupational health and safety standards prescribed by the 
        Secretary of Labor, including procedures to encourage filling 
        of vacancies within the business by individuals with 
        disabilities. A licensed vendor with annual sales of more than 
        $500,000 and who has a workforce of not less than 8 employees 
        shall have a workforce in which a minimum of one third of such 
        employees are individuals with disabilities.
            (4) Comply with directives or requests issued by the 
        Committee in furtherance of the objectives of this title, 
        including regulations issued under this title.
            (5) Make business records, pertinent to activities 
        authorized or compliance required under this title, available 
        for inspection at any reasonable time to representatives of the 
        Committee.
            (6) A licensed vendor with annual sales of more than 
        $500,000 shall have a financial audit performed by an 
        independent accountant.
            (7) File a Federal business income tax return.
            (8) Submit to the Committee copies of reports of audits, 
        and returns, described in paragraphs (6) and (7).
    (d) Annual Report.--
            (1) In general.--Not later than November 1 of each year, 
        each licensed vendor operating a vending facility shall report 
        data and provide an annual report to the Committee, through the 
        licensed vendor's State licensing agency, to enable the 
        Committee to prepare the reports described in section 
        204(a)(13).
            (2) Contents.--The report described in paragraph (1) shall 
        include, with respect to the licensed vendor--
                    (A) the Office of Management and Budget approved 
                Report of Randolph-Sheppard Vending Facility Program 
                (SC) AGENCY FORM NUMBER RSA-15 or other appropriate 
                form approved by the Office of Management and Budget;
                    (B) data on vending facilities by location and by 
                type (stand, vending machines, cafeteria), including 
                the amount of business income, expenditures, and 
                distribution of income;
                    (C) the number of administrative noncompliance 
                grievances and complaints filed under section 204(k), 
                including the entity against whom such action was 
                filed;
                    (D) participation in Committee and State licensing 
                agency training and technical assistance activities, 
                including information on participation of the licensed 
                vendor and the vendor's employees in total and 
                disaggregated by--
                            (i) employees with and without 
                        disabilities;
                            (ii) training and technical assistance;
                            (iii) topic; and
                            (iv) method of delivery (such as through 
                        videos, seminars, or web-based technologies);
                    (E) the number of employees of the licensed vendor 
                who are individuals with disabilities, disaggregated 
                using 911 disability reporting taxonomy of the 
                vocational rehabilitation program;
                    (F) wages and benefits, including information on--
                            (i) wages of the licensed vendor, including 
                        the average wage of employees of the licensed 
                        vendor with disabilities and without 
                        disabilities;
                            (ii) how many individuals under clause (i) 
                        have--
                                    (I) health insurance;
                                    (II) pensions or retirement plans; 
                                and
                                    (III) other benefits; and
                            (iii) the number of persons with 
                        disabilities employed by the licensed vendor 
                        who have been promoted or moved into management 
                        positions;
                    (G) data regarding the progress of meeting goals 
                described in section 204(a)(11);
                    (H) if the licensed vendor has entered into an 
                operational support agreement pursuant to subsection 
                (e), the identity of the teaming partner, the terms of 
                the agreement (including the financial terms), and the 
                services the teaming partner is providing; and
                    (I) other items as determined necessary by the 
                Committee.
    (e) Operational Support Agreements.--
            (1) In general.--A licensed vendor, in conjunction with the 
        licensed vendor's State licensing agency, may enter into an 
        operational support agreement with an entity (a ``teaming 
        partner'') that has an extensive background in--
                    (A) Federal procurement; and
                    (B) delivery of military dining or large-scale food 
                services.
            (2) Teaming partner.--The teaming partner may, with respect 
        to the licensed vendor--
                    (A) provide training in managing large-scale food 
                service contracts;
                    (B) identify potential, or directly provide, 
                employees;
                    (C) provide start-up funding; and
                    (D) post bond.
            (3) Limitation.--A partnership under this subsection shall 
        be limited to the first 3 years of the initial contract of the 
        licensed vendor to operate a vending facility pursuant to this 
        title. The licensed vendor shall be the principal manager of 
        work performed under the contract. The licensed vendor shall be 
        required to retire capital advances provided by the teaming 
        partner prior to the end of the contract.
            (4) Information.--Each operational support agreement 
        entered into pursuant to this subsection shall be provided to 
        the Committee at such a time and in such manner as the 
        Committee may require. Such agreement shall include functional 
        duties and financial arrangements and, if a workforce is 
        provided by the teaming partner under such agreement, the 
        percentage of such workforce who have a disability.
            (5) Construction clause.--Nothing in this subsection shall 
        prohibit a licensed vendor from contracting with a teaming 
        partner, after the initial agreement expires, for personnel and 
        financial management services or for providing services 
        regarding contracts and opportunities outside of this title.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Committee to carry 
out this title, $2,000,000 for fiscal year 2009 and such sums as may be 
necessary for each of the 7 succeeding fiscal years.

     TITLE III--JAVITS-WAGNER-O' DAY AND RANDOLPH-SHEPPARD VENDORS 
               CONTRACTING WITH THE DEPARTMENT OF DEFENSE

SEC. 301. DEFINITIONS.

    In this title:
            (1) Alaska native corporation.--The term ``Alaska Native 
        Corporation'' means a Native Corporation, as defined in section 
        3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602).
            (2) HUBZone entity.--The term ``HUBZone entity'' means an 
        entity that is a qualified HUBZone small business concern, as 
        defined in section 3 of the Small Business Act (15 U.S.C. 632).
            (3) Licensed vendor.--The term ``licensed vendor'' has the 
        meaning given the term in section 202 of the Randolph-Sheppard 
        Act.
            (4) Section 8(a) entity.--The term ``section 8(a) entity'' 
        means a small business concern (within the meaning given that 
        term under section 3 of the Small Business Act (15 U.S.C. 632)) 
        that is eligible to participate in a program, activity, or 
        contract, under section 8(a) of the Small Business Act (15 
        U.S.C. 637(a)).
            (5) State licensing agency.--The term ``State licensing 
        agency'' has the meaning given the term in section 202 of the 
        Randolph-Sheppard Act.

SEC. 302. JAVITS-WAGNER-O'DAY PROGRAM.

    (a) Procurement Requirements.--
            (1) Inapplicability.--In the case of a contract for the 
        operation of a full food service military dining facility, the 
        requirements of section 104 of the Javits-Wagner-O'Day Act 
        (relating to procurement requirements for the Government) shall 
        not apply.
            (2) Procurement list.--Products and services specifically 
        relating to the operation of a full food service military 
        dining facility--
                    (A) shall not be added to the procurement list 
                referred to in that section 104; and
                    (B) that are on the procurement list on the date of 
                enactment of this Act shall be removed from the 
                procurement list 5 years after that date of enactment.
            (3) Related contracts.--Contracts for products and services 
        described in paragraph (2) that are removed from the 
        procurement list shall be rebid in accordance with Department 
        of Defense contracting rules.
    (b) Proposal Revisions.--In bidding for a contract for the 
operation of a full food service military dining facility, under the 
Javits-Wagner-O'Day Act, a central nonprofit agency and a qualified 
nonprofit agency shall comply with the provisions of section 15.307 of 
title 48, Code of Federal Regulations (or any corresponding similar 
regulation or ruling), regarding proposal revisions.
    (c) Records.--In the event that a qualified nonprofit agency 
receives a contract described in subsection (a), under the Javits-
Wagner-O'Day Act, the qualified nonprofit agency, the corresponding 
central nonprofit agency, and any partner working with the qualified 
nonprofit agency to carry out the contract shall make available to the 
Secretary of Defense and the Inspector General of the Department of 
Defense all records relating to the contract.
    (d) Fair Labor Standards.--Section 14(c) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 214(c)) shall not apply to qualified 
nonprofit agencies that receive contracts for the operation of full 
food service military dining facilities under the Javits-Wagner-O'Day 
Act.

SEC. 303. RANDOLPH-SHEPPARD PROGRAM.

    (a) Cafeteria Services.--For purposes of the Randolph-Sheppard Act, 
the term ``cafeteria'', used with respect to military dining services 
under a contract awarded by the Secretary of Defense, does not include 
mess attendant, dining facility attendant, dining support, or other 
services supporting the Department of Defense operations of a 
cafeteria, and means only services pertaining to a full food service 
military dining facility.
    (b) Bidding.--Each contract for the operation of a full food 
service military dining facility under the Randolph-Sheppard Act shall 
be rebid at the end of the contract period.
    (c) Priority.--Notwithstanding section 203(a)(2)(A), for purposes 
of awarding a contract for the operation of a full food service 
military dining facility, equal priority shall be given to--
            (1) a State licensing agency (acting on behalf of a 
        licensed vendor) bidding for the contract under the Randolph-
        Sheppard Act; and
            (2) a section 8(a) entity, a HUBZone entity, an Alaska 
        Native Corporation, and other socially disadvantaged groups, as 
        defined by the Secretary of Defense.
    (d) Proposal Revisions.--In bidding for a contract for the 
operation of a full food service military dining facility, under the 
Randolph-Sheppard Act, a State licensing agency (acting on behalf of a 
licensed vendor) shall comply with the provisions of section 15.307 of 
title 48, Code of Federal Regulations (or any corresponding similar 
regulation or ruling), regarding proposal revisions.
    (e) Arbitration.--The arbitration provisions of the Randolph-
Sheppard Act shall not apply to a decision of the Secretary of Defense 
pertaining to modifying or closing a full food service military dining 
facility due to a budget reduction, if the facility does not become 
solely a vending facility on Federal property, within the meaning of 
section 203(a) of the Randolph-Sheppard Act. If a State licensing 
agency (acting on behalf of a licensed vendor) submits a bid for a 
contract described in subsection (b), under the Randolph-Sheppard Act, 
declines an offer for such contract, and submits a subsequent bid for 
the contract in the same contract bidding cycle, the arbitration 
provisions shall not apply to a decision of the Secretary of Defense 
relating to the subsequent bid.
    (f) Records.--In the event that a State licensing agency (acting on 
behalf of a licensed vendor) receives a contract described in 
subsection (b), under the Randolph-Sheppard Act, the State licensing 
agency, the vendor, and any partner working with the vendor to carry 
out the contract shall make available to the Secretary of Defense and 
the Inspector General of the Department of Defense all records relating 
to the contract.

         TITLE IV--TRANSFER OF FUNCTIONS AND SAVINGS PROVISIONS

SEC. 401. DEFINITIONS.

    For purposes of this title, unless otherwise provided or indicated 
by the context--
            (1) the term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code;
            (2) the term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (3) the term ``office'' includes any office, 
        administration, agency, institute, unit, organizational entity, 
        or component thereof.

SEC. 402. TRANSFER OF FUNCTIONS.

    (a) In General.--There are transferred to the Committee, 
established under section 3, all functions which the Commissioner of 
the Rehabilitation Services Administration of the Department of 
Education (referred to in this title as the ``Administration'') 
exercised before the date of enactment of the Javits-Wagner-O'Day and 
Randolph-Sheppard Modernization Act of 2008 (including all related 
functions of any officer or employee of the Administration) relating to 
the Randolph-Sheppard Act, as in effect before the date of enactment of 
the Javits-Wagner-O'Day and Randolph-Sheppard Modernization Act of 
2008.
    (b) Effective Date.--The transfer provision provided under 
subsection (a) shall take effect 90 days after the date of enactment of 
the Javits-Wagner-O'Day and Randolph-Sheppard Modernization Act of 
2008.

SEC. 403. DETERMINATIONS OF CERTAIN FUNCTIONS BY THE OFFICE OF 
              MANAGEMENT AND BUDGET.

    If necessary, the Office of Management and Budget shall make any 
determination of the functions that are transferred under section 402.

SEC. 404. PERSONNEL PROVISIONS.

    (a) Appointments.--Except as otherwise provided by law, the 
Chairman of the Committee may appoint and fix the compensation of such 
officers and employees, including investigators, attorneys, and 
administrative law judges, as may be necessary to carry out the 
respective functions transferred under this title. Except as otherwise 
provided by law, such officers and employees shall be appointed in 
accordance with the civil service laws and their compensation fixed in 
accordance with title 5, United States Code.
    (b) Experts and Consultants.--The Chairman of the Committee may 
obtain the services of experts and consultants in accordance with 
section 3109 of title 5, United States Code, and compensate such 
experts and consultants for each day (including travel time) at rates 
not in excess of the rate of pay for level IV of the Executive Schedule 
under section 5315 of such title. The Chairman of the Committee may pay 
experts and consultants who are serving away from their homes or 
regular place of business travel expenses and per diem in lieu of 
subsistence at rates authorized by sections 5702 and 5703 of such title 
for persons in Government service employed intermittently.

SEC. 405. DELEGATION AND ASSIGNMENT.

    Except where otherwise expressly prohibited by law or otherwise 
provided by this title, the Committee may delegate any of the functions 
transferred to the Committee by this title and any function transferred 
or granted to such Committee after the effective date of this title to 
such members and employees of the Committee as the Committee may 
designate, and may authorize successive redelegations of such functions 
as may be necessary or appropriate. No delegation of functions by the 
Committee under this section or under any other provision of this title 
shall relieve such Committee of responsibility for the administration 
of such functions.

SEC. 406. REORGANIZATION.

    The Committee is authorized to allocate or reallocate any function 
transferred under section 402 among the members of the Committee, and 
to establish, consolidate, alter, or discontinue such organizational 
entities in the Committee as may be necessary or appropriate.

SEC. 407. RULES.

    The Committee is authorized to prescribe, in accordance with the 
provisions of chapters 5 and 6 of title 5, United States Code, such 
rules and regulations as the Committee determines necessary or 
appropriate to administer and manage the functions of the Committee.

SEC. 408. TRANSFER AND ALLOCATIONS OF APPROPRIATIONS AND PERSONNEL.

    Except as otherwise provided in this title, the personnel employed 
in connection with, and the assets, liabilities, contracts, property, 
records, and unexpended balances of appropriations, authorizations, 
allocations, and other funds employed, used, held, arising from, 
available to, or to be made available in connection with the functions 
transferred by this title, subject to section 1531 of title 31, United 
States Code, shall be transferred to the Committee. Unexpended funds 
transferred pursuant to this section shall be used only for the 
purposes for which the funds were originally authorized and 
appropriated.

SEC. 409. INCIDENTAL TRANSFERS.

    The Director of the Office of Management and Budget, at such time 
or times as the Director shall provide, is authorized to make such 
determinations as may be necessary with regard to the functions 
transferred by this title, and to make such additional incidental 
dispositions of personnel, assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds held, used, arising from, 
available to, or to be made available in connection with such 
functions, as may be necessary to carry out the provisions of this 
title. The Director of the Office of Management and Budget shall 
provide for the termination of the affairs of all entities terminated 
by this title and for such further measures and dispositions as may be 
necessary to effectuate the purposes of this title.

SEC. 410. EFFECT ON PERSONNEL.

    (a) In General.--Except as otherwise provided by this title, the 
transfer pursuant to this title of full-time personnel (except special 
Government employees) and part-time personnel holding permanent 
positions shall not cause any such employee to be separated or reduced 
in grade or compensation for one year after the date of transfer of 
such employee under this title.
    (b) Executive Schedule Positions.--Except as otherwise provided in 
this title, any person who, on the day preceding the effective date of 
this title, held a position compensated in accordance with the 
Executive Schedule prescribed in chapter 53 of title 5, United States 
Code, and who, without a break in service, is appointed in the 
Committee to a position having duties comparable to the duties 
performed immediately preceding such appointment shall continue to be 
compensated in such new position at not less than the rate provided for 
such previous position, for the duration of the service of such person 
in such new position.
    (c) Termination of Certain Positions.--Positions whose incumbents 
are appointed by the President, by and with the advice and consent of 
the Senate, the functions of which are transferred by this title, shall 
terminate on the effective date of this title.

SEC. 411. SAVINGS PROVISIONS.

    (a) Continuing Effect of Legal Documents.--All orders, 
determinations, rules, regulations, permits, agreements, grants, 
contracts, certificates, licenses, registrations, privileges, and other 
administrative actions--
            (1) which have been issued, made, granted, or allowed to 
        become effective by the President, any Federal agency or 
        official thereof, or by a court of competent jurisdiction, in 
        the performance of functions which are transferred under this 
        title; and
            (2) which are in effect at the time this title takes 
        effect, or were final before the effective date of this title 
        and are to become effective on or after the effective date of 
        this title,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Committee or an authorized official, a court of 
competent jurisdiction, or by operation of law.
    (b) Proceedings Not Affected.--The provisions of this title shall 
not affect any proceedings, including notices of proposed rulemaking, 
or any application for any license, permit, certificate, or financial 
assistance pending before the Administration at the time this title 
takes effect, with respect to functions transferred by this title but 
such proceedings and applications shall be continued. Orders shall be 
issued in such proceedings, appeals shall be taken therefrom, and 
payments shall be made pursuant to such orders, as if this title had 
not been enacted, and orders issued in any such proceedings shall 
continue in effect until modified, terminated, superseded, or revoked 
by a duly authorized official, by a court of competent jurisdiction, or 
by operation of law. Nothing in this subsection shall be deemed to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this title had 
not been enacted.
    (c) Suits Not Affected.--The provisions of this title shall not 
affect suits commenced before the effective date of this title, and in 
all such suits, proceedings shall be had, appeals taken, and judgments 
rendered in the same manner and with the same effect as if this title 
had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Administration, or by or against any 
individual in the official capacity of such individual as an officer of 
the Administration, shall abate by reason of the enactment of this 
title.
    (e) Administrative Actions Relating to Promulgation of 
Regulations.--Any administrative action relating to the preparation or 
promulgation of a regulation by the Administration relating to a 
function transferred under this title may be continued by the Committee 
with the same effect as if this title had not been enacted.

SEC. 412. SEPARABILITY.

    If a provision of this title or its application to any person or 
circumstance is held invalid, neither the remainder of this title nor 
the application of the provision to other persons or circumstances 
shall be affected.

SEC. 413. TRANSITION.

    The Committee is authorized to utilize--
     (a) the services of such officers, employees, and other personnel 
of the Administration with respect to functions transferred to the 
Committee by this title; and
    (b) funds appropriated to such functions for such period of time,
as may reasonably be needed to facilitate the orderly implementation of 
this title.

SEC. 414. REFERENCES.

    Reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or relating 
to--
            (1) the Commissioner of the Administration with regard to 
        functions transferred under section 402, shall be deemed to 
        refer to the Committee; and
            (2) the Administration with regard to functions transferred 
        under section 402, shall be deemed to refer to the Committee.

SEC. 415. ADDITIONAL CONFORMING AMENDMENTS.

    (a) Recommended Legislation.--After consultation with the 
appropriate committees of Congress and the Director of the Office of 
Management and Budget, the Committee shall prepare and submit to 
Congress recommended legislation containing technical and conforming 
amendments to reflect the changes made by this title.
    (b) Submission to Congress.--No later than 6 months after the 
effective date of this title, the Committee shall submit the 
recommended legislation referred to under subsection (a).

                 TITLE V--REPEALS OF FORMER PROVISIONS

SEC. 501. REPEALS.

    (a) Repeal of Former Javits-Wagner-O'Day Act.--The Javits-Wagner-
O'Day Act, enacted as the Act entitled ``An Act to create a Committee 
on Purchases of Blind-made Products, and for other purposes'', approved 
June 25, 1938 (41 U.S.C. 46 et seq.) is repealed.
    (b) Repeal of Former Randolph-Sheppard Act.--The Randolph-Sheppard 
Act, enacted as the Act entitled ``An Act to authorize the operation of 
stands in Federal buildings by blind persons, to enlarge the economic 
opportunities of the blind, and for other purposes'', approved June 20, 
1936 (20 U.S.C. 107 et seq.) is repealed.
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