[Federal Register Volume 59, Number 160 (Friday, August 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20147]


[[Page Unknown]]

[Federal Register: August 19, 1994]


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DEPARTMENT OF EDUCATION

 

Vending Facility Program for the Blind on Federal and Other 
Property

AGENCY: Department of Education.

ACTION: Notice of proposed schedule of arbitration fees and expenses 
under the Randolph-Sheppard Act.

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SUMMARY: The Secretary proposes a schedule of fees and expenses 
associated with arbitration proceedings conducted under the Randolph-
Sheppard Act that will be paid by the Department. The schedule lists 
the reasonable costs of arbitration and describes the standards by 
which the Secretary will support those costs.
DATES: Comments must be received on or before October 18, 1994.

ADDRESSES: All comments concerning this proposed schedule should be 
addressed to George Arsnow, U.S. Department of Education, 400 Maryland 
Avenue SW., room 3230, Mary E. Switzer Building, Washington, DC 20202-
2738. Telephone: (202) 205-9317.

FOR FURTHER INFORMATION CONTACT: George Arsnow. Telephone: (202) 205-
9317. Individuals who use a telecommunications device for the deaf 
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through 
Friday.

SUPPLEMENTARY INFORMATION: The Randolph-Sheppard Act, 20 U.S.C. 107 et 
seq., gives blind persons, who are trained and licensed by State 
vocational rehabilitation agencies (called ``State licensing agencies'' 
or SLAs), a priority to operate vending facilities on Federal property. 
The Act further provides for arbitration to resolve disputes that arise 
under the program between individual vendors and SLAs and between SLAs 
and Federal agencies. 20 U.S.C. 107d-1(a) and (b). For each of these 
two categories of arbitrations, the Secretary authorizes the convening 
of an arbitration panel upon receipt of a complaint filed by either a 
vendor against an SLA or by an SLA against a Federal agency. 20 U.S.C. 
107d-2(a).
    The Act directs each of the parties to an arbitration to each 
appoint one arbitrator (or panel member) and directs the two party-
appointed arbitrators to select a neutral chairperson. 20 U.S.C. 107d-
2(b) (1) and (2). In order to facilitate this process, the Department 
sends to the parties names of potential chairpersons from the Roster of 
Arbitrators maintained by the Federal Mediation and Conciliation 
Service (FMCS). If the parties seek to appoint a chairperson who is not 
listed on the FMCS roster, a biographical sketch of that chairperson is 
to be sent to the Department. Once selected, the panel conducts a 
hearing and renders a decision, which is subject to appeal and review 
as a ``final agency action'' for purposes of the Administrative 
Procedure Act. 20 U.S.C. 107d-2(a).
    The Act, in 20 U.S.C. 107d-2(d), requires the Secretary to pay all 
reasonable costs of arbitration in accordance with a schedule of fees 
and expenses that the Secretary publishes in the Federal Register. 
Pursuant to this requirement, the Department has continued to pay 
certain costs associated with arbitration proceedings authorized by the 
Secretary, but has not published the schedule referred to in the 
statute.
    The purpose of this notice is to propose a schedule of fees and 
expenses under section 107d-2(d) of the Act. The proposed schedule 
outlines the types of costs that the Secretary considers reasonable 
costs of arbitration and the standards by which the Secretary will 
determine the rate of payment for these costs. Generally, the Secretary 
considers reasonable costs of arbitration to include the cost of 
preparing the official record of arbitration proceedings, professional 
fees for arbitration panel members, and food, travel, and lodging 
expenses of panel members and essential witnesses. The Secretary does 
not consider attorneys' fees to be part of the reasonable costs of 
arbitration, but rather considers them the responsibility of each party 
to the arbitration.
    The Department has drawn guidance from information and data 
supplied by the FMCS in formulating these proposed standards.

Executive Order 12866

Clarity

    Executive Order 12866 requires each agency to write regulatory 
documents that are easy to understand.
    The Secretary invites comments on how to make this proposed 
schedule easier to understand, including answers to questions such as 
the following: (1) Are the requirements in the proposed schedule 
clearly stated? (2) Does the schedule contain technical terms or other 
wording that interferes with its clarity? (3) Does the format of the 
schedule (grouping and order of sections, use of headings, 
paragraphing, etc.) aid or reduce its clarity? Would the schedule be 
easier to understand if it was divided into more (but shorter) 
sections? (4) Is the description of the schedule in the ``Supplementary 
Information'' section of this preamble helpful in understanding the 
schedule? How could this description be more helpful in making the 
schedule easier to understand? (5) What else could the Department do to 
make the schedule easier to understand?
    A copy of any comments that concern how the Department could make 
this proposed schedule easier to understand should be sent to Stanley 
M. Cohen, Regulations Quality Officer, U.S. Department of Education, 
400 Maryland Avenue, SW (room 5125, FOB-6), Washington, DC 20202-2241.

Regulatory Flexibility Act Certification

    The Secretary certifies that this proposed schedule would not have 
a significant economic impact on a substantial number of small 
entities.
    Because this proposed schedule would affect only States, State 
agencies, and individuals, the schedule would not have an impact on 
small entities. States, State agencies, and individuals are not defined 
as ``small entities'' in the Regulatory Flexibility Act.

Invitation to Comment

    Interested persons are invited to submit comments and 
recommendations regarding this proposed schedule.
    All comments submitted in response to this proposed schedule will 
be available for public inspection, during and after the comment 
period, in room 3230, 330 C Street, SW, Washington, DC, between the 
hours of 8:30 a.m. and 4:00 p.m., Monday through Friday of each week 
except Federal holidays.

    Dated: August 12, 1994.

(Catalog of Federal Domestic Assistance Number does not apply)
Richard W. Riley,
 Secretary of Education.

Reasonable Costs of Arbitration Under the Randolph-Sheppard Act

    The Secretary proposes that the reasonable costs of arbitration 
under 20 U.S.C. 107d-2(d) are the following:
    (a) Stenographic Record.
    (1) General Provisions. The Department will pay the costs of the 
services of the official reporter assigned to the arbitration, 
including preparation of the official transcript of the hearing and six 
copies thereof. The official transcript and one copy thereof must be 
submitted to the Department. The remaining five copies of the 
transcript must be distributed among the parties as determined by the 
arbitration panel chairperson. Costs of the services of the official 
reporter may not exceed the reasonable and customary costs for those 
services in the locality in which the services are furnished.
    (2) Cancellation. The official reporter may charge the Department 
its customary fee for cancellation of an arbitration proceeding in 
situations in which a proceeding is canceled within 24 hours of its 
scheduled date and time.
    (b) Fees of Arbitrators.
    (1) Per Diem. The Department will pay a per diem fee to arbitration 
panel members, who are not otherwise employed by the Federal or State 
Government, for their services during the course of the arbitration. 
The per diem fee to be paid by the Department must be the lesser of--
    (i) The customary fee charged by the individual panel member; or
    (ii) The reasonable and customary fee charged by arbitrators in the 
locality where the arbitration will be held.
    (2) Postponement or Cancellation within 48 hours. If a scheduled 
arbitration proceeding is postponed or canceled within 48 hours of its 
scheduled date and time, panel members may charge the Department--
    (i) A predetermined, customary, and reasonable postponement or 
cancellation fee; and
    (ii) That portion of the arbitrator's per diem fee proportional to 
the actual time the panel member expended in preparing for the 
proceeding.
    (3) Other Postponements or Cancellations. If a scheduled 
arbitration proceeding is postponed or canceled more than 48 hours 
prior to its scheduled date, panel members may charge the Department 
only that portion of the per diem fee proportional to the actual time 
expended in preparing for the proceeding.
    (4) Notice. The customary per diem and predetermined fees charged 
by a panel member must be included in a biographical sketch that is to 
be sent to the Department following his or her appointment to the 
panel.
    (c) Travel, Lodging, and Meal Expenses of Arbitrators and 
Witnesses.
    (1) Arbitrators. Notwithstanding that the Secretary urges the 
parties to appoint panel representatives from the locality in which the 
dispute arose and the hearing is to be held, the Department will 
reimburse the travel, lodging, and food expenses of the arbitration 
panel members incurred for the purpose of attending hearings and for 
the purpose of attending any pre- or post-hearing conferences that 
cannot be conducted by telephone. These expenses will be reimbursed at 
the rate applicable to Federal Government employees traveling on 
government business to the hearing location.
    The Secretary urges the two panel representatives appointed by the 
parties to select a neutral chairperson from the locality in which the 
dispute arose and the hearing is to be held.
    (2) Witnesses. The Department will reimburse the travel, lodging, 
and food expenses of witnesses for the purpose of testifying at 
hearings, if the witness does not reside at the locality of the 
arbitration proceeding and the testimony of the witness is deemed by 
the arbitration panel chairperson to be essential to the proper 
resolution of the dispute. These expenses will be reimbursed at the 
rate applicable to Federal Government employees traveling on government 
business to the hearing location.
    (d) Responsibility of Parties. Attorneys' fees are not considered 
part of the reasonable costs of arbitration supported by the 
Department, but are the responsibility of each party to the 
arbitration.

(Authority: 20 U.S.C. 107d-2(d))

[FR Doc. 94-20147 Filed 8-18-94; 8:45 am]
BILLING CODE 4000-01-P