[Federal Register Volume 60, Number 122 (Monday, June 26, 1995)]
[Notices]
[Pages 32947-32948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15512]
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DEPARTMENT OF EDUCATION
Arbitration Panel Decision Under the Randolph-Sheppard Act
AGENCY: Department of Education.
ACTION: Notice of Arbitration Panel Decision Under the Randolph-
Sheppard Act.
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SUMMARY: Notice is hereby given that on November 8, 1993, an
arbitration panel rendered a decision in the matter of Bessie Reece,
Petitioner v. Missouri Bureau for the Blind, Division of Family
Services, Respondent, Case No. R-S/92-5. This panel was convened by the
Secretary of the U. S. Department of Education pursuant to 20 U.S.C.
107d-2, upon receipt of a complaint filed by petitioner Bessie Reece.
FOR FURTHER INFORMATION CONTACT: A copy of the full text of the
arbitration panel decision may be obtained from George F. Arsnow, U. S.
Department of Education, 600 Independence Avenue, S.W., Room 3230,
Switzer Building, Washington, D.C. 20202-2738. Telephone: (202) 205-
9317. Individuals who use a telecommunications device for the deaf
(TDD) may call the TDD number at (202) 205-8298.
SUPPLEMENTARY INFORMATION: Pursuant to the Randolph-Sheppard Act (20
U.S.C. 107d-2(c)), the Secretary publishes a synopsis of arbitration
panel decisions affecting the administration of vending facilities on
Federal property.
Background
Bessie Reece, complainant, is a blind vendor licensed by the State
of Missouri, Division of Family Services, which is the State licensing
agency (SLA) under the Randolph-Sheppard Act. Ms. Reece began operating
vending facility no. 84 at the Federal Court and Customs House in St.
Louis, Missouri, in 1981.
The Division of Family Services terminated Ms. Reece's Level II
license because she was unable to keep the cost of goods to be sold
under 72% of net sales and generate a 19% profit on net sales in any of
the years she operated the facility. Under State regulatory provisions,
13 CSR 40-91.010(11), each facility manager is required to maintain a
minimum level of net profits from sales of 19% for a Level II facility.
The State regulations require that the maximum percentage of the cost
of goods to be sold shall not exceed 72% of net sales for a Level II
facility. For the entire year of 1991, complainant's cost of goods to
be sold averaged 92.6% of net sales and her profit on net sales was
5.7%.
Ms. Reece had problems filing her monthly statements with the SLA
and received delinquency notices in January, February, March, April,
May, and June of 1991. She received her termination notice in July of
1991, although she was not removed until January 4, 1992. The SLA
pointed out to Ms. Reece that her failure to meet the minimum level of
net profits resulted in a loss of revenue for the blind employee
program, requiring the blind vendors in other locations to pay her
share for management and to carry the cost of her benefits.
Ms. Reece complained of poor inventory when she took over the
[[Page 32948]] facility and stated that she was not credited for
inventory that had to be destroyed. Ms. Reece stated that her starting
inventory was substantially less than it should have been and that she
did not receive an inventory report from the SLA until one year later.
Complainant also stated that there was a problem with theft. She
testified that these circumstances contributed to her inability to
generate a profit. The Division of Family Services stated that it
attempted to assist the complainant in improving the operation of her
facility by making personnel available to assist in correcting her
problems. The SLA provided an electric cash register to help her
maintain better records of her cash flow.
Ms. Reece sought the reinstatement of her license, lost earnings in
the amount of $8,000, as well as reimbursement of attorney's fees.
Complainant also sought to be reinstated at vending facility no. 84 at
the Federal Court and Customs House. Complainant believed that, since
the facility had been renovated and a security camera had been
installed, she could operate the facility within the cost guidelines
established by the SLA.
Arbitration Panel Decision
The panel found that Ms. Reece did not, in the 10 years that she
operated the vending facility, achieve the set guidelines of 72% of net
sales for the cost of goods to be sold and the 19% profit margin as
required under 13 CSR 40-91.010(11). Her cost of goods to be sold
exceeded 103% on several occasions and averaged in the 90 percent
range. Her profit margin was never more than 5% or 6%, but most of the
time that profit margin was less than 1% or a negative profit.
There was evidence that the SLA attempted to assist the vendor on
several occasions in cutting her cost of goods sold and improving her
margin of profit. The panel found that the SLA had just cause to
terminate Ms. Reece's vendor's license. The panel suggested to the SLA
that the vendor be permitted to apply for rehabilitation services and,
upon completion of those services, that her bid be considered on a
Level I facility when it becomes available.
The views and opinions expressed by the panel do not necessarily
represent the views and opinions of the U. S. Department of Education.
Dated: June 13, 1995.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 95-15512 Filed 6-23-95; 8:45 am]
BILLING CODE 4000-01-P