[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Notices]
[Pages 61155-61156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26413]


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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 January 10, 2000, an 
arbitration panel rendered a decision in the matter of Donald Schone 
and Ray Fitzpatrick v. Illinois Office of Rehabilitation Services, 
Department of Human Services (Docket No. R-S/97-10). This panel was 
convened by the U.S. Department of Education pursuant to 20 U.S.C. 
107d-1(b) upon receipt of a complaint filed by petitioners, Donald 
Schone and Ray Fitzpatrick.

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, 400 Maryland Avenue, SW., room 3230, Mary E. 
Switzer Building, Washington DC 20202-2738. Telephone: (202) 205-9317. 
If you use a telecommunications device for the deaf (TDD) you may call 
the TDD number at (202) 205-8298.
    Individuals with disabilities may obtain this document in an 
alternate

[[Page 61156]]

format (e.g., Braille, large print, audiotape, or computer diskette) on 
request to the contact person listed in the preceding paragraph.

Electronic Access to This Document

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    Note: The official version of this document is the document 
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SUPPLEMENTARY INFORMATION: Pursuant to the Randolph-Sheppard Act (20 
U.S.C. 107d-2(c)) (the Act), the Secretary publishes in the Federal 
Register a synopsis of each arbitration panel decision affecting the 
administration of vending facilities on Federal and other property.

Background

    This dispute concerns the alleged improper denial of the vendors' 
request to be transferred to another facility by the Illinois Office of 
Rehabilitation Services, Department of Human Services, the State 
licensing agency (SLA).
    A summary of the facts is as follows: In 1990, complainants Mr. 
Donald Schone and Mr. Ray Fitzpatrick signed separate operating 
agreements with the SLA to manage vending facilities #405 and #406 at 
the Old Post Office Building, 433 West Van Buren Street, Chicago, 
Illinois. In approximately 1992, the SLA was informed by the United 
States Postal Service that this location was to be closed and a New 
Post Office was to be constructed across the street at 433 West 
Harrison. Complainants contended that they should not be required to 
bid on other locations, but rather that the SLA should transfer them to 
the New Post Office at 433 West Harrison Street to operate the two 
vending facilities available at that location.
    The complainants requested and received a State fair hearing 
concerning their complaint regarding the SLA's transfer and promotion 
policies. The Hearing Officer ruled that the SLA was not required to 
transfer Mr. Schone and Mr. Fitzpatrick to the New Post Office vending 
facilities without the bidding process. On April 22, 1997, the SLA 
adopted the Hearing Officer's ruling as final agency action. It was 
this decision that the complainants sought to have reviewed by a 
Federal arbitration panel. An arbitration hearing on this matter was 
held on June 17, 1999.

Arbitration Panel Decision

    The central issue before the arbitration panel was whether the SLA 
was required by the Act (20 U.S.C. 107 et seq.), the implementing 
regulations (34 CFR part 395), and applicable State rules and 
regulations to transfer Mr. Donald Schone and Mr. Ray Fitzpatrick to 
the vending facilities in the New Post Office at 433 West Harrison 
Street without bidding or other procedures after the closing of the Old 
Post Office at 433 West Van Buren Street.
    The majority of the panel found that the complainants' rights and 
entitlement flowed from the terms of their vendor operating agreements, 
which were very specific and limited. Those agreements provided rights 
to the operation of vending facilities located at the Old Post Office, 
433 West Van Buren Street. The panel further determined that, for 
reasons unrelated to the actions of the SLA, the United States Postal 
Service closed this Federal property. Therefore, the majority of the 
panel ruled that the operating agreements signed by the complainants to 
operate vending facilities at the Old Post Office, 433 West Van Buren 
Street, did not give them transfer rights to the New Post Office 
vending facilities at 433 West Harrison.
    Based upon the evidence presented, the majority of the panel 
rejected complainants' reliance upon the fact that a new permit had not 
been obtained by the SLA for the New Post Office location. The panel 
reasoned that the vendor operating agreements signed by the 
complainants in 1990 were not tied to a specific permit that would 
somehow give Mr. Schone and Mr. Fitzpatrick transfer rights to the New 
Post Office. Instead, the panel concluded that the 1990 agreements were 
tied to a specific location, the Old Post Office at 433 West Van Buren, 
which no longer existed.
    One panel member dissented.
    The views and opinions expressed by the panel do not necessarily 
represent the views and opinions of the U.S. Department of Education.

    Dated: October 6, 2000.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 00-26413 Filed 10-13-00; 8:45 am]
BILLING CODE 4000-01-P