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<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Arbitration Panel Decision Under
the Randolph-Sheppard Act, 13311-13312 [2012-5411] :: Department Of Education ::
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Arbitration Panel Decision Under
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Arbitration Panel Decision Under
the Randolph-Sheppard Act, 13311-13312 [2012-5411]</P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt">• DEPARTMENT OF
EDUCATION</P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt">[Federal Register Volume 77,
Number 44 (Tuesday, March 6, 2012)]</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">[Notices]</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">[Pages 13311-13312]</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">From the Federal Register Online
via the Government Printing Office [</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">www.gpo.gov]</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">[FR Doc No: 2012-5411]</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
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<P class=MsoNormal
style="MARGIN: 0in 0in 0pt">-----------------------------------------------------------------------</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">DEPARTMENT OF EDUCATION</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Arbitration Panel Decision Under
the Randolph-Sheppard Act</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">AGENCY: Department of
Education.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">ACTION: Notice of decision.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt">-----------------------------------------------------------------------</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">SUMMARY: The Department of
Education (Department) gives notice that on</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">October 12, 2011, an arbitration
panel rendered a decision in the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">matter of the Rutherford Beard v.
Michigan Commission for the Blind,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Case no. R-S/08-8.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">FOR FURTHER INFORMATION CONTACT:
You can obtain a copy of the full text</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">of the arbitration panel decision
from Mary Yang, U.S. Department of</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Education, 400 Maryland Avenue
SW., room 5162, Potomac Center Plaza,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Washington, DC 20202-2800.
Telephone: (202) 245-6327. If you use a</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">telecommunications device for the
deaf (TDD) or a text telephone (TTY),</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">call the Federal Relay Service
(FRS), toll-free, at 1-800-877-8339.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Individuals with disabilities can
obtain this document in an</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">accessible format (e.g., braille,
large print, audiotape, or compact</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">disc) by contacting the program
contact person listed in this section.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">SUPPLEMENTARY INFORMATION: This
arbitration panel was convened by the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Department under 20 U.S.C.
107d-1(a), after receiving a complaint from</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the complainant, Rutherford
Beard. Under section 6(c) of the Randolph-</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Sheppard Act (Act), 20 U.S.C.
107d-2(c), the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">[[Page 13312]]</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Secretary publishes in the
Federal Register a synopsis of each</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">arbitration panel decision
affecting the administration of vending</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">facilities on Federal and other
property.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Background</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Rutherford Beard (Complainant)
alleged that the Michigan Commission</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">for the Blind, the State
licensing agency (SLA), violated the Act and</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">implementing regulations in 34
CFR part 395. Specifically, Complainant</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">alleged that the SLA violated the
Act and its implementing regulations</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">and State rules and regulations
governing the Randolph-Sheppard Vending</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Facility Program with respect to
the closing of his vending facility at</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the Lewis Cass Building for
renovation and plumbing repairs, resulting</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">in loss of income for the
Complainant's cafeteria.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Complainant further alleged that
the Lewis Cass Building Cafeteria</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">was not a suitable location
because the SLA was aware of a history of</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">plumbing problems in the
building. Consequently, when the cafeteria was</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">closed for renovation and
plumbing repairs, Complainant alleged that</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">this was proof of the lack of
suitability for a cafeteria at the Lewis</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Cass Building. Thus, the
Complainant requested reimbursement from the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">SLA for loss of income during the
renovation period.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">The SLA argued that the Lewis
Cass Building Cafeteria was a</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">suitable vending location and
opportunity for a blind vendor. The SLA</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">acknowledged that, while it was
aware that the building had previous</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">plumbing problems, it was not
aware of the severity of the plumbing</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">issue. Also, the SLA alleged that
it had no responsibility to repair</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the plumbing in the Lewis Cass
Building because the building was under</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the jurisdiction of the State's
Department of Management and Budget.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">The SLA further alleged that
Complainant, as a small business operator,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">had the responsibility for his
own profitability. Moreover, the SLA</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">alleged that Complainant was
unable to provide evidence showing the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">amount of lost income during the
renovation period.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Complainant filed a request with
the SLA for lost income. The SLA</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">denied Complainant's request.
Subsequently, Complainant appealed this</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">decision with the SLA by filing a
request for a State fair hearing. A</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">hearing was held and the
administrative law judge (ALJ) recommended</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">that Complainant's claim be
denied. The SLA adopted the ALJ's</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">recommendation as a final
administrative agency action and</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Complainant's grievance was
denied.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Complainant then filed a request
for Federal arbitration with the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Department. A hearing on this
matter was held on March 16, 2011. The</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">central issue, as determined by
the arbitration panel, was whether the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">SLA's failure to compensate
Complainant for loss of income during the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">renovation period of the Lewis
Cass Building Cafeteria violated the Act</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">and its implementing regulations,
and State rules and regulations</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">governing the Randolph-Sheppard
Vending Facility Program.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Synopsis of the Arbitration Panel
Decision</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">After reviewing all of the
testimony and evidence, the majority of</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the panel found that the Lewis
Cass Building Cafeteria was a suitable</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">opportunity for Complainant and
as such, Complainant was responsible</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">for routine building maintenance.
The panel majority concluded that,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">although the SLA was aware of the
previous building plumbing problems,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the SLA had no authority to
repair the plumbing problems. Additionally,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the panel majority found that
Complainant did not provide competent</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">evidence to support his
allegation of lost income. Although Complainant</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">had anticipated larger profits
from operating a cafeteria at this</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">location, this grievance was not
substantiated by the evidence provided</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">to the panel. Thus, the panel
majority found that Complainant's</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">estimate of $70,000 for lost
profits was speculative and that it had no</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">basis to rule that Complainant
actually lost income or, if so, how much</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">income Complainant lost.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">One panel member concurred in
part and dissented in part. This</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">panel member concurred with the
panel majority's finding that there was</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">no evidence presented by
Complainant to support reimbursement by the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">SLA for his alleged loss of
income during the renovation period of the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">cafeteria. At the same time, this
panel member dissented from the panel</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">majority's findings, suggesting
that it was not reasonable to place the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">entire burden of property-related
losses or damages on operators and</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">suggested that the SLA undertake
rulemaking to clarify such situations,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">should they occur in the
future.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">The views and opinions expressed
by the panel do not necessarily</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">represent the views and opinions
of the Department.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Electronic Access to This
Document: The official version of this</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">document is the document
published in the Federal Register. Free</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Internet access to the official
edition of the Federal Register and the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Code of Federal Regulations is
available via the Federal Digital System</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">at:</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">www.gpo.gov/fdsys.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">At this site you can view this
document, as well</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">as all other documents of this
Department published in the Federal</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Register, in text or Adobe
Portable Document Format (PDF). To use PDF</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">you must have Adobe Acrobat
Reader, which is available free at this</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">site. You may also access
documents of the Department published in the</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Federal Register by using the
article search feature at</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">www.federalregister.gov.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Specifically, through the
advanced search</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">feature at this site, you can
limit your search to documents published</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">by the Department.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Dated: March 1, 2012.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Alexa Posny,</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Assistant Secretary for Special
Education and Rehabilitative Services.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">[FR Doc. 2012-5411 Filed 3-5-12;
8:45 am]</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">BILLING CODE 4000-01-P</P>
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