Appendix A

Legislative History

The concept of using vending revenues derived from government facilities is not new. The federal government first implemented the idea in the 1930s. Almost every state, including Connecticut, has followed suit since that time. Presented below is background information on the federal and Connecticut laws authorizing vending operations in government buildings.

Federal Law

The federal Randolph-Sheppard Act (20 U.S.C. 107) was enacted in 1936 to give preference to blind persons, whenever feasible, for operating vending stands on federally controlled property. According to the federal legislative history, the act was to provide blind persons with remunerative employment, enlarge their economic opportunities, and encourage their self-support through the operation of vending stands on federal property.

In 1954, the act was amended to provide for the assignment of vending machine income to blind persons so that they could achieve and protect their preference if machines competed with blind-vendor operations.

The Rehabilitation Services Administration (RSA), a division of the U.S. Department of Education, is currently responsible for administering the blind-vendor program, known as the Business Enterprise Program (BEP). Under BEP, legally blind individuals who successfully complete a training program act as independent business owners and derive their income from the facility they operate. The program is entirely self-supporting in that operators receive their salaries from facility profits.

On the federal level, each federal agency may determine where and when blind vendor operations can be established on federal property they control. However, the day-to-day administration of BEP is done by an RSA designated state licensing agency. The Randolph-Sheppard act authorizes RSA to designate a state agency to issue licenses to blind persons for operating the vending stands. The act requires that the state licensing agency be the agency that administers vocational rehabilitation services to the blind. The state licensing agency:

• determines the types of stands to be established;
• provides licensed blind persons with necessary vending equipment and initial stock;
• issues program regulations including a fair hearing for any licensee dissatisfied with a program action; and
• reports to RSA as required.

In Connecticut, the RSA designated agency is the Board of Education and Services to the Blind (BESB).

Connecticut Law

Connecticut also has what is referred to as a "mini Randolph-Sheppard law." Enacted in 1945, C.G.S. Sec. 10-303 extends a similar priority or preference to vending facilities in state and municipally owned or leased property.

Public Act 220 of 1945 gave BESB the right to operate vending facilities. The act required "the authority in charge of any state, county or municipal building or property" to grant BESB a permit to operate "a stand for the vending of newspaper, periodicals, confections, tobacco products and such other articles as such authority approves when, in the opinion of such authority, such a stand is desirable in a such location." The act grandfathered any person already operating a stand as of October 1, 1945, but it required the authority to grant a permit once that person had stopped. The provision was codified as Section 10-303 of the general statutes.

In 1959, two public acts (P.A. 264 and P.A. 615) made changes to section 10-303. The acts removed the reference to county facilities and expanded BESB's authorized operations in state and municipal properties to include food service facilities and vending machines.

The statute was amended again in 1975 through Public Act 549. This act required the authority in charge of "any building or property owned, operated or leased by the state or any municipality therein" to grant BESB a permit to operate food service facilities, vending machines, and vending stands.

A review of the legislative transcripts reveals little to no discussion or debate regarding the statutory changes up to this time. Outside of the introductory remarks, the legislative comments on the statute reference the limited employment opportunities for the blind and a intent to parallel federal changes.

In 1980, a savings account was statutorily established for "non-state" vending machine income. Pursuant to federal law, the income was to be used to pay the fringe benefits of vending facility operators. The statute remained unmodified until 1997 when BESB was allowed to establish training facilities at vending locations.

The most recent statutory change occurred during the 2001 June Special Session. Public Act 01-09 directed income from state and local vending machine to be used for:

• the payment of fringe benefits, training, and support of vending facility operators; and
• entrepreneurial and independent living training and equipment to blind or visually impaired children and blind adults.

BESB must maintain the income derived from vending machines in state or locally owned or leased buildings in a separate, nonlapsing account. BESB is authorized to disburse state and local vending machine income to student or client activity funds as defined in state law.

Regulations

Vending facilities in public buildings are governed by Connecticut regulations Sections 10-303-1 to 18. The regulations define "vending facility" as automatic vending machines, cafeterias, snack bars, cart service, shelters, and counters. The regulations state licenses to operate vending facilities may be issued by BESB. Licensees must be blind U.S. citizens certified by BESB's Industries Division as qualified to operate a vending facility.

Stand-alone vending machines located in state or local facilities without a blind operator are subject to Connecticut regulations Section 10-303-18.

Pursuant to the regulations, BESB's executive director or his/her designee may request a permit from the authority in charge of any state property authorizing BESB to establish and maintain a vending facility or vending machines on the property. If the authority desires to establish a vending facility or install a vending machine on state property, it must provide written notice to BESB's executive director.

The executive director or designee will check the location of the proposed vending facility for its potential value as a vending facility to be operated by a blind vendor. Within 30 days of its assessment, BESB will either request the authority to issue a permit or send written notice to the authority of BESB's decision not to request a permit.

If BESB does not respond within 30 days or decides not to request a permit, the authority may independently contract for vending facilities. However, BESB must be notified before the authority may extend or renew the contract.

If the authority issues a permit to BESB, a written agreement is prepared between the authority and BESB. The agreement sets out the terms and conditions including:

• the exact location of the vending facility;
• the type of facility to be operated;
• the types of articles to be sold and services to be provided; and
• the location, type, and number of vending machines.

The permit is issued for an indefinite period of time subject to noncompliance with the agreed upon terms or, if applicable, the expiration or termination of the authority's lease. The authority is not charged nor responsible for the installation, maintenance, repair, replacement, servicing, and removal of any vending facility equipment. The agreement must stipulate what items the authority, BESB, and the vendor determine are suitable for the particular location.