20 U.S.C. § 107d–3 — Vending machine income

(a) Accrual to blind licensee, and alternatively to the state agency; income ceiling. Following subsection (b), vending machine income from machines on federal property goes (1) to the blind licensee running a vending facility on that property, or (2) if no blind licensee runs a facility there, to the state agency for that state, to use as subsection (c) lists. The Commissioner can set a ceiling on how much vending machine income an individual blind licensee can receive under clause (1) — but if the Commissioner does set a ceiling, no licensee can get less income than they were getting on January 1, 1974. There is no ceiling at all on income from vending machines that are combined together to form a vending facility a blind licensee maintains, services, or runs. Any amount a blind licensee receives above their ceiling goes instead to the appropriate state agency under clause (2), to be used as subsection (c) says. (b) Direct competition; the percentage that accrues. (1) After January 1, 1975, all (100%) vending machine income from machines that directly compete with a blind vending facility accrues as subsection (a) describes. "Direct competition" means vending machines or facilities operating on the same premises as a blind vending facility — except machines serving areas where most employees don't have direct access to the blind facility don't count as direct competition. After January 1, 1975, for machines that are not in direct competition, 50% of the income accrues as subsection (a) describes — except where at least half of all hours worked on the property happen outside normal working hours, in which case only 30% accrues that way. (2) The head of each federal department, agency, and instrumentality must make sure this rule is followed for buildings, installations, and facilities under its control, and is responsible for collecting and accounting for this vending machine income. (c) How the state agency uses income it receives. Vending machine income that goes to a state licensing agency under subsection (a) must be used to set up retirement or pension plans, pay health insurance contributions, and provide paid sick leave and vacation time for blind licensees in that state — subject to a vote of the blind licensees under section 107b(3)(E). Any income left over after that must be used for the purposes listed in sections 107b(3)(A) through (D), and any fee charged to blind licensees by the state agency must be reduced, on a pro rata basis, by the total amount of that leftover income. (d) Exceptions for certain locations. Subsections (a) and (b)(1) don't apply to: income from vending machines inside retail outlets run by military exchange or ship's store systems under title 10; income from vending machines run by the Veterans Canteen Service; or income from machines that don't directly compete with a blind vending facility, at a single location, installation, or facility where the total income doesn't exceed $3,000 a year. (e) Priority for running cafeterias. The Secretary, through the Commissioner, must write regulations giving blind licensees priority to run cafeterias on federal property, when the Secretary decides — case by case, after consulting the head of the relevant installation — that a blind licensee can do it at a reasonable cost with food as good as what's currently served, whether by contract or otherwise. (f) Existing arrangements more favorable to blind licensees stay in place. This section doesn't cancel out any existing or future arrangement or agency regulation that gives blind licensees (1) a bigger share of vending machine income than subsection (b)(1) requires, or (2) income from locations where the total doesn't exceed $3,000 a year. (g) Regulations for compliance. The Secretary must take whatever action and issue whatever regulations are needed to make sure this section is followed.