property owned, leased, or occupied by the government of the District of Columbia or of any Territory or possession of the United States. "(c) The term 'State property' means buildings, land, or other property owned, leased, or occupied by a State or a political subdivision (including a municipality) thereof. "(d) The term 'State commission for the blind' means a department or agency of the State government which is authorized to provide services to blind persons. "(e) The term 'acquisition of vending stands' includes cost of construction, delivery, and installation thereof, and alterations in the property necessary to provide suitable space and facilities for the proper operation of vending stands where such alterations are not provided by the Federal department or agency or other individual controlling the property. "(f) The term 'vending stand' means newsstand, cigar stand, vending machine, snack bar, novelty counter, bookstall, soda fountain, and any other installation approved by the State licensing agency and the head of the department in charge of maintenance of the property, for the purpose of vending consumer goods and services. "SHORT TITLE "SEC. 209. This title may be cited as the 'Vending Stands for the Blind Act'." SEC. 2. The Vocational Rehabilitation Act, as amended (29 U. S. C., ch. 4), is amended by inserting immediately above the center heading of section 1 of such Act the following: "TITLE I-VOCATIONAL REHABILITATION" SEC. 3. Section 3 (a) (3) (C) of the Vocational Rehabilitation Act, as amended (29 U. S. C., ch. 4), is amended by striking out "customary occupational tools and equipment not mentioned elsewhere in this subsection;" and inserting in lieu therefor the following: "tools, equipment, initial stocks and supplies, including livestock, and capital advances (which advances shall not exceed in any one individual case such sum as the Secretary may be regulation establish) necessary to enable such disabled individuals to enter upon their occupational objective and not mentioned elsewhere in this subsection;". SEC. 4. The Act entitled "An Act to authorize the operation of stands in Federal buildings by blind persons, to enlarge the economic opportunities of the blind, and for other purposes", approved June 20, 1936, as amended (20 U. S. C., secs. 107-107f), is hereby repealed. MEMORANDUM RE VENDING STAND PROGRAM FOR THE BLIND AND PROPOSED AMENDMENTS CONTAINED IN H. R. 6657 (Submitted by A. L. Archibald, executive director, National Federation of the Blind) BRIEF ANALYSIS OF THE PROVISIONS OF THE RANDOLPH-SHEPPARD ACT (PUBLIC LAW NO. 732, 74TH CONG. APPROVED JUNE 20, 1936) 1. Stated purpose of the act is “providing blind persons with remunerative employment, enlarging the economic opportunities of the blind, and stimulating the blind to greater efforts in striving to make themselves self-supporting." 2. Authorizes licensed blind persons to operate vending stands in Federal buildings. 3. Installation of stands is subject to approval of head of agency concerned with maintenance of the building. 4. Licenses to be issued to blind individuals by State licensing agency. 5. State licensing agency designated to be State commission for the blind or other State agency designated by the State's governor and approved by the Federal agency administering the act. 6. Articles permitted to be vended include "newspapers, periodicals, confections, tobacco products, and such other articles as may be approved for each building by the custodian thereof and the State licensing agency." 7. License to be issued for "indefinite period," but terminable if State licensing agency is satisfied stand is not being operated according to "rules and regulations prescribed by such licensing agency." 8. State licensing agency required: (1) To cooperate with Federal administrator of the act; (2) to "provide through loan, gift, or otherwise" adequate initial stock to be vended. BRIEF HISTORY OF THE VENDING-STAND PROGRAM 1. Original act contained no appropriation authorization for using public funds to supply blind licensees with vending-stand equipment or initial stock. 2. Until 1941 stands were financed by individuals themselves or by loan or gift from private sources, including fraternal organizations, friends, special loan funds, and in few instances by bank loans, and occasional small State appropriations. 3. In 1941, Federal agency administering the act issued regulation requiring that "right, title and interest in all vending-stand equipment be vested in the State licensing agency." 4. The 1941 regulation effectively cut off all private sources of funds unless the licensee or a benefactor wished to make an outright gift of equipment or money to State licensing agency. 5. Vocational Rehabilitation Amendments Act of 1943 (Public Law 113, 78th Cong.) did not make money available for State-owned and managed stands. 6. Federal Security Agency requested Appropriations Committee to include in Office of Vocational Rehabilitation budget for fiscal 1945 a line item authorizing Federal matching funds for "the acquisition of vending-stand equipment for the use of blind persons”—which language has been included in each succeeding appropriations act for vocational rehabilitation program. 7. In 1948, Federal Security Agency promulgated further rule requiring State ownership of any stand in part or in whole financed directly or indirectly by Federal funds or financed directly or indirectly by funds withheld from proceeds of stands established by use of Federal money. 8. Accordingly at present all licensed stands-whether in Federal buildings or on State, county, municipal or private property-must be owned, controlled, managed, and supervised by State licensing agencies. 9. As of December 1953 only 568 stands have been established in Federal buildings and 975 established on State, county, municipal, or private property under the program. 10. Where the program began as an effort to supply blind individuals with "economic opportunities," it has been converted by Federal regulation and financing provisions into a program of State ownership and operation of vending stands. 11. In effect, the Federal Government has required each State to establish a State-licensing-agency-controlled "single commercial enterprise" chain-store type of system for operating vending stands, not only in Federal buildings but on State, county, municipal, and private property as well. 12. By cutting off all private sources of funds and requiring in effect that only inadequate public funds may be used under restrictive conditions to establish stands, the Federal Government has severely limited the possible growth of the program. PROBLEMS OF THE VENDING-STAND PROGRAM 1. With adequate financing of vending stands as a regular part of the vocational rehabilitation program for blind persons there are competently estimated to be upward of 5,000 suitable locations for stands in Federal buildings and on State, county, and municipal property alone. 2. If authority were given to establish stands on Federal property, rather than limiting the authority to Federal buildings, a substantial number of additional opportunities would become available. 3. If private sources of funds could be used in addition to constituting the vending-stand program a regular part of vocational rehabilitation, many additional blind individuals would be given economic opportunities and enabled to become self-supporting, self-respecting, taxpaying citizens. 4. If States were permitted to adopt other ownership, lease, or rental arrange ments, their resistance to pushing the program would cease, and a substantial expansion would ensue. 5. If blind individuals were permitted, in accordance with the State plan, to operate licensed stands as an independent small-business enterprise, many able persons who now decline to participate would be encouraged to invest in vending stands their own money or money which they could raise by loan or otherwise from family, friends, financial institutions, and other sources. 6. Fraternal organizations and philanthropic loan funds, which now refuse to contribute funds to the program, would be induced to make money available directly to assist blind individuals to become economically independent. 7. If authority to determine whether locations on Federal property are suitable for vending stands were transferred from the custodian in charge of maintenance of Federal buildings or property to State licensing agencies or the Federal Office of Vocational Rehabilitation, a rapid development of the program could result from a sympathetic administration which has actual knowledge of what locations and types of stands are feasible of establishment. 8. If the definition of vending stand permitted on Federal property is expanded to include "snack bars, soda fountains, book and souvenir stalls, and small cafeterias"-many of which are now successfully operated by blind persons on nonFederal property-additional opportunities would be afforded. 9. If States are permitted to choose and adapt to their own conditions and preferences the type of vending-stand system which each State deems most desirable for itself, existing frictions and lack of cooperation between the Federal agency and the State agencies administering the program would largely disappear with the result that more intensive development of the program would be brought about, and the blind as well as those interested in the blind in each State would give wholehearted support to the program. 10. If Federal vocational rehabilitation matching funds were made available for also assisting blind persons to become established or more firmly established in small business, small farming or handicraft undertakings as well as professional and industrial occupations, many additional blind men and women could be helped to become taxpayers instead of tax consumers. ANALYSIS OF H. R. 6657 1. Amends and reconstitutes the Randolph-Sheppard Act as title II of the Vocational Rehabilitation Act (Barden-La Follette Act). 2. The purpose of the vending-stand program is clearly stated to be the "remunerative self-employment" of blind individuals. 3. Removes existing clause which limits stand localities to Federal buildings and permits stands to be established on any Federal property owned, leased, or rented by any agency of the Federal Government. 4. Provides that priority shall be given to licensed blind operators to establish stands in any location on Federal property found suitable by State licensing agency. 5. Expands the list of articles expressly permitted to be sold and redefines "rending stand" to include "newsstand, cigar stand, vending machine, snack bar, novelty counter, bookstall, soda fountain, and any other installation approved by the State licensing agency and the head of the department in charge of maintenance of the property, for the purpose of vending consumer goods and services." 6. Requires that within 4 years the State licensing agency shall be the agency giving rehabilitation services to the blind and further requires that adequate training be given to each operator before he is licensed. 7. Provides that all rules and regulations must be strictly consistent with the provisions of the act. 8. Provides that licenses, once granted, may be revoked by the State licensing agency only for cause and requires State licensing agencies to establish appeal procedures in which impartial referees will hear and decide upon grievances. 9. Authorizes State licensing agency to make necessary alterations of Federal property to provide suitable locations for stands unless such alterations are made by the Federal agency having charge of the property. 10. Authorizes that stand operator be provided with necessary stand equipment and initial stock by the State licensing agency. 11. Permits any State to vest the ownership of stand equipment and stock in the blind licensee except that the State licensing agency must retain a first option to repurchase stand equipment from a licensee desiring to give up his stand, thus protecting the location for other blind persons. 12. Authorizes groups of blind licensees to form cooperatives to operate the rending-stand program in a State or locality and permits such cooperatives to become the agents of the State licensing agency for program purposes. 13. Prohibits fees, service charges, or deductions in excess of 5 percent of gross proceeds. 14. Requires that the use of funds accumulated from fees, service charges, and deductions from gross proceeds be limited to the repair and maintenance of equip ment and the purchase of new equipment. 15. Authorizes the use of vocational rehabilitation appropriations as Federal matching funds for one-half the cost of stand equipment and initial stock. 16. Requires that such managerial and supervisory services as may be given by State licensing agencies must be paid for by Federal or State funds and thus prohibits the use of any part of the stand proceeds to pay for managerial or supervisory salaries and expenses. 17. Amends the Barden-La Follette Act (Public Law No. 113, 78th Cong.) to remove some restrictions on the use of Federal matching funds and permits such funds to be used where necessary for providing individuals with "tools, equipment, initial stocks, and supplies, including livestock and capital advances." Dr. TENBROEK. I should like permission also to submit at a later day, when we have a few more days to work on it, a slightly expanded argument with respect to the Randolph-Sheppard amendments. Senator PURTELL. Doctor, such information you suggest to the committee will be incorporated in the record Dr. TENBROEK. Thank you, sir. Senator PURTELL. If you get it in within a reasonable time. I just would like to comment on the conciseness of this testimony and the thought behind it. It is really refreshing to have a man come here who can express himself so well, so quickly. Dr. TEN BROEK. Thank you, Senator." Senator PURTELL. Senator Goldwater has expressed my feelings, too, in the matter, Doctor, and I can assure you that your testimony will be studied very carefully by all members of the committee. Doctor, again I want to thank you for appearing here and helping us in our deliberations, and I know your testimony will be extremely helpful. Dr. TENBROEK. Thank you very much, sir. Senator PURTELL. Our next witness will be Dr. Edgar Fuller, executive secretary of the National Council of Chief State School Officers. STATEMENT OF DR. EDGAR FULLER, EXECUTIVE SECRETARY, NATIONAL COUNCIL OF CHIEF STATE SCHOOL OFFICERS Dr. FULLER. I appreciate very much the opportunity to appear here briefly and to testify on Senate bill 2759 and related bills before your committee. Senator PURTELL. May I ask: Do you have a prepared statement? Dr. FULLER. I have just a brief statement by outline, but no prepared statement, sir. The chief state school officers are usually the executive officers for the State boards of vocational education, in which the administration of vocational rehabilitation has been placed in almost all of the States. I represent them here, and I have a number of statements directly from members of the governing board of directors and also from the legislative committee of the chief state school officers. We favor Senate bill 2759 generally because of the expanded opportunities for vocational rehabilitation which it promises. Vocational rehabilitation has some aspects of education and training, some aspects of health affecting the various health professions, and also the aspect, as Senator Goldwater commented a while ago, of vocational placement. Those of us who have been dealing with this matter here in Washington for some time know that these three aspects of vocational rehabilitation are intermingled. We believe, however, that the major administrative emphasis in the field is in training and in education, and we favor leaving the administration of vocational rehabilitaton at the State level in the State boards of vocational education where it is now placed. We, therefore, would like to suggest to your committee, Mr. Chairman, that you eliminate from Senate bill 2759 section 5 (a) (1), which would dangle before legislatures and governors the idea of removing the vocational-rehabilitation work of the State from the State board of vocational education and placing it in some separate agency. We believe honestly, and I believe it is not a jurisdictional matter of selfishness, that because vocational rehabilitation begins primarily with training and education and brings in the other services, this activity should be administered at the State level in the State boards of Vocational education as at present. If the other alternative is authorized, we may have one setup in a State, another setup in a second State and numerous exceptions to the regular system. Each one of those exceptions causes trouble. Each one causes difficulties to the other States, and we believe that administratively and organizationally there ought not to be a splintering of the structure at the State level in vocational rehabilitation. So, we hope you will consider carefully, Mr. Chairman, the elimination of section 5 (a) (1) and the reinstatement of the provisions in the 1943 amendments covering that point. Now, this is a difficult thing for me to testify about in many ways. I sent inquiries to the members of the board of directors of the chief State school officers, including the president, who is the State superintendent of California, and the first vice president, who is your own State commissioner of education in Connecticut, Mr. Chairman, and seven others, as well as to the legislative committee, and I have telegrams here from most of them. There is no agreement, apparently, with the formula for distribution of funds which has been suggested by Mrs. Hobby and by Under Secretary Nelson Rockefeller and by the vocational-rehabilitation agency in the Health, Education, and Welfare Department. The chief State school officers express general support of the bill for its expanded services, but they believe that the bill introduced by Senator Potter, of Michigan, Senate bill 3039, I believe it is, carries a better formula for the distribution of funds. As Mr. Whitten said in previous testimony, a number of State directors of vocational rehabilitation, working as a committee, formulated that bill and it was introduced by Senator Potter at their request. We have telegrams here from Nevada, West Virginia, California, Massachusetts, Montana, Michigan, and Wyoming favoring the Potter bill as a whole. We have no communication which goes all the way with Senate bill 2759. Now, that may sound contradictory to say that we are in general support of it, but that general support is limited to the services that are offered in the bill. We hope that at least the present appropriation of $23 million in support grants for the regular program will be maintained and that |