services to be provided; the procedures for the supervision and control of the services provided by such agency or organization and the methods used in evaluating services received, the basis for renumeration, and the fiscal controls and accounting procedures.

(i) The arrangements made or contemplated, if any, for the vesting in accordance with the laws of the State, of the right, title to, and interest in vending stand equipment or stock (including vending machines), used in the program in a nominee of the licensing agency to hold such right, title to, and interest for program purposes.

(j) That the designated State licensing agency will:

(1) Cooperate with the Administrator in carrying out the purpose of the act; (2) Take effective action, including the termination of licenses, to carry out full responsibility for the management and operation of each vending stand in its program, in accordance with its established rules and regulations, this part, and the terms and conditions governing the permit;

(3) Submit promptly to the Administrator a description of any changes in the legal authority of the licensing agency, its rules and regulations, and any other matters which form a part of the application;

(4) If it intends to set aside, or cause to be set aside, funds from the proceeds of the operation of vending stands, obtain a prior determination by the Administrator that the funds to be set aside do not exceed a reasonable amount;

(5) Furnish each operator a copy of its rules and regulations and a description of the arrangements for providing services, and take adequate steps to assure that each operator understands the provisions of such documents and the provisions of the permit and any agreement under which he operates, as evidenced by his signed statements; and

(6) Make such reports in such form and containing such information as the Administrator may from time to time require and comply with such provisions as the Administrator may from time to time find necessary to assure the correctness and verification of such reports.

mulgate immediately upon approval of its application. In the event proposed rules and regulations are submitted, the licensing agency shall within a reasonable time after the approval of its application, submit a copy of the promulgated regulations. Such rules and regulations shall contain adequate provisions to enable the licensing agency to carry out its responsibilities under the act and this part, and to assure the conduct of the program and the operation of each vending stand in accordance with the act, this part, and the regulations and conditions of the departments and agencies in control of maintenance, operation, and protection of Federal property, including the conditions contained in the permits, as well as all applicable State laws, local ordinances and regulations.

(b) Such rules and regulations and amendments thereto shall be filed or published in accordance with State law.

(c) Such rules and regulations shall include provisions adequate to insure that the right, title to, and interest in each vending stand used in the program and the stock will be vested in accordance with the laws of the State in only the following:

(1) The licensing agency;

(2) Its nominee, subject to the conditions specified in § 409.9 (b); and

(3) The operator. The decision whether title may be vested in the operator rests with each State.

(d) Nothwithstanding the provisions of paragraph (c) of this section, any right, title to, or interest which existed on June 30, 1955, in stock may continue so long as:

(1) The interest is with respect to the stock of a stand established under the program prior to July 1, 1955, and

(2) The operator was licensed in the program (whether or not for the operation of the vending stand in question) prior to July 1, 1955.

§ 409.5 Rules and regulations; ownership by operators.

If a State decides that title may be vested in the operator, the rules and regulations shall specify:

(a) That a written agreement shall be entered into with each operator who is to have such ownership, such agreement containing in full the terms and conditions governing such ownership in accordance with criteria in the State agency's regulations, any applicable Fed

eral regulations and the terms and conditions of the permit.

(b) Reasonable criteria to govern the determination as to the circumstances under which title may be so vested. Such criteria shall contain reasonable provisions to enable an operator to purchase vending stand equipment. No individual may be denied the opportunity to become an operator because of his inability to purchase the vending stand equipment or the initial stock.

(c) Whether the operator-owner or licensing agency shall be required to maintain the vending stand in good repair and in an attractive condition and replace worn-out or obsolete equipment; and if the former, provide that upon his failure to do so, the licensing agency may make or cause to be made, the necessary maintenance, replacement, or repairs and make equitable arrangements for reimbursement.

(d) That where the operator owns such equipment and is required to maintain the vending stand in good repair and in an attractive condition and replace worn-out or obsolete equipment or agrees to purchase additional new equipment, service charges for such purposes shall be equitably reduced, and the method for determining such amount.

(e) That the State licensing agency shall retain a first option to repurchase such equipment, and in the event the operator dies, or for any other reason ceases to be a licensee or transfers to another vending stand, ownership of such equipment shall become vested in the licensing agency subject to an obligation on its part to pay to such operator or his estate, the fair value therein as determined in accordance with its regulations.

(f) That the operator, his personal representative or next of kin shall be entitled to an opportunity for a fair hearing with respect to the determination of the amount to be paid by the licensing agency for an operator's ownership in the equipment.

(g) The method to be used in determining the fair value of the operator's ownership in the equipment.

sion for giving preference to blind persons who are in need of employment and have resided for at least one year in the State in which the stand is to be located. Such criteria shall also include provisions to assure that licenses will be issued only to persons who are determined by the licensing agency to be:

(1) Blind;

(2) Citizens of the United States;
(3) At least 21 years of age; and

(4) Certified by the State vocational rehabilitation agency as qualified to operate a vending stand.

(b) For the issuance of licenses for an indefinite period but subject to termination if, after affording the operator an opportunity for a fair hearing, the licensing agency finds that the vending stand is not being operated in accordance with its rules and regulations, the terms and conditions of the permit, or the agreement with the operator.

(c) For the assignment to the operator of the income from vending machines within reasonable proximity to and in direct competition with the vending stand. (If a vending machine vends articles of a type authorized by the permit and is so located that it attracts customers who would otherwise patronize the vending stand, such machine shall be considered to be in reasonable proximity to and in direct competition with the stand.)

(d) The policies to govern the duties, supervision, transfer and financial participation of the operators.

§ 409.7 Rules and regulations; hearings.

The rules and regulations shall specify the procedure whereby the licensing agency affords an opportunity for a fair hearing to each operator (or to his personal representative or next of kin in cases described in § 409.5 (f)) dissatisfied with any action arising from the operation or administration of the vending stand program.

(a) Maintenance and replacement of equipment;

(b) The purchase of new equipment; (c) Management services;

(d) Assuring a fair minimum of return to operators of vending stands; and the rules and regulations of the licensing agency shall set out the method of determining the charge for each of the above listed purposes. Such method will be designed to prevent, so far as is practicable, a greater charge for any purpose than is reasonably required for that purpose. The rules and regulations shall further provide that adequate records will be maintained to support the reasonableness of the charges for each of the purposes listed in this section.

§ 409.9 Use of servicing arrangement.

(a) The licensing agency may enter into an agreement whereby another agency or organization undertakes to furnish services. Such agreement shall be in writing and contain provisions which:

(1) Clearly insure the retention by the licensing agency of full responsibility for the management and operation of all phases of the program;

(2) Specify the type and extent of the services to be provided under such agreement;

(3) Provide that no charges will be collected from operators except as specified in such agreement;

(4) Specify that such other agency or organization may not be allowed to exercise any function with respect to funds for the purchase of new equipment or for assuring a fair minimum of return to operators, except to collect and hold solely for the purchase of new equipment or for order of the licensing agency any charges authorized for those purposes by the licensing agency; and

(5) Specify that only the licensing agency shall have control with respect to selection, placement, financial participation and termination of the operators, and the preservation, utilization, and disposition of program assets.

(b) If the licensing agency permits any agency or organization other than an operator to hold any right, title to, or interest in vending stands or stock, the arrangement shall be one permitted by State law and shall specify in writing that all such right, title to, or interest is held as the nominee of the licensing agency for program purposes and sub

ject to the paramount right of the licensing agency to direct and control the use, transfer, and disposition of such vending stands or stock.

§ 409.10 Approval of application for designation as licensing agency.

When the Administrator determines that the application and rules and regulations (or proposed rules and regulations) indicate a plan of program operations which will stimulate and enlarge the economic opportunities for the blind and meet the other requirements of the act and of this part, he shall approve the application and shall designate the applying agency as the State licensing agency.

§ 409.11

Permit for establishment of vending stands.

Prior to the establishment of each vending stand, the designated State licensing agency shall submit and have approved, in accordance with regulations of the department or agency in control of the maintenance, operation, and protection of the Federal property (or procedures of the person in control of other property), an application for a permit setting forth the exact location, the amount of space to be occupied, the type of shelter and/or equipment, the types of items of merchandise to be offered for sale at each vending stand, including the number, location, and types of vending machines and other terms and conditions desired to be included in the permit.

§ 409.12 Maintenance and repair of vending stands.

The licensing agency shall maintain (or cause to be maintained) all vending stands in good repair and in an attractive condition and shall replace or cause to be replaced wornout and obsolete equipment as required to insure the continued successful operation of the stand. § 409.13 Revocation of designation as licensing agency.

The Secretary shall revoke the designation of any licensing agency if he finds after affording such agency an opportunity for a hearing, as hereinafter provided, that, in the administration of the program, there is a failure on the part of such agency to comply substantially with the provisions of the act or of this part.

§ 409.14 Revocation of designation as licensing agency; procedures.

(a) If the Administrator has reason to believe that, in the administration of the program, there is a failure on the part of any licensing agency to comply, substantially with the act and this part, he shall so inform such agency in writing, setting forth, in detail, the areas in which there is such failure and giving it a reasonable opportunity to comply.

(b) If, after the lapse of a reasonable time, the Administrator is of the opinion that such failure to comply still continues and that the licensing agency is not taking the necessary steps to comply, he shall offer to such agency, by reasonable notice in writing thereto and to the chief executive of the State, an opportunity for a hearing before the Secretary (or person designated by the Secretary) to determine whether there is a failure on the part of such agency to comply substantially with the provisions of the act and of this part.

(c) If it is thereupon determined that there is a failure on the part of such agency to comply substantially with the act and this part, appropriate written notice shall be given to such agency and to the chief executive of the State revoking said agency's designation as licensing agency effective 90 days from the date of such notice.

(d) If, before the expiration of such 90 days, the Secretary (or person designated by him) determines that the licensing agency is taking the necessary steps to comply, he may postpone the effective date of such revocation for such time as he deems necessary for the best interest of the program.

(e) If, prior to the effective date of such revocation, the Secretary (or person designated by him) finds that there is no longer a failure on the part of the licensing agency to comply substantially with the provisions of the act and of this part, he shall so notify the agency and the chief executive of the State, in which event the revocation of the designation shall not become effective.

under the act and this part shall be suspended, except upon special authorization by the Administrator.

(b) After the effective date of the revocation of a State agency's designation as licensing agency, such agency shall have no authority to issue licenses to blind persons for the operation of vending stands under the act and this part.

(c) If, at the expiration of 60 days from the effective date of a revocation of a State agency's designation as licensing agency, no other agency in the State is designated, pursuant to the provisions of the act and this part, as licensing agency all licenses issued by the agency whose designation has been revoked shall terminate.

Application; submittal; amendment; processing.

Assurances from applicant.

Community service; services for persons unable to pay; nondiscrimination.

416.22 Certification to the Administrator. 416.23 Request for construction payments. 416.24 Fiscal and accounting requirements. 416.25 Notice of change of status of facility. 416.26 Good cause for other use of facility. 416.27 Appendix A-General standards of construction and equipment.

Subpart C-Grants for Initial Cost of Professional and Technical Personnel of Community Mental Retardation Facilities

416.90

416.91

416.92

416.93

Applications.

416.94

Assurances.

Sec.

416.95 Allocations; priorities.

416.96 Federal financial participation. 416.97 Payments.

416.98 Records, audits, and reports. 416.99 Termination.

AUTHORITY: The provisions of this Part 416 issued under sec. 133, 77 Stat. 287; 42 U.S.C. 2673; sec. 144, 81 Stat. 529; 42 U.S.C. 2678c; secs. 131-137, 141-145, 401-407, 408, 77 Stat. 286-290, 81 Stat. 528-530, 77 Stat. 296-299, 79 Stat. 429; 42 U.S.C. 2671-2677, 2678-2678d, 2691-2697.

SOURCE: The provisions of this Part 416 appear at 34 F.R. 9950, June 27, 1969, unless otherwise noted.

Unless otherwise indicated in the regulations in this part, the terms below are defined as follows:

(a) "Act" means the Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963, as amended;

(b) "Administrator" means the Administrator of the Social and Rehabilitation Service;

(c) "Community" means a contiguous geographic territory from which the mentally retarded come or might be expected to come to existing or proposed facilities, the delineation of which is based on such factors as population distribution, economic, social and cultural characteristics, natural geographic boundaries, and transportation accessibility. Nothing in the regulations in this part shall preclude the formation of an interstate area with the mutual agreement of the States concerned;

(d) “Community service" means that the services furnished by the facility will be available primarily to the general public of the community or communities served;

(e) "Comprehensive services” means a complete range of services in sufficient quantity to meet the needs of the mentally retarded within the community or communities served and includes: (1) Diagnostic services; (2) treatment services; (3) educational services; (4) training services; (5) personal care; and (6) sheltered workshop services. These services are defined as follows: (i) "Diagnostic services" means coordinated medical, psychological, and social services, supplemented where appropriate by nursing, educational, or vocational services and carried out under the supervision of qual

ified personnel and which includes (a) Diagnosis, appraisal, and evaluation of mental retardation and associated disabilities, and the strengths, skills, abilities, and potentials for improvement of the individual; (b) determination of the needs of the individual and his family; (c) development of recommendations for a specific plan of services to be provided with necessary counseling to carry out recommendations; and (d) where indicated, periodical reassessment of progress of the individual; (ii) "treatment services" means services under medical direction and supervision providing specialized medical, psychiatric, neurological, or surgical treatment, including dental therapy, physical therapy, occupational therapy, speech and hearing therapy, or other related therapies which provide for improvement in the effective physical, psychological or social functioning of the individual; (iii) "educational services" means services, under the direction and supervision of teachers qualified in special education, which provide a curriculum of instruction for preschool children, for school age children unable to participate in public schools, and for the mentally retarded beyond statutory school age; (iv) "training services" means services, carried out under the supervision of qualified personnel, which provide: (a) Training in self-help and motor skills; (b) training in activities of daily living; (c) vocational training; (d) opportunities for personality development; and (e) experiences conducive to social development; (v) "custodial services" means personal care which includes, where needed, health services supervised by qualified medical or nursing personnel; and (vi) "sheltered workshop services" means services in a facility, under the supervision of personnel qualified to direct such activities, which provides or will provide comprehensive services involving a program of paid work which includes: (a) Work evaluation; (b) work adjustment training; (c) occupational training; and (d) transitional or extended employment;

(f) "Construction" means (1) the construction of new buildings; the acquisition, expansion, remodeling, and alteration of existing buildings, (2) initial equipment for such buildings, and (3) architects' fees. The cost of off-site improvements and the cost of the acquisition of land are not included in this definition of constructions;