S 3112 ISCommentsClose CommentsPermalink

To reauthorize the Javits-Wagner-O’Day Act and the Randolph-Sheppard Act, and for other purposes.CommentsClose CommentsPermalink

June 11, 2008CommentsClose CommentsPermalink

Mr. ENZI introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and PensionsCommentsClose CommentsPermalink

To reauthorize the Javits-Wagner-O’Day Act and the Randolph-Sheppard Act, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Definitions.CommentsClose CommentsPermalink





Sec. 3. Establishment of Committee.CommentsClose CommentsPermalink

TITLE I--PROCUREMENT

Sec. 101. Short title.CommentsClose CommentsPermalink





Sec. 102. Purposes.CommentsClose CommentsPermalink





Sec. 103. Duties and powers of the Committee relating to procurement.CommentsClose CommentsPermalink





Sec. 104. Procurement requirements for the government.CommentsClose CommentsPermalink





Sec. 105. Central nonprofit agencies.CommentsClose CommentsPermalink





Sec. 106. Qualified nonprofit agencies.CommentsClose CommentsPermalink





Sec. 107. Demonstration projects.CommentsClose CommentsPermalink





Sec. 108. Records and audits.CommentsClose CommentsPermalink





Sec. 109. Study of Federal government utilization.CommentsClose CommentsPermalink





Sec. 110. Authorization of appropriations.CommentsClose CommentsPermalink

TITLE II--RANDOLPH-SHEPPARD ACT

Sec. 201. Short title.CommentsClose CommentsPermalink





Sec. 202. Definitions.CommentsClose CommentsPermalink





Sec. 203. Operation of vending facilities.CommentsClose CommentsPermalink





Sec. 204. Duties and powers of the Committee.CommentsClose CommentsPermalink





Sec. 205. State licensing agency powers and duties.CommentsClose CommentsPermalink





Sec. 206. Vendors’ duties.CommentsClose CommentsPermalink





Sec. 207. Authorization of appropriations.CommentsClose CommentsPermalink

TITLE III--JAVITS-WAGNER-O’ DAY AND RANDOLPH-SHEPPARD VENDORS CONTRACTING WITH THE DEPARTMENT OF DEFENSE

Sec. 301. Definitions.CommentsClose CommentsPermalink





Sec. 302. Javits-Wagner-O’Day program.CommentsClose CommentsPermalink





Sec. 303. Randolph-Sheppard program.CommentsClose CommentsPermalink

TITLE IV--TRANSFER OF FUNCTIONS AND SAVINGS PROVISIONS

Sec. 401. Definitions.CommentsClose CommentsPermalink





Sec. 402. Transfer of functions.CommentsClose CommentsPermalink





Sec. 403. Determinations of certain functions by the Office of Management and Budget.CommentsClose CommentsPermalink





Sec. 404. Personnel provisions.CommentsClose CommentsPermalink





Sec. 405. Delegation and assignment.CommentsClose CommentsPermalink





Sec. 406. Reorganization.CommentsClose CommentsPermalink





Sec. 407. Rules.CommentsClose CommentsPermalink





Sec. 408. Transfer and allocations of appropriations and personnel.CommentsClose CommentsPermalink





Sec. 409. Incidental transfers.CommentsClose CommentsPermalink





Sec. 410. Effect on personnel.CommentsClose CommentsPermalink





Sec. 411. Savings provisions.CommentsClose CommentsPermalink





Sec. 412. Separability.CommentsClose CommentsPermalink





Sec. 413. Transition.CommentsClose CommentsPermalink





Sec. 414. References.CommentsClose CommentsPermalink





Sec. 415. Additional conforming amendments.CommentsClose CommentsPermalink

TITLE V--REPEALS OF FORMER PROVISIONS

Sec. 501. Repeals.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) BLIND- The term ‘blind’, used with respect to an individual or a class of individuals, means an individual or class of individuals, respectively, whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than 20 degrees. For purposes of this paragraph, to determine whether an individual is blind, a physician skilled in diseases of the eye, or an optometrist, whichever the individual shall select, shall conduct an examination.CommentsClose CommentsPermalink





(2) CENTRAL NONPROFIT AGENCY- The term ‘central nonprofit agency’ means an agency designated under section 103(d), that meets the requirements for such designation under section 105.CommentsClose CommentsPermalink





(3) COMMITTEE- The term ‘Committee’, except when used as part of another term, means the Committee for the Advancement of Individuals with Disabilities established under section 3.CommentsClose CommentsPermalink





(4) DIRECT LABOR- The term ‘direct labor’ includes all work required for preparation, processing, and packing of a product, or work directly relating to the performance of a service, but not supervision, administration, inspection, or shipping.CommentsClose CommentsPermalink





(5) ELECTRONIC COMMERCE- The term ‘electronic commerce’ means buying, selling, producing, or working in an electronic medium.CommentsClose CommentsPermalink





(6) EXPERIENTIAL LEARNING OPTION- The term ‘experiential learning option’ means an option for acquiring firsthand knowledge of, and building social and vocational problem solving skills for, integrated competitive employment through active, direct participation in individualized work activities, including the use of supported employment services, in an integrated competitive employment environment.CommentsClose CommentsPermalink





(7) FISCAL YEAR- The term ‘fiscal year’ means the 12-month period beginning on October 1 of each year.CommentsClose CommentsPermalink





(8) GOVERNMENT; ENTITY OF THE GOVERNMENT- The terms ‘Government’ and ‘entity of the Government’ include any entity of the legislative branch or the judicial branch, any military department or Executive agency (as such department and agency are respectively defined by sections 102 and 105 of title 5, United States Code), the United States Postal Service, and any nonappropriated fund instrumentality under the jurisdiction of the Armed Forces.CommentsClose CommentsPermalink





(9) OTHER SIGNIFICANT DISABILITY- The term ‘other significant disability’, used with respect to an individual or a class of individuals, means an individual or class of individuals, respectively, who has an impairment that--CommentsClose CommentsPermalink





(A) is a physical or cognitive impairment, or combination of physical and cognitive impairments, other than blindness;CommentsClose CommentsPermalink





(B) results in a work function barrier or employment activity limitation, including the need for ongoing services or supports over an extended period of time; andCommentsClose CommentsPermalink





(C) results in substantial employment functional limitations in 2 or more of the following major life activities:CommentsClose CommentsPermalink





(i) Self-care.CommentsClose CommentsPermalink





(ii) Receptive and expressive language.CommentsClose CommentsPermalink





(iii) Cognitive functioning, including learning.CommentsClose CommentsPermalink





(iv) Mobility.CommentsClose CommentsPermalink





(v) Self-direction.CommentsClose CommentsPermalink





(vi) Capacity for independent living.CommentsClose CommentsPermalink





(vii) Economic self-sufficiency.CommentsClose CommentsPermalink





(viii) Emotional adjustment.CommentsClose CommentsPermalink





(ix) Work tolerance, productivity, or quality.CommentsClose CommentsPermalink





(10) QUALIFIED NONPROFIT AGENCY- The term ‘qualified nonprofit agency’ means an agency selected by a central nonprofit agency to serve as a qualified nonprofit agency, that meets the requirements for such qualification under section 106.CommentsClose CommentsPermalink





(11) QUALIFIED NONPROFIT AGENCY FOR INDIVIDUALS WHO ARE BLIND- The term ‘qualified nonprofit agency for individuals who are blind’ means an agency--CommentsClose CommentsPermalink





(A) organized under the laws of the United States or of any State, operated in the interest of individuals who are blind, and the net income of which does not inure in whole or in part to the benefit of any shareholder or other individual;CommentsClose CommentsPermalink





(B) that complies with any applicable occupational health and safety standard prescribed by the Secretary of Labor; andCommentsClose CommentsPermalink





(C) that--CommentsClose CommentsPermalink





(i) produces products or provides services (whether or not the products or services are procured under this Act); andCommentsClose CommentsPermalink





(ii) during a fiscal year, employs individuals who are blind for not less than 75 percent of the person-hours of direct labor (adjusted in accordance with section 103(g)) required to produce the products or provide the services.CommentsClose CommentsPermalink





(12) QUALIFIED NONPROFIT AGENCY FOR INDIVIDUALS WITH OTHER SIGNIFICANT DISABILITIES- The term ‘qualified nonprofit agency for individuals with other significant disabilities’ means an agency--CommentsClose CommentsPermalink





(A) organized under the laws of the United States or of any State, operated in the interest of individuals with other significant disabilities, and the net income of which does not inure in whole or in part to the benefit of any shareholder or other individual;CommentsClose CommentsPermalink





(B) that complies with any applicable occupational health and safety standard prescribed by the Secretary of Labor; andCommentsClose CommentsPermalink





(C) that--CommentsClose CommentsPermalink





(i) produces products or provides services (whether or not the products or services are procured under this Act); andCommentsClose CommentsPermalink





(ii) during a fiscal year, employs individuals who are blind or individuals with other significant disabilities for not less than 75 percent of the person-hours of direct labor (adjusted in accordance with section 103(g)) required to produce the products or provide the services.CommentsClose CommentsPermalink





(13) SIGNIFICANT DISABILITY- The term ‘significant disability’, used with respect to an individual or a class of individuals, means an individual or class of individuals, respectively, each of whom is--CommentsClose CommentsPermalink





(A) an individual who is blind; orCommentsClose CommentsPermalink





(B) an individual with another significant disability.CommentsClose CommentsPermalink





(14) STATE- The term ‘State’ means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.CommentsClose CommentsPermalink

SEC. 3. ESTABLISHMENT OF COMMITTEE.

(a) Establishment- There is established a committee to be known as the Committee for the Advancement of Individuals with Disabilities. The Committee shall be composed of 21 voting members, and 5 ex officio nonvoting members, appointed as follows:CommentsClose CommentsPermalink





(1) VOTING NUMBERS FROM FEDERAL DEPARTMENTS OR AGENCIES-CommentsClose CommentsPermalink





(A) IN GENERAL- Each head of a Federal department or agency described in subparagraph (C) shall appoint as a member of the Committee 1 officer or employee from an office of administration and management, acquisition policy, procurement, contracting, or finance, or another similar office, of that Federal department or agency.CommentsClose CommentsPermalink





(B) REHABILITATION SERVICES ADMINISTRATION AND OFFICE OF DISABILITY EMPLOYMENT POLICY- The Commissioner of the Rehabilitation Services Administration of the Department of Education and the Assistant Secretary for Disability Employment Policy of the Department of Labor shall also serve as members of the Committee.CommentsClose CommentsPermalink





(C) FEDERAL DEPARTMENTS AND AGENCIES- The Federal departments and agencies referred to in subparagraph (A) are the Department of Agriculture, the Department of Defense, the Department of the Army, the Department of the Navy, the Department of the Air Force, the Department of Veterans Affairs, the Department of Justice, the Department of Homeland Security, the Department of Housing and Urban Development, and the General Services Administration.CommentsClose CommentsPermalink





(2) VOTING MEMBERS APPOINTED BY PRESIDENT- The President shall appoint to the Committee, by and with the advice and consent of the Senate--CommentsClose CommentsPermalink





(A) 1 member from persons who are not officers or employees of the Government and who are conversant with the problems incident to the employment of individuals who are blind;CommentsClose CommentsPermalink





(B) 1 member from persons who are not officers or employees of the Government and who are conversant with the problems incident to the employment of individuals with other significant disabilities;CommentsClose CommentsPermalink





(C) 1 member from persons who--CommentsClose CommentsPermalink





(i) are not officers or employees of the Government;CommentsClose CommentsPermalink





(ii) are individuals who are blind or represent such individuals; andCommentsClose CommentsPermalink





(iii) are employed in qualified nonprofit agencies for individuals who are blind;CommentsClose CommentsPermalink





(D) 1 member from persons who--CommentsClose CommentsPermalink





(i) are not officers or employees of the Government;CommentsClose CommentsPermalink





(ii) are individuals with other significant disabilities or represent such individuals; andCommentsClose CommentsPermalink





(iii) are employed in qualified nonprofit agencies for individuals with other significant disabilities;CommentsClose CommentsPermalink





(E) 1 member from persons who are not officers or employees of the Government and who represent a central nonprofit agency for individuals who are blind, a qualified nonprofit agency for individuals who are blind, or a national association representing qualified nonprofit agencies described in this subparagraph;CommentsClose CommentsPermalink





(F) 1 member from persons who are not officers or employees of the Government and who represent a central nonprofit agency for individuals who have other significant disabilities, a qualified nonprofit agency for individuals who have other significant disabilities, or a national association representing qualified nonprofit agencies described in this subparagraph;CommentsClose CommentsPermalink





(G) 1 member from persons who are not officers or employees of the Government and who represent the small business community, the service sector, the product sector, the labor sector, the manufacturing sector, or a national association of small business communities or sectors described in this subparagraph;CommentsClose CommentsPermalink





(H) 1 member from persons who are not officers or employees of the Government and who represent a licensed vendor (as defined in section 202) who is blind, a State agency described in section 101(a)(2)(A)(i) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)(2)(A)(i)), or a national association of vendors or agencies described in this subparagraph; andCommentsClose CommentsPermalink





(I) 1 member from persons who are not officers or employees of the Government and who represent a licensed vendor (as defined in section 202) with a disability other than blindness, a State agency described in section 101(a)(2)(A) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)(2)(A)) (other than clause (i) of such section), or a national association of vendors or agencies described in this subparagraph.CommentsClose CommentsPermalink





(3) EX OFFICIO, NONVOTING MEMBERS- The Administrator of the Small Business Administration and the Secretary of Commerce shall appoint as ex officio, nonvoting members of the Committee 1 officer or employee of the Small Business Administration and the Department of Commerce, respectively. The Secretary of Education shall appoint as an ex officio, nonvoting member of the Committee the Assistant Secretary for Vocational and Adult Education or the Assistant Secretary for Postsecondary Education. The Director of the Office on Disability of the Department of Health and Human Services and the Chairperson of the National Council on Disability shall also serve as ex officio, nonvoting members of the Committee.CommentsClose CommentsPermalink





(4) TRANSITION RULES-CommentsClose CommentsPermalink





(A) DEFINITIONS- In this paragraph:CommentsClose CommentsPermalink





(i) CURRENT COMMITTEE- The term ‘current Committee’ means the Committee for the Advancement of Individuals with Disabilities.CommentsClose CommentsPermalink





(ii) FORMER COMMITTEE- The term ‘former Committee’ means the Committee for Purchase From People Who Are Blind or Severely Disabled.CommentsClose CommentsPermalink





(B) CONTINUATION OF MEMBERS- If the head of a Federal department or agency appointed an officer or employee described in subparagraph (A) or (B) of paragraph (1) to the former Committee, under section 1(a)(1) of the Javits-Wagner-O’Day Act, and the officer or employee was serving on the former Committee on the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, that officer or employee shall be considered to have been appointed to the current Committee under paragraph (1). If the President appointed an individual described in any of subparagraphs (A) through (D) of paragraph (2) to the former Committee, under section 1(a)(2) of the Javits-Wagner-O’Day Act, and the individual was serving on the former Committee on the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, that individual shall be considered to have been appointed to the current Committee under the corresponding subparagraph of paragraph (2).CommentsClose CommentsPermalink





(C) TREATMENT- An appointment to the current Committee described in subparagraph (B) shall--CommentsClose CommentsPermalink





(i) be treated as a first appointment to the current Committee;CommentsClose CommentsPermalink





(ii) take effect on the date that the first appointments made under any of subparagraphs (E) through (I) of paragraph (2) take effect; andCommentsClose CommentsPermalink





(iii) in the case of an individual initially appointed by the President to the former Committee, end on the same date as the initial appointment would have ended.CommentsClose CommentsPermalink





(D) ACTIONS AND AUTHORITIES- This Act shall not affect any action or authority of any member of the former Committee, or of that Committee.CommentsClose CommentsPermalink





(b) Vacancy- A vacancy in the membership of the Committee for the Advancement of Individuals with Disabilities shall not affect its powers but shall be filled in the manner in which the original appointment was made.CommentsClose CommentsPermalink





(c) Chairman- The members of the Committee shall elect 1 of their number to be Chairman.CommentsClose CommentsPermalink





(d) Terms-CommentsClose CommentsPermalink





(1) LENGTH AND NUMBER- Except as provided in subsection (a)(4)(B) and paragraphs (2) and (3), members appointed under paragraph (2) of subsection (a) shall be appointed for terms of 5 years. No member of the Committee appointed under such paragraph may serve more than 2 consecutive full terms, beginning on the date of commencement of the member’s first full term on the Committee.CommentsClose CommentsPermalink





(2) STAGGERED TERMS- Of the members first appointed under subparagraphs (E), (F), (G), (H), and (I) of subsection (a)(2)--CommentsClose CommentsPermalink





(A) the member appointed under subparagraph (H) of that subsection shall be appointed for a term that ends on the same date as the term of the member appointed under subparagraph (A) of that subsection;CommentsClose CommentsPermalink





(B) the member appointed under subparagraph (I) of that subsection shall be appointed for a term that ends on the same date as the term of the member appointed under subparagraph (B) of that subsection;CommentsClose CommentsPermalink





(C) the member appointed under subparagraph (G) of that subsection shall be appointed for a term that ends on the same date as the term of the member appointed under subparagraph (C) of that subsection;CommentsClose CommentsPermalink





(D) the member appointed under subparagraph (F) of that subsection shall be appointed for a term that ends on the same date as the term of the member appointed under subparagraph (D) of that subsection; andCommentsClose CommentsPermalink





(E) the member appointed under subparagraph (E) of that subsection shall be appointed for a term that ends 1 year after the date on which the term of the member appointed under subparagraph (B) of that subsection ends.CommentsClose CommentsPermalink





(3) MIDTERM VACANCIES AND EXPIRED TERMS- Any member appointed under paragraph (2) of subsection (a) to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed only for the remainder of such term. A member appointed under such paragraph may serve after the expiration of the member’s term until the member’s successor has taken office.CommentsClose CommentsPermalink





(e) Quorum- Ten voting members of the Committee, including not less than 5 members appointed under subsection (a)(2), shall constitute a quorum.CommentsClose CommentsPermalink





(f) Pay and Travel Expenses-CommentsClose CommentsPermalink





(1) PAY FOR MEMBERS NOT OFFICERS OR EMPLOYEES OF GOVERNMENT- Except as provided in paragraph (2), members of the Committee shall each be entitled to receive the daily equivalent of the maximum rate payable for a position at GS-15 of the General Schedule for each day (including traveltime) during which they are engaged in the actual performance of services for the Committee.CommentsClose CommentsPermalink





(2) NO PAY FOR OFFICERS OR EMPLOYEES OF GOVERNMENT- Members of the Committee who are officers or employees of the Government shall receive no additional pay on account of their service on the Committee.CommentsClose CommentsPermalink





(3) TRAVEL EXPENSES- While away from their homes or regular places of business in the performance of services for the Committee, members of the Committee shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5 of the United States Code.CommentsClose CommentsPermalink





(g) Staff-CommentsClose CommentsPermalink





(1) EXECUTIVE DIRECTOR-CommentsClose CommentsPermalink





(A) IN GENERAL- The Committee, by a majority vote of the voting members of the Committee, shall appoint (including having the authority to remove) and shall fix the pay of an Executive Director to assist the Committee, at the direction of the Committee, in carrying out the Committee’s duties and powers under this Act.CommentsClose CommentsPermalink





(B) APPLICABLE PROVISIONS- The rate of pay for the Executive Director shall not exceed the rate payable for level II of the Executive Schedule under section 5313 of title 5, United States Code. The Committee shall otherwise appoint and fix the pay of the Executive Director without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and the provisions of chapter 75 of such title (relating to adverse actions), chapter 77 of such title (relating to appeals), and chapter 51 and subchapter III of chapter 53 (relating to classification of positions and General Schedule pay rates.)CommentsClose CommentsPermalink





(C) EFFECT OF REMOVAL- An Executive Director who is removed by the Committee shall not be eligible to serve as a member of the Committee for 10 years after the date of the removal.CommentsClose CommentsPermalink





(2) PERSONNEL- Subject to such rules as may be adopted by the Committee, the Chairman may appoint (including having the authority to remove) and fix the pay of such personnel as the Committee determines are necessary to assist it in carrying out its duties and powers under this Act. The personnel of the Committee appointed under this paragraph shall be appointed subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of such title (relating to classification of positions and General Schedule pay rates).CommentsClose CommentsPermalink





(h) Obtaining Official Data-CommentsClose CommentsPermalink





(1) IN GENERAL- The Committee may secure directly from any entity of the Government information necessary to enable the Committee to carry out this Act. Upon request of the Chairman of the Committee, the head of such Government entity shall furnish such information to the Committee in a timely and reasonable fashion.CommentsClose CommentsPermalink





(2) EXCEPTIONS- Paragraph (1) shall not apply to--CommentsClose CommentsPermalink





(A) any classified information; orCommentsClose CommentsPermalink





(B) information from any entity of the Government that discloses the identity of, or any other personally identifiable information related to, any individual.CommentsClose CommentsPermalink





(i) Recusal- Members of the Committee appointed under subparagraph (E), (F), (H), or (I) of subsection (a)(2) shall recuse themselves from voting on any matters that could directly benefit them, or the agencies, associations, or vendors they represent, including the addition of an item to the procurement list. Members of the Committee appointed under any of subparagraphs (A) through (G) of subsection (a)(2) shall recuse themselves from voting on any matters regarding title II. Members of the Committee appointed under subparagraph (H) or (I) of subsection (a)(2) shall recuse themselves from voting on any matters regarding title I.CommentsClose CommentsPermalink

TITLE I--PROCUREMENTCommentsClose CommentsPermalink

SEC. 101. SHORT TITLE.

This title may be cited as the ‘Javits-Wagner-O’Day Act’.CommentsClose CommentsPermalink

SEC. 102. PURPOSES.

The purposes of this title are--CommentsClose CommentsPermalink





(1) to deliver to entities of the Government, at a fair price, products and services of high quality that such an entity would ordinarily procure to meet the entity’s mission;CommentsClose CommentsPermalink





(2) to provide employment to individuals with significant disabilities; andCommentsClose CommentsPermalink





(3) to empower individuals with significant disabilities, through informed choice, to maximize employment, economic self-sufficiency, independence, and inclusion in and integration into society, by providing for--CommentsClose CommentsPermalink





(A) a network of nonprofit agencies utilizing comprehensive and coordinated state-of-the-art employment technologies, strategies, and approaches;CommentsClose CommentsPermalink





(B) training and skill development; andCommentsClose CommentsPermalink





(C) research.CommentsClose CommentsPermalink

SEC. 103. DUTIES AND POWERS OF THE COMMITTEE RELATING TO PROCUREMENT.

(a) In General- In carrying out the purposes of this title--CommentsClose CommentsPermalink





(1) the Committee shall--CommentsClose CommentsPermalink





(A) identify products and services offered for sale by qualified nonprofit agencies and appropriate for addition to the procurement list established under subsection (b);CommentsClose CommentsPermalink





(B) inform entities of the Government about the statutory mandate of section 104 that items on the procurement list be purchased from qualified nonprofit agencies; andCommentsClose CommentsPermalink





(C) promote such products and services offered for sale by qualified nonprofit agencies and the activities of such agencies pursuant to this title;CommentsClose CommentsPermalink





(2) the Committee shall monitor the compliance of entities of the Government with the requirements of this title, and enforce the requirements; andCommentsClose CommentsPermalink





(3) the Committee shall, not less often than every 5 years, develop or update a strategic plan that establishes the implementation responsibilities and goals of central nonprofit agencies, and qualified nonprofit agencies, for improving activities carried out under this title and related activities, including--CommentsClose CommentsPermalink





(A) improving data collection;CommentsClose CommentsPermalink





(B) creating employment opportunities for individuals who are blind and individuals with other significant disabilities through activities carried out under this title;CommentsClose CommentsPermalink





(C) creating competitive employment opportunities for individuals who are blind and individuals with other significant disabilities through activities in this title through experiential learning options and activities (such as outplacement and promotion described in subsection (g)(1)(B)) that are related to activities carried out under this title;CommentsClose CommentsPermalink





(D) increasing wages for individuals described in subparagraph (B);CommentsClose CommentsPermalink





(E) meeting career advancement indicators for such individuals;CommentsClose CommentsPermalink





(F) increasing sales revenues;CommentsClose CommentsPermalink





(G) monitoring progress toward meeting the objectives of this title; andCommentsClose CommentsPermalink





(H) measuring success toward meeting the objectives.CommentsClose CommentsPermalink





(b) Procurement List-CommentsClose CommentsPermalink





(1) IN GENERAL- The Committee shall establish and publish in the Federal Register a list (referred to in this Act as the ‘procurement list’) of--CommentsClose CommentsPermalink





(A) the products produced by any qualified nonprofit agency for individuals who are blind or by any qualified nonprofit agency for individuals with other significant disabilities; andCommentsClose CommentsPermalink





(B) the services provided by any such agency,CommentsClose CommentsPermalink





that the Committee determines are suitable for procurement by the Government pursuant to this title. Such list shall initially consist of the procurement list in effect under the Javits-Wagner-O’Day Act on the day before the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008.CommentsClose CommentsPermalink





(2) ADDITIONS AND REMOVALS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Committee may, by rule made in accordance with the requirements of subsections (b), (c), (d), and (e) of section 553 of title 5, United States Code, add to and remove from the procurement list products so produced and services so provided.CommentsClose CommentsPermalink





(B) SALES PRIOR TO ADDITIONS- If an entity of the Government solicits a qualified nonprofit agency to sell a product or service that such agency is producing commercially, and the entity of the Government is interested in adding the product or service to the procurement list, the Committee may allow the qualified nonprofit agency to sell the product or service to the Government prior to adding such item to the procurement list. After that sale, the qualified nonprofit agency may continue to sell the product or service to the Government under this title only if the product or service is added to the procurement list under subparagraph (A).CommentsClose CommentsPermalink





(C) REMOVALS-CommentsClose CommentsPermalink





(i) IN GENERAL- If a product or service is on the procurement list but has not been purchased by the Government within the last 36 months, the Committee shall remove the product or service from the procurement list, except as provided in clause (ii).CommentsClose CommentsPermalink





(ii) AGENCY JUSTIFICATION- The qualified nonprofit agency responsible for producing the product or providing the service may submit a justification to the Committee, in writing and prior to the removal, for the continued listing of such product or service. If the Committee determines that the justification is sufficient to warrant the continued listing, the Committee shall not remove the product or service from the procurement list.CommentsClose CommentsPermalink





(D) PROCEDURES FOR APPEALS AND PRESENTATIONS- The Committee shall create procedures--CommentsClose CommentsPermalink





(i) for qualified nonprofit agencies to appeal a determination--CommentsClose CommentsPermalink





(I) by a central nonprofit agency about the distribution of products and services among such agencies;CommentsClose CommentsPermalink





(II) by the Committee that a product or service will be removed from the procurement list;CommentsClose CommentsPermalink





(III) by the Committee that a product or service will not be added to the procurement list; andCommentsClose CommentsPermalink





(IV) by the Committee that a product or service will be sold to the Government at a revised price; andCommentsClose CommentsPermalink





(ii) for businesses, resellers, and manufacturing companies, to give oral presentations at Committee meetings--CommentsClose CommentsPermalink





(I) describing the potential impact of products or services proposed to be added to the procurement list; andCommentsClose CommentsPermalink





(II) for the potential removal of products or services from the procurement list.CommentsClose CommentsPermalink





(E) CONSTRUCTION- Nothing in this section shall prohibit a qualified nonprofit agency from selling a product or service commercially to an entity of the Government, rather than selling the product or service through the program carried out under this title. The Committee shall not treat the item involved as if the item were added to the procurement list, and the qualified nonprofit agency may not label or identify the item in a manner that associates the item with the program, unless the Committee adds the item to the procurement list under subparagraph (A).CommentsClose CommentsPermalink





(c) Price- The Committee shall determine the fair market price of products and services that are on the procurement list and that are offered for sale to the Government by any qualified nonprofit agency for individuals who are blind or any such agency for individuals with other significant disabilities. The Committee shall also revise from time to time in accordance with changing market conditions its price determinations with respect to such products and services. The Committee will prepare a notice stating the Committee’s justification for such a revision, and send the notice to the appropriate central nonprofit agency and qualified nonprofit agency.CommentsClose CommentsPermalink





(d) Designation of Central Nonprofit Agencies-CommentsClose CommentsPermalink





(1) IN GENERAL- The Committee shall designate a central nonprofit agency or agencies to facilitate the distribution (by direct allocation, subcontract, or any other means) of orders of the Government for products and services on the procurement list among qualified nonprofit agencies for individuals who are blind or qualified nonprofit agencies for individuals with other significant disabilities.CommentsClose CommentsPermalink





(2) FUNCTIONS- Agencies designated under paragraph (1) shall carry out functions that are not inherently governmental functions.CommentsClose CommentsPermalink





(e) Regulations-CommentsClose CommentsPermalink





(1) IN GENERAL- The Committee shall prescribe such regulations, including regulations regarding specifications for products and services on the procurement list, the time of their delivery, direct labor hour percentages, experiential learning options, governance standards including accreditation standards, and reviewing, monitoring, and auditing of the central nonprofit agencies and qualified nonprofit agencies, as the Committee considers to be appropriate to carry out this title. In prescribing the regulations, the Committee shall take into account the interests of small qualified nonprofit agencies, and the needs of qualified nonprofit agencies that enter into several contracts, but receive only a small percentage of their contract award amounts through contracts entered into under this title.CommentsClose CommentsPermalink





(2) PRIORITY- The Committee shall prescribe regulations providing that, in the purchase by the Government of products produced and offered for sale by qualified nonprofit agencies for individuals who are blind or qualified nonprofit agencies for individuals with other significant disabilities, priority shall be accorded to products produced and offered for sale by qualified nonprofit agencies for individuals who are blind.CommentsClose CommentsPermalink





(3) EXCLUSIONS- The Committee shall not prescribe regulations for central nonprofit agencies or qualified nonprofit agencies that specify board size, board practices such as having certain committees, or rotation of board members.CommentsClose CommentsPermalink





(4) PROPOSED REGULATIONS- Not later than 180 days after the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, the Committee shall issue proposed regulations to implement that Act, provide an opportunity for public comment, and prescribe final regulations to implement the amendments.CommentsClose CommentsPermalink





(f) Study and Evaluation- The Committee shall make a continuing study and evaluation of its activities under this title for the purpose of assuring effective and efficient administration of this title. The Committee may study (on its own or in cooperation with other public or nonprofit private agencies)--CommentsClose CommentsPermalink





(1) problems related to the employment of individuals who are blind and of individuals with other significant disabilities;CommentsClose CommentsPermalink





(2) the development and adaptation of production methods that would enable a greater utilization of individuals who are blind and of individuals with other significant disabilities; andCommentsClose CommentsPermalink





(3) areas relating to providing informed choice, supported employment, customized employment, self-employment, and individualized experiential learning options in the community involved to direct labor employees of qualified nonprofit agencies, promoting job placement and retention of the workers, promoting consumer satisfaction with products and services produced or provided for sale under this title, establishing standards and certification (which may include accreditation) for community rehabilitation programs, and converting from providing nonintegrated community rehabilitation programs to providing integrated community-based employment.CommentsClose CommentsPermalink





(g) Direct Labor Hour Percentage-CommentsClose CommentsPermalink





(1) MODIFICATIONS-CommentsClose CommentsPermalink





(A) IN GENERAL- In the case of a qualified nonprofit agency, with a product- or service-related order performed by the qualified nonprofit agency, that has obtained approval for a request under paragraph (5), the Committee shall modify the direct labor hours percentage requirement described in paragraph (11)(C) or (12)(C) of section 2, as described in this paragraph.CommentsClose CommentsPermalink





(B) EMPLOYEES- The Committee shall allow the agency to count towards the percentage, for the agency overall or a specific order, up to 24 percent of the hours performed by persons that were formerly direct labor employees of the agency and that are individuals who are blind or individuals with other significant disabilities, as appropriate, if such persons were--CommentsClose CommentsPermalink





(i) outplaced into competitive employment, with compensation at a rate not less than the minimum wage rate set forth in section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)), and with benefits offered by the employee involved, for at least 90 days;CommentsClose CommentsPermalink





(ii) outplaced into self-employment in which the agency subcontracted a portion of the order to a direct labor employee that is an individual who is blind or an individual with another significant disability, as appropriate; orCommentsClose CommentsPermalink





(iii) promoted from nonsupervisory, nonmanagement positions into initial supervisory and management positions within the qualified nonprofit agency, through promotions that involved changes in work duties, titles, and wages.CommentsClose CommentsPermalink





(C) HOURS- The hours counted under paragraph (1) shall be--CommentsClose CommentsPermalink





(i) for a former employee described in subparagraph (B)(ii), hours of self-employment as a subcontractor described in that subparagraph, but the hours may only be counted for the length of the subcontract for that order; andCommentsClose CommentsPermalink





(ii) for a former employee described in subparagraph (B)(iii), hours in an initial supervisory or management position described in that subparagraph.CommentsClose CommentsPermalink





(2) JOB COACHES- The Committee may authorize a qualified nonprofit agency that has obtained approval for a request under paragraph (5) to exclude job coaches from the workers used to calculate the agency overall and specific order direct labor hour percentage counts if--CommentsClose CommentsPermalink





(A) the job coaches are providing job coaching functions;CommentsClose CommentsPermalink





(B) the job coaches are not paid by funds generated through orders authorized under this title; andCommentsClose CommentsPermalink





(C) all direct labor employees of the agency that are individuals who are blind or individuals with other significant disabilities (including direct labor employees making commensurate wages) are compensated at a rate not less than the minimum wage rate described in paragraph (1)(B)(i).CommentsClose CommentsPermalink





(3) PHASE-IN PERIOD- If a qualified nonprofit agency is unable to initially perform a project while meeting the appropriate direct labor hour percentage requirement, the Committee may allow the qualified nonprofit agency a 1-year phase-in period in order to meet the requirement, subject to the following conditions:CommentsClose CommentsPermalink





(A) OVERALL PERCENTAGE- A request by the qualified nonprofit agency for a phase-in period shall include information on whether or not the phase-in period will cause the nonprofit agency’s cumulative overall direct labor hour percentage to drop below 75 percent.CommentsClose CommentsPermalink





(B) PLAN- If the agency’s cumulative overall direct labor hour percentage will drop below 75 percent as a result of the phase-in period, the agency shall submit a phase-in plan and include a description of the method that the agency will use to ensure that, and the timeframe in which, the agency will meet the 75 percent direct labor hour percentage requirement.CommentsClose CommentsPermalink





(C) NO REQUESTS AFTER PROJECT BEGINNING- A qualified nonprofit agency may not request, and the Committee may not permit, a phase-in period for a project after beginning work on that project.CommentsClose CommentsPermalink





(4) TRAINING HOURS COUNTED TOWARD DIRECT LABOR HOURS- For purposes of computing the direct labor hour percentage described in paragraph (11)(C) or (12)(C) of section 2, a qualified nonprofit agency may count an hour that an employee spends in training under section 105(a)(3)(B) or 106(b)(3), or in an experiential learning option (including individualized training activities) described in clause (i)(II) or (ii)(II) of section 106(d)(2)(E), as an hour of direct labor under such paragraph (11)(C) or (12)(C), respectively.CommentsClose CommentsPermalink





(5) ADJUSTMENTS TO DIRECT LABOR HOUR PERCENTAGE COUNTS- To be eligible for an adjustment to a direct labor hour percentage count under paragraph (1) or (2), a qualified nonprofit agency shall submit a request to the Committee. The request shall contain information demonstrating that the agency meets such requirements as the Committee shall establish with respect to the number of employees of the agency that are outplaced or promoted as described in clause (i), (ii), or (iii) of paragraph (1)(B), relative to the agency’s years of experience with the program carved out under this title, and the success rate of the agency in making such outplacements or promotions. The Committee may approve such a request for the second full fiscal year after the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, and any subsequent fiscal year.CommentsClose CommentsPermalink





(6) DEFINITION- In this subsection, the term ‘commensurate wage’ means a commensurate wage as described in section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)).CommentsClose CommentsPermalink





(h) Reviews and Monitoring-CommentsClose CommentsPermalink





(1) DUTIES- In carrying out the Committee’s duties under this title, the Committee shall conduct a review annually, and onsite monitoring once every 2 years, for programs carried out through central nonprofit agencies or by qualified nonprofit agencies under this title.CommentsClose CommentsPermalink





(2) PROCEDURES FOR REVIEWS- In conducting an annual review under this subsection of a program carried out through a central nonprofit agency or by a qualified nonprofit agency, the Committee shall consider, at a minimum--CommentsClose CommentsPermalink





(A) the process used by the agency reviewed to determine the eligibility of employees with significant disabilities;CommentsClose CommentsPermalink





(B) the production of products or provision of services by the agency;CommentsClose CommentsPermalink





(C) the direct labor hour percentage for the agency;CommentsClose CommentsPermalink





(D) the goals described in subsection (k) and the extent to which the agency has met such goals;CommentsClose CommentsPermalink





(E) reports, and information supporting reports, prepared under sections 105(d)(2) and 106(e);CommentsClose CommentsPermalink





(F) information filed by the agency with the Internal Revenue Service, and budget, financial management, and audit data; andCommentsClose CommentsPermalink





(G) the agency’s activities in such other areas of inquiry as the Committee may consider to be appropriate.CommentsClose CommentsPermalink





(3) PROCEDURES FOR MONITORING- In conducting monitoring under this subsection the Committee shall--CommentsClose CommentsPermalink





(A) conduct--CommentsClose CommentsPermalink





(i) onsite visits, including onsite reviews of records to verify that the central nonprofit agency or qualified nonprofit agency involved is following the requirements of this title;CommentsClose CommentsPermalink





(ii) meetings with the central nonprofit agency or qualified nonprofit agency;CommentsClose CommentsPermalink





(iii) reviews of individual case files, including eligibility determinations; andCommentsClose CommentsPermalink





(iv) meetings with staff and employees of the central nonprofit agency or qualified nonprofit agency, including employees that are individuals who are blind or individuals with other significant disabilities; andCommentsClose CommentsPermalink





(B) determine whether the central nonprofit agency or qualified nonprofit agency involved is complying with the reporting requirements of this title, and meeting the goals described in subsection (k).CommentsClose CommentsPermalink





(4) NONDISCLOSURE- For purposes of any review or monitoring carried out under this subsection the Committee shall not disclose or require a central nonprofit agency or qualified nonprofit agency to disclose the identity of, or any other personally identifiable information related to, any individual participating in an activity authorized under this title.CommentsClose CommentsPermalink





(5) AVAILABILITY ON WEBSITE- The Committee shall make available to the public on the Committee’s website each report resulting from a review or monitoring carried out under this subsection.CommentsClose CommentsPermalink





(i) Enforcement-CommentsClose CommentsPermalink





(1) SALES DATA- Pursuant to section 3(h), not later than 90 days after the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, the Chairman of the Committee and the Administrator of General Services shall enter into an agreement, under which the Administrator, in consultation with the Chairman, shall identify and provide to the Committee relevant sales data on sales of products and services through the General Services Administration, to assist the Committee in identifying--CommentsClose CommentsPermalink





(A) areas in which the Committee and central nonprofit agencies shall target marketing of products and services on the procurement list, to encourage entities of the Government to purchase such products and services; andCommentsClose CommentsPermalink





(B) training and outreach opportunities regarding the procurement requirements specified in section 104 and information about products and services on the procurement list.CommentsClose CommentsPermalink





(2) GENERAL SERVICES ADMINISTRATION- At the request of the Committee, the Inspector General of the General Services Administration shall assist the Committee in determining if entities of the Government (in the executive branch), central nonprofit agencies, and qualified nonprofit agencies are complying with this title.CommentsClose CommentsPermalink





(j) Information Collection and Report-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than December 31 of the first full fiscal year after the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, and each December 31 thereafter, the Committee shall collect information described in this subsection for the fiscal year ending the preceding September 30, including the information provided by the central nonprofit agencies and qualified nonprofit agencies in annual reports submitted under sections 105(d)(2) and 106(e). The Committee shall prepare an overall summary of the information collected under this subsection, including compiling and preparing a summary of the information provided by the central nonprofit agencies and qualified nonprofit agencies. The Committee shall annually prepare and submit to the President and Congress a report that includes the overall summary.CommentsClose CommentsPermalink





(2) COLLECTION OF INFORMATION-CommentsClose CommentsPermalink





(A) CENTRAL NONPROFIT AGENCIES AND QUALIFIED NONPROFIT AGENCIES-CommentsClose CommentsPermalink





(i) RECORDS- Central nonprofit agencies, and qualified nonprofit agencies, receiving funds under this title shall keep records prescribed by the Committee as required by this title and shall participate in data collection as required by this title, including data collection required for preparation of the reports described in clause (ii). The Committee shall have access to such records of agencies described in this subparagraph and to any other records of the agencies that relate to activities of the agencies and compliance by the agencies with any requirement of this title.CommentsClose CommentsPermalink





(ii) REPORTS- The Committee shall require that each central nonprofit agency, and qualified nonprofit agency, receiving funds under this title annually prepare and submit to the Committee the reports described in sections 105(d)(2) and 106(e), respectively.CommentsClose CommentsPermalink





(B) COMMITTEE- The Committee shall collect information to determine whether the purposes of this title are being met and to assess the performance of programs carried out under this title, including information related to audits, performance, and compliance. In particular, the Committee shall collect and maintain audit reports and Federal returns of organizations exempt from income tax submitted by the central nonprofit agencies.CommentsClose CommentsPermalink





(3) INFORMATION- The information required to be collected under this subsection and summarized for the Committee report described in paragraph (1) shall include--CommentsClose CommentsPermalink





(A) information collected from central nonprofit agencies and qualified nonprofit agencies pursuant to sections 105(d)(2) and 106(e), aggregated for the United States;CommentsClose CommentsPermalink





(B)(i) details on decisions, about whether to add items to the procurement list, that take longer than 120 days from the time the central nonprofit agencies involved submit pricing memoranda to the Committee; andCommentsClose CommentsPermalink





(ii) justifications for any denials of proposals for additions to the procurement list;CommentsClose CommentsPermalink





(C) information on the development of new markets for products and services of qualified nonprofit agencies, including electronic commerce;CommentsClose CommentsPermalink





(D) an analysis of the direct and indirect impacts this title has on the small business community;CommentsClose CommentsPermalink





(E) a description of the steps taken to minimize the negative impacts of the programs carried out under this title on businesses, resellers, and manufacturing companies;CommentsClose CommentsPermalink





(F) an analysis of the progress of the central nonprofit agencies and qualified nonprofit agencies in meeting the goals described in subsection (k); andCommentsClose CommentsPermalink





(G) information on the number of requests made of the Committee, and the number of responses made by the Committee to requests, under section 552 of title 5, United States Code (commonly known as the ‘Freedom of Information Act’); andCommentsClose CommentsPermalink





(H) information on other items as determined necessary by the Committee.CommentsClose CommentsPermalink





(4) SUBMISSION OF REPORT- Not later than February 28 of the fiscal year following the fiscal year for which the Committee collects information for the Committee report described in paragraph (1), the Committee shall submit the Committee report to the President, the Committee on Government Reform and the Committee on Education and the Workforce of the House of Representatives, and the Committee on Homeland Security and Governmental Affairs and the Committee on Health, Education, Labor, and Pensions of the Senate.CommentsClose CommentsPermalink





(5) AVAILABILITY ON WEBSITE- The Committee shall make the Committee report available to the public on the Committee’s website.CommentsClose CommentsPermalink





(6) NONDISCLOSURE- For purposes of this subsection, and sections 105(d)(2) and 106(e), the Committee shall not disclose or require a central nonprofit agency or qualified nonprofit agency to disclose, and a central nonprofit agency shall not require a qualified nonprofit agency to disclose, the identity of, or any other personally identifiable information related to, any individual participating in an activity authorized under this title.CommentsClose CommentsPermalink





(7) CONSEQUENCES FOR FAILURE TO REPORT-CommentsClose CommentsPermalink





(A) QUALIFIED NONPROFIT AGENCIES- If the Committee has not received the annual report of a qualified nonprofit agency for a year under section 106(e), the Committee may ban the agency from participating in activities carried out under this title, or redistribute orders to other qualified nonprofit agencies, until the Committee has received the report.CommentsClose CommentsPermalink





(B) CENTRAL NONPROFIT AGENCIES- If the Committee has not received the annual report of a central nonprofit agency for a year under section 105(d)(2), the Committee may suspend the agency’s authority to collect or use a portion of the fee authorized in section 105(a)(4)(J)(v), and may direct the use of the fee, until the Committee has received the report.CommentsClose CommentsPermalink





(k) Goals- Not later than 1 year after the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, the Committee, with the assistance of the central nonprofit agencies and qualified nonprofit agencies, shall establish goals for the combined results achieved by all entities participating in activities authorized by this title with respect to performance indicators including the following performance indicators:CommentsClose CommentsPermalink





(1) Outplacement of employees into competitive employment, as described in subsection (g)(1)(B)(i).CommentsClose CommentsPermalink





(2) Outplacement of employees into self-employment described in subsection (g)(1)(B)(ii).CommentsClose CommentsPermalink





(3) Promotion of employees into supervisory and management positions within the qualified nonprofit agency, as described in subsection (g)(1)(B)(iii).CommentsClose CommentsPermalink





(4) Establishment of wages for all employees that are individuals who are blind or individuals with other significant disabilities, including individuals employed under special certificates under section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)), at a rate for each employee that is not less than the minimum wage rate set forth in section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) during such employment.CommentsClose CommentsPermalink





(l) Freedom of Information Act- The Committee is subject to section 552 of title 5, United States Code (commonly known as the ‘Freedom of Information Act’).CommentsClose CommentsPermalink





(m) Amounts Made Available From Fees- The Committee may accept funds made available from fees under section 105(f) and use the funds for the purposes of carrying out activities described in subsection (a)(3), subsections (f) through (j), and section 108 (relating to conducting planning, information collection, reviews, monitoring, reporting, auditing, and enforcement of this title).CommentsClose CommentsPermalink

SEC. 104. PROCUREMENT REQUIREMENTS FOR THE GOVERNMENT.

If any entity of the Government intends to procure any product or service on the procurement list, that entity shall, in accordance with rules and regulations of the Committee, procure such product or service, at the price established by the Committee, from a qualified nonprofit agency for individuals who are blind or qualified nonprofit agency for individuals with other significant disabilities if the product or service is available within the period required by that Government entity. This section shall not apply with respect to the procurement of any product that is available for procurement from an industry established under chapter 307 of title 18, United States Code, and that, under section 4124 of such title, is required to be procured from such industry.CommentsClose CommentsPermalink

SEC. 105. CENTRAL NONPROFIT AGENCIES.

(a) In General-CommentsClose CommentsPermalink





(1) DESIGNATION AND COORDINATION- In accordance with section 103(d) the Committee shall designate a central nonprofit agency or agencies to facilitate the distribution of orders to qualified nonprofit agencies as described in section 103(d). If the Committee designates more than 1 central nonprofit agency, the central nonprofit agencies shall, to the maximum extent possible, as determined by the Committee, coordinate activities authorized under this section.CommentsClose CommentsPermalink





(2) PREFERENCES AND FACILITATION OF ORDERS- In facilitating the distribution of the orders, each central nonprofit agency--CommentsClose CommentsPermalink





(A) shall give preference to qualified nonprofit agencies that--CommentsClose CommentsPermalink





(i) meet the goals described in section 103(k); andCommentsClose CommentsPermalink





(ii) establish partnerships with smaller qualified nonprofit agencies and small businesses, particularly small businesses owned by individuals with disabilities;CommentsClose CommentsPermalink





(B) may distribute large orders of products and services among multiple qualified nonprofit agencies; andCommentsClose CommentsPermalink





(C) shall make the decisions regarding the facilitation of distribution of orders among the qualified nonprofit agencies available on a secured portion of the central nonprofit agency’s website, accessible only to individuals associated with the qualified nonprofit agencies and the Committee.CommentsClose CommentsPermalink





(3) INFORMATION, ASSISTANCE, TRAINING, AND TECHNICAL ASSISTANCE-CommentsClose CommentsPermalink





(A) INFORMATION AND ASSISTANCE- Each central nonprofit agency shall respond to requests for information or assistance from qualified nonprofit agencies, employees of such agencies that are individuals who are blind or individuals with other significant disabilities, and businesses wanting to employ either of such types of individuals, including--CommentsClose CommentsPermalink





(i) requests for information or assistance concerning expanding self-employment, business ownership, and business development opportunities, and other types of entrepreneurial employment opportunities for individuals who are blind, or individuals with other significant disabilities, employed by qualified nonprofit agencies;CommentsClose CommentsPermalink





(ii) requests for information or assistance concerning expanding and improving transition services to facilitate the transition of students with disabilities from school to employment;CommentsClose CommentsPermalink





(iii) requests for assistance or information on effective approaches to enhance informed choice in employment, or provide person-centered community-based experiential learning options, for individuals who are blind, or individuals with other significant disabilities, employed by qualified nonprofit agencies;CommentsClose CommentsPermalink





(iv) requests for assistance in developing corrective action plans, improving financial management procedures to correct material weaknesses identified during audits, and filing Federal returns of organizations exempt from income tax;CommentsClose CommentsPermalink





(v) requests for assistance in developing and implementing effective data collection and reporting systems that measure the outcomes of the activities authorized under this title, and preparing reports for the Committee required under sections 103(j) and 106(e);CommentsClose CommentsPermalink





(vi) requests for information on effective approaches that enhance employment results for individuals with disabilities, including conducting outreach and forming partnerships with business and industry; andCommentsClose CommentsPermalink





(vii) requests for assistance on acquiring additional orders from the Federal Government and expanding business lines.CommentsClose CommentsPermalink





(B) TRAINING AND TECHNICAL ASSISTANCE- Each central nonprofit agency shall develop and provide State-specific, regional, and national training and technical assistance concerning the employment of individuals who are blind or individuals with other significant disabilities through qualified nonprofit agencies, including--CommentsClose CommentsPermalink





(i) facilitating on-site and electronic information sharing using state-of-the-art Internet technologies such as real-time on-line discussions, multipoint video conferencing, and web-based audio/video broadcasts, on emerging topics that affect--CommentsClose CommentsPermalink





(I) the employment of individuals who are blind or individuals with other significant disabilities; andCommentsClose CommentsPermalink





(II) activities carried out under this title;CommentsClose CommentsPermalink





(ii) providing information on benefits planning, work incentives, and protections that exist in benefits programs such as the supplemental security income program established under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.), the disability insurance benefits program established under title II of the Social Security Act (42 U.S.C. 401 et seq.), the Ticket to Work and Self-Sufficiency Program established under 1148 of the Social Security Act (42 U.S.C. 1320b-19), and the Medicaid program established under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) that help beneficiaries work at a higher level with fair compensation and still retain essential supports;CommentsClose CommentsPermalink





(iii) providing information and assistance in converting qualified nonprofit agencies providing community rehabilitation programs to integrated community-based employment providers, including supported employment, customized employment, and self-employment providers;CommentsClose CommentsPermalink





(iv) promoting sharing of evidence-based and promising practices among qualified nonprofit agencies;CommentsClose CommentsPermalink





(v) providing training to enhance upward mobility, self-employment, business ownership, and business development opportunities, and other types of entrepreneurial employment opportunities for individuals who are blind and individuals with other significant disabilities, based on identified obstacles to employment and solutions from data regarding experiential learning options described in section 106(e)(2)(J), and related findings;CommentsClose CommentsPermalink





(vi) enhancing competitive employment options and outcomes for individuals with mental illness and individuals with cognitive disabilities;CommentsClose CommentsPermalink





(vii) enabling the qualified nonprofit agencies to provide practical information on effective approaches for business and industry to use in employing individuals with disabilities, including the provision of reasonable accommodations;CommentsClose CommentsPermalink





(viii)(I) coordinating--CommentsClose CommentsPermalink





(aa) qualified nonprofit agency training, experiential learning options, outplacement, and upward mobility activities, for direct labor employees; withCommentsClose CommentsPermalink





(bb) the activities of the one-stop partners described in section 121(b) of the Workforce Investment Act of 1998 (29 U.S.C. 2841(b)) and agencies carrying out programs under the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.); orCommentsClose CommentsPermalink





(II) providing financial assistance directly for the opportunities described in subclause (I)(aa);CommentsClose CommentsPermalink





(ix) providing information on other emerging workforce issues concerning the delivery of publicly funded employment and training services and supports to assist individuals who are blind and individuals with other significant disabilities to enter the workforce, achieve improved employment results, and become economically self-sufficient;CommentsClose CommentsPermalink





(x) providing training on how to reach goals described in section 103(k); andCommentsClose CommentsPermalink





(xi) carrying out other activities requested by the Committee or qualified nonprofit agencies.CommentsClose CommentsPermalink





(4) ADMINISTRATIVE DUTIES- Each central nonprofit agency shall--CommentsClose CommentsPermalink





(A) represent the interests of the qualified nonprofit agencies;CommentsClose CommentsPermalink





(B) evaluate the qualifications and capabilities of the qualified nonprofit agencies associated with the central nonprofit agency and provide the Committee with pertinent data concerning the qualified nonprofit agencies, their status as qualified nonprofit agencies, their manufacturing or service capabilities, and other information as required by the Committee;CommentsClose CommentsPermalink





(C) obtain such procurement information relating to Federal contracting activities as is required by the Committee to--CommentsClose CommentsPermalink





(i) determine the suitability of a product or service proposed to the Committee for addition to the procurement list;CommentsClose CommentsPermalink





(ii) establish an initial fair market price for a product or service proposed for addition to the procurement list or make a change in the fair market price;CommentsClose CommentsPermalink





(iii) recommend to the Committee suitable products or services for procurement from the qualified nonprofit agencies; andCommentsClose CommentsPermalink





(iv) recommend to the Committee initial fair market prices for products or services proposed for addition to the procurement list;CommentsClose CommentsPermalink





(D) collect and maintain the necessary records and data for qualified nonprofit agencies to distribute orders, and collect and maintain audit reports and Federal returns of organizations exempt from income tax submitted by the qualified nonprofit agencies;CommentsClose CommentsPermalink





(E) oversee and assist qualified nonprofit agencies to ensure compliance with contract terms in furnishing a product or a service and compliance with this title, including appropriate regulations;CommentsClose CommentsPermalink





(F) recommend price changes with appropriate justification for products or services on the procurement list for which the central nonprofit agency has distributed orders;CommentsClose CommentsPermalink





(G) submit initial certifications for qualified nonprofit agencies;CommentsClose CommentsPermalink





(H) assist the Committee to obtain and review the annual certification for each of the qualified nonprofit agencies for the most recent full fiscal year;CommentsClose CommentsPermalink





(I) promote position vacancies within the Federal Government to individuals who are blind, or individuals with other significant disabilities, that are employed by the qualified nonprofit agencies; andCommentsClose CommentsPermalink





(J) perform other nongovernmental administrative functions, subject to the oversight and direction of the Committee, including--CommentsClose CommentsPermalink





(i) carrying out communications and public relations activities to increase Government and public awareness of this title, in accordance with the strategic plan described in section 103(a)(3);CommentsClose CommentsPermalink





(ii) carrying out research and pilot programs and demonstration projects to determine the impact of activities on individuals who are blind and individuals with other significant disabilities;CommentsClose CommentsPermalink





(iii) gathering data and reports from qualified nonprofit agencies in accordance with sections 103(j) and 106(e)(1) to determine if the agencies have met the goals described in section 103(k);CommentsClose CommentsPermalink





(iv) assisting the Committee in carrying out reviews and monitoring and preparing reports, in accordance with section 103; andCommentsClose CommentsPermalink





(v) collecting a fee of up to 4 percent of the amount of each contract for an order awarded to the qualified nonprofit agencies associated with the central nonprofit agency, for facilitating their participation in activities carried out under this title.CommentsClose CommentsPermalink





(b) Initial Designation-CommentsClose CommentsPermalink





(1) ELIGIBLE ENTITIES- To be eligible to be designated as a central nonprofit agency under section 103(d) (and distribute orders of the Government through direct allocation, subcontract, or any other means) a nonprofit agency shall have--CommentsClose CommentsPermalink





(A) experience and expertise in administering and facilitating the distribution of Government contracts;CommentsClose CommentsPermalink





(B) experience and expertise in providing training and technical assistance to individuals with disabilities, nonprofit agencies, and businesses;CommentsClose CommentsPermalink





(C) documented experience with and knowledge about--CommentsClose CommentsPermalink





(i) supported employment, vocational training, customized employment, self-employment, and other types of entrepreneurial employment opportunities and outcomes for individuals with disabilities;CommentsClose CommentsPermalink





(ii) providing transition services for students with disabilities; andCommentsClose CommentsPermalink





(iii) assistive technology; andCommentsClose CommentsPermalink





(D) the expertise necessary to identify the additional data elements needed to provide comprehensive reports on activities and outcomes of the qualified nonprofit agencies authorized under section 106(e), and experience in utilizing data to prepare annual reports.CommentsClose CommentsPermalink





(2) APPLICATION AND ASSURANCES- To be eligible to be designated as a central nonprofit agency under section 103(d), an agency shall submit an application to the Committee at such time, in such manner, and containing such information as the Committee may require. The agency shall include in the application satisfactory assurances that--CommentsClose CommentsPermalink





(A) the agency will establish clear priorities through annual and 3-year program and financial planning objectives for fulfilling the requirements of subsection (a), and meeting the overall strategic plan responsibilities and goals of the Committee pursuant to subsections (a)(3) and (k) of section 103(a)(3) that are related or pertinent to activities authorized or compliance required under this title, and a work plan for carrying out the responsibilities and achieving the goals, including responsibilities relating to the types of services to be provided;CommentsClose CommentsPermalink





(B) the agency will use sound organizational and personnel assignment practices, including making nondiscriminatory decisions to employ and advance in employment qualified individuals who are blind and qualified individuals with other significant disabilities throughout the agency on the same terms and conditions required with respect to the employment of individuals with disabilities under section 503 of the Rehabilitation Act of 1973 (29 U.S.C. 793);CommentsClose CommentsPermalink





(C) the agency will practice sound fiscal management; andCommentsClose CommentsPermalink





(D) the agency will conduct annual self-evaluations, prepare an annual report, and maintain records adequate to measure performance with respect to the goals described in section 103(k), that contain information, including information regarding--CommentsClose CommentsPermalink





(i) the extent to which the agency is meeting the goals;CommentsClose CommentsPermalink





(ii) the number and types of individuals who are blind, or individuals with other significant disabilities, receiving employment and other services through the agency;CommentsClose CommentsPermalink





(iii) the types of training, technical assistance, and other services provided through the agency and the number of individuals who are blind or individuals with other significant disabilities receiving each type of service;CommentsClose CommentsPermalink





(iv) the sources and amounts of funding for the agency, other than funding provided through this title; andCommentsClose CommentsPermalink





(v) the number of individuals who are blind, or individuals with other significant disabilities, who are employed by or are subcontractors of the agency, including the number who are in management, are in decisionmaking positions, or are subcontractors trained by the agency.CommentsClose CommentsPermalink





(c) Maintaining Designation-CommentsClose CommentsPermalink





(1) IN GENERAL- To maintain its designation each central nonprofit agency shall comply with the requirements of this subsection.CommentsClose CommentsPermalink





(2) SPECIFIC QUALIFICATIONS- In addition to meeting the requirements of subsection (b), each central nonprofit agency shall--CommentsClose CommentsPermalink





(A) comply with the applicable compensation, employment, and occupational health and safety standards prescribed by the Secretary of Labor, including procedures to encourage filling of vacancies within the agency by promotion of qualified employees that are individuals who are blind or individuals with other significant disabilities;CommentsClose CommentsPermalink





(B) comply with directives or requests issued by the Committee in furtherance of the objectives of this title, including regulations issued under this title;CommentsClose CommentsPermalink





(C) make the agency’s records, pertinent to activities authorized or compliance required under this title, available for inspection at any reasonable time by representatives of the Committee or an entity representing the Committee;CommentsClose CommentsPermalink





(D) in a case in which the central nonprofit agency is authorized to supply products or services, maintain records of direct labor hours performed for the agency by each worker pursuant to subparagraph (E) of section 106(d)(2);CommentsClose CommentsPermalink





(E)(i) have a financial audit performed by an independent accountant;CommentsClose CommentsPermalink





(ii) in the case of a central nonprofit agency that is required to file a Federal return of organization exempt from income tax, file such a return;CommentsClose CommentsPermalink





(iii) in the case of a central nonprofit agency that receives a Federal award under this title in an annual amount that is not less than the amount specified by the Director of the Office of Management and Budget as described in section 7502(a)(1)(A) of title 31, United States Code, comply with the Single Audit Act of 1984 and the amendments made by that Act; andCommentsClose CommentsPermalink





(iv) submit to the Committee copies of reports of audits, and returns, described in this subparagraph;CommentsClose CommentsPermalink





(F) ensure that Federal returns of organizations exempt from income tax reflect all material correcting adjustments that have been identified in accordance with generally accepted accounting principles;CommentsClose CommentsPermalink





(G) adopt and comply with the Internal Revenue Service regulations relating to excess benefit transactions, issued under section 4958 of the Internal Revenue Code of 1986; andCommentsClose CommentsPermalink





(H) comply with assurances made under subsection (b)(2).CommentsClose CommentsPermalink





(d) Reviews, Monitoring, Reporting, and Auditing-CommentsClose CommentsPermalink





(1) ACCESS- Each central nonprofit agency shall give the Committee access, for the purpose of reviews, monitoring, and audits and examinations, to any records maintained by the central nonprofit agency that may be related or pertinent to activities authorized or compliance required under this title.CommentsClose CommentsPermalink





(2) ANNUAL REPORT-CommentsClose CommentsPermalink





(A) IN GENERAL- Not later than December 1 of the first full fiscal year after the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, and each December 1 thereafter, each central nonprofit agency shall report data for the fiscal year ending the preceding September 30 and provide an annual report to the Committee to enable the Committee to prepare the Committee report described in section 103(j). If the agency has the capability, the agency shall report the data and provide the agency report electronically.CommentsClose CommentsPermalink





(B) CONTENTS- Such agency report shall include--CommentsClose CommentsPermalink





(i) information collected from qualified nonprofit agencies associated with the central nonprofit agency pursuant to section 106(e), aggregated for the central nonprofit agency;CommentsClose CommentsPermalink





(ii) information about the associated qualified nonprofit agencies, aggregated for the central nonprofit agency, consisting of--CommentsClose CommentsPermalink





(I) information on the number of oral presentations given at Committee meetings described in section 106(e)(2)(A) by businesses, resellers, and manufacturing companies;CommentsClose CommentsPermalink





(II) a comparison of sales of items under this title by the qualified nonprofit agencies to sales of similar items through Government contracts with small businesses; andCommentsClose CommentsPermalink





(III) information on--CommentsClose CommentsPermalink

(aa) the frequency of the provision of, and the nature of, the training or technical assistance described in section 106(e)(2)(C) and provided to employees of the qualified nonprofit agencies who are blind, employees of the agencies with other significant disabilities, other employees of the agencies, and businesses;CommentsClose CommentsPermalink

(bb) participation in information, assistance, training, or technical assistance activities, described in section 106(e)(2)(C), by businesses; andCommentsClose CommentsPermalink

(cc) total number of appeals of determinations described in section 103(b)(2)(D)(i);CommentsClose CommentsPermalink

(iii) information about the associated qualified nonprofit agencies, disaggregated by State, consisting of--CommentsClose CommentsPermalink





(I) information on sales under this title;CommentsClose CommentsPermalink





(II) information on the number of employees (and of direct labor employees) that are individuals who are blind or individuals with other significant disabilities, disaggregated for each State as described in section 106(e)(2)(D)(i);CommentsClose CommentsPermalink





(III) information on the number of individuals described in section 106(e)(2)(E); andCommentsClose CommentsPermalink





(IV) information on wages and benefits, including the information described in section 106(e)(2)(F);CommentsClose CommentsPermalink





(iv) information about the central nonprofit agency, consisting of--CommentsClose CommentsPermalink





(I) information on assets, liabilities, and reserves, and income generated by the endowment fund disclosed in subsection (e);CommentsClose CommentsPermalink





(II) a summary of an analysis of economic impact studies performed by the central nonprofit agency on businesses, resellers, and manufacturing companies when determining if services and products should be proposed to the Committee for addition to the procurement list;CommentsClose CommentsPermalink





(III) information on the results of any demonstration projects conducted under section 107 in which the central nonprofit agency participated; andCommentsClose CommentsPermalink





(IV) information on whether the central nonprofit agency had audits, or filed returns, described in section 106(e)(2)(L); andCommentsClose CommentsPermalink





(v) information on other items as determined necessary by the Committee.CommentsClose CommentsPermalink





(3) AVAILABILITY ON WEBSITE- The central nonprofit agency shall make the agency report available to the public on the agency’s website.CommentsClose CommentsPermalink





(e) Endowment Funds-CommentsClose CommentsPermalink





(1) ESTABLISHMENT- Each central nonprofit agency is authorized, using a portion of the fees collected under subsection (a)(4)(J)(v), to establish a Javits-Wagner-O’Day Endowment Fund as a permanent endowment fund, to enable the central nonprofit agency to provide information, assistance, training, and technical assistance under subsection (a)(3).CommentsClose CommentsPermalink





(2) TYPES OF INVESTMENTS- The central nonprofit agency may invest amounts in the endowment fund in instruments and securities offered through 1 or more cooperative service organizations of operating educational organizations under section 501(f) of the Internal Revenue Code of 1986, or in low-risk instruments and securities in which a regulated insurance company may invest under the laws of the State in which the central nonprofit agency is located.CommentsClose CommentsPermalink





(3) MANAGEMENT- In managing the investments of the endowment fund, the central nonprofit agency shall exercise the judgment and care, under the prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of that person’s own business affairs.CommentsClose CommentsPermalink





(4) LIMITATIONS- The central nonprofit agency may not invest amounts in the endowment fund in real estate, or in instruments or securities issued by an organization in which an executive officer or member of the central nonprofit agency is a controlling shareholder, director, or owner within the meaning of securities laws (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) and other applicable laws. The central nonprofit agency may not assign amounts in, hypothecate, encumber, or create a lien on the endowment fund without specific written authorization of the Committee.CommentsClose CommentsPermalink





(5) WITHDRAWALS AND EXPENDITURES-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), the central nonprofit agency may not withdraw or expend any amount in the endowment fund.CommentsClose CommentsPermalink





(B) WITHDRAWAL FOR NECESSARY EXPENSES- Except as provided in subparagraph (E), the central nonprofit agency may, each fiscal year, withdraw or expend not more than 50 percent of the income generated by the endowment fund for the prior fiscal year to provide information, assistance, training, and technical assistance under subsection (a)(3).CommentsClose CommentsPermalink





(C) NO COMMERCIAL PURPOSES- The central nonprofit agency may not withdraw or expend the income generated by the endowment fund for any commercial purpose.CommentsClose CommentsPermalink





(D) MAINTENANCE OF RECORDS- Each fiscal year, the central nonprofit agency shall maintain records of the income generated by the endowment fund for the prior fiscal year and shall include the amount of the income in the Committee report under subsection (d)(2)(B)(iv)(I).CommentsClose CommentsPermalink





(E) EXCEPTION TO WITHDRAWAL LIMIT- The Committee may permit the central nonprofit agency to withdraw or expend a portion of the amounts in the endowment fund in excess of 50 percent of the income generated by the endowment fund for the prior fiscal year if the agency demonstrates, to the Committee’s satisfaction, that such withdrawal or expenditure is necessary because of--CommentsClose CommentsPermalink





(i) a financial emergency, such as a pending insolvency or temporary liquidity problem;CommentsClose CommentsPermalink





(ii) a natural disaster or similarly dangerous situation; orCommentsClose CommentsPermalink





(iii) another unusual occurrence or exigent circumstance.CommentsClose CommentsPermalink





(6) REDISTRIBUTION OF FEE- After providing notice and an opportunity for a hearing, the Committee is authorized to request that the central nonprofit agency deposit additional funding, in excess of the portion described in paragraph (1), from the fees collected under subsection (a)(4)(J)(v) into the endowment fund if the central nonprofit agency--CommentsClose CommentsPermalink





(A) makes a withdrawal or expenditure of an amount in the endowment fund that is not consistent with this subsection;CommentsClose CommentsPermalink





(B) fails to comply with the investment standards and limitations described in this subsection; orCommentsClose CommentsPermalink





(C) fails to account properly to the Committee concerning the investment of, or a withdrawal or expenditure of, an amount in the endowment fund.CommentsClose CommentsPermalink





(7) DEFINITIONS- In this section:CommentsClose CommentsPermalink





(A) ENDOWMENT FUND- The term ‘endowment fund’ means a fund established and maintained pursuant to this subsection by a central nonprofit agency, for the purpose of generating income to provide services under subsection (a).CommentsClose CommentsPermalink





(B) INCOME- The term ‘income’, used with respect to an endowment fund under this subsection, means an amount equal to the dividends and interest accruing from investments of amounts in such fund.CommentsClose CommentsPermalink





(f) Committee Portion of Fees- The central nonprofit agencies shall make available to the Committee 5 percent of the fees collected under subsection (a)(4)(J)(v), but the agencies, collectively, shall not make available more than a total of $5,000,000 from such fees to the Committee for a fiscal year. The Committee shall use the funds made available under this paragraph as described in section 103(m).CommentsClose CommentsPermalink





(g) Corrective Action Plan and Sanctions-CommentsClose CommentsPermalink





(1) CORRECTIVE ACTION PLAN- If the Committee determines that a central nonprofit agency fails to comply with the requirements of this title, or to make progress toward carrying out the agency’s duties under this title, not later than 90 days after making that determination, the Committee shall assist the agency, through technical assistance or other means, to develop a corrective action plan, for the year following the date of the determination.CommentsClose CommentsPermalink





(2) SANCTIONS FOR NONCOMPLIANCE WITH PLAN-CommentsClose CommentsPermalink





(A) FIRST YEAR- If the Committee determines that the central nonprofit agency fails to develop and comply with a corrective action plan described in paragraph (1) for a year, the Committee shall--CommentsClose CommentsPermalink





(i) partially or completely suspend the agency’s authority to collect or use the fee authorized in subsection (a)(4)(J)(v), and shall direct the use of the fee, until the central nonprofit agency develops and complies with such a plan; orCommentsClose CommentsPermalink





(ii) establish a proportion of the fee authorized in subsection (a)(4)(J)(v) that may be used for indirect costs, and establish a proportion of the fee that shall be deposited in the endowment fund authorized in subsection (e) and used for information, assistance, training, and technical assistance under subsection (a)(3), for the following year.CommentsClose CommentsPermalink





(B) SECOND YEAR- If the Committee determines that the central nonprofit agency fails to develop and comply with the corrective action plan for 2 consecutive years, the Committee shall suspend the agency’s designation as a central nonprofit agency for the following year, including suspension of authority to collect or use the fee authorized in subsection (a)(4)(J)(v), and shall direct the use of the fee for that year.CommentsClose CommentsPermalink





(C) THIRD YEAR-CommentsClose CommentsPermalink





(i) IN GENERAL- If the Committee determines that the central nonprofit agency fails to develop and comply with the corrective action plan for 3 consecutive years, the Committee shall designate a new central nonprofit agency.CommentsClose CommentsPermalink





(ii) IMPACT OF REDESIGNATION- If the Committee designates a new agency to replace a former central nonprofit agency under clause (i), the former agency may not apply for designation as a central nonprofit agency under this title until--CommentsClose CommentsPermalink





(I) 5 years after the date of the designation of the new agency; andCommentsClose CommentsPermalink





(II) the former agency demonstrates that it has complied with the corrective action plan.CommentsClose CommentsPermalink





(3) EGREGIOUS VIOLATION AT ANY TIME- If the Committee determines that the central nonprofit agency has committed an egregious violation of this title, the Committee shall suspend the agency’s designation as a central nonprofit agency, including suspension of authority to collect or use the fee authorized in subsection (a)(4)(J)(v), and shall direct the use of the fee.CommentsClose CommentsPermalink





(4) APPEALS PROCEDURES- The Committee shall establish appeals procedures for central nonprofit agencies that are determined to--CommentsClose CommentsPermalink





(A) have failed to comply or make progress as described in paragraph (1);CommentsClose CommentsPermalink





(B) have failed to develop and comply with a corrective action plan under paragraph (2); orCommentsClose CommentsPermalink





(C) have committed an egregious violation of this title, as described in paragraph (3).CommentsClose CommentsPermalink





(5) COMMITTEE ACTION- As part of the annual reports required under section 103(j), the Committee shall describe each action taken under paragraph (1), (2), or (3) and the outcomes of each such action.CommentsClose CommentsPermalink





(6) PUBLIC NOTIFICATION- The Committee shall notify the public of each action taken by the Committee under paragraph (1), (2), or (3) by making available information about the action on the website of the Committee. As a part of such notification, the Committee shall describe each such action taken under paragraph (1), (2), or (3) and the outcomes of each such action.CommentsClose CommentsPermalink





(7) RULE OF CONSTRUCTION- Nothing in this section shall be construed to require the Committee to sanction a central nonprofit agency (including designating a new agency to replace a central nonprofit agency) upon enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008.CommentsClose CommentsPermalink

SEC. 106. QUALIFIED NONPROFIT AGENCIES.

(a) In General- In accordance with section 103(d), the central nonprofit agencies shall facilitate the distribution of orders of the Government for products and services on the procurement list among qualified nonprofit agencies for individuals who are blind and qualified nonprofit agencies for individuals with other significant disabilities.CommentsClose CommentsPermalink





(b) Duties- The qualified nonprofit agencies that receive such orders shall--CommentsClose CommentsPermalink





(1) fulfill the requirements of the orders from the Government for products and services;CommentsClose CommentsPermalink





(2) provide employment for individuals who are blind or individuals with other significant disabilities; andCommentsClose CommentsPermalink





(3) provide skill development, training, technical assistance, and experiential learning options to help such employees maintain, regain, or advance in employment--CommentsClose CommentsPermalink





(A) with the assistance of the central nonprofit agencies pursuant to subparagraphs (A) and (B) of section 105(a)(3), one-stop partners described in section 121(b) of the Workforce Investment Act of 1998 (29 U.S.C. 2841(b)), and agencies carrying out programs under the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.); andCommentsClose CommentsPermalink





(B) to meet the goals described in section 103(k).CommentsClose CommentsPermalink





(c) Initial Qualification- In order to be qualified as a qualified nonprofit agency under this title, a nonprofit agency shall submit an application to a central nonprofit agency at such time, in such manner, and containing such information as the central nonprofit agency or the Committee shall require, and shall meet the following requirements:CommentsClose CommentsPermalink





(1) DOCUMENTS OF PRIVATELY INCORPORATED NONPROFIT AGENCY- A privately incorporated nonprofit agency shall submit to the Committee through the associated central nonprofit agency the following documents, transmitted with a letter signed by a chief executive or other officer of the corporation:CommentsClose CommentsPermalink





(A) A copy of the articles of incorporation, showing the date of filing and the signature of an appropriate State official.CommentsClose CommentsPermalink





(B) A copy of the bylaws for the corporation, certified by an officer of the corporation.CommentsClose CommentsPermalink





(C) If the articles of incorporation or bylaws do not include wording to the effect that no part of the net income of the nonprofit agency may inure to the benefit of any shareholder or other individual, 1 of the following:CommentsClose CommentsPermalink





(i) A certified copy of the State statute under which the nonprofit agency was incorporated that includes wording to the effect that no part of the net income of the nonprofit agency may inure to the benefit of any shareholder or other individual.CommentsClose CommentsPermalink





(ii) A copy of a resolution approved by the governing body of the corporation, certified by an officer of the corporation, with wording to the effect that no part of the net income of the nonprofit agency may inure to the benefit of any shareholder or other individual.CommentsClose CommentsPermalink





(2) DOCUMENTS OF STATE-OWNED OR STATE-OPERATED NONPROFIT AGENCY- A State-owned or State-operated nonprofit agency, or a nonprofit agency established or authorized by a State statute other than the State corporation laws and not privately incorporated, shall submit to the Committee through the associated central nonprofit agency 1 of the following documents, transmitted with a letter signed by an official of the agency that directs the operations of the nonprofit agency or, in the case of a State-owned nonprofit agency, an officer of the agency, as applicable:CommentsClose CommentsPermalink





(A) A certified true copy of the State statute establishing or authorizing qualified nonprofit agencies for individuals who are blind or qualified nonprofit agencies for individuals with other significant disabilities.CommentsClose CommentsPermalink





(B)(i) In the case of a State-owned nonprofit agency, a certified true copy of the corporation bylaws.CommentsClose CommentsPermalink





(ii) In the case of a State or local government agency, a certified true copy of implementing regulations, operating procedures, notice of establishment of the nonprofit agency, or other similar documents.CommentsClose CommentsPermalink





(3) ASSURANCES- The agency shall include in the application satisfactory assurances that--CommentsClose CommentsPermalink





(A) the agency will establish clear priorities through annual and 3-year program and financial planning objectives for fulfilling the requirements of subsections (a) and (b), and meeting the overall strategic plan responsibilities and goals of the Committee pursuant to subsections (a)(3) and (k) of section 103 that are related or pertinent to activities authorized or compliance required under this title, and a work plan for carrying out the responsibilities and achieving the goals, including responsibilities relating to the types of services to be provided;CommentsClose CommentsPermalink





(B) the agency will use sound organizational and personnel assignment practices, including making nondiscriminatory decisions to employ and advance in employment qualified individuals with significant disabilities throughout the agency on the same terms and conditions required with respect to the employment of individuals with disabilities under section 503 of the Rehabilitation Act of 1973 (29 U.S.C. 793);CommentsClose CommentsPermalink





(C) the agency will practice sound fiscal management; andCommentsClose CommentsPermalink





(D) the agency will conduct annual self-evaluations, prepare an annual report, and maintain records adequate to measure performance with respect to the goals described in section 103(k), that contain information, including information regarding--CommentsClose CommentsPermalink





(i) the extent to which the agency is meeting the goals;CommentsClose CommentsPermalink





(ii) the number and types of individuals who are blind, or individuals with other significant disabilities, receiving employment and other services through the agency;CommentsClose CommentsPermalink





(iii) the number of individuals who are blind or individuals with other significant disabilities that received training, technical assistance or other services, and the type of services they received;CommentsClose CommentsPermalink





(iv) the sources and amounts of funding for the agency, other than funding provided through this title; andCommentsClose CommentsPermalink





(v) the number of individuals who are blind, or individuals with other significant disabilities, who are employed by or are subcontractors of the agency, including the number who are in management, are in decisionmaking positions, or are subcontractors trained by the agency.CommentsClose CommentsPermalink





(d) Maintaining Qualification-CommentsClose CommentsPermalink





(1) IN GENERAL- To maintain its qualification each qualified nonprofit agency shall comply with the requirements of this subsection. In addition, each qualified nonprofit agency shall submit to the associated central nonprofit agency by November 1 of each year, 2 completed copies of the annual certification described in subparagraph (G) or (H) of section 105(a)(4) covering the preceding full fiscal year. If the agency has the capability, the agency shall submit the copies of the certification electronically.CommentsClose CommentsPermalink





(2) SPECIFIC QUALIFICATIONS- In addition to meeting the requirements of subsection (c), each nonprofit agency shall--CommentsClose CommentsPermalink





(A) furnish products or services in strict accordance with Government orders;CommentsClose CommentsPermalink





(B) comply with the applicable compensation, employment, and occupational health and safety standards prescribed by the Secretary of Labor, including procedures to encourage filling of vacancies within the agency by promotion of qualified employees that are individuals who are blind or individuals with other significant disabilities;CommentsClose CommentsPermalink





(C) comply with directives or requests issued by the Committee in furtherance of the objectives of this title, including regulations issued under this title;CommentsClose CommentsPermalink





(D)(i) make the agency’s records, pertinent to activities authorized or compliance required under this title, available for inspection at any reasonable time by representatives of the Committee or the central nonprofit agency associated with the nonprofit agency, or by an entity representing the Committee or central nonprofit agency; andCommentsClose CommentsPermalink





(ii) if the agency has the capability, make the records available electronically;CommentsClose CommentsPermalink





(E) maintain records of direct labor hours performed for the agency by each worker, including--CommentsClose CommentsPermalink





(i) for individuals who are blind--CommentsClose CommentsPermalink





(I) a file for each such individual performing direct labor that contains a written report reflecting visual acuity and field of vision of each eye, with best correction, signed by a person licensed to evaluate such acuity and field of vision, or a certification of blindness by a State or local government entity; andCommentsClose CommentsPermalink





(II) within the file, information pertaining to the individual--CommentsClose CommentsPermalink

(aa) describing 2 or more experiential learning options, provided to the individual for not less than 2 weeks of each year for which the agency employs the individual;CommentsClose CommentsPermalink

(bb) reporting on the experience provided through the experiential learning options, including goals for creating individualized employment results based on the unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of the individual;CommentsClose CommentsPermalink

(cc) describing individualized training activities offered that the employee participates in to try to achieve the desired individualized employment results; andCommentsClose CommentsPermalink

(dd) describing an overall assessment of the experience, identifying the data described in subsection (e)(2)(J); andCommentsClose CommentsPermalink

(III) within the file, an annual report based on information described in subclause (II), describing the ability of the individual to engage in competitive employment, which shall be prepared and signed by an individual qualified by training or experience to determine that ability; andCommentsClose CommentsPermalink





(ii) for individuals with other significant disabilities--CommentsClose CommentsPermalink





(I) a file for each such individual performing direct labor with a written report signed by a licensed physician, psychiatrist, or qualified psychologist, reflecting the nature and extent of each disability that causes such individual to qualify as a individual with another significant disability, or a certification of each such disability by a State or local government entity;CommentsClose CommentsPermalink





(II) within the file, information pertaining to the individual--CommentsClose CommentsPermalink

(aa) describing 2 or more experiential learning options, provided to the individual for not less than 2 weeks of each year for which the agency employs the individual;CommentsClose CommentsPermalink

(bb) reporting on the experience provided through the experiential learning options, including goals for creating individualized employment results based on the unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of the individual;CommentsClose CommentsPermalink

(cc) describing individualized training activities offered that the employee participates in to try to achieve the desired individualized employment results; andCommentsClose CommentsPermalink

(dd) describing an overall assessment of the experience, identifying the data described in subsection (e)(2)(J); andCommentsClose CommentsPermalink

(III) within the file, annual reports based on information described in subclause (II), describing the ability of the individual to engage in competitive employment, which shall be prepared and signed by an individual qualified by training and experience to evaluate the work potential, interests, aptitudes, and abilities of individuals with disabilities and shall normally consist of--CommentsClose CommentsPermalink

(aa) for individuals who have been employed by the qualified nonprofit agency for less than 2 years, a preadmission evaluation and (if appropriate) 1 annual reevaluation; orCommentsClose CommentsPermalink

(bb) for individuals who have been employed by the qualified nonprofit agency for not less than 2 years, at least the 2 most recent annual reevaluations;CommentsClose CommentsPermalink

(F) maintain an ongoing training and placement program, operated by or for the agency, that--CommentsClose CommentsPermalink





(i) shall include liaison with entities providing appropriate community services such as the one-stop partners described in section 121(b) of the Workforce Investment Act of 1998 (29 U.S.C. 2841(b)), agencies carrying out programs under the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), employer groups, and others; andCommentsClose CommentsPermalink





(ii) shall assist those individuals that are determined to be capable and desirous of competitive employment in obtaining such employment;CommentsClose CommentsPermalink





(G) upon receipt of payment by the Government for products or services furnished under the program carried out under this title, pay to the central nonprofit agency a fee in accordance with section 105(a)(4)(J)(v);CommentsClose CommentsPermalink





(H)(i) in the case of a qualified nonprofit agency that receives a Federal award under this title in an annual amount that is not less than $1,000,000, have an audit performed by an independent accountant;CommentsClose CommentsPermalink





(ii) in the case of a qualified nonprofit agency that is required to file a Federal return of organization exempt from income tax, file such a return;CommentsClose CommentsPermalink





(iii) in the case of a qualified nonprofit agency that receives a Federal award under this title in an annual amount that is not less than the amount specified by the Director of the Office of Management and Budget as described in section 7502(a)(1)(A) of title 31, United States Code, comply with the Single Audit Act of 1984 and the amendments made by that Act; andCommentsClose CommentsPermalink





(iv) submit to the associated central nonprofit agency copies of reports of audits, and returns, described in this subparagraph;CommentsClose CommentsPermalink





(I) ensure that Federal returns of organizations exempt from income tax reflect all material correcting adjustments that have been identified in accordance with generally accepted accounting principles;CommentsClose CommentsPermalink





(J) adopt and comply with the Internal Revenue Service regulations relating to intermediate sanctions, issued under section 4958 of the Internal Revenue Code of 1986; andCommentsClose CommentsPermalink





(K) comply with assurances made under subsection (c)(3).CommentsClose CommentsPermalink





(3) APPLICATION OF PROVISIONS- An entity that is a qualified nonprofit agency on the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008 shall not be required to establish eligibility in accordance with subsection (c) but shall be required to maintain eligibility in accordance with this subsection.CommentsClose CommentsPermalink





(e) Annual Report-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than November 1 of the first full fiscal year after the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008, and each November 1 thereafter, each qualified nonprofit agency shall report data for the fiscal year ending the preceding September 30 and provide an annual report to the Committee, through the associated central nonprofit agency, to enable the Committee to prepare the Committee report described in section 103(j). If the qualified nonprofit agency has the capability, the agency shall report the data and provide the agency report electronically.CommentsClose CommentsPermalink





(2) CONTENTS- Such agency report shall include information, for the qualified nonprofit agency--CommentsClose CommentsPermalink





(A) on procurement, including--CommentsClose CommentsPermalink





(i) how long it took for an item produced or provided by the qualified nonprofit agency to be added to the procurement list from the time the associated central nonprofit agency sent a pricing memorandum to the Committee;CommentsClose CommentsPermalink





(ii) the number of such items proposed to be added to the procurement list that were denied;CommentsClose CommentsPermalink





(iii) justifications for price changes and other modifications to products and services of the qualified nonprofit agency on the procurement list;CommentsClose CommentsPermalink





(iv) total number of appeals by the qualified nonprofit agency of determinations described in section 103(b)(2)(D)(i); andCommentsClose CommentsPermalink





(v) the number of, and information identifying, the products and services of the qualified nonprofit agency on the procurement list that have not been purchased in the last 12, 24, and 36 months;CommentsClose CommentsPermalink





(B) on sales (including sales through base supply stores) under this title, including total sales and sales disaggregated by products and services;CommentsClose CommentsPermalink





(C) on participation in information, assistance, training, or technical assistance activities offered by the associated central nonprofit agency, including information on--CommentsClose CommentsPermalink





(i) that participation, in total and disaggregated by employees who are blind, employees with other significant disabilities, and other employees of the qualified nonprofit agency; andCommentsClose CommentsPermalink





(ii) that participation, in total and disaggregated--CommentsClose CommentsPermalink





(I) by training, technical assistance, and rehabilitation activities;CommentsClose CommentsPermalink





(II) by topic; andCommentsClose CommentsPermalink





(III) by method of delivery (such as through videos, seminars, or web-based technologies);CommentsClose CommentsPermalink





(D)(i) on the number of employees that are individuals who are blind or individuals with other significant disabilities, disaggregated--CommentsClose CommentsPermalink





(I) by disability type;CommentsClose CommentsPermalink





(II) by whether the individuals involved are veterans, persons transitioning from institutions or schools, students, individuals acquiring disabilities as adults, or members of other populations; orCommentsClose CommentsPermalink





(III) by demographic information; andCommentsClose CommentsPermalink





(ii) on the number of direct labor employees that are individuals who are blind or individuals with other significant disabilities, disaggregated as described in clause (i);CommentsClose CommentsPermalink





(E) on the number of individuals who are blind or individuals with other significant disabilities that were outplaced or advanced in employment within the qualified nonprofit agency;CommentsClose CommentsPermalink





(F) on wages and benefits, including information on--CommentsClose CommentsPermalink





(i) average wages of direct labor employees, for individuals who are blind, individuals with other significant disabilities, and individuals who do not have significant disabilities;CommentsClose CommentsPermalink





(ii) average wages and total number of direct labor employees, for individuals who are blind making commensurate wages, individuals with other significant disabilities making commensurate wages, and individuals who do not have significant disabilities;CommentsClose CommentsPermalink





(iii) average wages and total number of direct labor employees, for individuals who are blind making commensurate wages at less than the minimum wage rate, individuals with other significant disabilities making commensurate wages at less than the minimum wage rate, and individuals who do not have significant disabilities, making commensurate wages at less than the minimum wage rate; andCommentsClose CommentsPermalink





(iv) the percentage increase in wages, for each group of employees described in clauses (i) through (iii), compared to the wage for that group in each of the preceding 2 years;CommentsClose CommentsPermalink





(G) on the number of contracts of the qualified nonprofit agency with--CommentsClose CommentsPermalink





(i) other qualified nonprofit agencies;CommentsClose CommentsPermalink





(ii) other nonprofit agencies;CommentsClose CommentsPermalink





(iii) small businesses; andCommentsClose CommentsPermalink





(iv) small businesses owned by individuals with disabilities, disaggregated by whether the individual with a disability was an employee of, and trained by, a qualified nonprofit agency;CommentsClose CommentsPermalink





(H) the costs incurred under this title by the qualified nonprofit agency preparing the report to conduct administration, and provide assessment services, counseling and guidance, and other direct services;CommentsClose CommentsPermalink





(I)(i) development of new employment opportunities for employees that are individuals who are blind or individuals with other significant disabilities, including opportunities through--CommentsClose CommentsPermalink





(I) electronic commerce;CommentsClose CommentsPermalink





(II) subcontracting by the qualified nonprofit agency to employees that are individuals who are blind, or individuals with other significant disabilities, trained by the agency;CommentsClose CommentsPermalink





(III) outplacement (as provided for in clause (i) or (ii) of section 103(g)(1)(B)); andCommentsClose CommentsPermalink





(IV) promotion (as provided for in section 103(g)(1)(B)(iii);CommentsClose CommentsPermalink





(ii) the success rate for the opportunities described in each of subclauses (I) through (IV) of clause (i); andCommentsClose CommentsPermalink





(iii) the number of jobs lost by the qualified nonprofit agency during the fiscal year covered by the report;CommentsClose CommentsPermalink





(J) on data regarding experiential learning options--CommentsClose CommentsPermalink





(i) describing obstacles that individuals who are blind or individuals with other significant disabilities participating in the options encountered while trying to achieve desired employment results and describing whether the obstacles were overcome; andCommentsClose CommentsPermalink





(ii) describing strategies, solutions, and methods of individuals experiencing positive outcomes through the experiential learning options;CommentsClose CommentsPermalink





(K) on data regarding meeting goals described in section 103(k);CommentsClose CommentsPermalink





(L) on whether the qualified nonprofit agency had an audit performed by an independent accountant, or filed a Federal return of organization exempt from income tax; andCommentsClose CommentsPermalink





(M) on other items as determined necessary by the associated central nonprofit agency or the Committee.CommentsClose CommentsPermalink





(3) AVAILABILITY ON WEBSITE- The qualified nonprofit agency shall make the agency report available to the public on the agency’s website.CommentsClose CommentsPermalink





(4) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink





(A) COMMENSURATE WAGE- The term ‘commensurate wage’ means a commensurate wage as described in section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)).CommentsClose CommentsPermalink





(B) MINIMUM WAGE RATE- The term ‘minimum wage rate’ means the minimum wage rate set forth in section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)).CommentsClose CommentsPermalink





(f) Executive Compensation-CommentsClose CommentsPermalink





(1) LIMITATION ON RATE- Revenues generated through this title and funds made available under this title shall not be used to pay staff employed by a qualified nonprofit agency, either as a direct cost or through any proration as an indirect cost, at a rate in excess of the rate payable for level II of the Executive Schedule under section 5313 of title 5, United States Code, as in effect on the date of enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008.CommentsClose CommentsPermalink





(2) CONSTRUCTION- Nothing in this subsection shall be construed to forbid a qualified nonprofit agency from using revenue or funds not described in paragraph (1) to contribute to the salary of staff employed by the qualified nonprofit agency, even if the resulting total rate for that salary exceeds the rate allowable under paragraph (1).CommentsClose CommentsPermalink





(g) Corrective Action Plan and Sanctions-CommentsClose CommentsPermalink





(1) CORRECTIVE ACTION PLAN-CommentsClose CommentsPermalink





(A) INVESTIGATION- Any alleged violation of this title by a qualified nonprofit agency shall be investigated by the Committee, with the assistance of the associated central nonprofit agency. The central nonprofit agency shall notify the qualified nonprofit agency and afford the agency an opportunity to submit a statement of facts and evidence. The central nonprofit agency shall prepare and submit to the Committee a report containing the findings resulting from the agency’s investigation, together with its recommendations.CommentsClose CommentsPermalink





(B) DEVELOPMENT OF PLAN- If the Committee determines that a qualified nonprofit agency fails to comply with the requirements of this title, or to make progress toward carrying out the agency’s duties under this title, not later than 90 days after making that determination, the Committee shall assist the agency, through technical assistance or other means, to develop a corrective action plan, for the year following the date of the determination.CommentsClose CommentsPermalink





(2) SANCTIONS FOR NONCOMPLIANCE WITH PLAN-CommentsClose CommentsPermalink





(A) FIRST YEAR- If the Committee determines that the qualified nonprofit agency fails to develop and comply with the corrective action plan described in paragraph (1) for a year, the associated central nonprofit agency, acting at the direction of the Committee, shall--CommentsClose CommentsPermalink





(i) partially suspend an affected order of the Government described in subsection (a) for a product or service, until the qualified nonprofit agency develops and complies with the plan; andCommentsClose CommentsPermalink





(ii) redistribute the order to another qualified nonprofit agency until the agency with the suspended order develops and complies with the plan.CommentsClose CommentsPermalink





(B) SECOND YEAR- If the Committee determines that the qualified nonprofit agency fails to develop and comply with the corrective action plan for 2 consecutive years, the central nonprofit agency, acting at the direction of the Committee, shall--CommentsClose CommentsPermalink





(i) partially or completely suspend an affected order of the Government described in subsection (a) for a product or service, and suspend the qualified nonprofit agency’s authority to receive any additional order of the Government described in subsection (a), until the qualified nonprofit agency develops and complies with the plan; andCommentsClose CommentsPermalink





(ii) redistribute the affected order to another qualified nonprofit agency until the agency with the suspended order develops and complies with the plan.CommentsClose CommentsPermalink





(C) THIRD YEAR-CommentsClose CommentsPermalink





(i) IN GENERAL- If the Committee determines that the qualified nonprofit agency fails to develop and comply with the corrective action plan for 3 consecutive years, the central nonprofit agency, acting at the direction of the Committee, shall--CommentsClose CommentsPermalink





(I) terminate the agency’s qualification as a qualified nonprofit agency, including termination of authority to receive an order of the Government described in subsection (a); andCommentsClose CommentsPermalink





(II) redistribute the orders received by the qualified nonprofit agency to another qualified nonprofit agency.CommentsClose CommentsPermalink





(ii) IMPACT OF TERMINATION- If the central nonprofit agency terminates the agency’s qualification as a qualified nonprofit agency under clause (i)(I), the former agency may not apply for qualification as such an agency under this title until--CommentsClose CommentsPermalink





(I) 5 years after the date of the termination; andCommentsClose CommentsPermalink





(II) the former agency demonstrates that it has complied with the corrective action plan.CommentsClose CommentsPermalink





(3) DETERMINATION- The Committee shall determine, prior to terminating the qualification of a qualified nonprofit agency under paragraph (2)(C), if the product produced or service provided by the agency through the order can be purchased through another qualified nonprofit agency, another nonprofit agency, or commercially. To assist the Committee in making the determination, the entity of the Government ordering such product or service shall state in writing whether such product or service can be so purchased. If the product or service cannot be so purchased, the Committee shall not terminate the qualification.CommentsClose CommentsPermalink





(4) EGREGIOUS VIOLATION AT ANY TIME- If the Committee determines that the qualified nonprofit agency has committed an egregious violation of this title, the central nonprofit agency, acting at the direction of the Committee, shall--CommentsClose CommentsPermalink





(A) suspend the agency’s qualification as a qualified nonprofit agency, including suspension of authority to receive an order of the Government described in subsection (a); andCommentsClose CommentsPermalink





(B) redistribute the orders received by the qualified nonprofit agency to another qualified nonprofit agency.CommentsClose CommentsPermalink





(5) APPEALS PROCEDURES- The Committee shall establish appeals procedures for qualified nonprofit agencies that are determined to--CommentsClose CommentsPermalink





(A) have failed to comply or make progress as described in paragraph (1);CommentsClose CommentsPermalink





(B) have failed to develop and comply with a corrective action plan under paragraph (2); orCommentsClose CommentsPermalink





(C) have committed an egregious violation of this title, as described in paragraph (4).CommentsClose CommentsPermalink





(6) COMMITTEE ACTION- As part of the annual reports required under section 103(j), the Committee shall describe each action taken under paragraph (1), (2), or (4) and the outcomes of each such action.CommentsClose CommentsPermalink





(7) PUBLIC NOTIFICATION- The Committee shall notify the public of each action taken by the Committee (or the central nonprofit agency, acting at the direction of the Committee) under paragraph (1), (2), or (4) by making available information about the action on the website of the Committee. As a part of such notification, the Committee shall describe each such action taken under paragraph (1), (2), or (4) and the outcomes of each such action.CommentsClose CommentsPermalink





(8) RULES OF CONSTRUCTION-CommentsClose CommentsPermalink





(A) PHASE-IN REQUESTS- A qualified nonprofit agency shall not be considered to be out of compliance with the direct labor hour percentage requirements of paragraph (11)(C) or (12)(C) of section 2 or section 103(g) if a phase-in request was approved by the Committee for the agency and is in effect under section 103(g).CommentsClose CommentsPermalink





(B) TIMING OF SANCTIONS- Nothing in this section shall be construed to require the Committee to sanction a qualified nonprofit agency upon enactment of the Javits-Wagner-O’Day and Randolph-Sheppard Modernization Act of 2008.CommentsClose CommentsPermalink

SEC. 107. DEMONSTRATION PROJECTS.

(a) Types of Demonstration Projects- Pursuant to section 105(a)(4)(J)(ii), each central nonprofit agency shall conduct the following demonstration projects.CommentsClose CommentsPermalink





(1) DEMONSTRATION PROJECTS FOR EMPLOYMENT OF STUDENTS WITH SIGNIFICANT DISABILITIES-CommentsClose CommentsPermalink





(A) PURPOSE- The purpose of this paragraph is to support model demonstration projects to provide employment experiences for students with disabilities in order to enable such students to gain employment skills and experience that will promote the student’s effective transition from school to employment.CommentsClose CommentsPermalink





(B) DEFINITIONS- In this paragraph:CommentsClose CommentsPermalink





(i) STUDENT WITH A SIGNIFICANT DISABILITY- The term ‘student with a significant disability’ means an individual with a significant disability who--CommentsClose CommentsPermalink





(I)(aa) receives special education and related services in accordance with an individualized education program; orCommentsClose CommentsPermalink





(bb) receives services under a plan under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794; referred to in this paragraph as a ‘504 plan’);CommentsClose CommentsPermalink





(II) meets the definition of disability under paragraphs (1) and (9) of section 2; andCommentsClose CommentsPermalink





(III) has attained the age of 16 but has not attained the age of 22.CommentsClose CommentsPermalink





(ii) INDIVIDUALIZED EDUCATION PROGRAM- The term ‘individualized education program’ has the meaning given the term in section 614(d) of the Individuals with Disabilities Education Act (20 U.S.C. 1414(d)).CommentsClose CommentsPermalink





(C) PROGRAM AUTHORIZED-CommentsClose CommentsPermalink





(i) IN GENERAL- A central nonprofit agency may, on a competitive basis, award grants or contracts to, or enter into cooperative agreements with, qualified nonprofit agencies to enable the qualified nonprofit agencies to carry out a demonstration project under this paragraph.CommentsClose CommentsPermalink





(ii) REPRESENTATION- A central nonprofit agency making awards or entering into cooperative agreements under clause (i) shall ensure, to the extent practicable, an equitable geographic distribution of such awards or agreements across the United States.CommentsClose CommentsPermalink





(iii) DURATION- A grant, contract, or cooperative agreement awarded or entered into under clause (i) by a central nonprofit agency shall be for a period of not less than 3 nor more than 5 years.CommentsClose CommentsPermalink





(D) APPLICATIONS- Each qualified nonprofit agency desiring to receive a grant, contract, or cooperative agreement under subparagraph (C) shall submit an application to the central nonprofit agency at such time, in such manner, and including such information as the central nonprofit agency or the Committee may reasonably require. Each application shall include--CommentsClose CommentsPermalink





(i) a description of how the qualified nonprofit agency plans to carry out the activities described in subparagraph (E);CommentsClose CommentsPermalink





(ii) a description of how the qualified nonprofit agency will work with the central nonprofit agency to disseminate information about--CommentsClose CommentsPermalink





(I) the activities described in subparagraph (E) that will be carried out by the qualified nonprofit agency; andCommentsClose CommentsPermalink





(II) the impact of such activities on the lives of the students with disabilities served by the demonstration project;CommentsClose CommentsPermalink





(iii) a description of how the qualified nonprofit agency will coordinate activities with schools and any other relevant service providers in the locality where the qualified nonprofit agency is based;CommentsClose CommentsPermalink





(iv) a plan for an evaluation that meets the requirements of subparagraph (F); andCommentsClose CommentsPermalink





(v) any other information that the central nonprofit agency or the Committee may reasonably require.CommentsClose CommentsPermalink





(E) AUTHORIZED ACTIVITIES- A qualified nonprofit agency that receives a grant or contract, or enters into a cooperative agreement, under subparagraph (C) shall use the funds made available through the grant, contract, or cooperative agreement to carry out the following activities for students with disabilities:CommentsClose CommentsPermalink





(i) Assess the employment and postsecondary needs of students with significant disabilities who have completed, or are nearing completion of, an individualized education program or a plan under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). The employment and postsecondary needs assessment of such a student may include--CommentsClose CommentsPermalink





(I) participating (as appropriate when vocational goals are discussed) in a meeting regarding the individualized education program or 504 plan for the student; andCommentsClose CommentsPermalink





(II) providing the specific transition needed to achieve the individual’s employment outcome or projected employment outcome, as identified in the student’s individualized education program or a similar result as identified in the student’s 504 plan.CommentsClose CommentsPermalink





(ii) Conduct outreach to students with significant disabilities, including students with significant disabilities attending private schools, in order to coordinate services designed to facilitate the transition of such students to postsecondary life, including employment.CommentsClose CommentsPermalink





(iii) Enter into employment contracts of not more than 3 years with the parents of such students with significant disabilities--CommentsClose CommentsPermalink





(I) to provide the students with employment, through contracts obtained by the qualified nonprofit agency, as well as experiential learning options (to be provided for not less than 2 weeks of each year for which the agency employs the students) and training to build the skills of the students;CommentsClose CommentsPermalink





(II) to assist the students in obtaining the students’ proposed postsecondary goals identified in the students’ individualized education programs or similar results identified in the students’ 504 plans; andCommentsClose CommentsPermalink





(III) that specify that, if such a contract for employment of a student is terminated, the student may not be employed by the qualified nonprofit agency after the termination.CommentsClose CommentsPermalink





(iv) Carry out outplacement programs designed to facilitate the transition of students with significant disabilities who are employed by the qualified nonprofit agency into competitive community employment or postsecondary education, based on the unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of each student, by providing--CommentsClose CommentsPermalink





(I) opportunities for upward mobility for such students within the qualified nonprofit agency;CommentsClose CommentsPermalink





(II) career, technical, and educational guidance;CommentsClose CommentsPermalink





(III) career exploration services;CommentsClose CommentsPermalink





(IV) job searches and training regarding job searches; andCommentsClose CommentsPermalink





(V) transition to competitive employment described in section 103(g)(1)(B)(i) or postsecondary education, based on the student’s proposed postsecondary goals identified in the student’s individualized education program (if applicable) or similar results identified in the student’s 504 plan (if applicable), following the conclusion of the student’s employment contract with the agency.CommentsClose CommentsPermalink





(F) MANDATED EVALUATION AND DISSEMINATION ACTIVITIES-CommentsClose CommentsPermalink





(i) ANNUAL REPORT- Not later than 2 years after the date on which the central nonprofit agency awards a grant or contract, or enters into a cooperative agreement, under subparagraph (C), and annually thereafter for the duration of such grant, contract, or cooperative agreement, the qualifying nonprofit agency receiving the grant or contract, or entering into the cooperative agreement, shall submit to the central nonprofit agency a report, resulting from an evaluation, containing information on--CommentsClose CommentsPermalink





(I) the number of students with significant disabilities who participate in the demonstration project;CommentsClose CommentsPermalink





(II) the nature of employment and other skills being taught to the students with significant disabilities through the project;CommentsClose CommentsPermalink





(III) the number of students with significant disabilities participating in the project that are placed in competitive employment described in section 103(g)(1)(B)(i);CommentsClose CommentsPermalink





(IV) the worksites, and types of jobs, in which students with significant disabilities are placed through the project;CommentsClose CommentsPermalink





(V) the number of students with significant disabilities who dropped out of the project and the reasons the students terminated participation in the project; andCommentsClose CommentsPermalink





(VI) such other subjects as the central nonprofit agency or the Committee may specify.CommentsClose CommentsPermalink





(2) CORPORATE PARTNERSHIP DEMONSTRATION PROJECTS-CommentsClose CommentsPermalink





(A) PURPOSE- The purpose of this paragraph is to establish a new model for projects, open to participation by qualified partnerships, that will expand integrated and competitive work opportunities beyond the opportunities otherwise provided under this title, in order to obtain employment for individuals with significant disabilities in traditional and nontraditional industries.CommentsClose CommentsPermalink





(B) DEFINITIONS- In this paragraph:CommentsClose CommentsPermalink





(i) CORPORATE PARTNERSHIP- The term ‘corporate partnership’ means a partnership between or among 1 or more eligible qualified nonprofit agencies and 1 or more private entities, in traditional or nontraditional industries.CommentsClose CommentsPermalink





(ii) ELIGIBLE QUALIFIED NONPROFIT AGENCY- In this paragraph, the term ‘eligible qualified nonprofit agency’ means a qualified nonprofit agency for individuals who are blind, or a qualified nonprofit agency for individuals with other significant disabilities, that meets or exceeds the goals described in section 103(k).CommentsClose CommentsPermalink





(iii) NONTRADITIONAL INDUSTRY- The term ‘nontraditional industry’ means an industry that produces a product, or provides a service, that the Committee typically determines is not suitable for production or provision by qualified nonprofit agencies, such as technology or a product or service of another high-growth industry.CommentsClose CommentsPermalink





(C) IN GENERAL-CommentsClose CommentsPermalink





(i) AWARDS- For each of fiscal years 2009 through 2013, a central nonprofit agency may distribute not more than 5 orders for products or services a year to corporate partnerships in the same manner as orders are distributed to qualified nonprofit agencies under this title.CommentsClose CommentsPermalink





(ii) REPRESENTATION- A central nonprofit agency distributing orders under this subparagraph shall ensure, to the extent practicable, an equitable geographic distribution of the orders across the United States.CommentsClose CommentsPermalink





(D) REQUIREMENTS- A central nonprofit agency shall distribute orders under subparagraph (C) to a corporate partnership only if the members of the corporate partnership enter into a binding agreement that has been approved by the central nonprofit agency and the Committee and meets the following requirements:CommentsClose CommentsPermalink





(i) CONTENTS- The binding agreement includes a description of--CommentsClose CommentsPermalink





(I) how each private entity and eligible qualified nonprofit agency in the corporate partnership plan to produce the product or provide the service identified in the order distributed under subparagraph (C);CommentsClose CommentsPermalink





(II) how the private entity and eligible qualified nonprofit agency will coordinate activities and distribute the functions related to the order;CommentsClose CommentsPermalink





(III) the partnership model described in subparagraph (F) that will be used;CommentsClose CommentsPermalink





(IV) if the central nonprofit agency or the Committee determines appropriate, whether the private entity may compensate the eligible qualified nonprofit agency for administrative or training expenses resulting from the partnership; andCommentsClose CommentsPermalink





(V) the evaluation plan, in accordance with subparagraph (G), for the activities carried out by the corporate partnership under this paragraph.CommentsClose CommentsPermalink





(ii) SUBMISSION- A copy of the binding agreement accompanies any documents required as part of the bidding process for an order under this paragraph.CommentsClose CommentsPermalink





(iii) DIRECT LABOR HOUR PERCENTAGE REQUIREMENTS- The binding agreement provides that any product or service produced or provided under the order by employees who are individuals with significant disabilities shall be subject to the same direct labor hour percentage requirements that apply, under paragraphs (11)(C) and (12)(C) of section 2, and section 103(g), to qualified nonprofit agencies producing such products or providing such services under this title.CommentsClose CommentsPermalink





(iv) LONG-TERM EMPLOYMENT- The binding agreement provides for long-term employment opportunities, with a private entity participating in the corporate partnership, for individuals with significant disabilities employed by the private entity who would otherwise be employees of a qualified nonprofit agency.CommentsClose CommentsPermalink





(v) PRICE SAVINGS- The binding agreement offers the product or service that is to be produced or provided under an order under this paragraph at a price equal to or less than the price that otherwise would be charged by a qualified nonprofit agency.CommentsClose CommentsPermalink





(E) PREFERRED SOURCE STATUS- An entity of the Government that is purchasing a product or service that is produced or provided by a corporate partnership under an order under this paragraph shall treat the corporate partnership as a preferred source for such product or service.CommentsClose CommentsPermalink





(F) PARTNERSHIP MODELS- A corporate partnership that receives an order under this paragraph shall carry out 1 or more partnership models in fulfilling the terms of the order, which models may include the following:CommentsClose CommentsPermalink





(i) PRIVATE ENTITY EMPLOYMENT- Under this model--CommentsClose CommentsPermalink





(I) a private entity shall directly employ individuals with significant disabilities;CommentsClose CommentsPermalink





(II) such employees shall work at the worksite of the private entity; andCommentsClose CommentsPermalink





(III) the private entity may place such employees on the payroll of the private entity with salaries and benefits equivalent to the salaries and benefits made available to employees of the private entity who are not individuals with significant disabilities.CommentsClose CommentsPermalink





(ii) PRIVATE ENTITY CONTRACT- Under this model--CommentsClose CommentsPermalink





(I) a private entity may assign a number of the employees of the private entity who are individuals without significant disabilities to work as part of a production unit with assigned employees of an eligible qualified nonprofit agency that are individuals with significant disabilities to produce the product, or provide the service, specified in the binding agreement;CommentsClose CommentsPermalink





(II) the individuals with significant disabilities shall work at the worksite of the eligible qualified nonprofit agency or at an alternate community setting; andCommentsClose CommentsPermalink





(III) the private entity may place employees who are individuals with significant disabilities on the payroll of the private entity, or such individuals may be paid by the eligible qualified nonprofit agency, with salaries and benefits equivalent to the salaries and benefits made available to employees of the private entity who are not individuals with significant disabilities.CommentsClose CommentsPermalink





(iii) PRIVATE ENTITY SUBCONTRACT- Under this model--CommentsClose CommentsPermalink





(I) the private entity may subcontract to an eligible qualified nonprofit agency the majority of the work required to produce the product or service;CommentsClose CommentsPermalink





(II) employees of the eligible qualified nonprofit agency who are individuals with significant disabilities may work under such subcontract at the private entity’s worksite, the eligible qualified nonprofit agency’s worksite, or an alternate community setting; andCommentsClose CommentsPermalink





(III) employees who are individuals with significant disabilities shall be paid by the eligible qualified nonprofit agency, with salaries and benefits equivalent to the salaries and benefits made available to employees of the private entity who are not individuals with significant disabilities.CommentsClose CommentsPermalink





(G) EVALUATION AND DISSEMINATION ACTIVITIES-CommentsClose CommentsPermalink





(i) ANNUAL REPORT- Not later than 2 years after the date on which a central nonprofit agency distributes an order under subparagraph (C) to a corporate partnership, and annually thereafter for the duration of the order, an eligible qualified nonprofit agency participating in the corporate partnership shall submit to the central nonprofit agency and the Committee a report containing information on--CommentsClose CommentsPermalink





(I) the number of private entities participating in the corporate partnership and the products and services being produced and provided as a result of the demonstration project under this paragraph;CommentsClose CommentsPermalink





(II) the number of individuals with significant disabilities who are employed as a result of the project;CommentsClose CommentsPermalink





(III) the employment and other skills being taught to the individuals with significant disabilities participating in the project;CommentsClose CommentsPermalink





(IV) the number of individuals with significant disabilities participating in the project who are hired by a private entity participating in the corporate partnership;CommentsClose CommentsPermalink





(V) the worksites at which individuals with significant disabilities participating in the project are placed, and the types of jobs in which such individuals are placed;CommentsClose CommentsPermalink





(VI) the number of private entities and individuals with significant disabilities that have dropped out of the project, and the reasons the private entities or individuals with significant disabilities have dropped out of the project;CommentsClose CommentsPermalink





(VII) whether the project should be concluded or made a permanent part of the activities carried out under this title and, if included in the activities, a detailed plan for how the project should be expanded; andCommentsClose CommentsPermalink





(VIII) such other subjects as the central nonprofit agency or the Committee may specify.CommentsClose CommentsPermalink





(b) Evaluation of Projects- Not later than 180 days after all demonstration projects under subsection (a) are completed, the central nonprofit agencies participating in the demonstration projects under this section and the Committee shall submit a joint statement to Congress indicating whether any of the demonstration projects should become permanent programs under the Act, including any recommendations for legislative or administrative action.CommentsClose CommentsPermalink