Alabama Department of Rehabilitation Services v. United States Department of Veterans Affairs

165 F. Supp. 2d 1262, 2001 U.S. Dist. LEXIS 15457, 2001 WL 1159682
CourtDistrict Court, M.D. Alabama
DecidedAugust 9, 2001
DocketCiv.A. 01-T-27-N
StatusPublished
Cited by7 cases

This text of 165 F. Supp. 2d 1262 (Alabama Department of Rehabilitation Services v. United States Department of Veterans Affairs) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alabama Department of Rehabilitation Services v. United States Department of Veterans Affairs, 165 F. Supp. 2d 1262, 2001 U.S. Dist. LEXIS 15457, 2001 WL 1159682 (M.D. Ala. 2001).

Opinion

OPINION

MYRON H. THOMPSON, District Judge.

Plaintiff Alabama Department of Rehabilitation Services (ADRS) brings this action against defendants United States Department of Veterans Affairs (VA), Veterans Canteen Service (VCS), and related federal entities and officials seeking injunctive relief and damages for alleged violations of the Randolph-Sheppard Act, 20 U.S.C.A. §§ 107-107Í. Jurisdiction is proper under 28 U.S.C.A. § 1331 (federal question). Currently before the court are the ADRS’s motion for a preliminary injunction, filed January 9, 2001, and the defendants’ motion to dismiss, filed February 9, 2001.

Although the ADRS currently has pending two administrative actions for relief pursuant to the grievance procedures set forth under the Randolph-Sheppard Act, it petitions this court for several forms of injunctive relief to prevent continuing violations of the act during the pendency of the administrative review. For the reasons that follow, the court concludes that this matter is due to be dismissed because the court does not believe it should enter the relief sought by the ADRS. Accordingly, defendants’ motion to dismiss will be granted, the ADRS’s motion for preliminary injunction will be denied as moot.

I. BACKGROUND

The ADRS brings before this court a long-standing dispute it has had with the VA, its officials, and related agencies, over the implementation of the Randolph-Sheppard Act on VA property in Alabama. This dispute has prompted the ADRS to file two administrative complaints against the defendants, one on June 19, 1998 (first arbitration) and another on October 20, 2000 (second arbitration). The first arbi *1266 tration was decided in favor of the ADRS, though the VA has not yet taken action on the panel’s findings; the second arbitration panel has not yet convened. By way of background, the court will review, in brief, the purpose of the act, its administrative dispute resolution procedure, and the history of the dispute between the ADRS and the VA.

A. The Randolph-Sheppard Act

The Randolph-Sheppard Act was enacted in 1936 to provide employment opportunities for the blind on federal property. The statute requires that federal agencies give “priority” to blind vendors when authorizing the operation of vending machines on federal property. See 20 U.S.C.A. § 107(b). Wherever feasible, federal agencies are to establish one or more vending facilities to be operated by the blind “to the extent that any such facility or facilities would not adversely affect the interests of the United States.” id A state government, through its state licensing agency designated pursuant to § 107a(a)(5), is responsible for licensing blind state residents as vendors under the act and, in conjunction with the relevant administrator of the federal property, negotiating applications for them to operate vending facilities. See id. at § 107a(b).

Although the Randolph-Sheppard Act applies to all federal agencies, responsibility for its interpretation, enforcement, and the resolution of disputes arising under it, rests with the Secretary of the United States Department of Education. The act contains a detailed administrative dispute resolution procedure. 1

See id. at §§ 107dl-2. The procedure anticipates two types of disputes. A blind licensee “who is dissatisfied with any action arising from the operation or administration of the vending facility program” is entitled to a full evidentiary hearing by the state licensing agency. See 20 *1267 U.S.C.A. § 107d-l(a). If the licensee remains “dissatisfied with any action taken or decision rendered as a result of such hearing,” he may file a complaint with the Education Secretary, who shall submit the complaint to arbitration pursuant to § 107d-2. “Although subsection (a) entitles the vendor to invoke these procedures, ... it grants the blind vendor no substantive entitlement to any remedies.” Georgia Dept. of Human Resources v. Nash, 915 F.2d 1482, 1488 (11th Cir.1990). The only right conveyed to a blind vendor under the Randolph-Sheppard Act is therefore the procedural one entitling him an opportunity to convince a state licensing agency to take action. See id.

Remedial action can also be sought by a state licensing agency against the federal department or agency. Pursuant to § 107d — 1(b), when a state licensing agency believes that the federal entity responsible for a facility is out of compliance with the Randolph-Sheppard Act, that state agency may file a complaint with the Education Secretary, who shall convene a § 107d-2 arbitration panel. The decision of the arbitration panel is subject to appeal and review as a final agency action. If the panel finds the “acts and practices” of the federal agency violate the Randolph-Sheppard Act, “the head of [the] department, agency, or instrumentality shall cause such acts or practices to be terminated promptly and shall take such other action as may be necessary to carry out the decision of the panel.” 20 U.S.C.A. § 107d-2(b)(2).

B. The Alabama Department of Rehabilitation Services

The ADRS is the designated state licensing agency for the State of Alabama. It represents that 48 vending facilities on federal property in Alabama are currently operated by licensed blind vendors under the Randolph-Sheppard Act. These facilities benefit approximately 140 blind Alabamians and employ more than 300 others. The ADRS further claims that, with the exception of the VA and the VCS, it has enjoyed excellent cooperation from the federal agencies with which it works.

The ADRS contends that its dispute with the defendants dates back to January 1989, when it first inquired into the possibility of operating vending facilities at the Veterans Administration Hospital in Tuscaloosa, Alabama. Soon thereafter, during 1990 and 1991, the ADRS submitted applications to the VA to run vending facilities in Tuscaloosa, Montgomery, and Tuskegee, Alabama, but these were denied. The ADRS continued to submit applications to the VA, most recently in July 1996, for VA facilities in Tuscaloosa, Tuskegee, Montgomery, and Birmingham, Alabama. Meetings between the VA and the ADRS took place into 1998, but no agreement to establish vending facilities at these sites was ever reached. 2

*1268 On June 19, 1998, the ADRS filed an administrative grievance, pursuant to 20 U.S.C.A. § 107d-l(b), alleging that the VA and VCS had failed to comply with the requirements of the Randolph-Sheppard Act with respect to its 1995 applications to operate vending facilities in Tuscaloosa, Tuskegee, Birmingham, and Montgomery.

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Bluebook (online)
165 F. Supp. 2d 1262, 2001 U.S. Dist. LEXIS 15457, 2001 WL 1159682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alabama-department-of-rehabilitation-services-v-united-states-department-almd-2001.