Conn. Agencies Regs. § 10-303-4

Current through October 16, 2024
Section 10-303-4 - Standards and procedures applying to establishment of a vending facility

The following standards and procedures shall apply to the establishment of a vending facility:

(a)Vending Facility Equipment and Initial Stock

The board shall furnish each new vending facility with adequate, suitable equipment and initial stocks of merchandise necessary for its establishment, operation and maintenance except that any increase in initial stock required by promotion, using federal vocational rehabilitation funds, is permitted only when promotion or upgrading is from a dry facility to wet snack bar or cafeteria.

(b)Title and Interest in Fixtures and Equipment

The right, title and interest in all fixtures and equipment furnished to a vending facility by the board shall be vested in the board and shall be labeled with a numerical sticker and so marked as to clearly reflect ownership by the state of Connecticut. Should the vendor elect to purchase such fixtures and equipment from the board, he may do so under the following conditions:

(1) the sale and purchase price shall be acceptable to the board; or
(2) upon the transfer of the vendor to another facility, his discontinuance as a licensee or his death, title and interest in such fixtures and equipment shall become vested in the board subject to:
(A) a determination of the fair market value of such fixtures and equipment in accordance with state procedure and regulations;
(B) payment of such fair market value to the vendor/owner or his estate; and
(C) the provision of an opportunity to the vendor, his representative or estate for a full evidentiary hearing concerning the determination of the fair market value of such equipment.
(c)Purchase Construction or Installation of Equipment
(1) written approval of the board must be obtained by the vendor prior to purchase, construction or installation of any equipment, accessories or fixtures to be used in a business enterprise by him.
(2) no opportunity to become a vendor shall be denied an individual on the basis of his unwillingness or inability to purchase the vending facility equipment or the initial stock.
(d)Maintenance and Replacement of EquipmentThe board shall furnish each vending facility with adequate suitable equipment and shall maintain, or cause to be maintained, all vending facility equipment in a workable condition and shall replace or cause to be replaced, worn-out or obsolete equipment as it deems necessary to assure the successful operation of the facility provided that:
(1) the board shall not assume responsibility or obligation for maintenance repair or replacement of equipment, present at a vending facility, in which it does not have full title;
(2) each vendor shall carry out routine day-to-day maintenance procedures;
(3) problems with equipment shall be reported by the vendor to the board as soon as they are identified; and
(4) the board will arrange for all necessary repairs or the replacement of vending facility equipment following an on-site evaluation and determination of need by a board supervisory staff member. Scheduling of expenditures for equipment, repair or renovations will be made in accordance with priorities developed annually by the board with the active participation of the state committee of blind vendors and based on the availability of funds.
(e)Routine License Fees and Preventative Maintenance

The board shall be responsible for payment of routine license fees and preventative maintenance of equipment with the following exceptions:

(1) if a vendor earns at least the average income, as shown on the federal Randolph-Sheppard report, completed by the board at the close of each fiscal year, he shall be responsible for payment of annual routine license fees;
(2) if a vendor's annual income exceeds a minimum of $20,000, he will be responsible for payment of annual license fees and preventative maintenance of equipment; or
(3) if a vendor's annual income exceeds $30,000, he will be responsible for payment of annual license fees, preventative maintenance of equipment and may be required by the board to employ another legally blind person as an assistant.
(f)Vendor Ownership of Equipment

When a vendor is responsible for maintenance of vending facility equipment as set forth in these regulations and is unable or fails to meet his obligations, the board will arrange for such maintenance and its payment subject to subsequent reimbursement thereof by the vendor.

(g)Enforcement

The board shall be responsible for the enforcement of the provisions set forth in this section of the regulations.

(h)Initial Stock and Final Inventory

The following standards and procedures shall apply to the provision of and reimbursement for initial stock supplied to a vending facility:

(1) the board shall set forth in the operating agreement the specific types of merchandise to be sold;
(2) the board will retain ownership of the initial inventory supplied to a new vendor and on termination from the vending facility program the following adjustments will be made:
(A) the board will purchase from the vendor any inventory in excess of the saleable value of the initial inventory; or
(B) if the value of final inventory is less than that of the cost of the initial inventory, the vendor will repay the difference to the board.
(3) initial inventory supplied to a vendor as a vocational rehabilitation service between the period July 1, 1975 and March 20, 1985 shall be adjusted on termination of the vendor from the facility as follows:
(A) a vendor who remains in the program for a period of time in excess of one year shall be reimbursed for the value of the full inventory at the time of termination; or
(B) a vendor who remains in the program for a period of time less than one year shall adjust payment of final inventory in accordance with the provisions of the preceding subsection (h) (2) (A) or (B) of these regulations.
(4) a vendor who was provided with an initial inventory prior to July 1, 1975, or subsequent to March 20, 1985, may elect to reimburse the board for the cost of the initial inventory and on termination in the program he shall be reimbursed by the board for the full value of the final inventory. No interest shall accrue on any unpaid obligation due on the initial inventory;
(5) new inventory provided to a vendor as part of a promotional plan shall remain the property of the board and adjustment of obligations at termination of the vendor will be made in accordance with this section of the regulations.

Conn. Agencies Regs. § 10-303-4

Effective July 23, 1987