Section 17-403-24 - Responsibility for equipment and initial Stocks Responsibilities for equipment and initial Stocks of vending facilities are vested as follows:
(1) The SLA shall furnish each vending facility with adequate suitable equipment and adequate initial stock of merchandise necessary for the establishment arid Operation of the facility.(2) The SLA shall maintain (or cause to be maintained) all vending facilities in good repair and in an attractive condition and shall replace (or cause to be replaced) worn out and obsolete equipment as required to insure the continued successful Operation of the vending facility.(3) The right, title to, and interest in vending facility equipment and initial stock, operating capital, and supplies provided in the establishment of a vending facility in a particular location is vested in the SLA, except as provided in subsection (4). (A) In the event the vendor dies, or for any other reason, ceases to be a licensed Operator or transfers to another vending facility, a closing inventory shall be taken of all equipment and Stocks and supplies on hand prior to the SLA's release of the location to a succeeding vendor.(B) The fair market value of missing equipment, or damage to equipment in excess of normal operational wear and tear, shall be paid to the SLA by the outgoing vendor or vendor's estate.(C) If the closing inventory shows that the value of Stocks and supplies on hand is less than the original investment for initial Stocks, operating capital, and supplies, the difference shall be paid to the SLA by the outgoing vendor or vendor's estate.(D) If the closing inventory shows that the value of Stocks and supplies on hand exceeds the original investment, the difference shall be paid to the outgoing vendor or vendor's estate by the SLA.(4) Vending facility equipment may be owned or leased by a vendor. (A) The SLA and the vendor shall not enter into any purchase agreement or lease holding the SLA liable for equipment owned or leased by a vendor.(B) The vendor and the SLA shall consult with respect to purchase of vending facility equipment.(C) Maintenance and repair of vendor owned and leased equipment shall be the responsibility of the vendor. If the vendor fails to maintain and repair the equipment, the SLA shall maintain such equipment in accordance with 34 C.F.R. 395.10, with the vendor reimbursing the agency for the cost thereof.(D) The SLA shall have the authority to dispose of equipment when the cost of repair of equipment exceeds the value of the equipment.(E) Vendors owning equipment shall provide the SLA with a list of vendor-owned equipment.(F) If a vendor dies or ceases to be a licensed vendor, or is reassigned to a different vending facility, the SLA shall have a 30 day right of first refusal to purchase the equipment at fair market value. If the agency does not agree in writing to the purchase within the 30 day period, the vendor or the vendor's estate shall remove vendor owned or leased equipment within 5 working days, or as otherwise agreed, in writing. If a vendor fails to do so, the SLA is authorized to sell the equipment, purchase the equipment from the vendor, or otherwise dispose of the equipment in a reasonable manner. If the SLA purchases the equipment, the fair market value shall be paid to the vendor or the vendor's estate. Any cost of disposal shall be paid to the SLA by the vendor or the vendor's estate. [Eff NOV 13 2010 and comp] (Auth: HRS § 102-14)(Imp. 34 C.F.R. section 395.4, 395.10, HRS § 102-14)