Md. Code Regs. 13A.11.04.08

Current through Register Vol. 51, No. 22, November 1, 2024

Section 13A.11.04.08 - Vending Facility Equipment and Merchandise

A. Vending Facility Equipment.

(1) The Division, with the participation of the vendor, shall determine what equipment is needed to operate the vendor's vending facility and shall:

(a) Provide adequate equipment in good working order;

(b) Replace worn-out equipment;

(c) Retain ownership of equipment purchased by the Division;

(d) Repair and maintain equipment owned by the Division;

(e) Repair and maintain equipment owned by the property managing agency and under contract with the Division;

(f) Reimburse the vendor for equipment purchased by the vendor and preauthorized by the Division, which shall pay the depreciated value determined from the date of the original receipt provided by the vendor; and

(g) Perform an annual audit of equipment at each vending facility.

(2) The vendor:

(a) May not alter, change, or remove equipment provided by the Division, or property managing agency, without prior approval from the Division;

(b) Shall report immediately any theft of, or damage to, equipment owned by the Division or property managing agency;

(c) Shall be responsible for damage or loss of equipment as a result of negligence on the part of the vendor or the vendor's employee;

(d) Shall perform day to day routine maintenance, and maintain equipment in accordance with manufacturers' recommendations and in a clean and sanitary condition in accordance with applicable federal, State, and county health codes;

(e) Shall immediately notify the Division of equipment needing repair; and

(f) Shall assist the Program in verifying the equipment at the vendor's vending facility during the annual audit.

(3) The vendor, at the vendor's expense, may purchase or lease equipment for use in the facility if the equipment is:

(a) Consistent with the operation of the facility;

(b) Allowed by the permit or contract;

(c) Approved for commercial use; and

(d) Approved in advance in writing by the Division or property managing agency, or both.

(4) With regard to equipment purchased or leased by the vendor in accordance with §A(3) of this regulation, the vendor shall:

(a) Assure that the Division is not a party to the lease or purchase agreement;

(b) Be responsible for all costs associated with the equipment;

(c) Remove the equipment from the vending facility when vacating the vending facility;

(d) Deduct the cost of the equipment as a business expense, in accordance with generally accepted accounting principles, for purposes of calculating set-aside; and

(e) Report funds reimbursed, for the purchase, as income to the vending facility for set-aside purposes on the next monthly report following the reimbursement.

(5) If equipment is placed in the facility by the vendor and the equipment does not meet the requirements of §A(3) and (4) of this regulation, the vendor:

(a) May not deduct the cost associated with the equipment as a business expense against the facility, or for set-aside charges;

(b) May be required to remove the equipment from the facility upon the request of the Division; and

(c) Will not be reimbursed for any costs associated with the equipment by the Division.

B. Initial Merchandise and Petty Cash.

(1) The Division shall furnish each vending facility with adequate, suitable initial stock of merchandise and petty cash sufficient for the establishment and operation of the vending facility.

(2) The vendor shall maintain an inventory of saleable merchandise equal to or exceeding the value of the initial stock of merchandise furnished by the Division or the cash equivalent.

(3) The initial petty cash provided by the Division and the stock of merchandise remains the property of the Division.

(4) When a vendor vacates a vending facility:

(a) All equipment, merchandise, and petty cash provided by the Division shall remain on the vending facility;

(b) All cash on hand other than that provided by the Division shall be the property of the vendor and shall be removed from the vending facility at the time it is vacated;

(c) Within 45 calendar days after the vendor vacates the vending facility, the vendor shall provide to the Division the current wholesale value of saleable merchandise contained in the inventory on the vending facility;

(d) If the vendor fails to comply with this provision, the vendor shall pay a penalty as set forth in the Administrative Manual;

(e) The vendor is not eligible for transfer until final settlement of inventory;

(f) Inventory settlement payment shall be made in accordance with the Administrative Manual; and

(g) The Division may elect to use vending machine income due the vendor as payment of inventory settlement and penalties, if any.

(5) In the case of the death of the vendor:

(a) The Division shall designate the date on which the final inventory shall be taken; and

(b) The time period to submit to the Division a priced out inventory may be extended to 60 calendar days and the vendor's heirs or assigns shall have the right to participate in and verify the final inventory of equipment, merchandise, and cash on hand.

(6) When a vendor accepts an existing vending facility:

(a) The Division shall provide the manager the valued inventory within 15 days of receipt by the Division from the vendor vacating the vending facility; and

(b) The manager shall have 45 calendar days to review and dispute any discrepancies; otherwise, the inventory value is accepted as correct.

C. Vendor Ownership of Vending Facilities. If the Division determines that the right, title to, and interest in vending facilities may be vested in the vendors, the Division with the active participation of the Committee of Blind Vendors shall establish policies and procedures adequate to provide each vendor the opportunity to assume ownership of a vending facility.

Md. Code Regs. 13A.11.04.08

Regulation .08 amended effective 42:14 Md. R. 881, eff.7/20/2015