Mo. Code Regs. tit. 5 § 20-300.160

Current through Register Vol. 49, No.12, June 17, 2024

Section 5 CSR 20-300.160 - Establishment of Sheltered Workshops

PURPOSE: The Department of Elementary and Secondary Education, Division of Special Education shall issue a certificate of authority to a not-for-profit corporation that meets the requirements listed in this regulation to operate a workshop which offers but does not entitle employment to persons with disabilities who have been approved by the department for such employment. Corporations seeking a certificate of authority shall file documents prescribed by statute and regulation.

(1) For the purpose of this rule, the following terms shall mean:

(A) "Employee"-a person with a disability ("disabled persons" as defined in section 178.900, RSMo) employed in a workshop. All persons employed by a sheltered workshop shall demonstrate productive capacity and their behavior shall contribute to the work environment of that shop. These regulations shall neither mandate nor prohibit employment of individuals who require personal supports which go beyond reasonable accommodations;

(B) "Staff"-persons employed by a workshop as defined in section 178.900, RSMo;

(C) "Workshop"-an extended employment sheltered workshop as defined in section 178.900, RSMo;

(D) "Department"-the Missouri Department of Elementary and Secondary Education;

(E) "Disability"-those conditions as defined in section 178.900, RSMo;

(F) "Gross revenue"-income from all sources;

(G) "Accrual accounting system"-a system of accounting based on recognition of income and expenses when incurred;

(H) "Productive capacity"-the amount of work accomplished by an employee with a disability, with reasonable accommodations, in proportion to that accomplished on the same or similar task by an experienced non-disabled employee. A minimum productive capacity level may be specified by the board of directors;

(I) "Full-time equivalent (FTE)"-equals six (6) person hours per day worked by an approved employee or combination of employees; and

(J) "Reimbursable time"-time or activity that is related to production, training, and/or reasonable wait time, which must be paid in accordance to United States Department of Labor regulations, that occurs normally as a part of the production process. After wait time exceeds twelve (12) consecutive hours, state aid can only be claimed if training is provided.

(2) A not-for-profit corporation, registered with the Missouri secretary of state, founded for the purpose of administering a workshop, and engaged in the employment and rehabilitation of people with disabilities, as defined in section 178.900, RSMo, shall be a corporation engaged in the business of operating a workshop. The department only has authority to monitor activity associated with the business of operating a sheltered workshop or related to funding provided for operating a sheltered workshop. The workshop may enter into a written agreement for the purposes of sharing the purchasing of materials or services, sharing personnel, or sharing buildings and equipment. The agreement shall provide the responsibilities of each party. The agreement or any renewal or extension of the agreement shall be approved by the governing board of directors of the sheltered workshop who will ensure that the agreement does not violate any state or federal laws. The corporation shall apply for and be granted a certificate of authority from the department in order to qualify for the receipt of state funds. To make application for a certificate of authority, a corporation shall file form FP-100-1 (Application for Extended Employment Sheltered Workshop Certificate), together with each of the following documents with the department for its review and approval:

(A) An authorization from the Wage and Hour Division of the United States Department of Labor to pay subminimum wages;

(B) Evidence of exempt status under section 501(c)(3) of the United States Internal Revenue Tax Code:

(C) A copy of the first year's proposed budget which contains the following:

1. Budget message;

2. Estimated revenue;

3. Proposed expenditures;

4. Amount required for interest payments on debt;

5. Amount required for principal payments on debt; and

6. Budget summary.

In addition to the proposed budget, incorporation papers and bylaws for the workshop shall be provided to the department;

(D) Evidence of Workers' Compensation insurance, as well as sufficient other insurance coverage to adequately protect its employees, the general public having access to workshop property, and all real and personal property for which the workshop is responsible from loss and liability. Workshops shall consider the recommendations of all local, state and federal monitoring agencies when designing insurance coverage and safety programs;

(E) A list of any approved grants, the funds from which would be used in the operation of the workshop;

(F) A copy of one (1) or more income-producing contract for the workshop, which is or together are sufficient, in the judgment of the department, to provide work for at least fifteen (15) full-time employees for at least a three (3)-month period;

(G) Organizations that have been in existence for more than one (1) year prior to application shall supply a certified audit of the previous fiscal year's operation;

(H) Evidence of an active work force of not fewer than fifteen (15) eligible employees;

(I) Evidence of exemption from sales/use taxes from the Missouri Department of Revenue;

(J) Evidence the corporation has use of an appropriate facility or facilities in which to operate a workshop which substantially complies with all applicable federal, state, and local laws and regulations relating to safety, health, and accessibility; and

(K) A description of the proposed administrative and supervisory staffing to be employed to conduct daily operations of the workshop.

(3) Within fifteen (15) days of receipt of an application, the department shall notify the applicant whether the application is considered complete, and if not, what deficiencies exist. The omission of any of the documents specified in section (1) from the application or the failure of the applicant to complete the form FP-100-1 (Application for Extended Employment Sheltered Workshop Certificate) may result in the review and approval of the application being delayed or rejected. Applicants submitting incomplete materials shall have forty-five (45) days from the date of receipt of a notice from the department of the application being incomplete to complete all materials and to respond to any questions or file with the department additional documents which it may require. Applications which are not complete, as determined by the department, within sixty (60) days of their original receipt shall be rejected and notification of such rejection sent to the applicant. Any subsequent submittal by the same applicant shall be treated as a new application for the purpose of review and approval.

(4) Within thirty (30) days of the department's notification of the applicant that its application is complete, the department shall schedule a public hearing in the local community in which the workshop is proposed to be located. The time and place of the public hearing shall be determined by the department, in consultation with the applicant. The department shall file all notices required by law to conduct a public hearing.

(5) The department shall notify the applicant in writing within ten (10) days following the hearing of its decision whether or not to grant a certificate of authority. If the application is approved, the department shall issue a certificate of authority within thirty (30) days of the hearing. If the department decides not to grant a certificate of authority, it shall notify the applicant in writing stating the specific reasons for its decision to deny a request to grant a certificate of authority. Applicants for whom a certificate of authority is not granted may appeal the decision pursuant to Chapter 536, RSMo.

5 CSR 20-300.160

AUTHORITY: section 178.920, RSMo 2000.* This rule previously filed as 5 CSR 70-770.010. Original rule filed Dec. 23, 1975, effective Jan. 2, 1976. Amended: Filed Nov. 23, 1998, effective July 30, 1999. Moved to 5 CSR 20-300.160, effective Aug. 16, 2011. Amended: Filed Aug. 27, 2013, effective March 30, 2014.

*Original authority: 178.920, RSMo 1965.