N.M. Admin. Code § 9.4.5.18

Current through Register Vol. 35, No. 21, November 5, 2024

Section 9.4.5.18 - VENDING FACILITY EQUIPMENT AND INITIAL STOCK

A.Purpose: The SLA is responsible for furnishing each vending facility with essential equipment, initial stocks of merchandise and petty cash necessary for the establishment and operation of such facility. The right, title to, and interest in the SLA furnished equipment in each vending facility used in the program will be vested in the SLA in accordance with the laws of the state.

B.Disposal of acquired stock: Acquired stock is that stock in which the manager has accrued equity and which the SLA, in conjunction with the manager(s) involved, has determined is suitable for use. Stock in which the manager has not accrued equity remains the property of the SLA. When a manager leaves the program or transfers to a different vending facility he or she may:

(1) keep acquired stock;

(2) sell acquired stock to the SLA;

(3) sell acquired stock to the incoming manager.

C.Maintenance and replacement of SLA furnished equipment:The SLA shall maintain (or cause to be maintained) all vending facility equipment in good repair and in an attractive condition, and shall replace (or cause to be replaced) worn-out or obsolete SLA furnished equipment as required to assure the continued successful operation of the facility. Determination of SLA equipment to be replaced under this section shall be determined by BEP staff.

(1) Manager ownership of additional equipment: The manager shall have the right to purchase additional equipment for his or her vending facility and to hold title in such additional equipment in his or her own name. Manager owned equipment, when reported in adequate detail to the SLA at the time of purchase, will be repaired by the licensed manager and reimbursed by the SLA. The original purchase price and repair cost (if assumed by manager) can be used as a business expense on the monthly report, with copies of the supporting invoices. This applies to equipment that is directly related to the operation of the facility.

(2) Extended liability insurance for manager-owned equipment exceeding the standard coverage: See Subsection 27.8 of this rule [now Subsection H of 9.4.5.27 NMAC]. The manager has the option of purchasing the additional amount of insurance needed to cover his or her equipment through the same carrier that the SLA is using or an insurance company of his/her choice.

(3) Additional equipment purchased by the licensed manager is distinguished from the SLA furnished equipment referred to above for which title remains vested in the SLA. Additional equipment belonging to the licensed manager shall be listed separately on the written agreement between the manager and the SLA and added to the agreement if purchased after initial start-up.

D.Manager care of equipment:Each manager shall take reasonable care of all equipment in his or her facility and carry out routine, day-to-day maintenance procedures. Upon the manager's failure to take responsibility for such maintenance procedures, the SLA may make arrangements for such day-to-day maintenance and charge the manager an equitable amount for providing such maintenance.

E.Cleaning of facility during transfer: Upon leaving a facility, it is the responsibility of the outgoing manager to fully clean the facility and its equipment. If the outgoing manager fails to comply, the SLA will hire a cleaning company to clean the facility at the outgoing manager's expense. The cost of the cleaning will be deducted from the inventory being purchased by the SLA. If the amount exceeds the amount of the inventory being purchased or if the outgoing manager takes his inventory, the balance forward must be paid prior to reinstatement into the program or transfer to another facility.

N.M. Admin. Code § 9.4.5.18

4/15/97; Recompiled 10/01/01