[nfbmi-talk] Fw: Rule 24. (1) Each licensee
president.nfb.mi at gmail.com
Mon Jan 24 13:25:00 CST 2011
----- Original Message -----
From: "Larry Posont" <president.nfb.mi at gmail.com>
To: "Larry Posont" <president.nfb.mi at gmail.com>
Sent: Monday, January 24, 2011 11:08 AM
Subject: Rule 24. (1) Each licensee
R 393.24 Licensee obligations generally.
Rule 24. (1) Each licensee shall agree to do all of the following:
(a) Perform, to the best of his or her ability, the necessary duties in connection with the vending facility pursuant to the
commission's rules and procedures, the terms of the permit, and the agreement with the licensee and otherwise abide by the rules of
(b) Operate not more than 1 concession as defined in the act.
(c) Take no action in derogation of, or inconsistent with, the title of the state of Michigan to the vending facility equipment.
(d) Sign the vending facility agreement, agreeing to accept full responsibility for the amount of the initial merchandise
inventory. The licensee further agrees to maintain that level of inventory at all times, with the exception of seasonal business
cycles, until he or she leaves the facility. Nothing contained in the vending facility agreement makes the parties partners or
joint venturers with each other. The only relationship between the commission and the vending facility operator is that of agency
and license. Nothing in the vending facility agreement renders either of the parties liable to any third party for debts of or
litigation of the other party.
(e) Notify the promotional agent, within 2 weeks of when a vending facility is assigned, of any problems with the inventory.
After that date, the commission is not obligated to adjust the inventory or reimburse for bad products.
(f) Submit, in writing, requests for facility renovations, or discuss, with the assigned promotional agent, facility renovations
as a component of the annual vending facility evaluation process. Proposed renovations shall be forwarded to the central office of
(g) Admit duly authorized representatives of the commission to the vending facility and cooperate with them in connection with
their official duties and responsibilities.
(h) Sell only the types of merchandise itemized in the agreement signed by the licensee and the commission.
(i) Pay for all merchandise and supplies purchased within the terms and conditions of the credit policies of suppliers.
(j) Obtain approval of the commission, except in emergencies, before employing assistants within the guidelines established by
the commission board with the active participation of the committee.
(k) Conform to the hours of operation as fixed by the commission after consultation with the licensee and the agency having
charge of the property. The hours of operation shall be stated on the vending stand agreement.
(l) Participate in the in-service training programs provided.
(m) Obtain and maintain a general comprehensive liability insurance policy and, if the licensee hires 1 or more full-time or
part-time employees, obtain and maintain workers' disability compensation coverage and pay unemployment taxes and all other
applicable federal, state, and local taxes.
(n) Comply with all applicable federal and state laws and regulations, including tax laws.
(o) The commission shall commence license revocation proceedings if a licensee fails to comply with any of the provisions
specified in this subrule.
(2) A licensee shall not discriminate against any person or persons in furnishing the use of any vending facility, including any
and all services, privileges, and accommodations provided. A licensee shall comply with all of the following:
(a) Title VI of the civil rights act of 1964, 42 U.S.C. § 200d and regulations issued under title VI of the civil rights act of
(b) The Americans with disabilities act of 1990, 42 U.S.C. §12101 et seq.
(c) 1976 PA 220, as amended, MCL 37.1101.
(d) Any other applicable civil rights legislation.
(3) A licensee shall refer repairs to facility structure and utilities to the commission for action. If the needed repair is an
emergency and requires immediate attention, then the licensee shall contact building personnel to effect the necessary repairs.
R 393.25 Licensee insurance requirements.
R 393.25 Licensee insurance requirements.
Rule 25. A licensee shall do both of the following:
(a) Obtain general comprehensive liability insurance. A licensee shall comply with the general comprehensive liability
insurance requirement by satisfying either of the following provisions:
(i) Purchasing a policy independently and providing the commission with a certificate of insurance showing the dates of
coverage. The commission shall be named on the certificate of insurance to assure its notification if coverage is cancelled or
(ii) Purchasing liability insurance through the commission. Rates are dependent upon gross sales. A licensee shall be notified
annually of his or her specific multiplier, as established by the commission board, with the active participation of the committee,
used to calculate the monthly payment. Payment shall be made on a monthly basis and recorded on the monthly vending facility report.
(b) Carry workers' disability compensation insurance pursuant to state law and R 393.24 (1)(m). The commission shall be named
on the certificate of insurance to document that the licensee has coverage and to ensure that the commission is notified if coverage
is canceled or lapses.
R 393.26 Licensee health and safety obligations.
Rule 26. (1) A licensee shall operate a vending facility pursuant to all applicable health and safety laws and rules.
(2) A licensee shall apply for and hold all health licenses. Fees for health licenses are considered to be a business expense
and are the responsibility of the licensee.
A licensee shall submit, within 10 calendar days of receipt, all periodic health inspection reports to the commission. Where
correction of the violation is within the purview of the licensee, the licensee shall act immediately to correct a violation.
(3) Failure to comply with the corrective action for a non-critical violation is grounds for commencement of license revocation
proceedings. A non-critical violation is identified and defined by part 129 of 1978 PA 368.
(4) Failure to comply with the corrective action for a critical violation is grounds for immediate and summary license
suspension. A critical violation is identified and defined by part 129 of 1978 PA 368.
(5) Where correction of the violation is beyond the purview of the licensee, the commission shall make the correction pursuant
to the inspection report.
R 393.27 Licensee reporting requirements.
Rule 27. (1) A licensee shall furnish reports as the commission may require periodically.
(2) A licensee shall complete the commission's standard monthly vending facility report. Business expenses, taxes paid, profit,
and financial operations are major components of the report. The report shall be an accurate and true report.
(3) A licensee shall submit the monthly report data to the department's administrative entity. Reports shall be time and date
stamped by the fifteenth day of the month following the period covered by the report.
(4) If a report associated with a set-aside payment is delinquent, then the reporting licensee is not eligible for promotion
until 30 days after the time and date stamp of the delinquent report. If a set-aside fee payment is delinquent, then the reporting
licensee is not eligible for promotion until 30 days after the post mark date of the delinquent set-aside fee and a penalty of 50%
of the monthly set-aside fee owed shall be assessed and paid with the next monthly report.
(5) If a payment for a repayment agreement, made before the effective date of these rules, is delinquent, then the reporting
licensee is not eligible for promotion until 30 days after the time and date stamp of the delinquent payment.
(6) Receipt of a nonsufficient funds check in payment shall be treated in the same manner as a delinquent payment. A penalty of
50% of the monthly set-aside fee owed shall be assessed and paid with the next monthly report.
(7) The completion of the monthly report and the payment of the set-aside fees are the sole responsibilities of the licensee.
(8) A licensee shall make payment of the set-aside fee by the due date. Set-aside fee payments shall be post marked by the
twentyfifth day of the month following the period covered by the associated report. The set-aside fee payment is a payment due the
commission. The commission shall not accept partial payment for past due set-aside fee payments, liability insurance payments, or
for repayment agreements that have been grandfathered in under subrule (4) of this rule.
(9) Failure to submit 2 or more reports or payments during a 12-month period shall result in commencement of license revocation
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