[nfbmi-talk] {Spam?} FW: Business Enterprise Program Rules

Christine Boone christineboone2 at gmail.com
Sat Feb 27 03:37:55 UTC 2016


I just want to wish you all the best of luck tomorrow.  I know you will have a great Board meeting.  I wish I could be there.  

These Rules look pretty good.  It is nice to see that you all will have a chance to review them and have some input.  Such a big job it is to promulgate new rules.  

Anyway, have a great day and be kind to one another.  

Warmest Regards,
Christine
 

Boone Christine Sent from my iPhone

On Feb 26, 2016, at 8:26 PM, Fred Wurtzel via nfbmi-talk <nfbmi-talk at nfbnet.org> wrote:

Hello,



Larry asked me to send this to the list.  We will discuss the rules, tomorrow.



Thanks.



Warmest Regards,



Fred



From: Fred Wurtzel [mailto:f.wurtzel at att.net] 
Sent: Wednesday, February 17, 2016 10:12 AM
To: Larry Posont (president.nfb.mi at gmail.com)
Subject: Rules



BEP Promulgated Rules

Draft 

Updated February 3, 2016





Definitions.

  Rule 1.  

(1)  As used in these rules:

         (a)  "Academic period" means a semester, trimester, quarter, or other college or university unit of study.

         (b) “Accredited institution” means any institution of higher learning accredited under the guidelines of the Michigan Department of Education.            

(c)  "Act" means 1978 PA 260, as amended, being MCL 393.351.

         (d)  "Active participation" means the process whereby the elected licensees’ committee and its subcommittees make recommendations to Bureau staff on the development and implementation of major administrative decisions and policy as well as program development, as prescribed in the Randolph-Sheppard Act of 1936, as amended, 20 U.S.C. §107 et seq. and the act.

         (e)  “Agreement” means a document identifying the responsibilities of the Bureau and the licensee for the operation of a vending facility.

(f)  "Bid" means the process whereby a licensee or a potential licensee records on the business enterprise program telephone system his or her desire to transfer to, or begin operation of, an available location.

        (g)  "Bid line" means a telephone line that contains a recorded message of all locations which are available during an identified time frame.

(h)  "Bureau" means the Michigan Bureau of Services for Blind Persons.     

        (i) “Business plan” means a written plan submitted as described in Rule 45. 

(j)  "Cafeteria" means a food dispensing facility capable of providing a broad variety of prepared foods and beverages, including hot meals, primarily through the use of a line where the customer serves himself or herself from displayed selections.  A cafeteria may be fully automatic or may have limited table service. Table or booth seating facilities are always provided.  A cafeteria shall have independent ventilation for the creation of food products.  

         (k)  "Cafe" means a facility that combines the features of a cafeteria with the features of a snack bar.  A café shall have entrees served each day of operations which shall be prepared on site.

         (l) "Committee" means a group of members which is elected to represent all vending facility licensees and which is created under Rule 50.

(m)  “Director” means the director of the Department of Licensing and Regulatory Affairs.   

         (n)  "Federal properties" means a building, land, or other real property owned, leased, or occupied by a department, agency, or instrumentality of the United States, including the department of defense and the United States postal service, or an instrumentality wholly owned by the United States.

(o)  “Hearings Coordinator” means the bureau’s staff person assigned to coordinate requests for hearings and reviews as prescribed in Rule 53 and Rule 54.   

(p)  "Hearings office" means the state of Michigan office charged with the responsibility of conducting hearings.

         (q)  "Hearings officer" means a person designated to conduct hearings and issue proposed decisions on behalf of the bureau pursuant to 1969 PA 306, MCL 24.201.

         (r)  "Highway vending" means a vending facility that consists of one (1) or more state of Michigan highway rest areas or welcome centers.

(s) “Initial capital” means any funds provided by the bureau to assist a licensee in the start of operations at a facility.

(t)  "Initial merchandise inventory" means merchandise necessary for establishing a licensee in a vending facility, and may include bill changer change, coin mechanism change, and an initial capital investment.

(u) “Interview panel” means the group of members outlined to interview candidates for facility award as described in Rule 44.  

(v)  “Job shadow” means a one (1) day visit to a facility to observe the food service operations.  Job shadow refers only to visits by prospective program manager students prior to commencing the BEP training as prescribed in Rule 4.   

(w) “Lease agreement” means the agreement between the bureau and the entity having charge of the property.    

(x)  "License" means a written instrument the bureau issues to a blind person that authorizes the person to operate a vending facility on federal, state, or other property.

         (y)  "Licensee" means a blind person who has been issued a license by the bureau to operate an assigned vending facility.

(z)  "Management services and supervision" means and includes inspection, quality control, consultation, accounting, regulating, in‑service training, and related services provided on a systematic basis to provide support and improve Randolph‑Sheppard small business enterprises operated by blind individuals.  "Management services and supervision" does not include routine services or costs that pertain to the ongoing operation of an individual facility after the initial establishment period.

         (aa)  "Net proceeds" means the amount remaining from the sale of articles or services of vending facilities and any vending machine or other income accruing to licensees after deducting the cost of the sale and other expenses and excluding set‑aside charges required to be paid by licensees.

                   (bb)  "Non-licensed operator” means an individual who has not been determined to be qualified by the bureau to be licensed in the program and operates a vending facility.

(cc)  “Operating costs" means the cost of all of the following:

                  (i)  Products sold.

                  (ii)  Employees' wages, taxes, and compensation.

                  (iii)  A licensee's portion of repair.

                   (iv)  Sales taxes.

                  (v)  Operating insurance.

                  (vi)  Supplies.

(vii)  Business telephone charges directly related to the vending facility.

(viii)  The renting or leasing of bureau‑approved equipment or space, which may include utilities.

(ix)  Actual vehicle mileage, documented in a log for that purpose, which is directly related to the operation of the vending stand facility, which is deemed necessary for the location, and parking and tolls directly related to the operation of the vending stand facility.  The expenses shall be documented by adequate records or evidence.  The rate of reimbursement shall be established by the bureau with the active participation of the committee.  Vehicle mileage between the licensee's home and the vending facility is not an operating expense.

                  (x)  Dues for professional and trade organizations.

(xi) Health license fees.



(dd)  "Other property" means property which is not required by state or federal law to house a vending stand facility and which is property on which vending facilities are established or operated through the use of any funds derived, in whole or in part, directly or indirectly, from the operation of any vending facility.

         (ee)  "Permit" means the official approval or authority which is given to the bureau by a department, agency, or instrumentality that is in control of the maintenance, operation, and protection of federal property or by a person who is in control of other property and which authorizes the bureau to establish a vending facility.

(ff)  “Potential Licensee” means a blind person who has met the criteria prescribed in the act to be licensed, including all training requirements, who is not currently operating a vending facility.   

(gg)  "Program" means all the activities of the bureau related to business enterprise program vending facilities on federal, state, and other properties.

         (hh)  "Satellite" means a vending facility that does not expect to return 120% of federal minimum wage as based on a 40 hour work week and is combined with additional vending facilities.

         (ii)   "Set‑aside funds" means funds that accrue to the bureau from an assessment against the net proceeds of each vending facility in the program.

         (jj)  "Snack bar" means a vending facility that is engaged in selling limited lines of refreshments.  A snack bar may sell prepared food items necessary for a light meal service such as soups, salads, and sandwiches. Food may be prepared off the premises.   A snack bar may have no or limited on-site food preparation.

(kk)  "Stand type" means any of the following types of vending facility:

                  (i)  Snack bar.

                  (ii)  Vending machine.

                  (iii)  Cafeteria.

                  (iv)  Cafe.

                  (v)  Vending machine route.

                  (vi)  Highway vending.

         (ll)  "State property" means a business enterprise program facility in a building or on a property owned or occupied by the state, except for a concession operated in connection with any of the following:

                  (i)  The state fair.

                  (ii)  The use of state fair grounds.

                  (iii)  Any state educational institution.

                  (iv)  A state penal institution.

                  (v)  Military establishments and armories.

                  (vi)  A state park.

         (mm)    “supplies” means those items that are necessary for the successful operations of a vending facility that are not directly purchased or utilized by customers of a vending facility.  This may include cleaning products, office products, and other similar items but does not include those items utilized for food preparation such as coffee filters, cups, lids, and other like items.

(nn)  "Unassigned vending income" means the funds that accrue from vending facilities on federal, state, and other properties, for which there is no blind licensee and which accrues to the bureau.

         (oo)  “Vending facility” means an automatic vending machine, cafeteria, café, snack bar, cart service, shelter, counter or any other appropriate auxiliary service or equipment as the bureau may prescribe by rule as being necessary for the sale of articles, goods or services described in 1978 PA 260, as amended, being §393.351 et seq of the Michigan Compiled Laws and which may be operated by a blind licensee.  

         (pp)   "Vending machine facility" means a vending facility that has a majority of its sales generated from coin or currency‑operated machines that dispense articles, goods, or services.  The machines are all located at a single location. 

         (qq)  "Vending machine route" means a vending facility that consists of vending machines situated in disparate physical locations. None of the vending machine route component parts can function independently as a vending facility.    

(2)  A term defined in the act has the same meaning when used in these rules. 



Program Administration.

  Rule 2.  

The bureau, with the active participation of the committee, may administer a vending facility program for the blind on federal, state, and other properties.



Program Eligibility.

  Rule 3.  

(1)  A blind person is eligible for the vending facility program and is eligible for program training and assignments if any of the following provisions apply:

         (a)  The person is unemployed.

(b)  A person is earning a weekly wage less than or equal to 40 times the current federal minimum hourly wage.

         (c)  The person is employed in a program vending facility.

         (d)  The person is an active rehabilitation client whose vocational objective is placement in the program, who has completed the requirements of a potential licensee, and who takes employment while waiting to be placed in the program.  In this case, the potential licensee remains a potential licensee until either of the following occurs:

                  (i)  The person is awarded a program vending facility.

                  (ii)  The person elects to have his or her name removed from consideration as a potential licensee.     

(2)  After three (3) years as a potential licensee, an individual shall be retrained before being awarded a vending facility.

(3)  An individual who does not meet the requirements contained in sub rule (1) of this rule is not eligible for program training or placement.   An individual who owes money to the state, including the bureau or federal government is also ineligible for training until the individual’s debts are paid in full.



Client Interview; Evaluation; Testing; Training.

  Rule 4.  

(1)  If a vocational rehabilitation client and counselor decide that the vocational objective of vending facility licensure fits the client’s skills and interests, then the client shall arrange for a job shadow prior to requesting an interview with a member of the Bureau staff.   

(2)  The client shall satisfy all of the following criteria:

         (a)  Be interested in meeting the public on a daily basis.

         (b)  Understand the concept of customer service.

(c) Understand basic business practices and demonstrate a willingness to perform tasks associated with business.   

(d)  Understand appropriate business attire.

         (e)  Be willing to relocate.

(3)  A client shall not become a candidate to be admitted to the program without a satisfactory interview.

(4)  A candidate must attain competency in skills of blindness as determined by the Bureau with the active participation of the committee.   

(5)  A candidate for the program shall attain the college-level competencies determined by the Bureau with the active participation of the committee and set forth and published by the bureau and shall avail himself or herself of the vending facility training and on‑the‑job training.

(6)  If the candidate has physical limitations that hinder the attainment of skills of blindness competencies, and it is determined that he or she can handle the physical requirements associated with operating a facility, then the vocational rehabilitation counselor shall include documentation in the evaluation requesting a waiver of the orientation and mobility requirement or other requirement not attainable by the candidate due to a disability and not essential to carrying out the responsibilities of a licensee.



Establishment of Program Entrance Requirements; Candidate Evaluation.

  Rule 5.  

(1)  The bureau, with the active participation of the committee, shall establish and set forth entrance requirements for the program.

(2)  Each candidate for the program shall demonstrate competency in all of the following areas:

         (a)  Reading, mathematics, and communications.

         (b)  Orientation and mobility.

         (c)  Daily living skills.

(d)  Computer skills, including word processing, spreadsheets, e-mail, and internet.

(e)  Mechanical skills.

(f)  Adaptive kitchen skills.



Vending Facility Training.

  Rule 6. 

(1)  Vending facility training shall include college-level competencies, program sponsored classroom training, and on‑the‑job training.  College-level competencies shall be completed prior to the commencement of program sponsored classroom training.

(2)  The college-level competencies and program sponsored classroom training shall include all of the following topics:

(a)  A history and overview of the program. 

         (b)  The Randolph‑Sheppard program and all applicable laws, regulations, and policies. 

         (c)  Methods of managing a vending stand, including all of the following:

                  (i)  Sanitation.

                  (ii)  Bookkeeping.

                  (iii)  Product management.

                  (iv)  Marketing skills and techniques.

                  (v)  Customer relations skills.

                  (vi)  Program reporting requirements.

                  (vii)  Applicable employer laws, rules, and regulations.

         (d)  Equipment certification, including vending machines.

(e)  Methods of food production, including all of the following:

(i)  Menu planning.

(ii)  Recipe planning and food production.

(iii)  Portion control.

(iv)  Nutritional information and planning.

(v)  Cost controls.

(3)  A candidate shall demonstrate that he or she is in compliance with the guidelines regarding dress as set forth by the bureau.

(4)  A candidate is required to pass the national restaurant association education foundation ServSafe Certification, with a passing grade of not less than 75%.  An individual shall maintain current certification throughout licensure.



College-level Competencies.

  Rule 7.

(1)  A candidate must complete competency in business, hospitality, management, and food service as established by the program with the active participation of the committee.

(2)  All classes must be taken at an accredited institution.

(3)  A score of not less than 80% is required in order to demonstrate competency.  Original transcripts are to be reviewed by the bureau to determine successful completion of each competency.

(4)  Prior to commencement of vending facility training, a candidate shall submit an application to the Bureau.  This application shall include a plan regarding college-level competencies.  This plan shall include all of the following:

(a)  The institution where classes are to be taken.

(b)  The course to be taken by the student, including the course name, description, and syllabus or course outline.

(c)  The competency the course is intended to satisfy.

(d)  The projected timeline for completion of all courses.  

(5)  A student shall successfully complete all college-level competencies prior to the commencement of program classroom training or on-the-job training.



Program Sponsored Classroom Training.

  Rule 8.  

(1)  Upon completion of the college-level competencies, a student shall complete program sponsored classroom training for a period to be determined by the program with the active participation of the committee.

(2)  Program sponsored classroom training shall include all of the following:

(a)  A history of the program.

(b)  Program rules and regulations.

(c)  Program reporting requirements.

(d)  Vending machine certification.

(e)  Small wares certification;

(f)  Catering training and certification.

(3) Tests shall be administered in each area specified in sub rule (2) of this rule.  A passing grade for a test is not less than 80%. 



Vending Facility On‑The‑Job Training.

  Rule 9.  

(1)  A candidate shall successfully complete and pass on‑the‑job training in each facility type listed in sub rule (2) of this rule, before being awarded a facility.  If the candidate does not pass the initial on‑the‑job training for an individual facility type, then he or she may be reassigned to a second on‑the‑job training for that facility type.  However, if the candidate fails the second on‑the‑job training, then he or she is terminated from the vending facility training program.

(2)  A candidate shall complete an on-the-job training in each of the following facility types:

(a) Snack bar.

(b)  Vending facility, vending route, or highway vending route.

(c)  Cafeteria or cafe.

(3)  The duration of each on-the-job training listed in (2) above is to be determined by the bureau with the active participation of the committee.  

(4)  A candidate who has an unexcused failure to report for on-the-job training shall be considered by the program to have failed on‑the‑job training.  

(5)  A candidate who attempts to defraud the bureau or who steals money or merchandise from the trainer shall be summarily suspended from training.  The bureau will conduct an investigation.  If the investigation substantiates the fraud or theft, then the candidate will be expelled from the program.  A candidate who disagrees with the finding of the investigation can appeal the finding through a process established under the Vocational Rehabilitation Act of 1973, as amended in 1992, 29 U.S.C. 31‑42 §100‑803 et seq.

(6)  The bureau, with the active participation of the committee, shall establish standards for on‑the‑job training. 

(7)  A licensee who serves as an on‑the‑job trainer shall be certified through a training program provided by the bureau with the active participation of the committee.

(8)  A licensee providing an on-the-job training shall have all of the following responsibilities:

         (a)  To ensure that all components of the on‑the‑job training assessment are evaluated and that the trainee is given the opportunity to independently demonstrate proficiency in all areas.

         (b)  To provide the full amount of time for on‑the‑job training as determined by the bureau with the active participation of the committee.

         (c)  To properly complete and submit an on‑the‑job training evaluation during the last day of on‑the‑job training. On‑the‑job training reports are a part of the vocational rehabilitation file and as such are governed by the vocational rehabilitation confidentiality requirements.      

(9)  A trainee in on‑the‑job training shall have both of the following responsibilities:

         (a)  To demonstrate proficiency in all areas covered in the on‑the‑job evaluation.

         (b)  To complete the amount of training time required for on‑the‑job training as determined by the bureau with the active participation of the committee.



Training Achievement Portfolio.  

  Rule 10.  

(1)  A candidate for the program shall submit documentation to the program demonstrating completion of entrance requirements by means of a training achievement portfolio, which shall consist of all of the following:

         (a)  Personal resume.

         (b)  A diagnostic eye examination report indicating that the candidate is legally blind, as defined by the Act, and whether there is a possibility of improved vision in the future.

         (c)  On‑the‑job training reports. 

         (d)  A state vending stand training report.

(e)  Transcripts from an accredited educational institution demonstrating completion of college-level competencies.   

(f)  A certificate of completion of the National Restaurant Association Education Foundation ServSafe® sanitation course.

(2)  The program shall review the training achievement portfolio and verify successful completion prior to the candidate becoming a potential licensee.



License Issuance and Eligibility Requirements.

  Rule 11.  

A license shall be issued only to a person who, as determined by the bureau, meets all of the following requirements:

         (a)  Is blind as certified by a licensed ophthalmologist or optometrist, as defined by the Act.  If a licensee obtains corrective surgery or his or her vision improves through other means, then the licensee shall be required to submit a new eye exam.        

         (b)  Is not less than 18 years of age.

        (c)  Is certified by the bureau as qualified to operate a vending facility.

(d)  Is a citizen of the United States,

(e)  Does not owe money under the circumstances described in Rule 3(3).



Licensing Procedure.

  Rule 12.  

(1)  To be licensed, a person shall comply with all of the following requirements:

         (a)  Submit the training achievement portfolio to the program demonstrating qualifications to operate a vending facility as described in Rule 10.  

         (b)  Bid on a facility.

         (c)  Be awarded a facility. 

         (d)  Successfully operate a facility for six (6) months.  

(2)  A license is valid on the date the potential licensee successfully completes an initial  6‑month probationary period in a vending facility and is valid for an indefinite period but subject to rules regarding suspension or termination, as defined in Rule 14, Rule 15, Rule 16, and Rule 17.  The license is subject to suspension or termination if, after affording the licensee an opportunity for a full evidentiary hearing, the state licensing agency finds that the vending facility is not being operated in accordance with its rules and regulations, the terms and conditions of the permit, and/or the terms and the conditions of the lease arrangements for a facility. 

(3)  An individual who voluntarily surrenders his license during the process of license suspension or revocation shall not be eligible to be returned to the status of potential licensee.  

(4)  Licensee seniority commences on the first day of the probationary period.  Seniority is awarded retroactively at the end of the successfully completed probationary period.  Seniority continues to accrue uninterrupted unless the license is surrendered, suspended, or revoked.  If seven (7) or more days elapse between transfers, then seniority is interrupted until the new vending facility operation commences.

(5)  Before accepting another facility, a licensee shall operate his or her facility for not less than one (1) calendar year.

(6)  Once a candidate has been certified as qualified to be licensed, he or she may begin bidding.



License Entitlements; License Display; License Validity.

  Rule 13.  

(1)  A license entitles a licensee to all rights and protections under the Randolph-Sheppard Act of 1936, as amended, 20 U.S.C. §107 et seq., as well as the act and corresponding promulgated rules.  

(2)  A license shall be displayed at the vending facility at all times.

(3)  A license is valid only while the licensee is actively operating the assigned facility.



License Termination.

  Rule 14.  

A license is issued in accordance with the Randolph-Sheppard Act of 1936, as amended, 20 U.S.C. §107 et seq. and is subject to summary suspension or revocation, for cause, if the vending facility is not operated pursuant to the bureau's rules and policies, the terms and conditions of the permit, the terms and conditions of the agreement, or the Bureau’s lease arrangements for the facility. 



Summary License Suspension.

  Rule 15.  

(1)  If the bureau finds that the public health, safety, or welfare requires emergency action and incorporates this finding in its order, or the facility is not able to operate due to actions of a licensee, then summary suspension of a license may be ordered effective on the date the order is executed and will remain in effect during the suspension proceedings.  The proceedings shall be promptly commenced to determine if license revocation is justified.  A licensee shall not operate a vending facility while suspension proceedings are on-going.  A licensee whose license has been suspended is not eligible to be awarded another vending facility.  Suspension Proceedings may include all of the following:

(a)  An investigation of the claims.

(b)  An interview with the licensee.

(c) An interview with the landlord of the facility.

(2)  The bureau shall determine if license revocation is appropriate within ninety (90) days of service of suspension of a license upon a licensee.  If written notice of revocation is not provided within this time, the license suspension process is ceased and the licensee may return to the facility.

(3)  If the bureau determines that revocation is appropriate, proceedings shall be promptly commenced as outlined in Rule 17 and the licensee may not operate a vending facility during the revocation proceedings.



License Revocation.

  Rule 16.  

(1)  The bureau may revoke a license issued to a blind person for the operation of a vending facility on federal, state, or other property for any of the following reasons:

         (a)  A licensee's vision has improved to the extent that he or she no longer meets the requirements of the act.  The bureau may periodically request a licensee submit to an updated eye examination.  The licensee shall select the service provider and the bureau shall pay the cost of the eye examination.  If either the bureau or the licensee requests a second opinion, then the requesting party shall bear the cost of the second examination.  The bureau may request a licensee submit to an updated eye examination when the bureau's consultant has reviewed the original eye examination and advised the bureau that there is some possibility of vision improvement.  A licensee for whom there is no possibility of improved vision shall not be required to have an updated eye examination.

         (b)  Voluntary withdrawal from the program. 

         (c)  An extended illness of a licensee which has been medically diagnosed and documented and which will result in the prolonged incapacity of the licensee to operate the vending facility in a manner consistent with the needs of the vending facility or other available locations in the vending facility program.

(d)  The licensee is unable to operate the facility due to an extended absence of more than thirty (30) days from the facility.   

(e)  A violation of the terms and conditions of Rule 23, Rule 24, Rule 25, Rule 26, Rule 27, Rule 28, Rule 29, Rule 30, Rule 31, Rule 33, Rule 34, Rule 35, Rule 36, and Rule 40.                                           

(2)  Termination of participation in the program results in automatic license revocation.  

(3)  A licensee whose license is in the termination process, as specified in Rule 17, is not eligible to be awarded a vending facility while the license is in the termination process.



License Revocation Procedures.

  Rule 17.  

(1)     Before revoking a license, the bureau shall do all of the following in accordance with section 92 of 1969 PA 306, MCL 24.292:

         (a)  Issue a written notice stating the facts or conduct that warrants the license action.

         (b)  Provide an opportunity to show compliance, within thirty (30) days, with licensing requirements.

         (c)  Issue a notice of hearing if, within thirty (30) days, there is a failure to show compliance with licensing requirements; and, in addition, insert in the notice the language "commencing proceedings."

         (d)  Cause an evidentiary hearing as prescribed in the Randolph-Sheppard Act of 1936, as amended, 20 U.S.C. §107 et seq. and the act.

         (e)  Consider the proposed decision rendered by the administrative law judge to the Director.

         (f)  Issue a final decision as rendered by the director.  The final agency decision shall identify the effective date of the license action.  If the final decision is to revoke a license, the bureau shall remove the licensee from the facility on the effective date.

         (g)  Advise the licensee in writing within five (5) business days, if the final decision is to revoke or suspend a license, of his or her right to seek a remedy through an ad hoc arbitration panel as authorized by the provisions of 34 C.F.R. §395.13 (July 1, 1981).  The licensee may then file a written request for an ad hoc arbitration with the Rehabilitation Services Administration, pursuant to §5 of the Randolph-Sheppard Act of 1936, as amended.

         (h)  Advise the licensee in writing within five (5) business days, that the decision of the ad hoc arbitration panel is final and binding on the parties, except that the decision is subject to appeal and judicial review as a final agency action for purposes of the provisions of the Government Organization and Employees Act, 5 U.S.C. §101 et seq.



Bureau Responsibilities Generally.

  Rule 18.  

The bureau shall do all of the following:

         (a)  Furnish each licensee with a copy of these rules.

         (b)  Upon request, provide financial information to licensees quarterly and on a fiscal year basis.

         (c)  Take adequate steps to inform each licensee of the provisions of these rules , the provisions of the permit, and any provisions of the building lease arrangements for the facility in which the licensee is licensed, including the licensee's rights and responsibilities as evidenced by these rules.

         (d)  Periodically conduct, or cause to be conducted, a management review of a random sample of licensees.



Bureau Responsibilities; Vending Facility Site.

  Rule 19.  

The bureau shall do all of the following:

         (a)  Determine if a potential site is suitable for a vending facility. In a building where more than one (1) vending facility exists, the bureau may merge the facilities into a single vending facility.  Facility merging may occur when one (1) of the vending facilities is vacated and has not been awarded to another licensee after being on the bid line for two (2) or more weeks.  Under these circumstances, applicable additional licensee training requirements shall be waived for a period to be determined by the bureau, with the active participation of the committee.  

(b)  The bureau shall determine whether a potential location is suitable for operation as a vending facility or as a satellite.  The criterion for determining if a potential location is suitable for operation as a vending facility is that the potential site's net annual income is expected to be 120% of the current federal minimum wage, based upon a 40‑hour workweek.

(c)  List and assign priority to suggested renovations.  All renovation or remodeling activities are subject to the availability of funds.  The bureau shall make all final renovation decisions with input from the committee. 

(d)  The bureau shall establish operations requirements for the facility as detailed in the lease arrangement for a facility through consultation with the entity having charge of the property.

e) The Bureau shall evaluate the vending facility and licensee annually, or more often if necessary, to ensure successful operation of the vending facility.



Vending Facility Equipment

  Rule 20.  

(1)  The bureau shall do all of the following:

(a)  Determine the equipment needs of each vending facility and furnish each vending facility with adequate equipment suitable to the needs of the vending facility.

         (b)  Maintain, or cause to be maintained, all vending facility equipment in good repair and cosmetically appealing condition and replace, or cause to be replaced, worn‑out or obsolete equipment as required to ensure the continued and successful operation of the facility.

(2)  The bureau may lease or authorize the lease of equipment for a vending facility.  The cost of the lease may be paid by the licensee from the proceeds of the facility, and any such requirements shall be noted in the agreement.  By accepting the facility, the licensee consents to all terms and conditions of the equipment lease.

(3)  Only the bureau may transfer equipment between licensees or facilities.  Equipment shall only be used in the assigned vending facility.

(4)  The Bureau shall purchase all equipment for a vending facility. Licensees may be allowed to purchase small wares necessary for the operation of the vending facility, not to exceed a dollar amount determined by the bureau, with the prior written consent of the bureau.  Items approved and purchased by a licensee shall not be reimbursed and shall be removed from the facility when a licensee transfers to a different vending facility.  No unapproved equipment shall be allowed to remain in the vending facility. 



Right and Title to Interest in Equipment. 

  Rule 21.  

The title to the equipment in each vending facility shall be and shall remain in the name of the state of Michigan, except that equipment that is determined to not be needed in the vending facility program may be reassigned to blind individuals in the vocational rehabilitation program with an individualized plan for employment with a goal of independent business.  Title to the reassigned equipment shall then be determined according to the policies of the Bureau



Vending Machine Income; Disbursement; Use.

  Rule 22.  

(1)  Income from vending machines on state, federal, or other properties that is not assigned to a licensee shall be placed in the set‑aside funds and designated as unassigned vending machine income.

(2)  Upon receiving supporting documentation of a loss, income from unassigned vending machines on state, federal,  and other properties may be utilized for the purpose of insuring a licensee's established loss in merchandise due to theft or equipment failure.  Vending machine income from state, federal, and other properties that is not necessary to insure a licensee's established loss shall be placed in the set‑aside fund and designated as unassigned vending machine income.



Vending Facility Agreement

Rule 23  

(1) All vending facilities shall be operated under a signed agreement by both the Bureau and the licensee, and the agreement shall identify the following:

(a) The hours of operation for the facility

(b) The equipment and value assigned to the facility

(c) The inventory and value assigned to the facility

(d) The products and services to be provided by the facility

(e) All other terms presented in the business plan submitted by the licensee to the Bureau, in accordance with rule 45.

(2) An agreement must be signed by the licensee and the Bureau prior to the commencement of operations at a vending facility.

(3) Failure of a licensee to sign an agreement prohibits a licensee from operating any vending facility, and may result in the commencement of license revocation proceedings as outlined in rule 14, Rule 16, and rule 17.

(4) By signing an agreement an operator agrees to comply with all of the terms and conditions of the agreement, the permit and lease agreement for the facility, and all Bureau policies, procedures, and rules. Failure to perform these requirements may result in the commencement of license revocation and/or license suspension proceedings as outlined in rules 14, 15, 16, and 17.

(5) An agreement is entered into for a period of not more than two (2) years and may be renewed by the bureau.  An agreement is subject to the Bureau’s license revocation and license suspension proceedings for non-compliance as outlined in Rule 14, Rule 15, Rule 16, and Rule 17.



Initial Vending Facility Inventory.

  Rule 24.  

(1)  A licensee shall make a request to the bureau for an initial merchandise inventory in accordance with the policies established by the Bureau and consistent with the approved business plan. Requests shall be fully documented and shall include all of the following:

(a)  Value and types of merchandise for the facility;

(b)  Value and types of supplies for the facility;

(c)  An initial capital investment for the facility, if necessary.

(2)  All requests for inventory shall be fully documented and supporting documentation shall be provided to justify the purchase of an inventory.

(3)  The bureau may assign cash or products to a licensee to provide the initial inventory. 

(4)  For licensees transferring to an established vending facility, the incoming licensee must agree to accept the value and composition of the existing inventory.  The incoming licensee may reject five percent (5%) or $250, whichever is lower, of product lines from the assigned inventory.

(5)  All product lines rejected by the incoming licensee must be provided to the Bureau, in writing, fourteen (14) days prior to the incoming inventory date.

(6)  The value of any inventory requested by an incoming licensee that exceeds the value of the inventory assigned to an existing facility, and has been approved by the bureau, shall be provided in cash to the incoming operator, and documentation identifying those products purchased by the incoming operator shall be provided to the bureau no less than fourteen (14) days from the date the monies are provided.  Failure to provide supporting documentation by the due date may result in the commencement of license revocation proceedings.

(7)  The bureau shall, on an annual basis, reevaluate the assigned inventory for each vending facility.  The assigned value for the inventory for each vending facility shall be determined by a formula developed by the bureau with the active participation of the committee.  If, after evaluating the assigned inventory, there is a difference in the assigned value of the inventory, the difference shall be corrected as follows:

(a)  If the evaluated inventory is more than the assigned inventory, the bureau shall make up the difference by providing an additional capital investment to the facility;

(b)  If, after evaluating the inventory, the amount is less than the value assigned to the vending facility, the licensee shall reimburse the bureau within thirty (30) days of notification of the difference.  Failure to reimburse the bureau within thirty (30) days shall result in the commencement of license revocation proceedings.

(8)  A licensee operating a vending facility prior to the effective date of these rules shall not be subject to the inventory reevaluation as outlined in sub rule (7) above.  These licensees shall have their inventory adjusted by the value for the inventory by the Consumer Price Index, and that value shall be the newly assigned value for the facility.

(9)  Whenever a vending facility is changed as outlined in sub rules (7) and (8) above, they shall sign a new agreement, accepting responsibility for the newly assigned inventory value.

(10)  A licensee shall accept the value of supplies assigned to a vending facility at the time of the inventory.  A value for supplies shall be noted in the agreement and the licensee shall accept responsibility for the value of these supplies.



Ending Inventory.         

  Rule 25.  

(1)  When a licensee leaves a facility, an ending inventory shall be taken jointly by the outgoing licensee and the bureau.  

(2)  A licensee shall return the inventory to the bureau at the conclusion of operations for a facility.  The value of the inventory returned shall be as follows:

(a)  The value of the initial merchandise provided for the operations of the facility, including any adjustment as outlined in Rule 24(8) and (9);

(b)  The value of the initial supplies provided for the operation of the facility;

(c) The value of any initial capital provided by the Bureau for the operations of the facility.

(3)  The value of the merchandise and supplies may be returned to the Bureau in products or cash.  The value of the initial capital provided shall be returned as cash in the form of certified funds to the Bureau.

(4)  The bureau shall notify the out-going licensee fourteen (14) days prior to the inventory date of product lines that are being rejected by the in-coming licensee as noted in Rule 24(5).  The composition of the merchandise inventory returned to the bureau shall be those products noted in the agreement as appropriate for the facility.  The bureau shall not accept those products that do not conform to the agreement or  product lines that are rejected by the incoming operator that still exist in the facility, providing that the out-going licensee was notified fourteen(14) days prior to the date of the inventory of rejected product lines. Those products remaining in the facility that have been rejected by the in-coming licensee less than 5% of the value of the assigned inventory or $250, whichever is lower, are the property of the out-going operator and shall be removed from the facility at the conclusion of the inventory.  .  Additionally, the bureau shall not accept products that are expired, going to expire within fourteen (14) days of the date of the inventory, products or cases that are open, or products that are otherwise unsalable in accordance with local health regulations.

(5)  At the conclusion of the inventory the value of the merchandise inventory, supply inventory, and capital investment shall be compared to the values assigned to the facility.  Any discrepancies shall be resolved as follows:

(a)  If the value of the inventory is higher than the value assigned to the facility, an overage exists.  If the inventory overage is composed of facility merchandise, the overage represents accrued earnings of the outgoing licensee.  The outgoing licensee shall pay set‑aside fees on the full amount of merchandise overage.  The disposition of an overage is the responsibility of the outgoing licensee.

(b)  If the value of the inventory is less than the assigned inventory value for the vending facility, than a shortage exists.  The out-going licensee shall reimburse the bureau immediately for any inventory shortage.  Failure to reimburse the bureau for an inventory shortage within twenty-four (24) hours of the inventory shall result in the commencement of license revocation proceedings.



Licensee Obligations Generally.

  Rule 26.  

(1)  Each licensee shall 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 bureau's rules and procedures, the terms of the permit, the facility lease agreement and otherwise abide by the rules of the bureau.

         (b)  Operate not more than one (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)  Request an initial inventory from the bureau and maintain that level of inventory at all times, excepting seasonal business cycles.

(e)  Submit, in writing, requests for facility renovations or changes to the facility lease agreement, or discuss, with the Bureau, facility renovations and lease agreements as a component of the annual vending facility evaluation process.  The bureau shall have the final determination on all alterations to facilities or lease agreements.

         (f)  Admit duly authorized representatives of the bureau to the vending facility and cooperate with them in connection with their official duties and responsibilities.

         (g)  Comply with all terms and conditions of the lease agreement between the bureau and the department, agency, or entity having charge of the property. 

         (h)  Participate in the in-service training programs provided.

         (i)  Obtain and maintain a general comprehensive liability insurance policy and, if the licensee hires one (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.  

         (j)  Comply with all applicable federal and state laws and regulations, including tax laws.

(k)  Make payment of all fees due to the bureau by established due dates.  

          (2)  A licensee shall not discriminate against any person or persons in the provision of any and all services, privileges, and accommodations provided from a vending facility.  

(3)  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 1964.

         (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 statutes, regulations, or rules.

(4)  A licensee shall refer repairs to facility structure and equipment to the bureau for action.  If the needed repair is an emergency and requires immediate attention, the licensee shall contact building personnel to affect the necessary repairs, notifying the bureau within twenty-four (24) hours of the repair.

(5)  The licensee and bureau are not partners or joint ventures.  Nothing renders either of the parties liable to any third party for debts of or litigation of the other party.



Licensee Insurance Requirements.

  Rule 27.  

(1)  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 purchasing a policy independently and providing the bureau with a certificate of insurance showing the dates of coverage.  The bureau shall be named on the certificate of insurance to assure its notification if coverage is cancelled or lapses.

         (b)  Carry workers' disability compensation insurance pursuant to state law and Rule 26(1) (i).  The bureau shall be named on the certificate of insurance to document that the licensee has coverage and to ensure that the bureau is notified if coverage is canceled or lapses.



Licensee Health and Safety Obligations.

  Rule 28.  

(1)  A licensee shall operate a vending facility pursuant to all applicable health and safety laws and rules.

(2)  A licensee shall apply for all health licenses.  Fees for health licenses are considered to be a business expense and are the responsibility of the licensee.  Failure to make application or payment of health license fees shall result in the commencement of license suspension or revocation proceedings.  

(3)  A licensee shall make timely submission of all periodic health inspection reports to the bureau.  Where correction of the violation is within the purview of the licensee, the licensee shall act immediately to correct a violation. 

(4)  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.

(5)  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.

(6)  Where correction of the violation is beyond the purview of the licensee, the bureau shall make the correction pursuant to the inspection report.



Licensee Record Keeping Requirements

Rule 29.  

(1)  A licensee shall maintain records of the financial operations of the business.  Records shall include all of the following:

(a)  Daily, weekly, and monthly vending facility sales.

(b)  Merchandise and supply expenditures.

(c)  Employer obligations including:

(i)  Wages paid.

(ii)  Employer tax and withholding obligations.

(iii)  Required insurances as stated in Rule 27.

(iv)  Sales taxes.

(v)  Other allowable expenses as determined by the bureau.

(d)  Other income, including reimbursements, rebates, catering proceeds, and commissions that are a direct result of a licensee are vending facility operation.

(2)  All records must be supported with verifiable documentation.

(3)  A licensee shall submit documentation supporting all records submitted to the bureau on an annual basis, or more often if necessary, to verify the accuracy of all reports.



Licensee Record Verification

  Rule 30.

(1)  A licensee shall provide documentation to verify reports to the bureau from time to time as required for the successful operation of their business. The documentation shall include:

(a)  Licensee income.

(b)  Sales tax payments.

(c)  Unemployment insurance payments.

(d)  Workers compensation payments.

(e)  Liability insurance payments.

(f)  Any other information the bureau shall deem necessary for verification of monthly reports.

(2)  Documentation verifying these payments shall be submitted and postmarked by due dates set by the bureau. 

(3)  Documentation verifying payments shall be submitted in one of the following manners:

(a)  Copies of statements, proof of payments, cancelled checks, or official city, state, or federal documentation for official reporting requirements. Documentation submitted in this manner shall include all of the following, where appropriate:

(i) Business name, licensee name, and/or account number.

(ii) Amount due.

(iii) Amount paid.

(iv)  Amount earned, where applicable.

(b)  A notarized affidavit including all of the information required in subparagraph (a) of this rule. In the event a notarized document is submitted, the original notarized document must be provided to the Bureau.

(4)  All documents required in sub rule (2) and (3) of this rule must be sent first class U.S. mail to the bureau.  No e-mail or fax transmissions will be accepted. 

(5) Licensees submitting copies of documentation as prescribed in subparagraph (2)(a) of this rule may redact confidential information, provided that all requested information  identified in sub rule (2)(a)(i) – (iv) of this rule is retained. 

(6) Failure to submit required documentation to the bureau by the established due dates may result in the commencement of license revocation and suspension proceedings, as outlined in Rule 14, Rule 15, Rule 16, and Rule 17.



Licensee Reporting Requirements.

  Rule 31.  

(1)  A licensee shall furnish reports as the bureau may require periodically, in the manner prescribed by the bureau. 

(2)  A licensee shall complete the bureau's standard monthly vending facility report.  Facility sales, business expenses, taxes paid, profit, and financial operations are major components of the report.  The report shall be an accurate and true report, including all revenues collected and all business expenses paid.

(3)  A licensee shall submit the monthly report data to the Bureau in the manner prescribed by the fifteenth day of the month following the period covered by the report.  

(4)  If a report is delinquent, including a vending facility monthly report, then the reporting licensee is not eligible to bid on another vending facility until thirty (30) days after the submission of the delinquent report.  If a set-aside fee payment is delinquent, then the reporting licensee is not eligible to bid on another vending facility until thirty (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)  All payments to the bureau are to be sent to the address listed on the bill.  No payments sent or delivered to bureau offices will be accepted.

(6)  Receipt of a nonsufficient funds check in payment is 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 all reports, including the monthly vending facility report and the payment of all 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 twenty-fifth day of the month following the period covered by the associated report.  The set-aside fee payment is a payment due to the bureau.  The bureau shall not accept partial payment for past due set-aside fee payments, liability insurance payments, or other payments due to the bureau.

(9)  Failure to submit two (2) or more reports or payments during a 12‑month period shall result in commencement of license revocation proceedings.

(10)  A licensee shall report to the bureau within thirty (30) days of failure to make payment of unemployment insurance, sales taxes, or other related fees.  Failure to notify the bureau shall result in the commencement of license revocation proceedings. 



Licensee Fees.

  Rule 32.  

(1)  A uniform set-aside fee based upon net proceeds shall be paid by each vending facility licensee.  The fee shall be fixed by the bureau with the active participation of the committee.  The fee shall be designed to prevent, so far as practicable, a greater charge for any purpose than is reasonably required, with allowance for reserves.  Any changes in the set-aside fees shall be submitted to the commissioner of the United States Rehabilitation Services Administration for prior approval.  The fees are to be set-aside for the following purposes only:

         (a)  Maintenance and replacement of equipment.

         (b)  The purchase of new equipment.

         (c)  Management services.

         (d)  The establishment and maintenance of retirement or pension funds and health insurance contributions, if so determined by a majority vote of the licensees licensed by the bureau.

(e)  Assuring a fair minimum return to a licensee.

(2)  The proceeds of the operation of each vending facility shall accrue to the licensee after the licensee has paid the operating costs and the set-aside fee.



Licensee Inventory Obligations.

  Rule 33.  

(1)  A licensee shall take an inventory of all merchandise and supplies by December 31st of each year.  The inventory shall include all of the following information:

         (a)  Item description.

         (b)  Quantity.

         (c)  Unit cost (wholesale cost).

         (d)  Unit cost times quantity (total of money invested in the item).

         (e)  Total value of complete inventory.  It is the licensee's responsibility to assign a unit cost to each item and to extend the inventory to determine the value of the entire inventory for that particular facility.

(2)  A copy of the inventory shall be submitted by the licensee to the bureau at a date to be determined by the Bureau.  Failure to submit a copy of the annual facility inventory by the due date shall result in the commencement of license revocation proceedings.



Licensee Profit Expectation.

  Rule 34.  

(1)  A licensee shall maintain the profit expectations established in this rule.  For purposes of compliance, a licensee's profit level is calculated based upon a period comprised of the most recent three (3) consecutive months and by taking the net proceeds of the vending facility and dividing by the total sales of the vending facility.  Licensee profit expectations are as follows:

(a)  Snack bar ‑ 25% profit expectation.

         (b)  Vending machine facility- 30% profit expectation. 

         (c)  Cafeteria ‑ 11% profit expectation.

         (d)  Café- 17% profit expectation.

         (e)  Vending machine routes as follows:

                  (i)  Non-highway vending route ‑ 25% profit expectation.

                  (ii)  Highway vending route ‑ 30% profit expectation.

(2)  Licensees may request an exception to the established profit expectation for their vending facility.  The request for the exception shall be sent in writing to the Bureau and shall include the reason(s) the request should be granted.  Within fifteen (15) working days of the request, a panel consisting of Bureau staff and a representative of the committee shall review the request and make a determination.  The Bureau shall notify the licensee of the panel’s determination in writing. The panel’s decision may be appealed subject to Rule 52, Rule 53, and Rule 54.



Licensee responsibility regarding equipment repairs.

 Rule 35.            

(1)    A licensee shall make a personal effort to make repairs.  The bureau shall supply appropriate spare parts.  Spare parts shall be provided as determined necessary by the bureau at no cost to a licensee, excepting those parts determined to be the responsibility of the licensee by the bureau with the active participation of the committee.

(2)    Licensees requesting parts that are the responsibility of the bureau are to submit a request in writing to the bureau.  The bureau shall acknowledge receipt of the request and shall take steps to provide the requested part in accordance with department policies.

(3)  If a licensee has not been contacted by the bureau within 48 hours of the first attempt to request parts, the licensee may purchase the parts and be reimbursed according to the policies regarding reimbursement by the Bureau.

(4)  If a licensee is unable to repair the equipment, the licensee shall submit a written request to the Bureau requesting a repair.  Repairs shall be affected according to the policies of the Bureau.



Licensee Repair Deductible.

  Rule 36.  

(1)  A licensee shall pay a repair deductible on each piece of equipment repaired.

(2)  The repair deductible is calculated by multiplying the previous year’s actual or, for locations where documentation is incomplete, estimated gross sales by a factor established by the bureau, with the active participation of the committee.  For new locations, an estimate of gross sales is used.

(3)  Repair deductibles shall not be less than or exceed amounts determined by the bureau with the active participation of the committee.

(4)  Repair deductibles are applied only to labor and travel charges. Parts are not subject to the repair deductible.  The repair deductible does not apply during the first thirty (30) days after a licensee transfers facilities.  A licensee repair deductible does not apply to equipment transferred into the facility for the first thirty (30) days after transfer.  For new licensees, deductibles do not apply for the first sixty (60) days.

(5)  A licensee is responsible for the repair deductible for repairs of each piece of equipment that has been transferred out of their facility and is in need of repair before reassignment to another vending facility.  This sub rule does not apply to equipment that is being scrapped, salvaged, or surplused.

(6)  A licensee who transfers out of a facility is responsible for the repair deductible for each piece of equipment that is in need of repair at the time of transfer and does not meet the criteria of (4) above.

(7)  A licensee is responsible for the entire cost of cleaning required for equipment or facilities above what is determined to be general maintenance.  This includes both equipment transferred out of a facility and/or when a licensee transfers out of a facility.  Equipment transferred out of a facility requiring cleaning beyond general maintenance shall be the sole responsibility of the licensee.  Equipment remaining in a facility after an licensee transfers out of the location requiring cleaning beyond general maintenance shall be the sole responsibility of the out-going licensee.



Licensee Health Insurance.

  Rule 37.  

(1)  A licensee may deduct an amount from set-aside fees due to offset the cost of health insurance.  A licensee shall submit proof of coverage with each monthly vending facility report.  The amount of the deductible shall be based on a budget analysis to determine if the deduction will continue.

(2)  If set-aside funds are insufficient to continue the deduction as a licensee benefit, then the deduction may be discontinued or altered by the bureau based on a recommendation of the committee or upon staff recommendation.     

(3)  The health insurance deductible shall be used for a licensee's expenses for health insurance.  Proof of payment shall be submitted each month showing the coverage period, carrier, and type of insurance (family or single).  Deductions shall not be more than the actual amount paid for the licensee's portion of health insurance coverage.



Satellite Sites.

  Rule 38.  

(1)  If a potential concession is not expected to return to the licensee at least 120% of the applicable current federal minimum wage based on a 1-year business cycle, then a satellite site may be established.  A determination to establish a satellite site shall be made by the bureau with the active participation of the committee.

(2)  If a concession or a potential concession does not meet the requirements stated in sub rule (1) of this rule, the concession or potential concession may become a satellite of an existing concession.  The satellite shall be in the immediate vicinity of the existing concession.  This sub rule does not apply when a potential satellite is part of an existing facility as defined in 20 C.F.R. §395.1(h) (A).

(3)  A satellite shall not be established unless the bureau determines that the location will produce revenues in excess of costs. A value shall be assigned to all unpaid labor based upon the prevailing wage rate for people in the community doing the same or similar work, which shall be determined from information provided by the Michigan Unemployment Agency.  

(4)  When offered a satellite site, a licensee shall produce an acceptable written plan that shall include all of the following information:

         (a)  The number of additional employees required to provide service.

         (b)  The amount of storage space.

         (c)  The level of service to be provided to customers (visits per day).

         (d)  The means to be utilized for transporting stock, for example, hand cart, car, or van.   

(5)  If a licensee offered a satellite site fails to submit a written plan within fifteen (15) days of the offer, the bureau management may offer the satellite to another licensee.  If no licensee in the immediate area submits a profitable plan for a satellite, then the bureau management may, if practical, arrange for a private vending company to provide the requested services on a contractual basis and to forward the commissions as unassigned vending machine income to the set-aside account.  At the end of a 1-year business cycle, each unassigned facility contract shall be reviewed to determine whether the facility may be established as a satellite vending facility or a separate facility.

(6)  When a concession that has satellites is to be placed for bid, the satellite or satellites shall be evaluated to determine whether each satellite can be an independent concession as described in sub rule (1) of this rule.

(7)  Preference shall be given in the assignment of equipment and other resources to state and federally mandated facilities and to other existing facilities. 

(8) If additional inventory is required to operate a satellite, a licensee shall submit a written request for additional inventory from the bureau as a part of their written plan described in (4) above.  Any additional inventory provided by the bureau shall be considered to be a part of the facility inventory, shall be noted on the agreement, and shall be returned to the bureau when the licensee leaves the facility. 

(9)  If a licensee fails to operate a satellite site in accordance with the bureau’s rules, regulations, or policies, the agreement, or the lease agreement for the facility, the bureau management may reassign the satellite to another licensee.  If a satellite is reassigned to another licensee, an inventory shall be conducted by the bureau and the licensee having the satellite removed.  The licensee is required to return to the bureau the amount of inventory assigned to the satellite as noted on the agreement.  If, after the inventory, there is a difference in the value of the inventory at the satellite, the difference shall be resolved as follows:

(a)  If the value of the inventory is more than the assigned inventory value for the satellite, an overage exists.  The licensee may remove the value of the inventory over the assigned value for the satellite.

(b)  If the value of the inventory is less than the assigned value for the satellite, a shortage exists.  The operator shall reimburse the bureau for any inventory shortage, in the form of cash or products appropriate to the satellite, within twenty-four (24) hours of the inventory.  Failure to reimburse the bureau within twenty-four (24) hours shall result in the commencement of license revocation proceedings.

(10)  In the event that a satellite is removed from a facility under the provisions of sub rule (9), that satellite may be reassigned to the original facility by the bureau management, with the active participation of the committee, if either of the following conditions occur:

(a)  The original facility’s services improve and the licensee demonstrates compliance to all bureau rules, regulations, and policies, the agreement, and the lease agreement for the remainder of the original facility for a period of time to be determined by the bureau with the active participation of the committee.

(b)  The licensee operating the remaining facility sites leaves the program or transfers to another vending facility.

(11)  Any time a satellite is added or removed from the facility, the licensee shall sign a new agreement noting the additional satellite, value of the equipment and inventory assigned to the satellite, and the services provided at the satellite.



Licensee Assistance and Training Generally.

  Rule 39.  

(1)  To maximize financial return and ensure employment opportunities for successive blind persons are preserved, a licensee shall receive reasonable systematic assistance and in-service training in all of the following areas:

         (a)  The keeping of accounts.

         (b)  The selection and purchase of suitable merchandise.

         (c)  The maintenance of a clean and attractive vending facility.

         (d)  The proper cleaning, maintenance, and sanitation of equipment.

         (e)  The utilization of sound business practices and methods.

(2)  A licensee may receive upward mobility training as outlined in the Rehabilitation Act of 1973, as amended, and the policies and procedures of the bureau’s vocational rehabilitation program.   

(3)  If a licensee and the Bureau have identified specific training needs that would improve the management of a vending facility, then the Bureau may arrange for the training.  The following training is authorized:

         (a)  Training at the bureau’s training center in Kalamazoo.

         (b)  On-the-job training, either at a licensee's facility or at another program facility.

         (c)  Regional group training classes.

         (d)  Training provided by a third person that is approved by the bureau or training provided by another preapproved source.

(4)  The bureau shall reimburse a licensee for training only if all of the following conditions are met:

         (a)  The training improves management skills related to current operation.

         (b)  The training was requested in writing and preapproved by Bureau staff.

         (c)  The training is completed successfully.

(5)  Ongoing vending machine training shall be offered periodically.

(6)  All bureau-sponsored group training activities shall be announced on the bid line or by other appropriate means.

(7)  It is the responsibility of the licensee to make all training requests in writing to the Bureau



Cafeteria Training for Licensees.

  Rule 40.  

(1)  Under the Randolph-Sheppard Act of 1936, as amended, as specified in 20 U.S.C. §107 et seq., a licensee is eligible for upward mobility training.  Training a vending facility licensee to become a cafeteria facility licensee is appropriate upward mobility training.  A licensee is to apply to the bureau’s vocational rehabilitation program for upward mobility training.  An individual plan for employment is developed for a client who participates in upward mobility training.

(2)  For those licensees who were licensed prior to the effective date of these rules, additional training is required to be qualified to operate a program cafeteria.  Training shall include college-level competencies and on-the-job training.   

(3)  College-level competencies may be obtained at accredited institutions offering programs in food service or hospitality management.

(4)  A licensee must complete college-level competencies and on-the-job training as prescribed by the bureau with the active participation of the committee.

(5)  In order to receive cafeteria certification, a licensee must submit a plan for the completion of the college-level competencies as well as the on-the-job training.  If a licensee commences the college-level competencies prior to receiving approval for a certification plan, the bureau is not obligated to accept the classes for competency or to reimburse the licensee for costs incurred.

(6)  It is the responsibility of the licensee to do all of the following:

         (a)  Provide the bureau management with a grade report within thirty (30) days of completion of the academic period.

         (b)  Maintain a 2.5 grade point average over the entire academic career.

         (c)  Complete all classes during the academic period.

         (d)  Fully utilize recording services and volunteer reader services.

         (e)  Apply for financial assistance each academic year.

         (f)  Complete the remaining requirements of the college-level academic competencies.

(7)  If a licensee enrolled in a college or university fails to meet the conditions identified in sub rule (6) of this rule, then the deficiencies shall be reviewed by the bureau management or his or her designee and the licensee.  If necessary, the licensee shall be informed that he or she is being placed on probation by the bureau and that failure to meet the conditions for eligibility within the next academic period shall result in complete discontinuance of financial support by the bureau.  A grade of incomplete received by the licensee shall be made up during the next academic period.

(8)  The probationary status identified in sub rule (7) of this rule pertains only to financial academic support, not to the licensure of a licensee.  

(9)  If a licensee has successfully completed the college-level academic competencies, then she or he shall forward the documents to the bureau.  The bureau shall provide confirmation that college-level competency requirements have been met.

(10)  After a licensee completes the college level competencies, the bureau shall arrange for on-the-job training for the licensee.

(11)  Failure to complete the additional college-level competency areas within the time period specified in sub rule (2) of this rule after being awarded a license to operate a cafeteria shall result in commencement of license revocation.  The time period for completing the academic requirements begins on the date the licensee begins the operation of the cafeteria.  If a licensee transitions from one cafeteria to another under the provisions of sub rule (4) above, the time period for completion of the college-level competencies and on-the-job training does not restart.  Completion is required from the date of the start of operation of the first cafeteria.

(12)  A licensee who fails to complete the additional college-level competency areas within the time period specified in sub rules (2) and (11) of this rule is not precluded from bidding on a facility of another type before the expiration of the time period.



Licensee Promotions.

  Rule 41.  

(1)  A licensee may be promoted to another or a more profitable, vending facility when a vending facility becomes available.  To be promoted, a licensee shall follow the steps outlined in these rules.

(2)  A licensee shall participate in mandatory in-service training and shall not be eligible to bid on available vending facilities unless training is completed.  Participation in the most recent mandatory training is the requirement for a licensee to be eligible to place a bid on a vending facility.  A licensee may be excused from mandatory in-service training only with written bureau approval. If a licensee has two (2) consecutive unexcused absences from mandatory training, the bureau shall commence license revocation proceedings. 



Licensee Demotions

Rule 42.  

(1)  When a licensee has demonstrated an inability to operate the present vending facility under uniformly applied program standards developed with the active participation of the committee, the licensee may be demoted or transferred to another vending facility that the licensee is considered qualified to operate if such facility is available.  If a facility is not available, then the licensee shall be removed from the present facility and the licensee shall become a potential licensee.

(2)  A licensee removed from a facility due to demotion who is returned to a potential licensee status may only bid on facilities that they would be qualified to operate under a demotion.

(3)  A facility shall be deemed appropriate for demotion if it meets all of the following criteria:

(a)  It has been on the bid line for at least two consecutive bid periods.

(b)  The facility sales are less than that of the vacated facility.

(c)  A smaller amount of equipment is in the facility to which the demoted licensee is moving.

(d)  A smaller number of employees are required to operate the facility to which the demoted licensee is moving.

(4)  Demotion and transfer or removal of a licensee shall conform to the procedures outlined in Rule 14, Rule 15, Rule 16, and Rule 17.



Bid Process Generally.

  Rule 43.  

(1)  The bureau shall announce available locations on a bid line, which shall be routinely updated.

(2)  A licensee shall learn of available locations by calling the bid line.

(3)  A licensee shall place a bid by calling the established line to record his or her bid on a vending facility. It is the responsibility of the licensee to confirm the Bureau’s receipt of their bid.

(4)  A licensee who places a bid on a facility shall submit a business plan to the Bureau within two (2) weeks of the close of the bid period when their bid was submitted.

(5)  The Bureau shall forward the business plan to the interview panel selected for the facility.  If more than one person bids on a facility, the Bureau shall forward all business plans to the interview panel.

(6)  An interview panel shall review all business plans submitted for bids within the due date in sub rule (5).  Incomplete business plans shall be rejected and the Bureau shall consider the bid to be withdrawn.

(7)  The interview panel shall make a recommendation to Bureau Management within three (3) business days of the final interview for a facility.  This recommendation shall include the reasons for acceptance or rejection of bidding candidates.

(8)  Bureau Management shall have the final authority to accept or reject the recommendation of the interview panel.  All rejections of the interview panel recommendation shall be fully justified in writing.

(9)  Bureau Management shall offer the facility to the selected licensee within three (3) business days of receipt of the recommendation from the interview panel.

(10)  A licensee shall accept the vending facility both verbally and in writing.

(11)  If all bidders fail to submit a business plan by the due date, the facility shall be placed back on the bid line and the process shall recommence;

(12)  If the interview panel or Bureau Management determines that no bidder meets the qualifications for a facility, the determination shall be justified in writing.  A facility without a selected bidder shall be placed back on the bid line.  

(13)  Bureau management shall offer the open vending facility to the successful bidder.  The candidate shall either commit to the vending facility or decline the offer in writing within three (3) business days after the offer.  If the first candidate declines, then Bureau management shall continue the same award procedure, moving down the list of recommended licensees or potential licensees until the facility is awarded.     

(14)  Failure to make a commitment by the deadline constitutes declining the offer and the opportunity shall be offered to the next licensee recommended.  

(15)  Bid acceptance shall be addressed to the Bureau management.

(16)  All rejections and acceptances of offers shall be directed to Bureau management within three (3) business days after the offer is made.  A future bid shall not be considered until a letter either accepting or rejecting a previous offer is received.

(17)  Acceptance of an offer constitutes acceptance of all bureau rules and regulations and acceptance of the terms and conditions of the permit and lease arrangements for the facility.



Interview Panel.

Rule 44.  

(1)  The interview panel shall consist of all of the following members:

(a)  A Bureau staff member who supervises facilities;

(b)  A representative selected by the bureau;

(c)  A representative selected by the other two members of the panel. 

(2)  The interview panel shall consider a bid based on all of the following criteria:

(a)  The business plan submitted by the licensee;

(b)  the most recent evaluation score.  A satisfactory score is the minimum requirement.

(c)  The date of transfer into the current facility.  One (1) year in the current facility is the minimum requirement.

         (d)  The status of set-aside payments.  A licensee who submits late set-aside payments is ineligible to place a bid until thirty (30) days after the postmark receipt date of appropriate monies.

         (e) The status of reports. A licensee who submits late reports is ineligible to place a bid until thirty (30) days after the time and date stamp of the delinquent report.

         (f)  Training appropriate to the facility for which the bid was placed.

         (g)  The profit percentage of the bidder’s vending facility for the most recent three (3) report months shall meet the standard set forth in rule 34. 

         (h)  Documentation on file with the bureau that the licensee is in compliance with Rule 14, Rule 15, Rule 16, Rule 17, Rule 26, Rule 27, Rule 28, Rule 29, Rule 30, Rule 31, and Rule 33.

        (i)  All other criteria the Bureau determines appropriate for a particular facility after consultation with the entity having charge of the property and with the active participation of the committee.

(3)  The interview panel shall conduct interviews within five (5) business days of receipt of business plans from bidders, unless extenuating circumstances arise.  Then the interviews shall be scheduled as soon as practicable.

(4)  An interview panel shall make a recommendation to Bureau management within three (3) business days of the final interview for a facility.  This recommendation shall include justification for the recommendation in writing.



Business Plan.

Rule 45.  

(1)  A business plan submitted under Rule 43 shall include all of the following:

(a)  The hours of operation and services to be offered from the facility.

(b)  The inventory required to commence operations as stated in Rule 24.            

(c)  Product selections and menus, including catering menus.

(d)  Marketing and promotions.                                                                          (e)  A management chart, including job descriptions and duties for all employees of the facility.

         (f)  A financial overview including projected sales, purchases, expenses, and profits.                                                                                              

(g)  Any other information determined to be necessary to understand the operations of a facility as determined by the Bureau with the active participation of the committee.



Bid Line.  

  Rule 46.  

(1)  A message of available locations shall be placed on the bid line on the same day each week unless extenuating circumstances exist.  The message announcement shall include all of the following information:

         (a)  The vending facility number.  An interested licensee shall use the number when bidding on the facility.

         (b)  The geographic location of the facility.

         (c)  The facility type.

         (d)  The gross sales for the past twelve (12) months, or an estimate if the actual sales are not known.

         (e)  The contact information of the Bureau staff person and/or current licensee.

         (f)  The estimated date of availability.

(g)  The terms and conditions of the lease arrangement for the facility.   

(2)  The deadline for submitting a bid is the following week's announcement day at 12:00 p.m., unless otherwise specified. It is the responsibility of the licensee to confirm the Bureau’s receipt of their bid.



Bidding Procedure.

  Rule 47.  

(1)  The bid line shall contain instructions for placing a bid.  Bureau staff shall record the bid with the date and time it was placed.

(2)  A bid may be placed from 5:00 p.m. on the bid day until 12:00 p.m. on the following bid update day, unless otherwise specified.

(3)  Written acceptance of an offer is agreement to comply with all bureau rules, regulations, and lease arrangements for the facility, the agreement, and the filed business plan provided by the operator.

(4)  A licensee is considered installed in a vending facility when an incoming inventory has been conducted, and the agreement has been executed.  

(5)  If a potential licensee does not bid on, interview for, and accept a facility within three (3) years of certification then the certification lapses. In order to renew certification, the licensee shall take a bureau-designated retraining course developed with the active participation of the committee.  Failure to retake training results in rescission of qualifications to operate a vending facility.



Rescission of Acceptance

Rule 48.  

(1)  A licensee who has bid on a facility may rescind his or her bid at any time prior to the close of the bid period.

(2)  A licensee who has accepted an offer in writing and who is not installed in the facility by the projected opening date on the bid line may rescind his or her acceptance after the projected open date.  Rescission of acceptance must be submitted in writing to the Bureau management.  The bureau shall not accept another bid from a licensee until a written letter of rescission is received.

(3)  A licensee may not rescind their acceptance of a facility after acceptance in writing until after the projected open date on the bid line.

(4)  If a licensee causes the installation date to be delayed in order to rescind his or her acceptance, the licensee shall not be eligible to be awarded a facility until six (6) months after the date of the letter rescinding the acceptance.

(5) Written acceptance of a vending facility forfeits rights to the current vending facility.  Should a licensee rescind their bid on the new vending facility, they are returned to the status of a potential licensee and must bid on and be awarded another vending facility. 

(6)When an acceptance of a facility has been rescinded, the bureau shall offer the facility to the next highest ranked bidder as outlined in Rule 43.



Non-licensed Operators

Rule 49.  

(1)  In the event a facility has not been assigned to a licensee or potential licensee, the bureau may assign the facility to a non-licensed operator.

(2)  A facility to be assigned to a non-licensed operator must have been available on the bid line to all operators and potential operators for two (2) bid cycles.  The bureau may waive this requirement in emergency situations.

(3)  A facility assigned to a non-licensed operator will remain on the bid line.  Should a licensee or potential licensee bid on the facility, the facility shall be assigned to the qualified licensee or qualified potential licensee as prescribed under Rule 43.

(4)  A non-licensed operator shall have no protections under the Randolph-Sheppard Act, as amended, 20 U.S.C. sub section 107 et seq., the act, or these rules.  The assignment of a non-licensed operator is temporary.

(5)  A non-licensed operator shall comply with all reporting and payment requirements stated in these rules.  Should a non-licensed operator fail to comply with these rules, the bureau may remove the non-licensed operator.

(6)  A non-licensed operator may be removed without cause with thirty (30) days written notice.



Committee; Powers; and Duties.

  Rule 50.  

(1) A committee of seven (7) licensees shall be created to actively participate as prescribed in the act.

(2)  The committee shall do all of the following:

         (a)  At least 48 hours in advance of a meeting, post notice of the time, date, and place of the meeting.

         (b)  Actively participate with the bureau as prescribed in the act.

         (c)  Create by-laws which shall be adopted by all licensees.  The by-laws shall describe the manner in which all committee business is to be conducted pursuant to all applicable laws.

(3)  With advance written permission from the bureau, Set-aside funds may be used for the support of committee activities.

(4)  The bureau shall have the ultimate responsibility for administering the state vending program.  The Bureau may reject the written recommendations of the committee.  If rejection occurs, then the bureau shall notify the committee, in writing, within twenty (20) working days of the bureau's decision, informing the committee why the recommendation was rejected.



Committee Election and Representation.

  Rule 51.  

The bureau shall facilitate an annual election of the members of the committee.  The committee shall be fully representative of all licensees in the program on the basis of factors such as geography and vending facility type, with a goal of providing for proportional representation of licensees on federal, state, and other property.



Dispute Resolution.

  Rule 52.  

(1)  Dispute resolution shall commence with an attempt to resolve problems through direct discussion by a licensee and the program.  A licensee shall initiate dispute resolution by submitting a written communication stating the problem.  The licensee’s communication shall include a proposed solution. The program shall document the attempted resolution.  

(2)  The program shall issue a written decision on the licensee’s complaint.

(3)  If a licensee is dissatisfied with the program’s written decision, the licensee may request an administrative review by the bureau.



Administrative Review.

  Rule 53.  

(1)  An administrative review shall not be conducted until a licensee first attempts to resolve the issue as stated in Rule 52.  

(2)  The purpose of an administrative review is to provide an informal procedure to enable a licensee to seek a remedy for dissatisfaction with an action of the bureau arising from the operation or administration of the vending facility program that does not directly involve suspension or termination of a licensee's license.  The bureau shall make every effort to resolve licensee complaints at the administrative review level, since the resolution of disputes at the earliest possible time is mutually advantageous to all parties concerned.  Resolution efforts shall not interfere with the licensee's rights to pursue the formal full evidentiary hearing process should the administrative review fail to resolve the issue.  A licensee may request, in writing, an administrative review within fifteen (15) working days from the date of the program written decision issued as a result of actions outlined in Rule 52.  Requests for administrative review are to be submitted to the hearing coordinator.  This review shall be conducted by a member or members of the administrative staff of the bureau who have not directly or indirectly participated in the bureau action in question.  A written request for an administrative review shall contain a description of the complaint and the remedy that is sought.  The request for an administrative review shall include all of the following information:

         (a)  The action with which the complainant is dissatisfied and the date of the action.

         (b)  A citation to the promulgated rule that has been violated or a statement of the injury incurred by the complainant.

         (c)  A proposed remedy to the complaint.

(3)  A request for administrative review that does not meet the requirements stated in sub rule (2) above shall not be considered as a valid request for review.  It is the responsibility of the licensee to provide all required information within the written request.   

(4)  An administrative review shall be held at a time and place determined by the Bureau.  An administrative review shall be held during regular bureau working hours at the bureau central office.  An administrative review shall be conducted within fifteen (15) working days of receipt by the bureau of a written request, notwithstanding extenuating circumstances.

(5)  The Bureau shall make a determination relative to the licensee’s complaint.  The determination shall be in writing and a copy mailed to the 







licensee. 

(6)If the bureau determination as a result of an administrative review does not resolve the dispute to the satisfaction of the licensee, then the licensee may submit a request to the bureau for a full evidentiary hearing.



Evidentiary Hearings.

  Rule 54.  

(1)  A licensee who is dissatisfied with an action of the bureau arising from the operation or administration of the vending facility program may file a complaint with the bureau requesting a full evidentiary hearing as required by the Randolph-Sheppard Act of 1936, as amended, 20 U.S.C. §§107 to 107(f), and the provisions of 34 C.F.R. §395.13 (July 1, 1981).  When a licensee is licensed, he or she shall be informed, in writing, of his or her right to, and the procedures to be followed in obtaining, a full evidentiary hearing.

(2)  To request a full evidentiary hearing, a licensee shall file a written request with the bureau within fifteen (15) working days from the date of the mailing of the determination issued as a result of an administrative review. Requests for administrative hearings must be submitted in writing to the hearing coordinator.  If a licensee's request for a hearing is not timely, and if there is no showing of good cause for a late request, then the bureau's administrative review is final.

(3)  The bureau, which shall be considered a party to an appeal, shall have fifteen (15) working days from service of the request for a hearing to file a request with the state hearings office.

(4)  The hearings office shall notify both parties of the time, date, and place of the hearing.  

(5)  Hearings shall be conducted pursuant to the procedures in contested cases set forth in chapter 4 of 1969 PA 306, MCL 24.271 to 24.287.

(6)  Any person may be represented by an attorney, committee member, or may represent him or herself.

(7)  The hearings officer shall render a written proposed decision after the record is closed.

(8)  When all requested documentation is available to the director, he/she shall render a final agency decision.

(9)  If a licensee is dissatisfied with the final agency decision, the licensee may request directly to the Rehabilitation Services Administration an ad hoc arbitration panel be convened, as authorized by the provisions of 34 C.F.R. §395.13 (July 1, 1981).

(10)  A licensee shall be advised that the decision of the ad hoc arbitration panel is final and binding on the parties, unless the decision is appealed pursuant to the provisions of the government organization and employees act, 5 U.S.C. §101 et seq.





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