DEPARTMENT OF LABOR AND ECONOMIC GROWTH

COMMISSION FOR THE BLIND

VENDING FACILITY PROGRAM

Filed with the Secretary of State on June 24, 2004

These rules take effect on October 1, 2004

(By authority conferred on the director of the department of labor and economic growth by sections 1, 5, and 16 of 1978 PA 260 and Executive Order Nos. 1996-2 and 2003-18, being §393.351, 393.355, 393.366, 445.2001, and 445.2011 of the Michigan Compiled Laws)

R 393.101, R 393.102, R 393.103, R 393.104, R 393.105, R 393.106, R 393.107, R 393.108, R 393.109, R 393.110, R 393.111, R 393.112, and R 393.113 of the Michigan Administrative Code are rescinded, and R 393.1, R 393.2, R 393.3, R 393.4, R 393.5, R 393.6, R 393.7, R 393.8, R 393.9, R 393.10, R 393.11, R 393.12, R 393.13, R 393.14, R 393.15, R 393.16, R 393.17, R 393.18, R 393.19, R 393.20, R 393.21, R 393.22, R 393.23, R 393.24, R 393.25, R 393.26, R 393.27, R 393.28, R 393.29, R 393.30, R 393.31, R 393.32, R 393.33, R 393.34, R 393.35, R 393.36, R 393.37, R 393.38, R 393.39, R 393.40, R 393.41, R 393.42, R 393.43, R 393.44, R 393.45, R 393.46, R 393.47, R 393.48, R 393.49, R 393.50, R 393.51, R 393.52, R 393.53, R 393.54, R 393.55, and R 393.56 of the Code are added.

R 393.101  Rescinded.

R 393.102  Rescinded.

R 393.103  Rescinded.

R 393.104  Rescinded.

R 393.105  Rescinded.

R 393.106  Rescinded.

R 393.107  Rescinded.

R 393.108  Rescinded.

R 393.109  Rescinded.

R 393.110  Rescinded.

R 393.111  Rescinded.

R 393.112  Rescinded.

R 393.113  Rescinded.

R 393.1   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)  "Act" means 1978 PA 260, as amended, being MCL 393.351.

   (c)  "Active participation" means the process whereby the elected operators' committee and its subcommittees, the commission board, and commission staff cooperate in 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.

   (d)  "Administrator" means the program administrator of the business enterprise program.

   (e)  "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.

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

   (g)  "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. 

   (h)  "Combined cafeteria/snack bar" means a facility that combines the features of a cafeteria with the features of a snack bar.

   (i)  "Commission" means the Michigan commission for the blind.     

   (j)  "Commission board" means the policy-setting body for the Michigan commission for the blind.

    (k) "Committee" means a group of members which is elected to represent all vending facility operators and which is created under R 393.53.

   (l)  "Dry stand" means a vending facility that does not sell liquids.

   (m)  "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.

   (n)  "Hearings office" means the office within the department charged with the responsibility of conducting fair and impartial hearings.

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

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

   (q)  "Initial merchandise inventory" means merchandise necessary for establishing a licensee in a vending facility, and shall include bill changer change and coin mechanism change.

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

   (s)  "Licensee" means a blind person who the commission licenses to operate an assigned vending facility.

   (t)  "Management services and supervision" means and includes inspection, quality control, consultation, accounting, regulating, in-service training, and related services provided on a systematic basis provided to 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.

   (u)  "Mandated" facility means a facility in which blind persons are granted priority to operate concessions under the Randolph-Sheppard act of 1936, as amended, 20 U.S.C. §107 et seq. and the act.   

   (v)  "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 operators after deducting the cost of the sale and other expenses and excluding set-aside charges required to be paid by operators.

   (w)  "Net profit" is the gross income to the operator before personal income tax.       

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

   (i)  Products sold.

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

   (iii)  An operator'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 commission-approved equipment or space, which may include utilities.

   (ix)  Actual vehicle mileage or actual vehicle expenses, documented in a log for that purpose, which are directly related to the operation of the vending stand facility, which are deemed necessary for the location, and which are identified in the agreement, 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 commission board 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.

   (y)  "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 mandated vending facility.

   (z)  "Permit" means the official approval or authority which is given to the commission 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 commission to establish a vending facility.

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

   (bb)  "Promotional agent" means the commission employee occupying the Michigan department of civil service position that performs the duties described in R 393.21.

   (cc)  "Satellite" means a site that is added to a licensee's primary vending facility to assist the profitability of the primary vending facility. A satellite is not profitable enough to meet the current requirements for a self-supporting facility.  

   (dd)  "Self-employment" means an occupation where an individual does not receive a W-2 form and is required to file an internal revenue service schedule "C" (sole proprietorship form). 

    (ee)  "Set-aside funds" means funds that accrue to the commission from an assessment against the net proceeds of each vending facility in the state's program.

   (ff)  "Snack bar" means a vending facility that is engaged in selling limited lines of refreshment and derives more than 5% of its gross sales from the sale of coffee or other beverages.  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.

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

   (i)  Dry stand.

   (ii)  Snack bar.

   (iii)  Vending machine.

   (iv)  Cafeteria.

   (v)  Combined cafeteria/snack bar.

   (vi)  Vending machine route.

   (vii)  Highway vending.

   (hh)  "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.

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

   (jj)  "Vending facility" means an automatic vending machine, cafeteria, snack bar, cart service, catering, coffee service, shelter, counter or any other appropriate auxiliary service or equipment as the commission may prescribe by rule as being necessary for the sale of articles 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. 

   (kk)      "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 as a vending facility. 

   (ll)  "Vending machine facility" means a vending facility that has a majority of its sales generated from coin or currency-operated machines that dispense articles or services.

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

R 393.2   Program administration.

   Rule 2.  The commission, with the active participation of the committee, shall administer a vending facility program for the blind on federal, state, and other properties.

R 393.3   Program eligibility.

   Rule 3.  (1)  A blind individual 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)  The person is earning a weekly wage less than or equal to 40 hours times the current federal minimum 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, whose name is placed on the potential licensees' list, and who takes employment while waiting to be placed in the program.  In this case, the potential licensee remains on the potential licensees' list with full rights as 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 the potential licensees' list.      

   (2)  After 3 years on the potential licensees' list, an individual shall be retrained before being awarded a license.

   (3)  An individual who does not meet the requirements contained in subrule (1) of this rule is not eligible for program training or placement. All of the following conditions also render an individual ineligible for program training or placement:

   (a)  A former program licensee who owes money to the commission is not eligible until the debt is paid in full.

   (b)  A former program licensee who owes money to suppliers or owes state or federal taxes is not eligible until the former licensee's debts are paid in full.

   (c)  A former program licensee who owes money for an inventory shortage is not eligible until the debt is paid in full.

   (d)  A licensee who has a repayment agreement in good standing in effect at the time these rules take effect is exempt from subrule (3) of this rule.  However, if the licensee's repayment agreement is violated, then the terms and conditions of this subrule shall apply.

R 393.4   Client interview; referral for alternative services; evaluation; testing; training; remedial training.

   Rule 4.  (1)  If a client and counselor decide that the vocational objective of vending facility licensure fits the client's skills and interests, then the counselor shall request an interview with a member of the program staff. The request for an interview shall be made to the program trainer.

   (2)  If a candidate is not considered to be eligible to be a vending facility licensee by the program trainer, then the candidate shall be referred to the counselor for alternative services.  The candidate 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 appropriate business attire.

   (d)  Be willing to relocate.

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

   (4)  A vending facility training evaluation is required for a candidate for the program.  A potential licensee shall possess competency as determined by the commission board with active participation from the committee.

   (5)  A candidate for the program, including a candidate who intends to train for cafeteria operation, shall attain the competencies determined by the board with the active participation of the committee  and set forth and published by the board and shall avail himself or herself of the vending facility training and on-the-job training.

   (6)  If a student is unable to attain a satisfactory evaluation, then a counselor shall offer assistance in obtaining remedial training to upgrade skills.  If the student has physical limitations that hinder the completion of the evaluation, and it is determined that he or she can handle the physical requirements associated with operating a facility, then the counselor shall include documentation in the evaluation requesting a waiver of the orientation and mobility requirement or other requirement not attainable by the client due to a disability and not essential to carrying out the responsibilities of a licensee.

R 393.5   Establishment of program entrance requirements; candidate evaluation.

   Rule 5.  (1)  The commission board, with the active participation of the committee, shall establish and set forth entrance requirements for the program.

   (2)  Each candidate for the program shall be evaluated in all of the following areas:

   (a)  Reading, mathematics, and communications.

   (b)  Orientation and mobility.

   (c)  Daily living skills.

R 393.6   Vending facility training. 

   Rule 6.  (1)  Vending facility training shall include both classroom training and on-the-job training.

   (2)  The course content of the 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. 

   (3)  A student shall demonstrate that he or she is in compliance with the guidelines regarding dress as set forth in the vending stand training syllabus and training contract.

   (4)  Tests shall be administered in each area specified in subrule (2) of this rule.  A passing grade for a test is not less than 75%.

   (5)  A candidate is required to pass the national restaurant association education foundation test and the applied food service sanitation course of the Michigan department of community health, with a passing grade of not less than 75%.

R 393.7   Vending facility on-the-job training.

   Rule 7.  (1)  A client shall successfully complete and pass on-the-job training before being awarded a license.  If the client does not pass the initial on-the-job training, then he or she may be reassigned to a second on-the-job training.  However, if the client fails the second on-the-job training, then he or she is terminated from the vending facility training program and cannot be placed on the potential licensee list.

   (2)  A candidate who does not report for training and who cannot reasonably explain the absence shall be considered by the trainer to have failed on-the-job training. 

   (3)   A candidate who attempts to defraud the commission or who steals money or merchandise from the trainer shall be summarily suspended from training.  The commission will conduct an investigation.  If the investigation substantiates the fraud or theft, then the candidate will be expelled from the program and may not be considered for the program for a period of 5 years.  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.

   (4)  The commission board, with the active participation of the committee, shall establish standards for on-the-job training.

   (5)  A licensee who serves as an on-the-job trainer shall be certified through a training program provided by the commission. 

   (6)  A licensee certified as an on-the-job trainer has 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 commission board 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.    

   (7)  A trainee in on-the-job training has 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 commission board with the active participation of the committee.

R 393.8   Cafeteria facility training.

   Rule 8.  (1)  The commission board, with the active participation of the committee, shall establish and publish, in the business enterprise program operations manual, the requirements for cafeteria facility training. To enter into the program as a cafeteria vending facility licensee, a person shall meet all of the established requirements. 

   (2)  The requirements for cafeteria facility training are as follows:

   (a)  College-level classes in food service.  The commission board, with the active participation of the committee, shall establish and publish, in the business enterprise program operations manual, the college-level classes required.

   (b)  Vending facility training.

   (c)  Cafeteria on-the-job training.

   (d)  Vending facility on-the-job training.

R 393.9   Candidate referral packet. 

   Rule 9.  A rehabilitation counselor shall refer a candidate for the program to the administrator by means of a referral packet, which shall consist of all of the following:

   (a)  Employment profile data, which may include the following:

   (i)  Purposes and goals of the referral.

   (ii)  Prior experience in food service.

   (iii)  Education and work history.

   (iv)  Selected vocational goals.

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

   (c)  On-the-job training reports.

   (d)  A classroom training report.

   (e)  A certificate of completion of the national restaurant association education foundation sanitation course.

   (f)  A certificate of passage of the Michigan community public health agency sanitation test.

R 393.10   License issuance and eligibility requirements.

   Rule 10.  A license shall be issued only to a person who, as determined by the commission, meets all of the following requirements:

   (a)  Is blind as certified by a licensed ophthalmologist or optometrist.  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 commission as qualified to operate a vending facility.

   (d)  Does not owe money under the circumstances described in R 393.3(3).

R 393.11   Licensing procedure.

   Rule 11.  (1)  To be licensed, a person shall comply with all of the following requirements:

   (a)  Be certified by the commission as qualified to operate a vending facility.

   (b)  Be placed on the potential licensee list.

   (c)  Bid on a facility.

   (d)  Be awarded a facility.

   (e)  Sign an inventory for the facility.

   (f)  Successfully operate a facility for 6 months. 

   (2)  A license is valid on the date the potential licensee successfully completes a 6-month probationary period in the vending facility and is valid for an indefinite period but subject to rules regarding suspension or termination, as defined in R 393.13, R 393.14, R 393.15, and R 393.16.  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 the terms and the conditions of the agreement with the licensee.

   (3)  A license may be voluntarily surrendered by a 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 suspended or revoked or unless 7 or more days elapse between the implementation of a current vending facility agreement and a new vending facility agreement.  If 7 or more days elapse, then seniority is interrupted until the new vending facility agreement is signed by both the licensee and the commission.

   (5)  Before accepting another facility, a licensee shall operate his or her facility for not less than 6 months.

   (6)  For seniority purposes, ranking on the potential licensee list is based upon the first business day after completion of training, as shown by the documents submitted.  If a tie occurs, then the following criteria are used to break the tie in a manner determined by the commission board, with the active participation of the committee:

   (a)  Rank-ordered scores from the educational foundation of the national restaurant association food service sanitation course exam.

   (b)  Rank-ordered scores from the vending facility training final exam.

   (c)  Rank-ordered scores from the Michigan community public health agency food service sanitation course exam.

   (d)  If a tie score exists after the first 3 criteria specified in subdivisions (a) to (c) of this subrule have been applied, then the time stamp of the bid, as recorded on the bid line, determines the recipient of the award.

   (7)  Once a trainee's name has been placed upon the potential licensee list, he or she may begin bidding.

R 393.12   License entitlements; license display; license validity.

   Rule 12.  (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 a facility with a valid agreement or has signed a letter of acceptance before transferring to a new vending facility.

Rule 393.13   License termination.

   Rule 13.  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 commission's rules and policies, the terms and conditions of the permit, or the agreement with the licensee.

R 393.14   Summary license suspension.

   Rule 14.  (1)  If the commission finds that the public health, safety, or welfare requires emergency action and incorporates this finding in its order, then summary suspension of a license may be ordered effective on the date specified in the order or on service of a certified copy of the order on the licensee, whichever is later, and will remain in effect during the suspension proceedings.  The proceedings shall be promptly commenced to determine if license revocation is justified.  Reasons for summary license suspension may include any of the following:

   (a)  The commission's equipment, merchandise, property, or business is in jeopardy or has been degraded.

   (b)  The operator is not carrying workers' disability compensation coverage.

   (c)  The public health, safety, or welfare is at risk as a result of a licensee's action.

   (2)  A licensee whose license has been suspended is not eligible to be awarded a promotion while the license is in suspension.

R 393.15   License revocation.

   Rule 15.  (1)  The commission 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 commission may periodically request that a licensee submit to an updated eye examination.  The licensee shall select the service provider and the commission shall pay the cost of the eye examination.  If either the commission or the licensee requests a second opinion, then the requesting party shall bear the cost of the second examination.  The commission may request that a licensee submit to an updated eye examination when the commission's consultant has reviewed the original eye examination and advised the commission 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)  A violation of the terms and conditions of R 393.24, R 393.25, R 393.26, R 393.27, R 393.28, R 393.29, R 393.30, R 393.31, or R 393.32.    

   (e)  A violation of the terms and conditions of the vending stand agreement with the commission.

   (2) Termination of participation in the program results in automatic license revocation.  Before reentry into the program, the licensee whose license has been revoked shall again complete the full vending facility training program.  The following shall apply:

   (a) An approved leave of absence is not considered termination or withdrawal from the program. 

   (b) In such a situation, the licensee is afforded the opportunity to participate in the full vending facility training program, unless waived by the licensee in writing.

   (3)  A licensee whose license is in the termination process, as specified in R 393.16, is not eligible to be awarded a promotion while the license is in the termination process.

R 393.16   License termination procedures.

   Rule 16.  Before temporarily suspending or revoking a license, the commission 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 30 days, with licensing requirements.

   (c)  Issue a notice of hearing if, within 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 hearing officer.

   (f)  Issue a final decision as rendered by a majority of the commissioners voting.  The final agency decision shall identify the effective date of the license action.

   (g)  Advise the licensee in writing within 72 business hours, 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 shall then file a written request for an ad hoc arbitration, pursuant to §5 of the Randolph-Sheppard act of 1936, as amended.

   (h)  Advise the licensee in writing within 72 business hours, 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.

R 393.17      Commission responsibilities generally.

   Rule 17.  The commission shall do all of the following:

   (a)  Furnish each licensee with a copy of these rules and a copy of the manual that describes the arrangements for providing services to the licensee.

   (b)  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 and the provisions of the permit and any agreement under which the licensee operates, including the licensee's rights and responsibilities as evidenced by the signed licensee's agreement.

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

R 393.18   Commission responsibilities; vending facility site; equipment.

   Rule 18.  The commission shall do all of the following:

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

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

   (c)  The commission shall determine the equipment needs of each vending facility and furnish each vending facility with adequate equipment suitable to the needs of the vending facility.

(d)  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 commission may authorize the lease of equipment for a vending facility.  The cost of the lease shall be paid from the proceeds of the facility.  A vending facility agreement signed by the licensee shall constitute informed consent to lease equipment.  By signing the agreement, the licensee consents to all terms and conditions of the lease and accepts responsibility for the lease.

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

   (4)  Bill identifiers or other personal equipment transfers with the licensee to whom the identifier or other personal equipment is assigned.  When a licensee leaves the program, the bill identifier or other personal equipment reverts to the commission.

R 393.19   Right and title to interest in equipment. 

   Rule 19.  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 procedures set forth in the independent business programs of the commission.

R 393.20   Vending machine income; disbursement; use.

   Rule 20.  (1)  Income from vending machines on federal properties that is not assigned to a licensee may be used for the establishment and maintenance of retirement or pension plans, for health insurance contributions, and for paid sick leave and vacation time for licensees in the state program, if determined by a majority vote of the licensees.  Vending machine income from federal properties that is not necessary for the purposes of this subrule 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 and other properties may be utilized for the purpose of insuring a licensee's loss in merchandise due to theft or equipment failure.  Vending machine income from state and other properties that is not necessary to insure a licensee's loss shall be placed in the set-aside fund and designated as unassigned vending machine income.

R 393.21  Promotional agent; role; duties.

   Rule 21.  (1)  The promotional agent is the commission's      representative to the vending facility licensees.  A promotional agent fulfills a supervisory role in the program.  A promotional agent shall do all of the following:

   (a)  Assign equipment to the stand.

   (b)  Monitor the licensee to ensure compliance with employer responsibilities.

   (c)  Monitor compliance with applicable commission rules.

   (d)  Assist a licensee in running a clean and efficient business and in complying with all of the following provisions:

   (i)  Meeting state standards.

   (ii)  Being profitable and well managed.

   (iii)  Meeting the established profit expectations of the business.