California Code of Regulations
Title 9 - Rehabilitative and Developmental Services
Division 3 - Department of Rehabilitation
Chapter 6 - Business Enterprises Program for the Blind
Article 7 - Standards for the Establishment and Operation of Vending Facilities
Section 7217 - Equipment

(a) BEP shall determine the need and provide equipment for the vending facility, in consultation with the vendor whenever possible.

(b) The title to vending facility equipment provided by BEP is vested in BEP.

(c) Upon termination of the operating agreement and/or license, the vendor shall surrender BEP-owned equipment to its lawful owner in the condition in which it was received, reasonable wear and tear excepted. BEP shall assess the equipment to determine its condition. If equipment is removed/replaced, the equipment inventory shall be adjusted, as appropriate and provided to the new vendor. The vendor shall remove his/her vendor-owned equipment from the vending facility at his/her expense.

(d) The vendor shall acknowledge receipt of the equipment provided by the BEP as part of the operating agreement.

(e) The vendor shall use the equipment furnished by the BEP and/or agency named in the permit only for the purpose of the permit. The vendor shall exercise whatever care is necessary to preserve and maintain the equipment in good condition.

(f) The BEP shall provide all necessary repairs and replacement of BEP-owned equipment. The vendor shall promptly inform the BEP of the need for equipment repairs or replacement. The vendor shall contact his/her BEC to report equipment malfunction/failure. Upon notification by the vendor of the need for equipment maintenance, the BEC shall promptly authorize repair or replacement.

(g) The BEP shall phase-in the replacement of all BEP-owned equipment in accordance with the written replacement plan and subject to fund availability. Replacement shall occur within one year of the stated life expectancy, unless, after review of usage patterns and repair history, BEP determines that replacement should be either delayed or accelerated. Replacement may be delayed if a history of limited service problems can be demonstrated or may be accelerated if the equipment has a history of excessive mechanical failure.

(h) BEP-owned Equipment, which is tagged with an identifying number, shall not be added or removed within a vending facility without the consent of the BEP. The removal and replacement of equipment for repairs or maintenance must be authorized by the BEP in writing. The vendor shall not purchase, lease, borrow or contract for equipment or services for the vending facility without the authorization of the BEP. BEP may remove any BEP-owned equipment from the vending facility when BEP determines that it is not being properly used by the vendor. BEP shall give written notice of the intent to remove equipment seven calendar days prior to removal. The notice shall state what equipment is to be removed and the date of the removal. After equipment removal, the vendor shall be provided with a revised copy of the inventory for his/her facility.

(i) The vendor shall be responsible for maintaining vendor-owned equipment in good repair and attractive condition and for replacing worn-out or obsolete equipment.

(j) When a vendor dies or leaves the program, BEP shall have first option to purchase vendor-owned equipment at fair market value. BEP is not obligated to purchase vendor-owned equipment.