Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 13B, 61.800, 61.870-61.884,163.470(11),
438.310, 34 C.F.R. Part 361.38, 395, 20 U.S.C. 107 - 107f
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
163.470(5) requires the
office to establish and implement policies and procedures for administering the
program of services for the blind and visually impaired.
20 U.S.C.
107(b)(5) requires the
office to promulgate administrative regulations for the operation of the
vending facility program on federal properties in Kentucky. This administrative
regulation establishes the operational requirements for the business
enterprises program created by
KRS
163.470(9).
Section 1. Definitions.
(1) "Active participation" means an ongoing
process that:
(a) Is between the office and
the State Committee of Blind Vendors for joint planning and input on program
policies, standards, and procedures; and
(b) Does not supersede the office's final
authority to administer the program.
(2) "Administrative Hearing" is defined by
KRS
13B.010 Section 2.
(3) "Agreement" means a written contract
entered into between the office and property management authorizing the
establishment of a vending facility and establishing the service
obligations.
(4) "Applicant" means
an eligible individual who has been referred by a counselor to be screened for
participation in the Kentucky Business Enterprises (KBE) Vendor Training
Program.
(5) "Blind person" is
defined by
20
U.S.C. 107e(1).
(6) "Committee" means the Kentucky Blind
Vendor Committee.
(7) "Counselor"
means a vocational rehabilitation counselor in the office.
(8) "Director" means the Division Director of
Kentucky Business Enterprises.
(9)
"Eligible individual" means a consumer as defined by
782 KAR 1:020,
Section1(4).
(10) "Executive
director" means the Executive director of the Kentucky Office of Vocational
Rehabilitation.
(11) "Kentucky
Business Enterprises" or "KBE" means the division of the office established by
KRS
163.470(11) to administer
the blind vendor program in Kentucky.
(12) "Licensee" means an eligible individual
who:
(a) Has successfully completed the KBE
Vendor Training Program;
(b) Has
been licensed to operate a KBE vending facility; and
(c) Is not operating a vending
facility.
(13)
"Mediation" means a voluntary process through which a vendor seeks resolution
of a dispute with an office action that:
(a)
Arises from the operation or administration of the vending facility program;
and
(b) Adversely affects the
vendor.
(14) "Office"
means the Office of Vocational Rehabilitation which is the state licensing
agency established by KRS.163.470 to comply with
20 U.S.C.
107a(5) for the blind vendor
program in Kentucky.
(15)
"Seniority" means the accumulated period of time during which a vendor has
operated KBE vending facilities.
(16) "Trainee" means an eligible individual
who has been selected for, and is actively participating in, the KBE vendor
training program.
(17) "Vending
facility" means a food sales operation within the meaning of
34 C.F.R.
395.1(x) operated on state,
federal, or private property under the auspices of KBE.
(18) "Vendor" means a licensee who is
operating a vending facility under terms of a vendor agreement, agreement,
permit, or other contract that governs the operation of the vending
facility.
(19) "Vendor Agreement"
means the written contract between the office and a vendor that:
(a) Authorizes the vendor to operate a
vending facility at a specific location; and
(b) Establishes the terms of the operation of
the vending facility.
(20) "Vendor training program" means KBE's
mandatory training program for eligible blind individuals seeking a vending
license.
Section 2.
Training and Licensure.
(1) Eligibility
Criteria.
(a) An applicant shall be screened
to enter the KBE vendor training program upon submission of documentation by
the counselor and the eligible individual which establishes that the criteria
in paragraph (b) of this subsection have been met.
(b) The applicant shall:
1. Be a blind person;
2. Be a citizen of the United
States;
3. Have met the general
criteria of eligibility for vocational rehabilitation services from the
office;
4. Have received a high
school diploma or GED certification;
5. Have math skills at an eighth-grade level
or above;
6. Have financial, verbal
communication and public relations skills sufficient to operate a vending
facility;
7. Maintain personal
hygiene to meet all health codes applicable to the vending facility and adhere
to a dress code appropriate for the vending facility location;
8. Be independent in performing the
activities of daily living with accommodation;
9. Have mobility skills sufficient to safely
navigate the vending facility; and
10. Have reached the age of eighteen
(18).
(2) KBE
screening process for training program.
(a)
The screening committee shall be composed of:
1. The director or designee;
2. The chair of the Committee or
designee;
3. A KBE vendor appointed
by the chair of the committee;
4.
The Director of the Division of Blind Services or a designee; and
5. The KBE assistant division director or
designee.
(b) A designee
shall not be the counselor of the applicant.
(3) KBE Vendor Training Program.
(a) The KBE vendor training program shall
provide on-the-job work experience and classroom instruction.
(b) The curriculum and training manual for
the KBE training program shall be developed with the active participation of
the Committee to ensure that a trainee, upon completion of the program,
demonstrates proficiency in all aspects of KBE vending facility
operation.
(c) The office shall
award a vendor license to a trainee who successfully completes the vendor
training program.
Section
3. KBE Vendor License.
(1)
License conditions.
(a) A license to operate a
KBE vending facility shall be issued for an indefinite period of
time.
(b) The office shall provide
management services and training to assist the vendor in operating a vending
facility.
(c) KBE shall conduct
periodic management reviews, vending facility surveys, and financial audits of
vending facilities and records. If KBE determines the vendor is not meeting the
operational standards established in Section 9 of this administrative
regulation, remedial steps shall be identified and reviewed by KBE staff with
the vendor. Specific training, if appropriate, shall be made available to
remedy a deficiency. The office may require the vendor to participate in
training provided by, or arranged by, KBE if operational standards established
in Section 9 of this administrative regulation are not being met.
(d) The office shall terminate the license of
a vendor if, after affording the vendor the opportunity for an administrative
hearing, the office finds that:
1. The vending
facility is not being operated in accordance with this administrative
regulation, the permit or agreement, or the vendor agreement, such as the
filing of false set aside reports, the violation of any state or federal law
regarding payment of taxes and labor requirements, or the failure to maintain
insurance as required by Section 9(20) of this administrative regulation;
or
2. The vendor's vision has
improved so that the vendor no longer meets the definition of blind person. In
order to ensure compliance, vendors may be required to undergo an
ophthalmologic examination. The office shall select and approve the exam
provider and shall be responsible for the costs of the examination.
(2) Leave of absence.
(a) The office shall grant a vendor a leave
of absence from a vending facility of up to one (1) year for:
1. A serious health condition that leaves the
vendor unable to perform the functions necessary to manage the vending
operation;
2. Care for a spouse,
son, daughter, parent, or immediate family member with a serious health
condition;
3. Pregnancy and the
birth of a child;
4. The placement
of a child for adoption or foster care if taken within one (1) year of
placement; or
5. Another exigent
circumstance that is in the best interest of the vendor or the vending
operation.
(b) The
vendor shall retain accrued seniority, but shall not accrue any seniority
during the leave of absence.
(c) If
the vendor is unable to return to the vending facility at the expiration of the
approved leave of absence, the vendor shall:
1. Resign from that vending facility;
or
2. Be subject to termination of
the vendor agreement to operate the vending facility.
(3) Resignation.
(a) Resignation from a vending facility shall
result in a vendor returning to licensee status with the right to bid on
vending facility vacancies and retention of accrued seniority.
(b) Resignation from KBE shall result in loss
of the vendor's license with retention of all accrued seniority.
(c) Reentry into KBE and eligibility to bid
on a vending facility by an individual that resigned from KBE shall be allowed
only upon completion of training, if the individual that resigned did so for
one (1) calendar year or more prior to their attempt to reenter KBE.
Section 4. Vendor
Vacancy.
(1) The office shall determine that a
vendor vacancy exists if:
(a) A new vending
facility is established; or
(b) An
existing vending facility position is vacated.
(2) If a location becomes available that
might support more than one (1) vending facility, the number and types of
facilities shall be determined by the director with the active participation of
the State Committee of Blind Vendors to prevent unfair competition.
Section 5. Vendor Appointment.
(1) Announcement of vacancy.
(a) If a vending facility vacancy is
identified, the director shall notify all licensees and vendors of the
available position.
(b)
Announcements of a vacancy shall be made in alternative format and shall
include the closing date and time by which bids shall be received by the
director.
(c) Information on the
vending facility's operation requirements, previous vending facility gross
sales, and arrangements for visitation of the vending facility shall be
included in the announcement.
(2) Bids. Any vendor or licensee may make an
application for a vacancy by submitting a completed Application for Vending
Facility Vacancy Form to the director by the bid closing date. All bids shall
be considered without regard to race, color, national origin, gender, religion,
age, political affiliation, and disability.
(3) Selection.
(a) The director shall appoint a vendor or
licensee to manage each vending facility, in accordance with this
subsection.
(b) Except in cases of
emergency appointment pursuant to subsection (5) of this section, the director
shall solicit the active participation of three (3) representatives of the
State Committee of Blind Vendors, who shall be appointed by the committee
chair, on each vending facility manager appointment.
(c) The selection process shall begin with
compilation of the seniority of each bidder based on currently existing KBE
records. Beginning with the bidder with the most KBE seniority, the director
and committee representatives shall review that bidder's business practices as
documented in the KBE vending facility files in areas such as:
1. Customer relations;
2. Cooperation with property
management;
3. Cooperation with KBE
staff;
4. Complaints and
commendations;
5. Timely and
accurate submission of monthly financial reports and set-aside
payments;
6. Financial
management;
7.
Recordkeeping;
8. Audit reports;
and
9. Nonnegotiable payments to
KBE or suppliers.
(d)
The committee representatives shall advise the director of their first and
second choice recommendations. The director shall balance the most senior
bidder's documented business practices with the requirements of the specific
vending facility vacancy. If the bidder's business practices are reasonably
satisfactory as they relate to the specific vending facility requirements, in
the judgment of the director, the bidder with the highest KBE seniority shall
be offered the appointment to the vending facility vacancy.
(e) If the bidder with the most KBE seniority
is not offered the appointment under the criteria of this subsection or
declines the appointment, the director shall apply the criteria of this
subsection to the next bidder with the highest KBE seniority until a bidder is
selected and appointed by the director.
(f) If two (2) or more bidders have equal KBE
seniority, each bidder's business practices as they relate to meeting the
vending facility requirements shall be balanced by the director. The most
qualified bidder for the specific vending facility vacancy, in the judgment of
the director, shall be selected and offered the appointment by the
director.
(g) Consideration of KBE
licensees with no KBE seniority shall be based on the following equally
weighted criteria:
1. KBE final training test
score;
2. On-the-job training
reports;
3. Formal education;
and
4. Prior work
history.
(4)
Appointment.
(a) The successful bidder shall
be notified of appointment to the vacancy in alternative format as necessary.
All appointment letters shall be mailed by certified mail. The appointee shall
respond to the director in writing, postmarked within five (5) working days
after receipt of the appointment letter, to accept or reject appointment. In
the absence of a written response, the offer of appointment shall be rescinded,
and the director shall select a new appointee.
(b) If a vendor resigns or abandons a vending
facility within six (6) months of appointment to the facility for any reason
other than properly documented medical reasons, the vendor shall be ineligible
to bid on another vending facility for six (6) months.
(5) Emergency appointment.
(a) The office shall make an emergency
appointment of a vendor, licensee, or a nonlicensed individual to a vending
facility vacancy if time does not permit adherence to the vendor appointment
process. An emergency appointment may occur for a leave of absence, appointment
of a vendor or licensee to another vacancy, death, abandonment, health
emergency, or other similar occurrence.
(b) A licensee placed by emergency
appointment shall accrue seniority for the duration of the emergency
appointment period. The State Committee of Blind Vendors shall be notified in
writing of an emergency appointment.
(c) An emergency appointment shall not be
more than six (6) months in duration from the time the appointment is
made.
Section
6. Saleable Stock Inventory Acquisition.
(1)
(a) If
a licensee is placed in a vending facility, a saleable stock inventory shall be
provided by the licensee's counselor on a one (1) time basis that is equal to
three (3) weeks of the facility's gross sales as determined by the facility's
historical data, or if a new facility, the gross sales of a similar facility.
This amount shall be used to reimburse:
1. The
stock wholesalers;
2. The vendor
exiting the vending facility; or
3.
Both.
(b) The amount and
type of stock necessary for the successful operation of a vending facility
shall be determined by the director or designee, based on the amount and type
of stock used previously at the same or similar vending facilities.
(c) Payment for additional stock needed for
the vending facility shall be the responsibility of the licensee. If the
licensee seeks financing for the additional stock, KBE may purchase the stock
on the licensee's behalf after KBE has been provided proof that other funding
is not available from financial institutions including the Small Business
Administration or banks. The licensee shall make monthly payments to KBE up to
the value of the stock purchases as set forth in a repayment schedule
negotiated and signed by both the licensee and the office's
representative.
(2)
(a) If a vendor transfers, through the KBE
bid process, from one (1) vending facility to another at which KBE owns an
initial saleable stock inventory, the entering vendor shall purchase from KBE
the initial inventory valued at wholesale costs.
(b) Except as established in paragraph (c) of
this subsection, inventory above the initial value at the vending facility
shall be bought by the entering vendor from the exiting vendor at wholesale
costs through an arrangement between vendors. KBE shall not be a party to that
arrangement. KBE staff shall advise what type and amount of stock is needed at
the vending facility, whether as the beginning inventory or additional
inventory.
(c) The exiting vendor,
at his discretion, may choose to dispose of the stock inventory at the vending
facility which is above the KBE-owned type and amount of product considered
initial stock. The entering vendor shall be responsible for additional stock
purchases above the KBE-owned amount. KBE may make stock purchases on behalf of
the entering vendor after KBE has been provided proof that other funding is not
available from financial institutions including the Small Business
Administration or banks. The vendor shall make monthly payments to KBE up to
the value of the stock purchases.
(3)
(a) If
an emergency appointment of a vendor is made to an existing vending facility at
which the initial saleable stock inventory is owned by KBE, ownership shall be
retained by KBE. KBE shall purchase needed inventory above the initial amount
at the vending facility, at wholesale cost from:
1. The exiting vendor; or
2. Wholesalers.
(b) The emergency appointee shall be
responsible for maintaining a stock inventory value equivalent to the KBE-owned
inventory at the vending facility.
(c) If a permanent vendor appointment is
made, the appointed vendor shall make arrangements to purchase the entire stock
inventory from the exiting vendor or KBE.
(4) If an emergency appointment is made to a
new vending facility where there is no existing stock inventory, KBE shall
purchase the initial inventory.
(5)
If an emergency appointment is made to a vending facility where the exiting
vendor has been granted a leave-of-absence, the emergency appointee shall:
(a) Accept responsibility for total inventory
of the vending facility; and
(b)
Maintain an inventory of equal value, in either saleable stock or cash
equivalent during the entire emergency assignment.
Section 7. Mediation and
Administrative Hearing Procedures.
(1)
Mediation.
(a) A vendor who is dissatisfied
with an office action arising from the operation or administration of the
vending facility program, which adversely affects the vendor, has the right to
request mediation and an administrative hearing. A request shall:
1. Be submitted to the director in writing
within thirty (30) calendar days from the occurrence of an office action
arising from the operation or administration of the vending facility program
that adversely affects the vendor, a mediation; and
2. Establish the details of the
complaint.
(b) The
office shall maintain a list of qualified and impartial mediators and if a
request for mediation is received, the office shall:
1. Choose a mediator, with the agreement of
the vendor, from the list and schedule a mediation to be held within forty-five
(45) calendar days of the receipt of the request for mediation;
2. Schedule the mediation at a field office
convenient to the aggrieved vendor during regular state working
hours;
3. Provide reasonable
accommodations upon request;
4.
Allow the Appellant to be represented by an attorney or advocate at appellant's
own expense;
5. Send a
representative to the mediation who is authorized to bind the office to an
agreement; and
6. Not use the
mediation process to deny or delay the vendor's right to pursue resolution of
the dispute through an administrative hearing.
(c) If the vendor and office mutually agree
to a resolution at the mediation, that agreement shall be documented in writing
and signed by both parties before the mediation is concluded.
(d) Discussions arising from the mediation
process shall not be used as evidence in any subsequent hearing or
arbitration.
(e) If a mutually
agreeable resolution is not obtained, the vendor may submit a request for an
administrative hearing.
(2) Administrative hearing.
(a) If the vendor does not request mediation
or mediation does not resolve the dispute, the vendor may request an
administrative hearing, which shall be in accordance with the terms established
set forth in subsection (1) of this section:
(b) Upon receipt of a request for an
administrative hearing, the office shall conduct an administrative hearing in
accordance with KRS Chapter 13B.
(c) A vendor who is dissatisfied with the
final agency decision may seek judicial review in accordance with the
provisions of KRS Chapter 13B.
(3) Arbitration. A vendor who is dissatisfied
with the final agency decision may request a federal arbitration by filing a
complaint with the Secretary of the United States Department of Education
pursuant to
34 C.F.R.
395.13.
Section 8. Kentucky Committee of Blind
Vendors. The Kentucky Committee of Blind Vendors shall be established to
actively participate with the office in the major administrative and policy
decisions affecting the overall administration of the blind vendor program in
Kentucky and to perform other functions consistent with
34 C.F.R.
395.14.
(1)
Election procedures. The office shall provide for the biennial election of the
Committee consistent with the bylaws drafted by the Committee.
(2) Meetings of the committee. The Committee
shall:
(a) Conduct all meetings in accordance
with the Committee bylaws and the Kentucky Open Meetings Act as established in
KRS
61.800 et. seq.;
(b) Meet at least quarterly with the director
or his designee in attendance.
(3)
(a) The
office shall send the announcement of the meeting, and the agenda as drafted by
the committee chairperson and the director or designee, to the committee
members, vendors, and licensees via electronic mail or U.S. Mail. The documents
shall be provided in alternative format as necessary.
(b) Office staff shall record the official
minutes of meetings and prepare and send a copy of the minutes to all vendors
and licensees after approval by the committee chair via electronic mail or U.S.
Mail. The minutes may be provided in alternative format as necessary.
(c)
1. The
office shall make committee meeting space available to the chairperson as
necessary to conduct the business of the Committee.
2. The director and committee chair shall
develop an annual committee budget.
3. Expenses incurred by the committee members
in conducting the four (4) quarterly meetings shall be reimbursed from the
committee's annual budget consistent with
200 KAR
2:006.
4.
Additional meetings shall be eligible for reimbursement with the approval of
the KBE director or office executive director, based on availability of funds
and the purpose of the meeting.
(d) The Committee shall adopt bylaws, which
shall be approved by the office if the bylaws comply with state and federal
law.
Section
9. Vendor's Rights and Responsibilities. A vendor shall:
(1) Execute a Vendor Agreement with the
office for the operation of a vending facility prior to beginning operation of
a vending facility and thereafter if required to ensure its terms remain
compliant with KBE's agreement;
(2)
Operate the vending facility in accordance with accepted-business practices and
in compliance with all federal, state, and local laws, administrative
regulations, and ordinances applicable to the operation of the vending
facility;
(3) Assure proper daily
operation of the vending facility to meet the requirements of the permit or
agreement and vendor agreement in a business-like manner;
(4) Maintain high-quality fresh merchandise
in a quantity sufficient to satisfy customer needs;
(5) Maintain personal hygiene and vending
facility sanitation sufficient to meet all health codes applicable to the
vending facility, and adhere to a dress code appropriate for the vending
facility location;
(6) Provide
adequate pest control and janitorial services unless otherwise specified in the
vendor agreement;
(7) Post in a
conspicuous place a notice stating that it is illegal to sell tobacco products
to persons under age eighteen (18) pursuant to
KRS
438.310 in any vending facility where tobacco
products are sold;
(8) Require
proof of age from a prospective buyer or recipient of tobacco products who may
be under the age of eighteen (18);
(9) Clean, fill, and service machines and
equipment as often as necessary to ensure adequate stock to meet the needs of
the customers at the vending facility;
(10) Assure proper functioning of all
machines and equipment and promptly report the need for equipment
repairs;
(11) Obtain prior written
approval from the director before purchasing equipment for a KBE vending
facility from personal funds. If approved, the vendor shall arrange and pay for
repair and maintenance and removal, if necessary, of the personally owned
equipment;
(12) Employ and pay a
substitute during times of vendor absence from a vending facility due to
vacation or sickness unless the office has made an emergency appointment for an
extended leave. Preference may be given to qualified blind or visually-impaired
persons if selecting substitutes;
(13) Cooperate with vending facility audits
that may be performed periodically at KBE expense;
(14) Pay the monthly seven (7) percent
set-aside amount based on net profits of all vending facilities on schedule:
(a) The monthly set-aside payments shall be
received by the office on or before the 20th of the following month by check or
money order made payable to the Kentucky State Treasurer or through an
electronic payment system established by the office;
(b) Late set-aside payments shall result in a
twelve (12) percent annual interest charge plus a five (5) percent penalty for
each thirty (30) day period or portion thereof for which the set-aside payment
is in arrears, up to a maximum of twenty-five (25) percent;
(c) A twelve (12) percent annual interest
charge shall be assessed for nonnegotiable checks received until the date a
replacement certified check or money order is received;
(d) A ten (10) dollar service charge shall be
due for a nonnegotiable check;
(e)
If a nonnegotiable check is received from a vendor, all future payments made by
the vendor shall be by certified check or money order;
(f) If a vendor is late in making the set
aside payment to the office two (2) or more consecutive months, the vendor
shall be prohibited from bidding on another vending facility for one (1) year;
and
(g) If a vendor is late in
making the set aside payment to the office for ninety (90) or more calendar
days, or is late in making the set aside payment to the office six (6) or more
times in a calendar year, after first affording the vendor an administrative
remedy in accordance with Section 7 of this administrative regulation, the
vendor shall be subject to removal from their vending facility;
(15) Pay resaleable stock
suppliers promptly and retain all invoices and receipts for three (3) calendar
years;
(16) Include rebates,
commissions, or bonuses received by the vendor from suppliers as income of the
vending facility and account for this income on the monthly vending facility
financial report submitted to KBE on a completed Financial Report
Form;
(17)
(a) Utilize office-established accounting
practices and bookkeeping procedures including the establishment of a business
bank account to ensure that personal and vending facility funds are not
commingled; and
(b) Make available
to the office upon request bank statements and other vending facility business
records for audit purposes and to satisfy ongoing financial accountability
standards;
(18)
(a) Submit a monthly vending facility
financial report on a completed Financial Report Form to be received by the
office on or before the 20th of the following month, with the expenses listed
deducted as operating expenses on the report:
1. Expendable supplies used in the vending
facility;
2. Substitutes for the
vendor while the vendor is not present at the vending facility due to sick or
annual leave;
3. Rental and
commission fees paid to building management as stipulated in the vending
facility agreement;
4. Telephone
and utility expenses of the vending facility;
5. Pest control services;
6. Delivery charges paid on resaleable
stock;
7. Janitorial
services;
8. Liability
insurance;
9. License and permits
required by health departments;
10.
Employee wages; and
11. Employee
fringe benefits;
(b) If
a vendor is late in making the monthly vending facility financial report to the
office two (2) or more consecutive months, the vendor shall be prohibited from
bidding on another vending facility for one (1) year;
(c) If a vendor is late in making the monthly
vending facility financial report to the office for ninety (90) or more
calendar days, or is late in making the monthly vending facility financial
report to the office six (6) or more times in a calendar year, after first
affording the vendor an administrative remedy in accordance with Section 7 of
this administrative regulation, the vendor shall be subject to removal from
their vending facility;
(19) Reimburse at wholesale cost the vending
facility for merchandise taken from the vending facility for any personal use
or charitable donation;
(20) Be
responsible for payment of any taxes levied or assessed on the operation of the
vending facility including local, state, and federal taxes;
(21)
(a)
Obtain, maintain in effect, and pay all premiums of the following insurance
coverage:
1. Comprehensive general liability
insurance including personal injury, bodily injury, and product liability to
meet minimum policy limits set by KBE in compliance with the terms of the
vending facility permit. The policies shall insure against any liability which
may occur from the operation by the vendor of the vending facility or in
connection with the premises; and
2. Pay workers' compensation, Social
Security, unemployment compensation, disability insurance, and other insurance
coverage required by law for both the vendor and vendor's employees;
(b) Submit proof of insurance as
required by this subsection to KBE annually. All policies shall provide for
notice to KBE of any cancellation, termination, or nonrenewal of coverage;
and
(c) Vendors that fail to
annually submit proof of insurance as required by this subsection shall be
subject to termination or suspension of the vendor's license, after first
affording the vendor an administrative remedy in accordance with Section 7 of
this administrative regulation;
(22) Not bind or obligate the office or
represent to an entity that the vendor is a legal representative, agency, or
employee of the office;
(23) Not
remove or move any KBE-owned equipment located at any vending facility without
approval from the director;
(24)
Maintain a separate business bank account for deposit of all lottery sales and
proceeds in a vending facility participating in lottery games for which the
manager personally has applied and been approved for the sale of lottery
tickets by the Kentucky Lottery Corporation;
(25) Adhere to the initial stock inventory
requirements established in Section 6 of this administrative
regulation;
(26) Cooperate with KBE
staff in the ongoing supervision and monitoring of the vending facility to
maximize efficiency, productivity, customer satisfaction, and market
potential;
(27) Participate in
training arranged and paid for by the office as required by KBE to correct
identified deficiencies and to improve business skills. Vendors may request
approval from the office for vending facility management training;
(28) Request access in writing, if desired,
to all program and financial data of KBE as provided for by the Kentucky Open
Records Law,
KRS
61.870 through
61.884,
and the federal Randolph-Sheppard Act,
20 U.S.C.
107 through
107f.
The data may be made available in alternative format. At a vendor's request,
the office shall arrange a convenient time for a staff member to assist in the
interpretation of the data;
(29)
Have the opportunity to read and respond to each complaint or commendation
placed in a KBE file. A copy of the complaint or commendation shall be
delivered to the named vendor by registered or certified mail. A response
received from the vendor named in the complaint or commendation shall be filed
with the complaint or commendation in the KBE file;
(30)
(a) Be
prohibited from bidding on a vending facility for one (1) calendar year dating
from the date of the second late payment if the vendor fails to make two (2)
consecutive monthly payments in any repayment schedule established pursuant to
Section 6 of this administrative regulation;
(b) Be subject to removal from a vending
facility, after first affording the vendor an opportunity to request a
mediation and administrative hearing in accordance with Section 7 of this
administrative regulation, if the vendor:
1.
Fails to make a payment in any repayment schedule established pursuant to
Section 6 of this administrative regulation for ninety (90) or more calendar
days; or
2. Is late in making the
payment to the office six (6) or more times in a calendar year; and
(31) Not continue
vending if KBE's right to vend at a property is terminated.
Section 10. Office's Rights and
Responsibilities. The office shall:
(1) Enter
permits or agreements with property management administrators on suitable
federal, state, and other property to establish vending facilities;
(2) Assist in stocking vending facilities
with initial resaleable products in accordance with Section 6 of this
administrative regulation;
(3)
Provide new and existing vending facilities with sufficient equipment to meet
the terms of the permit or agreement for operation of each vending facility.
The office shall:
(a) Retain ownership of all
equipment provided and paid for by KBE in each vending facility;
(b) Repair, or cause to be repaired, replace,
or maintain all vending facility equipment owned by KBE;
(c) Approve or deny vendor requests for
replacement equipment if justified;
(d) Purchase additional equipment for vending
facilities if sufficiently justified in terms of the vending facility potential
and permit or agreement obligations. The office shall review vendor requests
for additional equipment with accompanying justification for the investment.
KBE shall make the final decision and notify the vendor; and
(e) Approve requests, if justified, for
vendor-purchased equipment.
(4) Develop financial controls to ensure
financial accountability of each vending facility;
(5) Establish a seven (7) percent set-aside
amount to be paid by each vending facility manager assessed on the monthly net
proceeds of the vending facility;
(6) Establish reasonable charges for
delinquent monthly set-aside payments and nonnegotiable checks as established
in Section 9(13) of this administrative regulation, and take disciplinary
action for persistent delinquency or dishonored checks, including suspension or
termination of a vendor's license, after first affording the vendor the
opportunity to request mediation and an administrative hearing;
(7)
(a)
Periodically conduct or provide for accountability reviews of vending facility
financial documentation relating to the vending facility operation;
or
(b) Provide, or provide for,
temporary assistance or training to a vendor determined to be remiss in record
keeping or reporting. If the temporary assistance or training does not correct
the deficiency, the office may require the vendor to utilize qualified
bookkeeping services;
(8) Contract for periodic audits of each
vending facility at office expense;
(9) Inventory and establish the wholesale
value of the on-hand saleable stock inventory if a vendor leaves a vending
facility;
(10) If a vendor
appointment is made, take or contract for the taking of an inventory of all
on-hand resaleable stock, valued and calculated at wholesale cost;
(11) Determine the product types and
quantities necessary for successful operation of a vending facility if
appointing a vendor to a vending facility;
(12) Provide each licensee with a copy of
this administrative regulation in alternative format as necessary;
(13) Provide each vendor with a copy of all
relevant materials pertaining to the operation of the vendor's assigned vending
facility in alternative format if necessary;
(14) Provide ongoing monitoring and
supervision of each vending facility to ensure compliance with operating
agreements, permits, laws, administrative regulations, vending facility service
obligations, and generally-accepted business practices; and
(15) Provide, or provide for, ongoing
training as identified by KBE staff or requested by a vendor and approved by
the director, based on availability of funding and whether the director
reasonably believes the requested training is warranted under the
circumstances.
Section
11. Confidentiality.
(1) All
identifiable personal information concerning applicant, licensee, and vendors
shall be confidential consistent with
34 C.F.R.
361.38. Identifiable personal information
shall include documentation from an individual's vocational rehabilitation
consumer file. Access to, or release of, the confidential personal information
shall be governed by the provisions of
34 C.F.R.
361.38. If the personal information is
released in response to a judicial order, the applicant, licensee, or vendor
shall be notified by KBE within three (3) working days from receipt of the
judicial order.
(2) All KBE
documents and files pertaining to the operation of KBE vending facilities shall
be public records pursuant to KRS Chapter 61. The KBE files shall include
business records concerning the operation of vending facilities and shall be
maintained by the office consistent with its public purpose. Any information
from KBE files pertaining to the operation of KBE vending facilities may be
included in bids issued for vendor vacancies and may be shared with members of
the State Committee of Blind Vendors to assist their active participation
during vendor selection.
Section
12. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Application for Vending
Facility Vacancy", February 2001; and
(b) "Financial Report, Kentucky Business
Enterprises", August 2000.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Office of Vocational
Rehabilitation, 500 Mero Street 4th Floor, Frankfort, Kentucky 40601., Monday
through Friday, 8 a.m. to 4:30 p.m. For additional information, please visit
kcc.ky.gov/vocational-rehabilitation.
STATUTORY AUTHORITY:
KRS
163.470(5),
34 C.F.R.
395.4,
20
U.S.C.
107b(5)