Current through Vol. 42, No. 1, September 16, 2024
(a)
Initial inventory. A licensed manager may acquire initial
merchandise for resale by purchasing it with his/her own funds, utilizing
start-up assistance/client services that may be available from DRS or other
public and private sources, or use of a merchandise loan provided by the State
Licensing Agency (SLA). When the SLA provides the manager a merchandise loan
for initial merchandise, the manager is not allowed to utilize DRS start-up
assistance for same purpose.
(b)
Merchandise loan. When necessary to enable a licensed manager to
acquire initial merchandise inventory, the SLA may extend a merchandise loan
subject to the following terms:
(1) The
amount of the loan will be determined by the SLA in consultation with the
licensed manager and based on an assessment of merchandise necessary to
initiate sales and the availability of funds.
(2) The total amount of the loan will not
exceed the average of the prior year's inventories without approval from the
BEP operations coordinator. This means the prior year's inventories will be
summed and then divided by twelve to obtain the average.
(3) All merchandise purchased and placed on a
merchandise loan must have prior approval by the SLA. The SLA will not make
multiple purchases from any purveyor.
(4) The incoming licensed manager, BEP
business consultant and BEP operations coordinator will determine what may be
purchased from the existing stock of the outgoing facility manager. Only
salable merchandise may be purchased.
(5) A merchandise loan must be repaid to the
SLA by a licensed manager in monthly installments of no less than two percent
of gross sales to pay loan balance in full. A licensed manager shall not allow
the facility inventory level to fall below that of the balance of the
merchandise loan and are subject to disciplinary action should this occur.
Managers receiving loans will sign a merchandise security agreement that will
be retained on file by DRS and released to the manager when loan repayment is
complete along with a letter from the BEP Operations Coordinator officially
notifying the licensed manager of their full repayment of the loan.
(6) When a merchandise loan is secured by
stock, a licensed manager may not permit the ownership of the stock to vest in
any person or organization other than the SLA.
(7) When a licensed manager leaves a business
enterprise, any remaining merchandise loan balance (and other unmet obligations
to the SLA) will be subtracted from the ending inventory to determine the
manager's equity in the ending stock.
(8) Merchandise loans are not allowed for
satellite facilities unless extenuating circumstances prevail and only after
approval of BEP Operations Coordinator in consultation with the ECM chair
person.
(9) Merchandise loans for
existing managers currently operating an "A" or "B" classified facility as
their primary may be granted at the discretion of the BEP Operations
Coordinator in consultation with the ECM chair person.
(c)
Failure of licensed manager to
repay loan.
(1) If a licensed
manager's merchandise loan payment is not received in the BEP office within
five days after the due date, the licensed manager will be placed on probation
and is not eligible to make application into the selection process. Merchandise
loan payments are due at the time monthly reports and set-aside payments are
due. (612:25-6-22)
(2) If a licensed manager's
merchandise loan payment remains delinquent through the succeeding month and is
not received in the BEP office within five days after the succeeding month's
due date, the BEP operations coordinator will recommend suspension or
termination of the operator's agreement by the SLA director unless an alternate
repayment schedule has been approved by the SLA. The SLA will initiate action
to collect a remaining merchandise loan balance when a loan payment is two
months overdue.
(3) When a licensed
manager leaves the program for any reason, the merchandise loan is due in full
unless arrangements are made with the SLA to divide the balance into twelve
(12) equal payments that will be due on the first day of each
month.
(d)
Second
merchandise loan.
(1) Under documented
extreme circumstances, a licensed manager who has paid off his/her previous
merchandise loan may receive a second merchandise loan for the same facility
when it has been determined that the loan is necessary to allow the licensed
manager to remain in his/her facility.
(2) If a licensed manager requires a second
merchandise loan while the first loan is still outstanding, other than for the
expansion of his/her facility, he/she will be placed on probation until one of
the loans is paid in full.
(3)
Second merchandise loans for the purpose of facility expansion will be limited
to 50% of the cost of additional salable merchandise
needed.
(e) It is the
incoming Licensed Manager's choice to accept or reject any and or all
merchandise or personal property from the out-going Licensed Manager, however,
a merchandise loan cannot be used to purchase property. The incoming Licensed
Manager must notify the Business Consultant and the outgoing Licensed Manager
of his/her intent of purchasing outgoing manager's inventory seven (7) days
prior to the day of the inventory count.
(f) If the incoming manager rejects all of
the outgoing manager's merchandise, the outgoing manager may be allowed two
weeks to reduce his/her inventory, before transfer of facility. This two week
period must be approved by the BEP Operations Coordinator in consultation with
the ECM chair.
(g) In order to
expedite the processing of merchandise loans, the outgoing manager must provide
a merchandise price list to the business consultant and incoming manager seven
(7) days before the day of the inventory count.
Added at 14 Ok Reg
1472, eff 7-1-97; Amended at 22 Ok Reg 2222, eff 7-1-05; Amended at 29 Ok Reg
1447, eff 7-1-12
