Rules & Regulations of the State of Tennessee
Title 1240 - Human Services
Subtitle 1240-06 - Tennessee Business Enterprises
Chapter 1240-06-09 - Setting Aside Funds
Section 1240-06-09-.01 - SET-ASIDE ASSESSMENT
Current through September 24, 2024
(1) The Set-Aside Assessment (or administrative fee) is a charge levied against the net proceeds of each vending facility. The manager is responsible for the payment to the Agency of this assessment each month. It represents a certain percentage of the net proceeds realized as a result of the facility's operation. Incentives and/or discounts may be offered to those managers who meet established performance standards, pay fees on-line, hire legally blind employees, or meet other established requirements.
(2) Net proceeds are determined from gross sales, less merchandise cost and other allowable expenditures, plus commissions, vending machine income remitted to the manager under chapter 1240-06-14, and rebates, bonuses, ATM and other fees paid to or collected by the manager. The amount of set-aside assessment may not be deducted as an expense in computing net proceeds.
(3) All funds collected as set-aside assessments are deposited into an interest-bearing account, and earned interest income shall be used for the same purposes as outlined in 1240-06-09-.02.
(4) The percentage of net proceeds to be paid to the Agency by each manager is predicated upon a schedule negotiated between the Agency and the Committee, determined to be sufficient for the TBE's operation, while at the same time allowing for the retention of reasonable reserves by the Agency. In no event shall any negotiated schedule exceed a maximum of fifteen (15) percent as prescribed by T.C.A. § 71-4-509, nor shall any new or modified schedule be implemented without the approval of the U.S. Rehabilitation Services Administration.
Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-509, 71-4-604 and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.9(c).
