(1)
Any public property that desires vending services is required pursuant to
1240-6-13-.01 above to notify the department so that a survey can be conducted.
If the results of that survey suggest that the location should not be assigned
to a blind vendor, the department will arrange for the service to be provided
by a third party vendor. Such locations shall be referred to as "unassigned"
locations. When making a decision as to whether or not to assign a blind
vendor, the department will consider the following factors:
(a) Sales volume,
(b) Budgetary/revenue needs of TBE,
(c) Cost of installing any
equipment,
(d) History of the
location,
(e) Availability of a
licensed blind vendor,
(f) Any
other factors the department deems pertinent relative to the specific
location.
(2) The
department shall have the authority to select the third party vendor to provide
the desired vending services and shall execute an agreement with the third
party vendor authorizing said vending services. The department may consult with
any entity affected by the selection of the vendor. If a third party vendor is
currently providing services, and those receiving said services are satisfied
with the level and quality of services, the department may elect to allow that
vendor to continue providing services provided an acceptable agreement can be
negotiated.
(a) The department shall determine
pricing of products to be sold. The department shall ensure that prices are
fair and do not exceed prices normally charged by licensed blind vendors in
other government buildings. To the extent practical, the department will
attempt to ensure consistency in pricing from one unassigned location to
another.
(b) The department shall
negotiate a fair and competitive commission rate to be paid by the third party
vendor to the department for use pursuant to 1240-6-14-.02. The third party
vendor shall be required to submit written reports verifying sales and the
accuracy of the commission payments. Such reports are subject to audit by the
department and/or other state entities. The department shall have the right to
establish other procedures as appropriate to ensure it is receiving all funds
to which it is entitled.
(c) If a
property management official fails to comply with subsection (1) above and
arranges for vending services on his/her own and it comes to the attention of
the department, representatives of the department shall notify the property
management official of the non-compliance and make arrangements for the private
vendor to send all future commissions from the vending machines to the
department. The department shall negotiate a fair commission rate and may
replace the third party vendor if an agreement cannot be reached with the
company providing the service.
(d)
The department, in its sole discretion, may elect to share revenue from the
vending machines with the state or local government entity. This will be done
primarily to offset any loss in revenue by the government entity as the result
of the department assuming responsibility for the vending machines. Such an
income sharing arrangement may be time limited and may impact the pricing
structure of products being sold through the vending machines.
(e) The department will act to correct any
documented deficiencies in service that are brought to its attention. This may
include removing and replacing a third party vendor.
(f) The department, in its sole discretion,
may elect to remove a third party vendor from any location and assign the
vending to a licensed blind vendor. On an annual basis, the department shall
provide sufficient information to the Committee of Blind Vendors so that the
Committee can actively participate in decisions as to any of the unassigned
locations that could be considered for assignment to a blind vendor.
(g) If any dispute arises between property
management and the department as the result of enforcement of these provisions,
either party shall have the right to file a complaint with the Secretary of
State's Office pursuant to Tenn. Code Ann. §
71-4-507.
(h) Revenue from unassigned locations shall
be spent in accordance with 1240-6-14-.02 of these rules and
regulations.
(i) The department
shall maintain records of all unassigned locations and provide reports on a
quarterly basis to the Committee of Blind Vendors.
(j) After affording the Committee an
opportunity for active participation, the department may choose to employ
adequate staff or may elect to contract with a third party entity to carry out
the provisions of this section.
(k)
These provisions do not apply to vending machines located at interstate rest
areas. The installation of such machines and the revenue from those machines
are governed by federal guidelines.
