Link to law: http://reports.oah.state.nc.us/ncac/title 10a - health and human services/chapter 63 - services for the blind/subchapter c/subchapter c rules.html
Published: 2015

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SUBCHAPTER 63C - BUSINESS ENTERPRISES PROGRAM

 

section .0100 – business enterprises program

 

10A ncac 63c .0101       PURPOSE AND DEFINITIONS

(a)  The Business Enterprises Program is a rehabilitative

program which helps provide employment opportunities and economic security to

blind individuals.  The rules in this Subchapter are promulgated pursuant to 34

CFR 395 for the purpose of governing the operation and administration of the

Business Enterprises Program in this state.

(b)  As used in this Subchapter:

(1)           "Blind licensee" means a blind

person licensed by the Division to operate a Business Enterprises facility on

federal or other property.

(2)           "Blind operator" means a blind

licensee who is operating a Business Enterprises facility on federal or other

property.

(3)           The "Business Enterprises

Program" provides blind individuals with remunerative employment through

the operation of vending facilities on federal, state, and other properties.

(4)           "Business Enterprises facility"

means any vending facility operated by the North Carolina Business Enterprises

Program as defined in 34 C.F.R. 395.1.

 

History Note:        Authority G.S. 111‑27; 143B‑157;

34 C.F.R. 395; 20 U.S.C. Sec. 107;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; February 1, 1986; October 1, 1978;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

10A ncac 63c .0102       RESPONSIBILITY

(a)  The Division shall not provide for services or costs

which pertain to the ongoing operation of an individual facility after the

initial establishment period.

(b)  The Division shall assure that each operator is provided

access to all program and financial data of the Division relevant to the

operation of the state vending facility program, including quarterly and annual

financial reports, to the extent that such disclosure does not violate

applicable federal and state laws pertaining to the disclosure of confidential

information; that insofar as practicable such data shall be made available on

tape, disk, large print, and Braille; and that, at the request of an operator,

the Division will arrange a convenient time to assist in the interpretation of

such data.

(c)  The Division shall furnish to each operator copies of

documents relevant to the operation of the Business Enterprises facility,

including the rules and regulations, a written description of the arrangements

for providing services, and the agreement and permit covering the operation of

the Business Enterprises facility, and shall explain these documents to each

operator in a timely manner.

 

History Note:        Authority G.S. 111‑27; 143B‑157;

34 C.F.R. 395; 20 U.S.C. Sec. 107;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; October 1, 1978.

 

10A ncac 63c .0103        STAND EQUIPMENT: MERCHANDISE: AND

SUPPLIES

(a)  The Division shall furnish each Business Enterprises

facility with the equipment, initial stock, and initial supplies that are

determined by the Division necessary to operate the unit.

(b)  The right, title to, and interest in Business

Enterprises equipment, merchandise, petty cash, and all other assets used in

the program is vested in the Division only and may be used and disposed of by

the Division for program purposes only, and in accordance with state and

federal law.

(c)  The Division shall maintain (or cause to be maintained)

all Business Enterprises equipment in good repair and in attractive condition,

and shall replace (or cause to be replaced) worn‑out or obsolete

equipment as required to assure the continued successful operation of the

facility, subject to availability of funds.  The licensed operator of a

facility shall take the initiative in identifying needed equipment repairs and

replacement.

 

History Note:        Authority G.S. 111‑27; 143B‑157;

34 C.F.R. 395.6; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0104       TRAINING PROGRAM

The Division shall provide for the training of blind

individuals according to the requirements of 34 CFR 395.11 and for the training

and retraining of blind operators with assistance from the state committee of

blind vendors.

 

History Note:        Authority G.S. 111‑27; 143B‑157;

34 C.F.R. 395.11; 34 C.F.R. 395.14; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; February 1, 1986;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

section .0200 - licensing and placement

 

10A ncac 63c .0201       ISSUANCE OF LICENSES

The Division,

through the Business Enterprises Program, shall license blind persons who meet

eligibility requirements for the Business Enterprises Program.  This license shall

be issued for an indefinite period.  The licensee shall signify his acceptance

of the licensing agreement by affixing his signature or mark thereon.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.7; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0202       ELIGIBILITY FOR LICENSING

(a)  The Division shall interview prospective licensees as

referred by the rehabilitation program and shall make written recommendations

to the Chief of Business Enterprises concerning the potential of the referral

commensurate with the specific job requirements of the Business Enterprises

Program.

(b)  To be licensed:

(1)           The consumer must meet the definition of

legally blind as outlined in 34 CFR 395.1;

(2)           The consumer must be at least 18 years of

age;

(3)           The consumer must be physically able to

perform all the duties as further detailed in this Chapter;

(4)           All consumers must be evaluated for and

demonstrate proficiency of skill in basic mobility, activities of daily living,

mathematics and basic food service practices;

(5)           The consumer must be familiar with the

rules and regulations for Business Enterprises facility operators.  The

consumer must successfully complete the Business Enterprises training program

sponsored by the Division and must be certified by the Division as capable of

operating a Business Enterprises facility;

(6)           The consumer must be a citizen of the United States; and 

(7)           The consumer must have no previous

conviction(s) of any felony class A through E.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395; 20 U.S.C. sec. 107; 143B-157;

Eff. October 1, 1978;

Amended Eff. January 1, 2009; August 1, 2002; August 1,

1990; February 1, 1986; June 1, 1982.

 

10A ncac 63c .0203       SUSPEND: TERMINATE LICENSE: REMOVAL FROM

business enterprises facility

(a)  The Division

may suspend or terminate the license of an operator, after affording the

operator an opportunity for a full evidentiary hearing, when it finds that his

facility is not being operated in accordance with the rules and regulations;

with the terms and conditions of the agreement, contract, or permit between the

Division and the sponsor of the building or site upon which the Business

Enterprises facility is located; or with the terms of the contract between the

operator and the Division relating to the particular assignment.

(b)  An operator

may be warned prior to suspension or termination of a license, particularly in

situations where lack of compliance is not determined by the Division to pose

an immediate threat to the general public or to bring discredit or irreparable

damage to the Business Enterprises Program.

(c)  Licenses to

operators may also be suspended or terminated for any of the following reasons:

(1)           Vision

improves so that the operator is no longer eligible for licensing;

(2)           Extended

illness occurs with medically documented diagnosis of prolonged incapacity of

the operator to manage the Business Enterprises facility in a manner consistent

with the needs of the location or other available locations in the Business

Enterprises Program;

(3)           Withdrawal

of the operator from the program upon his written notification to the Division;

(4)           Gross

misconduct or conduct so reprehensible as to bring discredit to the program;

(5)           Conviction

of a felony (Class A through E);

(6)           Falsified

information pertaining to eligibility requirements;

(7)           Willful

acts that would endanger the lives and property of others;

(8)           Possession

of firearms or lethal weapons on the job;

(9)           Reporting

to Business Enterprises assignment under the influence of alcohol or any

controlled substance or partaking of such on the job.

(d)  Suspension

may be used when an apparent action or lack of action by an operator is not

serious enough in the opinion of the Division to warrant termination of the

license.  The length of the suspension shall vary with the seriousness of the

situation, but shall not exceed a maximum of 60 days.

(e)  If the

Division finds that the public health, safety, or welfare requires emergency

action, summary suspension of a license may be ordered.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.7; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; February 1, 1986.

 

10A ncac 63c .0204       FILLING OF VACANCIES

(a)  The Division shall make available a listing of

available Business Enterprises facilities to all licensees.

(b)  Licensees who wish to apply for any of the locations

listed may forward an application to the office of the Chief of Business

Enterprises.

(c)  Transfers and promotions shall be based on the

following procedures:

(1)           The Division shall send a notice of

available facilities to all operators and licensees on the last 10 working day

of the month. The notice shall provide a description of the vacancy and who to

contact for more information.

(2)           All applications shall be post-marked by

the 10th of the month following the notice and mailed to the office of the

Chief of Business Enterprises.

(3)           The Interview Committee shall interview all

applicants on the second Friday of the month which follows the application

deadline.

(4)           At least 10 working days prior to the

interview, the Business Enterprises Counselor who works with the applicant

shall calculate the applicant's points for sanitation, seniority, Financial

Analysis/Operating Standards [Subparagraphs (d), (1), (2), (3) of this Rule]

and inform the applicant of his point total.  The applicant shall have five

working days to review the point total and request any adjustments.

(5)           After adding together the points from the

sanitation, seniority, Financial Analysis/Operating Standards, Customer

Relations and Oral Exam/Interview Sections [Subparagraphs (d), (1), (2), (3),

(4), (5), (6), (7) of this Rule] for each applicant, the applicant with the

highest point total (if above 60 points) shall be awarded the vacancy.  If the

applicant with the highest point total declines to accept the location, it

shall be offered to the next highest applicant (if above 60 points) and so on. 

In the case of an exact tie, the applicant with the most time in the Business

Enterprises Program shall be awarded the location.

(6)           Applicants shall be notified as soon as

possible after their interview whether or not they have been awarded a

location.  This notification shall be by telephone and followed up in writing.

(7)           Upon being awarded a location, the

applicant shall have 30 days to fill the vacancy.  The Division shall agree to

a different time frame if adhering to the 30-day time frame would cause a

hardship to the applicant awarded the facility.  The location shall not be

filled for 15 working days following the award to allow time for administrative

appeals to be filed.  If an appeal is filed, the location shall not be filled

until the appeal is resolved.  If there is only one applicant for a location,

the 15-day waiting period shall not apply.

(8)           If an applicant is awarded a facility and

has not had an Operator Agreement with the Agency in the last two years, and

the applicant did not meet his financial analysis and operating standards for

the last 12 months that his agreement was in effect, the applicant shall repeat

the necessary on-the-job-training. The Interview Committee may also recommend

refresher course training to assure qualified management.

(9)           Licensees/operators not selected may file

an administrative appeal as provided for in Subchapter 63C Section .0400.  The

fifteen-day limit to file an appeal shall begin from the date the

licensee/operator is informed by telephone of the results of the award. 

(10)         An applicant must have operated a Business

Enterprises location for six months prior to the cut-off date for calculating

financial performance according to standards to be considered an operator,

otherwise, the operator shall be in licensee status.  The cut-off date is

defined as the 12-month period ending with the last day of the same month in

which the vacancy is advertised.

(11)         If an operator leaves the Business

Enterprises Program and then applies for a location within 12 months of

leaving, his financial performance according to standards for the 12 months

prior to his leaving shall be used to calculate points in the Financial

Performance Section.

(12)         Financial analyses of facilities shall be

done every two years.  The analysis shall be on the facility not the operator;

however, an operator may request a new analysis after at least four months in

the new facility.  If an applicant's financial analysis is less than two years

old and the applicant's performance is neither above 100 percent nor below 85

percent on either measure, the financial analysis is current.

(13)         An applicant who does not hold the required

level of license for the vacancy may be awarded the facility contingent upon

successfully completing the required training.  Applicants who hold the

required level of license but have not operated a facility at that level for at

least two years shall complete refresher on-the-job training if the applicant

did not meet his financial analysis and operating standards for the last 12

months that his agreement was in effect.

(14)         An operator may not sit on the Interview

Committee for a location for which he/she is applying or if a member of his/her

immediate family has applied for a vacant facility.  For this purpose immediate

family is defined as spouse, parent, child, brother and sister.  Also included

are the step, half and in-law relationships.  If the Vice-Chairman and the

Chairman of the Elected Committee of Vendors and the Chairman of the

sub-committee on Transfer and Promotion are all restricted from sitting on the

Interview Committee under this Rule, those three must pick another Elected

Committee of Vendors member to sit on the Interview Committee.

(15)         The schedule for awarding vacancies may be

changed to accommodate holidays, too many applications to process in one day,

or at any time necessary due to program conflicts as determined by the chief of

Business Enterprises and the Vice-Chairman of the Elected Committee of

Vendors.  All applicants shall be notified in writing of the date, time and

place of their interview.

(16)         Applicants shall be reimbursed for their

expenses to come to the interview at the state's per diem rates. The Business

Enterprises Program shall only reimburse for two interviews per year.  After

that, applicants shall bear their own expenses for coming to interviews. 

Licensees who have active rehabilitation cases shall be reimbursed through the

rehabilitation program.

(d)  The Division shall use the following criteria in

determining points:

(1)           Sanitation:

(A)          Ten point maximum;

(B)          One point for each sanitation grade point above

ninety;

(C)          Sanitation grade to be arrived at by averaging all

sanitation scores received during last two years;

(D)          Five points shall be subtracted for any adjusted B

grade in the last two years;

(E)           The Business Enterprises Counselor shall determine

an adjusted grade by adding back in any points subtracted for deficiencies over

which the operator has no control.  The operator shall inform Business

Enterprises Counselor when an inspection has occurred so he can review the

inspection and adjust the grade if needed.  The operator shall make sure the

Business Enterprises Counselor has copies of every sanitation inspection form

from the relevant period so that he or she can calculate an accurate grade.

(2)           Seniority:

(A)          Five point maximum;

(B)          Seniority points shall be awarded as follows:

Years in Business Enterprises Program –

Points

0 to 4.99 - 0 points

5 to 9.99 - 1 point

10 to 14.99 - 2 points

15 to 19.99 - 3 points

20 to 24.99 - 4 points

25 and over - 5 points

(C)          Seniority is defined as the amount of time in yearly

increments an individual has been working in the Business Enterprises Program

as an operator.  An operator must work 51 percent of the working days in a month

to receive credit for that month.  The cutoff date for accruing time in the

Program is the end of the month when the vacancy is advertised.  Business

Enterprises operators shall receive credit for one year of seniority for any

combined 12-month period.

(3)           Performance According to Financial

Analysis/Operating Standards: Operating standards are determined by tabulating

all the invoices for purchases for resale for each facility for a period of

three months.  The optimum sales and gross profit percentage is determined by

computing the maximum potential for sales and gross profit without

consideration for theft, waste or poor management.  Each operator is required

to maintain 85 percent of the optimum standard established for each facility

for sales and gross profit.  Eighty-five percent of the optimum sales and gross

profit percentage is considered the operating standard for each facility.

(A)          50 Points Maximum;

(B)          Applicants shall receive 20 points for meeting or

exceeding 85 percent of their sales standard;

(C)          Applicants shall receive 20 points for meeting or

exceeding 85 percent of their gross profit percentage standard;

(D)          Applicants shall receive five points for meeting or

exceeding 92.5 percent of their sales optimum;

(E)           Applicants shall receive five points for meeting or

exceeding 92.5 percent of their gross profit percentage optimum.

(4)           Customer and Building Management Relations:

(A)          Five points shall be deducted for each written site

management complaint in the past two years, up to a maximum of 10 points.

(B)          If the applicant has more than three written site

management complaints, he shall not be considered for the award.  No site

management complaint that is more than three years old may be used against an

operator.  Site management is defined as the property official for the property

on which a BEP facility is located.

(5)           Oral Exam/Interview:

(A)          30 points maximum.

(B)          Interview shall be face to face (no conference

calls).

(C)          All applicants shall be interviewed.

(D)          The Interview Committee shall consist of:

(i)            The Chief of Business Enterprises, or Deputy

Chief or Assistant Director of Programs and Facilities as designated by Chief,

(ii)           The Area Rehabilitation Supervisor or B.E.

Counselor for the area in which the vacancy occurs, and

(iii)          The Vice-Chairman of the Elected Committee of

Vendors or the Chairman in his absence, or in the absence of the Chairman, the

Chairman of the Transfer and Promotion subcommittee.

(E)           The Oral Exam part shall consist of 10 questions

drawn either from a pool of standard questions or developed by the Interview

Committee prior to the interview.  The oral exam questions shall relate to any

special needs of the vacant facility as well as to standard responsibilities

and knowledge areas of Business Enterprises operators.  Each member of the

Interview Committee shall evaluate the applicant's response to each question in

the oral exam.  The applicant shall receive one point by demonstrating basic

knowledge, the applicant shall receive one and one-half points for demonstrating

above average knowledge, and the applicant shall be awarded two points for

demonstrating exceptional knowledge for each interview question.  There shall

be at least one question involving a calculation and a talking calculator shall

be provided, although applicants may bring their own.  The oral exam shall

yield a possible 20 points.

(F)           The interview part shall consist of a variety of

questions in a give and take format.  Each member of the Interview Committee

shall evaluate the applicant's response to the interview questions and shall

award up to 10 additional points based on the applicant's previous food service

experience, knowledge and financial performance. If the applicant meets the

requirements for the facility, the applicant shall receive five additional

points.  If the applicant's qualifications exceed the requirements of the

facility, he may be awarded up to ten additional points. The interview shall

include the following elements:  questions related to business philosophy to

promote general discussion to enable the interview panel to evaluate the

applicant's expertise, maturity, experience and ability; a discussion of any

related work experience outside the Business Enterprises Program; at least two

business math questions.  Since points are awarded for seniority, time in the

Business Enterprises Program shall not be considered as a reason to award

points; however, relevant work experience in the Business Enterprises Program

may be discussed and taken into consideration.  Applicants may bring letters of

recommendation, certificates, and other documents that would aid the Interview

Committee in awarding its discretionary points.

(G)          Each interviewer shall award discretionary points

individually and the total score of Oral Exam and Interview points from each

interviewer shall be averaged and added to the applicant's points from the

other Sections. 

(6)           Licensees and trainees:

(A)          A licensee who has no previous experience in the

North Carolina Business Enterprises Program shall be assigned 35 points in the

Financial Analysis/Operating Standards category.  If the licensee scores 90

percent or above on the National Restaurant Association's ServSafe exam, he/she

shall be awarded three points in the sanitation category.

(B)          A licensee with previous Business Enterprises

experience shall be assigned 35 points in the Financial Analysis/Operating

Standards category. Previous sanitation records shall be considered, if

available; or the applicant may take the National Restaurant Association's

ServSafe exam.  If the licensee scores 90 percent or above on the ServSafe

exam, he/she shall be given three points in the Sanitation Section.

(C)          Applicants shall have satisfactorily completed Level

I training or have a Level I license to be interviewed.  The four levels of

Business Enterprises facilities are defined as follows:  Level I has no cooking

or on-site food preparation and includes only service via vending machines or

over the counter service including snacks, candy, pre-packaged sandwiches,

coffee, and assorted beverages.  Level II service is similar to a deli

operation where hot and cold food is prepared on site.  Level III service

includes all of the above with the addition of a grill and fryer.  Level IV

service consists of full-service cafeteria style facilities.  An applicant

shall score at least 60 total points to be awarded a location.  If the

applicant scores at least 55 points but less than 60 points, the interview

panel may make a conditional award if the panel agrees it is in the best

interest of the Business Enterprises Program.

 

History Note:        Authority G.S. 111‑27; 143B-157; 20

U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. January 1, 2009; August 1, 2002; May 1,

1996; December 1, 1993; February 1, 1986; February 1, 1981;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0205       CONTRACTUAL AGREEMENT BETWEEN DIVISION

AND OPERATOR

(a)  Each

licensee who accepts a Business Enterprises assignment must enter into a

contractual operating agreement with the Division upon initial placement and

upon subsequent reassignment.

(b)  A copy of

the permit or contract with the sponsor of the site upon which the Business

Enterprises facility is located shall become a part of the agreement, and the

operator shall conduct the business in accordance with the provisions of that

permit or contract.

(c)  The

agreement shall include provisions which specify:

(1)           the

responsibilities of the licensed operator as contained in the rules in this

Subchapter;

(2)           the

responsibilities of the Division as contained in the rules in this Subchapter;

(3)           that

the licensed operator will receive the net proceeds [in accordance with 45 CFR

1369.1(k)] from the Business Enterprises facility he/she operates in accordance

with Section .0700 of this Subchapter;

(4)           the

right of the operator to terminate the agreement at any time;

(5)           that

the agreement will be terminated upon termination of the permit or contract

with the sponsor of the site upon which the Business Enterprises facility is

located;

(6)           that

the agreement will be terminated upon failure of the licensed operator to

operate the Business Enterprises facility in accordance with the agreement or

applicable federal, state, or local laws or regulations;

(7)           that

the agreement will be terminated upon the closing of a facility which the

Division has determined offers no possibility of being profitable.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.1; 34 C.F.R. 395.3; 20 U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; February 1, 1984; February 1, 1983.

 

10A NCAC 63C .0206       CONFIDENTIAL INFORMATION

All information and records pertaining to handicapped persons

served by this program shall be considered confidential and may not be revealed

except in the administration of the program or by the consent of the handicapped

person.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

361.49; 20 U.S.C. Sec. 107a et seq., as amended;

Eff. October 1, 1978;

Recodified from .0409(f) effective May

30, 1984;

Amended Eff. February

1, 1986.

 

SECTION .0300 - SPECIAL PROVISIONS

 

10A NCAC 63C .0301       HEALTH INSURANCE

 

History Note:        Authority G.S. 111‑27; 20 U.S.C.

sec. 107a et seq., as amended;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. April

1, 1990; October 1, 1978;

Expired Eff. December 1, 2015 pursuant to G.S.

150B-21.3A.

 

 

10A ncac 63c .0302       TEMPORARY CLOSING

(a)  A facility may be temporarily closed due to the closing

of a public building, industry, or institution caused by an emergency condition

such as snow days, fire, or death of a company official.

(b)  If a facility is closed for an extended period of time

through no fault of the operator, that operator may be eligible for financial

assistance through the Business Enterprises Program's Emergency Relief Fund. 

This fund is supported through Federal Unassigned Vending based on a majority

vote of the operators in the Program.  The following guidelines apply:

(1)           Facility must be closed an entire calendar

month due to no fault of the operator.

(2)           Facility must have a target date for

reopening.

(3)           The closing is not covered by insurance or

all coverage must be exhausted before the Emergency Fund is used.

(4)           The Elected Committee of Vendors shall

establish the monthly rate to be paid to operators who qualify for use of the

Fund..  The monthly rate set by the Committee shall appear in the minutes from

the Committee meeting when the rate was set and the rate shall be on file in

the Office of the Chief of Business Enterprises Program, 309 Ashe Avenue, Raleigh,

NC, 27606.

(5)           The operator may be subsidized for an

initial period up to six months after which the situation will be reassessed by

Committee members as appointed by the Chair and by the Chief of the Business

Enterprises Program. They shall determine if an extension should be allowed and

if so, for how long.

(6)           If a feasible satellite facility is

available, the operator must apply for that location.  Failure to apply for any

satellite facility for which the operator is qualified shall result in

immediate forfeiture of the Emergency Relief Funds for the period of time the

satellite facility is available.  If the operator applies for the satellite

facility and is not awarded the facility, no penalty shall apply.  If applying

for the satellite facility would pose a financial hardship on the operator, the

Division shall waive this requirement. 

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.4; 20 U.S.C. sec. 107;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; April 1, 1990; February 1, 1986; October

1, 1978;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0303       MOVING

EXPENSES

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.4; 20 U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002;

Expired Eff. December 1, 2015 pursuant to G.S.

150B-21.3A.

 

 

SECTION .0400 - ADMINISTRATIVE APPEAL PROCEDURE

 

10A ncac 63c .0401       PURPOSE

The purpose of the administrative appeal procedure is to

provide a means of appeal to each operator/licensee who is dissatisfied with an

action of the Division arising from the operation or administration of the

Business Enterprises Program.

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.4; 34 C.F.R. 395.13; 20 U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; May 1, 1996; February 1, 1984.

 

10A ncac 63c .0402       POLICY

(a)  Every operator/licensee has the right to present a

problem or appeal free from interference, restraint, coercion, discrimination,

or reprisal.  This policy shall be covered fully during orientation procedures

for new operators/licensees.

(b)  When presenting an appeal, an operator/licensee may be

accompanied by a person or persons of his choice.

(c)  The filing of a complaint with the Division shall

indicate consent by the blind operator/licensee for the release of such

information as is necessary for the conduct of the administrative appeal.

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.4; 34 C.F.R. 395.13; 20 U.S.C. sec 107;

Eff. October 1, 1978;

Amended Eff. February

1, 1984, February 1, 1981;

Recodified Paragraph (f) to Rule .0212 Eff. May

30, 1984;

Amended Eff. August

1, 2002; May 1, 1996; August 1, 1990; February

1, 1986.

 

10A ncac 63c .0403       PROCEDURE

(a)  The operator/licensee shall discuss the problem with

the Division staff person taking the action with which the operator is

dissatisfied and request specific action in writing to resolve the grievance. 

This discussion shall be held within 15 working days of the occurrence of the

action challenged by the operator.  The operator/licensee shall receive a

response within five working days following the discussion.  Any decision made

by agency personnel at this step shall be subject to supervisory review and

approval.

(b)  If the complaint is not resolved and the

operator/licensee is not satisfied with the outcome of Paragraph (a) of this

Rule, he shall have 15 working days to ask for a review by the operator

relations committee in writing.  Within five working days after asking for a

review, the operator/licensee shall be notified of the date of the hearing,

which shall be held within 25 working days after the operator's/licensee's

request for a hearing.  The committee shall render its decision within 20

working days after the hearing.

(c)  If the decision reached in step of Paragraph (b) of

this Rule is not satisfactory to the operator/licensee or the Division staff

person responsible for the initial action, the matter may be referred by the

operator/licensee or the  Division staff person to the director of the 

Division.  Any request for review shall be submitted within 15 working days

after the operator relations committee has presented its recommendation.  The

party requesting the referral shall provide a written summary of the specific

facts of the complaint and request for specific action to resolve the

grievance, copies of which shall be provided at the same time to all other

parties concerned.  The director shall make the decision for the Division

within 15 working days, and his decision shall be announced immediately to all

parties concerned.

(d)  If the complaint is not resolved and the

operator/licensee is not satisfied with steps of Paragraphs (a) through (c) of

this Rule, then the operator/licensee may file a complaint with the Division

requesting a full evidentiary hearing.

(e)  If a blind operator/licensee requests a full

evidentiary hearing, such request shall be made within 15 working days after

the director's adverse direction rendered through the procedures in this Rule.

(f)  A blind operator/licensee shall request a full

evidentiary hearing in writing.  This request shall be transmitted to the

director of the Division personally or by certified mail, return receipt

requested, transmitted through the Elected Committee of Vendors in accordance

with 34 C.F.R. 395.14(b)(2).  This hearing shall be held in accordance with

G.S. 150B, Article 3, the extent that such article does not conflict with these

Rules pertaining to grievance procedures or any federal law or regulation.

(g)  A blind operator/licensee shall be entitled to legal

counsel or other representation in a full evidentiary hearing.  The Division

shall reimburse the operator for costs of legal counsel at a rate of 50% of the

total amount not to exceed a total expenditure by the Division of one thousand

five hundred dollars ($1,500).  This expenditure is based on the availability

of funds.

(h)  Reader services or other communication services shall

be arranged for the blind operator/licensee should he so request. 

Transportation costs and per diem shall be provided also to the blind

operator/licensee during the pendency

of the evidentiary hearing, if the location of the hearing

is in a city other than the legal residence of the operator/licensee.

(i)  The hearing shall be held at a time and place

convenient and accessible to the blind operator/licensee requesting a full

evidentiary hearing.  The blind operator/licensee shall be entitled to have the

hearing held in the county of his residence unless he waives this right.  A

hearing held during regular Division working hours shall be deemed among the

convenient times.  The hearing shall be scheduled by the Division within 15

working days of its receipt of such a request, unless the Division and the

blind operator/licensee mutually, in writing, agree to some other period of

time.  The Division shall notify the blind operator/licensee in writing of the

time and place fixed for the hearing and of his right to be represented by

legal or other counsel. The Division shall provide the blind operator/licensee

a copy of the hearing procedures and other relevant information necessary to

enable him to prepare his case for the hearing.

(j)  The presiding officer at the hearing, to be appointed

by the Secretary of the Department of Health and Human Services, shall be

impartial, unbiased, have knowledge in conducting hearings, and have no

involvement either with the  Division action which is at issue in the hearing

or with the administration or operation of the Randolph‑Sheppard 

Business Enterprises Program.

(k)  The presiding officer shall conduct a full evidentiary

hearing, avoid delay, maintain order, and make sufficient record of the

proceedings for a full and true disclosure of the facts and issues.  To

accomplish these ends, the presiding officer shall have all powers authorized

by law and may make all procedural and evidentiary rulings necessary for the

conduct of the hearing.

(l)  Both the blind operator/licensee and the Division shall

be entitled to present their case by oral or documentary evidence, to submit

rebuttal evidence and to conduct such examination and cross‑examination

of witnesses as may be required for a full and true disclosure of all facts

bearing on the issue.

(m)  All papers and documents introduced into evidence at

the hearing shall be filed with the presiding officer and provided to the other

party.  All such documents and other evidence submitted shall be open to

examination by the parties, and opportunities shall be given to refute facts

and arguments advanced on either side of the issues.

(n)  A transcript shall be made of the oral evidence and

shall be made available to the parties.  The Division shall pay all transcript

costs and shall provide the blind operator/licensee with at least one copy of

the transcript.

(o)  The transcript of testimony, exhibits, and all papers

and documents filed in the hearing shall constitute the exclusive record for

decision.

(p)  The decision of the presiding officer shall set forth

the principal issues and relevant facts adduced at the hearing, and the

applicable provisions in law, federal regulations, and state rules.  It shall

contain findings of fact and conclusions with respect to each of the issues,

and the reasons and basis therefor.  The decision shall also set forth any

remedial action necessary to resolve the issues in dispute.  The decision shall

be made within 15 working days after the receipt of the official transcript. 

The decision shall be mailed promptly to the blind operator/licensee and the

division.

(q)  If the dispute(s) is not resolved to the satisfaction

of a blind operator/licensee after provision of a full evidentiary hearing, an

appeal may be made to the Secretary of the U. S. Department of Education for

the convening of an arbitration panel.

(r)  The results of the arbitration shall be considered the

final agency action and the operator/licensee shall have exhausted his

administrative remedies.

 

History Note:        Authority G.S. 111‑27; 143B-157; 20

U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; May 1, 1996; August 1, 1990; February

1, 1984; February 1, 1983; December 1, 1981.

 

SECTION .0500 - ELECTION: ORGANIZATION AND FUNCTIONS OF THE

COMMITTEE ON THE STAND PROGRAM

 

10A ncac 63c .0501       ELECTION

The Division shall provide for biennial election among the

operators in the program to elect a state committee of blind operators called

the Elected Committee of Vendors.  This Elected Committee of Vendors shall be

representative of operators on the basis of geography and shall be

proportionally representative of operators on federal property.  The Elected

Committee of Vendors shall consist of representatives from the four

geographical regions and one region comprised of all Federal facilities.

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.14; 20 U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; May 1, 1996; February 1, 1986.

 

10A NCAC 63C .0502       COMMITTEE SIZE

10A ncac 63c .0503       NOMINATIONS AND ELECTIONS

10A NCAC 63C .0504       TERM OF MEMBERSHIP

10A NCAC 63C .0505       CONSECUTIVE TERMS

 

History Note:        Authority G.S. 111‑13; 111‑27;

34 C.F.R. 395.14; 20 U.S.C. sec. 107a et seq., as amended;

Eff. October 1, 1978;

Amended Eff. August 1, 2002; April 1, 1990;

July 1, 1987; June 1, 1983;

Expired Eff. December 1, 2015 pursuant to G.S.

150B-21.3A.

 

10A ncac 63c .0506       ORGANIZATION AND OPERATION

(a)  The officers of the Elected Committee of Vendors shall

be a chairman and a vice‑chairman.  They shall be elected by the Elected

Committee of Vendors from among Elected Committee of Vendors members.

(b)  Vacancies in any of the elective offices shall be

filled by the Elected Committee of Vendors members for the unexpired term.

(c)  The chairman shall preside over all the meetings of the

Elected Committee of Vendors.  He shall appoint subcommittees at such time as

the business of the Elected Committee of Vendors may warrant, except for the

Operator Relations Committee which shall be elected by the Elected Committee of

Vendors from its members.  The chairman shall appoint temporary replacements to

this subcommittee as needed to fill any vacancy until a new member may be

elected.  He shall also appoint a temporary replacement for any Operator

Relations Committee member who has filed an appeal and whose appeal is pending

before the Operator Relations Committee.  The chairman shall serve as non‑voting

ex officio member of all subcommittees.

(d)  In the absence or disability of the chairman, the vice‑chairman

shall assume all the duties of the chairman.

(e)  The meetings shall be conducted according to Roberts

Rules of Order.

(f)  A majority shall constitute a quorum.

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.14; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; May 1, 1996; February 1, 1984; February

1, 1983.

 

10A NCAC 63C .0507       MEETINGS

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.14; 20 U.S.C. sec. 107a et seq., as amended;

Eff. October 1, 1978;

Amended Eff. May

1, 1996; February 1, 1983;

Expired Eff. December 1, 2015 pursuant to G.S. 150B-21.3A.

 

10A ncac 63c .0508       FUNCTIONS

The Elected Committee of Vendors shall actively participate

with the Division in major administrative decisions and policy and program

development decision affecting the overall administration of the Business

Enterprises Program.  The Division and the Elected Committee of Vendors shall

comply with the terms and conditions set forth in 34 C.F.R. 395.14.

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.14; 20 U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; May 1, 1996; February 1, 1984.

 

10A ncac 63c .0509       SUBCOMMITTEES

Between regular meetings of the Elected Committee of

Vendors, it shall carry on its functions through the following subcommittees:

(1)           operator relations committee, whose function is to

receive and transmit appeals at the request of operators;

(2)           committee on transfer and promotion of operators,

whose function is to actively participate with the Division in the development

and administration of a system for the transfer and promotion of operators;

(3)           committee on training and retraining, whose

functions are to actively participate with the Division in the development of

training and retraining programs and to assist the Division in sponsoring

meetings and instructional conferences for the operators.

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.14; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; May 1, 1996; February 1, 1984.

 

10A NCAC 63C .0510       COMMUNICATION AND NOTICE

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.14; 20 U.S.C. sec. 107a et seq., as amended;

Eff. October 1, 1978;

Expired Eff. December 1, 2015 pursuant to G.S.

150B-21.3A.

 

10A ncac 63c .0511       COMMITTEE INITIATIVE

The committee may initiate matters for consideration and its

views and positions will be considered by the Division.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.14; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; February 1, 1986.

 

10A ncac 63c .0512       DIVISION RESPONSIBILITY AND RELATIONSHIP

WITH COMMITTEE

The Division has the ultimate responsibility for the

administration of the Business Enterprises Program.  It shall consider all

recommendations forthcoming from the committee, which will act in an advisory

capacity to the Division.  If the Division does not adopt the views and

positions of the committee on a particular issue, it shall give written notice

to the committee of the decision reached, the actions taken, and the reasons

therefore.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.14; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002.

 

SECTION .0600 ‑ RESPONSIBILITIES OF LICENSED OPERATORS

 

10A ncac 63c .0601       GENERAL RESPONSIBILITIES

(a)  The operator must:

(1)           perform faithfully and to the best of his

ability the necessary duties in connection with the operation of the Business Enterprises

facility in accordance with the rules of the Commission and standards issued

pursuant thereto and the contractual agreement between the Division and the

operator, and the terms and conditions of the permit or contract with the

building or property on which the facility is located;

(2)           operate the facility in accordance with all

applicable health laws and Rules;

(3)           assume such responsibilities as purchasing

needed supplies and merchandise, pricing, merchandising the facility, and

control of inventory;

(4)           devote his full managerial attention to the

responsibilities of operating the facility in accordance with the agreement

between him and the Division and in accordance with the Rules in this

Subchapter.  The operator is not required to be on site at all times; and

(5)           maintain good customer relations with his

patrons and with the property‑managing officials at his work site.

(b)  The operator shall be accountable to the Division for

the proceeds of the Business Enterprises facility, and shall handle the

proceeds, including payments to suppliers and deposits of funds, in accordance

with Division guidelines developed to facilitate the provision of management,

accounting, and technical services to operators, and in accordance with the U.

S. Department of Education reporting requirements.

(c)  The operator shall maintain a neat, business‑like

appearance while working at the Business Enterprises facility, and shall

conduct the facility in an orderly, business‑like manner.

(d)  In accordance with Paragraph (b) of this Rule, any

rebates, commissions, or bonuses received by the operator from supplier shall

be considered as income or a refund of purchases and shall be accounted for

accordingly.

(e)  The operator must assure that the business to be

carried on at the facility shall be limited to that specified and authorized in

the permit or contract with the sponsor of the building or property where the

facility is located.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.7; 20 U.S.C. Sec. 107;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; April 1, 1990; February 1, 1984; October

1, 1978.

 

10A ncac 63c .0602       HOURS OF OPERATION

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.7; 20 U.S.C. Sec. 107;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; May 1, 1996; February 1, 1984; October

1, 1978;

Expired Eff. December 1, 2015 pursuant to G.S.

150B-21.3A.

 

10A NCAC 63C .0603       SECURITY

The operator is responsible for seeing that security and

safety measures are carried out in accordance with good business practice and

the requirements of each location.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.7; 20 U.S.C. sec. 107a et seq., as amended;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. February

1, 1984; October 1, 1978.

 

10A ncac 63c .0604       REPORTS

The operator shall have four options for reporting revenues

and expenses:

(1)           Category A - The operator may send all invoices,

deposit slips, repair bills, and other documents to the Division including

overcash according to a schedule established by the Division's Accounting

Office. All payroll functions shall be performed by the Division.

(2)           Category B - The operator may retain sales and

deposit documentation and send a summation of his purchases for resale and all

expenses paid out of the facility to the Division monthly along with overcash. 

All payroll functions shall be performed by the Division.

(3)           Category C - The operator may perform all functions

as in Item (2) of this Rule and perform his own payroll functions.

(4)           Category D - The operator may perform all functions

of Items (2) and (3) of this Rule and may calculate its own profit and loss

statement and send only the set-aside due to the Division.

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395; 20 U.S.C. Sec. 107;

Eff. February 1, 1976;

Amended Eff. August

1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; May 1, 1996; February 1, 1996; February

1, 1984; October 1, 1978.

 

10A ncac 63c .0605       REPAIRS

(a)  Operators shall secure repairs to equipment not to

exceed a dollar amount as determined by the Division on an annual basis.

(b)  If the repair rate exceeds the amount as determined by

the Division, bids must be obtained and submitted to the Division for

approval.  The Division shall apply state purchasing procedures as found in 01

NCAC 05 under the State Division of Purchase and Contract.

(c)  If the operator is unable to secure bids, he shall

contact the Division for assistance.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.4; 20 U.S.C. Sec. 107;

Eff. February 1, 1976;

Amended Eff. August

1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; October 1, 1978;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0606       EQUIPMENT: MERCHANDISE: SUPPLIES: CASH

(a)  Each operator shall sign a receipt for all equipment,

merchandise, supplies, and cash for which he is entrusted when initially placed

in a Business Enterprises facility, and shall be held accountable for those

assets.

(b)  Each operator shall maintain the equipment assigned to

him, and shall ensure that the equipment is used only for the purposes of

operating the business.

(c)  All assets vested in the Division shall be safeguarded

and protected.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.7; 20 U.S.C. sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; February 1, 1984;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0607       INSURANCE

(a)  Each operator must maintain adequate bodily injury,

property damage, and food products liability insurance as will protect the

operator, anyone employed by the operator, and the Division against losses and

claims arising out of the conduct of the business of the Business Enterprises

facility.  Each operator must also carry worker's compensation and unemployment

insurance as required by state and federal law.  Adequate coverage for

liability insurance will be determined by the Business Enterprises Program

Chief in consultation with the Elected Committee of Vendors and changes in

limits shall be conveyed to the operators in writing with a 30‑day

advance notice.

(b)  The costs of such insurance shall be a cost of

operating the business of the Business Enterprises facility and taken into

account as such in determining the net proceeds of the business.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.7; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; April 1, 1990; February 1, 1984;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0608       PRICING OF MERCHANDISE

(a)  Each operator shall determine his own pricing structure

commensurate with prevailing pricing of local competitors and shall not take

advantage of customers through unfair pricing practices.

(b)  Notwithstanding Paragraph (a) of this Rule, in Business

Enterprises facilities where prices are determined in some manner by the

contract between the Division and the location, the operator must comply with

the terms of that contract.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.7; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

SECTION .0700 ‑ EARNINGS: FUNDS: AND PROCEEDS

 

10A ncac 63c .0701       MINIMUM FAIR RETURN AND DEFINITIONS

(a)  Operators may be guaranteed a fair minimum return as

determined by the Division after consultation with the  Elected Committee of

Vendors.

(b)  Definitions which apply to all of 10A NCAC 63C .0700:

(1)           Net profits means the amount remaining

after subtracting the cost of goods sold and the operating expenses from the

gross revenues.

(2)           Income means the net profit of the facility

less any funds which must be set aside.

(3)           Net operating balance means the amount

remaining at the end of the calendar year after subtracting the income paid

year‑to‑date to the operator, from the income earned by the

operation of the facility.

(4)           Fair minimum return is the amount

determined by the Elected Committee of Vendors and agreed upon by the Division

as the minimum monthly income to be received by any Business Enterprises

operator without regard to the profit or loss of the facility. Fair minimum

return shall not exceed an amount equal to the hourly Federal Minimum Wage

based on a 160-hour work month.  This amount is applicable to all Business

Enterprises Operators regardless of the size or type of facility they currently

manage.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.8; 34 C.F.R. 395.9; 20 U.S.C. sec. 107;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; April 1, 1990; October 1, 1978;

Pursuant to G.S. 150B-21.3A, rule is necessary without

substantive public interest Eff. November 23, 2015.

 

10A ncac 63c .0702       SET‑ASIDE

(a)  "Set‑aside" and "Net

Proceeds" are used as defined in 34 CFR 395.1.

(b)  The Division shall set aside funds from the net

proceeds of each facility to be used for the purposes outlined in 34 C.F.R.

395.9.

(c)  The set‑aside shall not exceed an amount

determined to be reasonable by the Commissioner of the Rehabilitation Services

Administration.

(d)  Any set‑aside collected in excess of the amount

needed to cover the purposes in this Rule and in excess of any reasonable reserve

necessary to assure that such purposes can be achieved on a consistent basis,

shall be refunded on a pro rata basis at the end of the fiscal year.

(e)  Set-aside rates may be adjusted to meet program goals

and objectives and shall be determined by the Division in conjunction with the

NC Commission for the Blind.

 

History Note:        Authority G.S. 111‑12.5; 111‑13;

111‑27; 111-50; 143B-157; 34 C.F.R. 395.8; 34 C.F.R. 395.9; 20 U.S.C.

sec. 107;

Eff. February 1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; May 1, 1996; January 1, 1990; July

1, 1987; February 1, 1986; July 1, 1980.

 

10A ncac 63c .0703       DISTRIBUTION OF PROCEEDS

 

History Note:        Authority G.S. 111‑27; 143B-157; 34

C.F.R. 395.4; 20 U.S.C. Sec. 107;

Eff. February 1, 1976;

Amended Eff. December

1, 1976;

Readopted Eff. November

16, 1977;

Amended Eff. August

1, 2002; May 1, 1996; April 1, 1990; October

1, 1978;

Expired Eff. December 1, 2015 pursuant to G.S.

150B-21.3A.

 

10A ncac 63c .0704       INCOME FROM VENDING MACHINES ON FEDERAL

PROPERTY

(a)  Income from vending machines on federal property which

has been disbursed to the Division by a property managing department, agency,

or instrumentality of the United States under the vending machine income

sharing provisions in 34 CFR 395.32 shall accrue to each operator of the

Business Enterprises facility in an amount not to exceed the average net income

of the total number of blind operators within such state as determined each

fiscal year on the basis of each prior year's operation.  Vending machine

income shall not accrue to any operator in any amount exceeding the average net

income of the total number of blind operators in the United States.

(b)  No blind operator shall receive less vending machine

income than he was receiving during the calendar year prior to January

1, 1974, as a direct result of any limitation imposed on such income under

this ceiling.

(c)  No limitation shall be imposed on income from vending

machines, combined to create a Business Enterprises facility, when such

facility is maintained, serviced, or operated by a blind operator.  The

Division shall retain vending machine income disbursed by a property managing

department, agency, or instrumentality of the United States in excess of the

amounts eligible to accrue to blind operators.

(d)  Vending machine income retained by the  Division shall

be used for the establishment and maintenance of retirement or pension plans,

for health insurance contributions, and for the provision of paid sick leave

and vacation time for blind operators, if it is so determined by a majority

vote of the licensed operators, after each operator has been furnished

information on all matters relevant to such purposes; any vending machine

income not necessary for such purposes shall be used for one or more of the

following: maintenance and replacement of equipment; purchase of new equipment;

management services, and assuring a fair minimum return to operators; and any

assessment charged to blind operators shall be reduced pro rata in an amount

equal to the total of such remaining vending machine income.

 

History Note:        Authority G.S. 111‑27; 34 C.F.R.

395.14; 20 U.S.C. Sec. 107;

Eff. October 1, 1978;

Amended Eff. August

1, 2002; February 1, 1986.