585-015-0020 Set-Aside Funds (1) ASSESSMENT - The standard set aside charge is eleven percent (11%) of a vending facility’s monthly net proceeds. (2) SET-ASIDE INCENTIVES - The Commission shall reduce the percentage of set aside collected from a vending facility manager, by the following amounts: (a) Four percentage points, if the vending facility offers exclusively healthy vending items or local vending items. To qualify for the local vending item incentive, 100% of items sold in all vending machines or cafeterias must meet the definition of a Local Vending Item. To qualify for the healthy vending item incentive, all packaged snacks in vending machines are required to meet the Food and Nutrition Standards for Packaged Foods, and Food and Nutrition Standards for Beverages, as outlined in Food Service Guidelines Federal Workgroup. Food Service Guidelines for Federal Facilities. Washington, DC: U.S. Department of Health and Human Services; 2017 . To qualify for the healthy vending item incentive, cafeterias and snack bars are required to implement at the Standard and Innovative Implementation levels for all categories of prepared foods and beverages as outlined in Food Service Guidelines Federal Workgroup. Food Service Guidelines for Federal Facilities. Washington, DC: U.S. Department of Health and Human Services; 2017 ; (b) Three percentage points if at least 75 percent but less than 100 percent of the offerings at the vending facility are healthy vending items or local vending items. To qualify for the local vending item incentive, 75% to 99% of items sold in all vending machines or cafeterias must meet the definition of a Local Vending Item. To qualify for the healthy vending item incentive, 75% to 99% of items in all vending machines are required to meet the Food and Nutrition Standards for Packaged Foods, and Food and Nutrition Standards for Beverages, as outlined in Food Service Guidelines Federal Workgroup. Food Service Guidelines for Federal Facilities. Washington, DC: U.S. Department of Health and Human Services; 2017 . To qualify for the healthy vending item incentive, cafeterias and snack bars are required to implement 75% to 99% of the Standard and Innovative Implementation Levels for all categories of prepared foods and beverages outlined in Food Service Guidelines Federal Workgroup. Food Service Guidelines for Federal Facilities. Washington, DC: U.S. Department of Health and Human Services; 2017 ; (c) Two percentage points if at least 50 percent but less than 75 percent of the offerings at the vending facility are healthy vending items or local vending items. To qualify for the local vending item incentive, 50% to 74% of items sold in all vending machines or cafeterias must meet the definition of a Local Vending Item. To qualify for the healthy vending item incentive, 50% to 74% of items in all vending machines are required to meet Food and Nutrition Standards for Packaged Foods, and Food and Nutrition Standards for Beverages, as outlined in Food Service Guidelines Federal Workgroup. Food Service Guidelines for Federal Facilities. Washington, DC: U.S. Department of Health and Human Services; 2017 . To qualify for the healthy vending incentive, cafeterias and snack bars are required to implement 50% to 74% of the Standard and Innovative Implementation Levels for all categories of prepared foods and beverages outlined in Food Service Guidelines Federal Workgroup. Food Service Guidelines for Federal Facilities. Washington, DC: U.S. Department of Health and Human Services; 2017 ; (d) Two percentage points if the vending facility employs at least one person who is blind, in addition to the vending facility manager; (e) One percentage point for each person who is blind and is employed by the vending facility in addition to the persons described in section 4; (f) One percentage point if the vending facility employs at least one person with a disability, as defined in ORS 174.107, or who is a veteran, as defined in ORS 408.225, in addition to the vending facility manager; and (g) One-half of one percentage point for each person with a disability or veteran employed by the vending facility in addition to the persons described in section (h) References - The following link provides the criteria for healthy vending items: https://www.cdc.gov/obesity/downloads/guidelines_for_federal_concessions_and_vending_operations.pdf. (i) Set-aside reductions are not cumulative. Vending facility managers who meet the requirements of (2)(a) above will receive a 4 percentage point reduction but no more. Vending facility managers who do not meet the requirements of (2)(a) above will earn reductions of no more than 3 percentage points. (j) Vending facility managers shall provide proof annually for the incentives for which they qualify. (k) Proof for vending machines shall consist of one of the following, to be submitted to and verified by the Business Enterprise Program: (A) A planogram schematic of each vending machine and photos of the machine each time it is stocked; or (B) Monthly inventory records of items installed in each machine (l) Proof for cafeterias and snack bars shall consist of the following, to be submitted to and verified by the Business Enterprise Program: (A) Either of the options listed above for vending machines, and (B) Weekly copies of menus and lists of items for sale, and (C) Recipes for all menu items made on-site (3) DEDUCTIONS - When determining net proceeds, the vending facility manager may deduct vending facility operating costs or operating expenses paid during the reported calendar month. (a) The allowable deduction is the actual dollar amount paid, as further limited below: (A) Cost of food and products, this would include raw food and ingredients, prepared food, vending products, and other supplies and materials for resale; (B) Direct vending facility rent and utilities, this includes off-site storage, power, phone, and internet services; (C) Wages paid to employees, including any spouse, domestic partner or relative by blood or marriage, not to exceed two times the State of Oregon’s minimum wage, provided the vendor is compliant with IRS reporting; (D) Benefits paid to employees, including any spouse, domestic partner, or to a relative by blood or marriage; (E) Payroll taxes; (F) Business taxes, licenses and health permits necessary to operate the vending facility; (G) Liability, fire, property damage and workers’ compensation insurance; (H) Business consultant services with prior written approval from Agency; (I) Legal fees, directly related to the operation of the vending facility with prior written approval from Agency; (J) Accounting and banking expenses, this includes business tax preparation, credit card processing and bank fees; (K) Vending facility janitorial services; (L) Payments for equipment owned or leased by the vending facility manager with prior written approval of the Commission; (M) Repairs to vending facility equipment; (N) Office supplies directly related to operating the vending facility; (O) Automobile expenses, the allowable expense is either the documented business-related mileage driven, multiplied by the current Internal Revenue Service standard mileage rate (www.IRS.gov), or the total itemized automobile expenses for that month; (P) Travel expenses, for business related travel; (Q) Training expenses, for business related training; (R) Miscellaneous business expenses, each expense shall be itemized, allowable expenses include laundry and uniform expenses, advertising and promotional expenses, printing expenses, pest control expenses, and business-related Interest expenses, the allowable amounts are the actual amount paid for all miscellaneous expenses. (b) The following deductions are not allowed: (A) Cost of food and products purchased for personal use; (B) Personal rent and utilities; (C) Benefits paid to non-employees, (other than to any spouse, domestic partner, or to a relative by blood or marriage) including health insurance, life insurance, long term care insurance and retirement benefit costs; (D) Personal tax obligations; (E) Personal insurance, including liability, home owners and automobile insurance; (F) Personal legal costs; (G) Personal accounting and banking expenses; (H) Personal travel expenses, for non-business-related travel; (4) USE OF SET-ASIDE - Set aside dollars will be spent in accordance with Section 2 of HB 3253: (1) The Commission for the Blind shall establish in the State Treasury a fund from the net proceeds of the operation of vending facilities. Moneys deposited into the fund, including the interest earned, shall be credited to a special checking account, separate and distinct from the General Fund. Disbursement from the account may be made by check signed by the person designated by the Commission. Interest earned by the account shall be credited to the account. (2) Moneys in the fund shall be used for the purposes of, and are continuously appropriated to the Commission for: (a) Maintaining and replacing equipment; (b) Purchasing new equipment; (c) Management services, including but not limited to management training services; (d) Ensuring a fair minimum of return to vending facility managers; and (e) Retirement or pension funds, health insurance contributions and, if determined by a vote of vending facility managers, paid sick leave and vacation time. (3) The Commission shall provide to the Governor and to vending facility managers quarterly reports of the account established under this section. (5) REPORTING - By the 20th day of each calendar month, the vending facility manager shall provide to the Commission the following information for assigned vending facility: (a) Total sales. (b) Total cost of goods sold. (c) Total vending machine income and rebates received; (d) Total allowable expenses paid for employee wages; (e) Total allowable expense paid for employee benefits; (f) Total paid for payroll taxes and business taxes; (g) Total paid for licenses and permits to operate the vending facility; (h) Total paid for liability, fire, property damage and workers’ compensation insurance; (i) Total paid for janitorial services; (j) Total paid for business consultant services; (k) Total allowable expense paid for legal fees. (l) Total paid for bookkeeping and accounting services; (m) Total paid for vending facility equipment repairs; (n) Total allowable expense paid for equipment rented or leased; (o) Total allowable expenses paid for vending facility related automobile mileage or expenses; (p) Total paid for office supplies; (q) Total allowable expenses paid for miscellaneous business expenses. Each expense must be itemized. (6) RECORDKEEPING, FINANCIAL REPORTING AND SET-ASIDE PAYMENTS - The vending facility manager shall: (a) Maintain and furnish to the Commission reports as required; (b) Submit set aside reports on a Commission approved form, including required supporting documentation, inventory data and the payment of set-aside fees; (c) Submit set aside reports and set aside payments in accordance with their operating agreement. (7) RETENTION - Vending facility managers shall retain the monthly information and all documentation of sales, revenues, commissions, costs and expenses sent to the Commission for a period of three (3) calendar years. Statutory/Other Authority: HB3253 & ORS 183.341 Statutes/Other Implemented: ORS 346.510-346.570 History: CFTB 1-2021, amend filed 02/18/2021, effective 02/19/2021 CFTB 1-2020, temporary amend filed 12/10/2020, effective 12/14/2020 through 06/09/2021 CFTB 4-2017, adopt filed 12/21/2017, effective 12/21/2017 CFTB 2-2017, temporary adopt filed 11/03/2017, effective 11/03/2017 through 05/01/2018