Michigan Administrative Code › Department - Labor and Economic Opportunity › Bureau of Services for Blind Persons › Vending Facility Program Rules › Section R. 393.1 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) As used
				in these rules:
(a) "Academic period" means a
				semester, trimester, quarter, or other college or university unit of
				study.
(b) "Act" means 1978 PA 260,
				as amended, being MCL 393.351.
(c)
				"Active participation" means the process whereby the elected operators'
				committee and its subcommittees, the commission board, and commission staff
				cooperate in the development and implementation of major administrative
				decisions and policy as well as program development, as prescribed in the
				Randolph Sheppard act of 1936, as amended,
				20 U.S.C.
				§107 et seq. and the act.
(d) "Administrator" means the program
				administrator of the business enterprise program.
(e) "Bid" means the process whereby a
				licensee or a potential licensee records on the business enterprise program
				telephone system his or her desire to transfer to, or begin operation of, an
				available location.
(f) "Bid line"
				means a telephone line that contains a recorded message of all locations which
				are available during an identified time frame.
(g) "Cafeteria" means a food dispensing
				facility capable of providing a broad variety of prepared foods and beverages,
				including hot meals, primarily through the use of a line where the customer
				serves himself or herself from displayed selections. A cafeteria may be fully
				automatic or may have limited table service. Table or booth seating facilities
				are always provided.
(h) "Combined
				cafeteria/snack bar" means a facility that combines the features of a cafeteria
				with the features of a snack bar.
(i) "Commission" means the Michigan
				commission for the blind.
(j)
				"Commission board" means the policy
-
setting body for the Michigan
				commission for the blind.
(k)
				"Committee" means a group of members which is elected to represent all vending
				facility operators and which is created under
				R
				393.53.
(l) "Dry stand" means a vending facility that
				does not sell liquids.
(m) "Federal
				properties" means a building, land, or other real property owned, leased, or
				occupied by a department, agency, or instrumentality of the United States,
				including the department of defense and the United States postal service, or an
				instrumentality wholly owned by the United States.
(n) "Hearings office" means the office within
				the department charged with the responsibility of conducting fair and impartial
				hearings.
(o) "Hearings officer"
				means a person designated to conduct hearings and issue proposed decisions on
				behalf of the commission pursuant to 1969 PA 306, MCL 24.201.
(p) "Highway vending" means a vending
				facility that consists of 1 or more state of Michigan highway rest areas or
				welcome centers.
(q) "Initial
				merchandise inventory" means merchandise necessary for establishing a licensee
				in a vending facility, and shall include bill changer change and coin mechanism
				change.
(r) "License" means a
				written instrument that the commission issues to a blind person that authorizes
				the person to operate a vending facility on federal, state, or other
				property.
(s) "Licensee" means a
				blind person who the commission licenses to operate an assigned vending
				facility.
(t) "Management services
				and supervision" means and includes inspection, quality control, consultation,
				accounting, regulating, in service training, and related services provided on a
				systematic basis provided to support and improve Randolph
-
Sheppard
				small business enterprises operated by blind individuals. "Management services
				and supervision" does not include routine services or costs that pertain to the
				ongoing operation of an individual facility after the initial establishment
				period.
(u) "Mandated" facility
				means a facility in which blind persons are granted priority to operate
				concessions under the Randolph
-
Sheppard act of 1936, as amended,
				20 U.S.C.
				§107 et seq. and the act.
(v) "Net proceeds" means the amount remaining
				from the sale of articles or services of vending facilities and any vending
				machine or other income accruing to operators after deducting the cost of the
				sale and other expenses and excluding set aside charges required to be paid by
				operators.
(w) "Net profit" is the
				gross income to the operator before personal income tax.
(x) "Operating costs" means the cost of all
				of the following:
(i) Products
				sold.
(ii) Employees' wages, taxes,
				and compensation.
(iii) An
				operator's portion of repair.
(iv)
				Sales taxes.
(v) Operating
				insurance.
(vi) Supplies.
(vii) Business telephone charges directly
				related to the vending facility.
(viii) The renting or leasing of
				commission
-
approved equipment or space, which may include
				utilities.
(ix) Actual vehicle
				mileage or actual vehicle expenses, documented in a log for that purpose, which
				are directly related to the operation of the vending stand facility, which are
				deemed necessary for the location, and which are identified in the agreement,
				and parking and tolls directly related to the operation of the vending stand
				facility. The expenses shall be documented by adequate records or evidence. The
				rate of reimbursement shall be established by the commission board with the
				active participation of the committee. Vehicle mileage between the licensee's
				home and the vending facility is not an operating expense.
(x) Dues for professional and trade
				organizations.
(y)
				"Other property" means property which is not required by state or federal law
				to house a vending stand facility and which is property on which vending
				facilities are established or operated through the use of any funds derived, in
				whole or in part, directly or indirectly, from the operation of any mandated
				vending facility.
(z) "Permit"
				means the official approval or authority which is given to the commission by a
				department, agency, or instrumentality that is in control of the maintenance,
				operation, and protection of federal property or by a person who is in control
				of other property and which authorizes the commission to establish a vending
				facility.
(aa) "Program" means all
				the activities of the commission related to business enterprise program vending
				facilities on federal, state, and other properties.
(bb) "Promotional agent" means the commission
				employee occupying the Michigan department of civil service position that
				performs the duties described in
				R
				393.21.
(cc) "Satellite" means a site that is added
				to a licensee's primary vending facility to assist the profitability of the
				primary vending facility. A satellite is not profitable enough to meet the
				current requirements for a self
-
supporting facility.
(dd) "Self
-
employment" means an
				occupation where an individual does not receive a W
-
2 form and is
				required to file an internal revenue service schedule "C" (sole proprietorship
				form).
(ee) "Set
-
aside
				funds" means funds that accrue to the commission from an assessment against the
				net proceeds of each vending facility in the state's program.
(ff) "Snack bar" means a vending facility
				that is engaged in selling limited lines of refreshment and derives more than
				5% of its gross sales from the sale of coffee or other beverages. A snack bar
				may sell prepared food items necessary for a light meal service such as soups,
				salads, and sandwiches. Food may be prepared off the premises. A snack bar may
				have no or limited on-site food preparation.
(gg) "Stand type" means any of the following
				types of vending facility:
(i) Dry
				stand.
(ii) Snack bar.
(iii) Vending machine.
(iv) Cafeteria.
(v) Combined cafeteria/snack bar.
(vi) Vending machine route.
(vii) Highway vending.
(hh) "State property" means a business
				enterprise program facility in a building or on a property owned or occupied by
				the state, except for a concession operated in connection with any of the
				following:
(i) The state fair.
(ii) The use of state fair grounds.
(iii) Any state educational
				institution.
(iv) A state penal
				institution.
(v) Military
				establishments and armories.
(vi) A
				state park.
(ii)
				"Unassigned vending machine income" means the funds that accrue from vending
				machines on federal, state, and other properties, for which there is no blind
				licensee and which accrues to the commission.
(jj) "Vending facility" means an automatic
				vending machine, cafeteria, snack bar, cart service, catering, coffee service,
				shelter, counter or any other appropriate auxiliary service or equipment as the
				commission may prescribe by rule as being necessary for the sale of articles or
				services described in 1978 PA 260, as amended, being §
										393.351et seq of the
				Michigan Compiled Laws and which may be operated by a blind licensee.
(kk) "Vending machine route" means a vending
				facility that consists of vending machines situated in disparate physical
				locations. None of the vending machine route component parts can function as a
				vending facility.
(ll) "Vending
				machine facility" means a vending facility that has a majority of its sales
				generated from coin or currency
-
operated machines that dispense
				articles or services.