Oklahoma Administrative Code › Title 612 - State Department of Rehabilitation Services › Chapter 25 - Business Enterprise Program › Subchapter 4 - The State Licensing Agency › Part 5 - STATE LICENSING AGENCY RESPONSIBILITY FOR BUSINESS ENTERPRISE OPERATIONS › Section 612:25-4-27 - Initial inventory and supplies

Current through Vol. 41, No. 20, July 1, 2024
(a)
Initial inventory.
A licensed manager may acquire initial
				  merchandise for resale by purchasing it with his/her own funds, utilizing
				  start-up assistance/client services that may be available from DRS or other
				  public and private sources, or use of a merchandise loan provided by the State
				  Licensing Agency (SLA). When the SLA provides the manager a merchandise loan
				  for initial merchandise, the manager is not allowed to utilize DRS start-up
				  assistance for same purpose.
(b)
Merchandise loan.
When necessary to enable a licensed manager to
				  acquire initial merchandise inventory, the SLA may extend a merchandise loan
				  subject to the following terms:
(1) The
				  amount of the loan will be determined by the SLA in consultation with the
				  licensed manager and based on an assessment of merchandise necessary to
				  initiate sales and the availability of funds.
(2) The total amount of the loan will not
				  exceed the average of the prior year's inventories without approval from the
				  BEP operations coordinator. This means the prior year's inventories will be
				  summed and then divided by twelve to obtain the average.
(3) All merchandise purchased and placed on a
				  merchandise loan must have prior approval by the SLA. The SLA will not make
				  multiple purchases from any purveyor.
(4) The incoming licensed manager, BEP
				  business consultant and BEP operations coordinator will determine what may be
				  purchased from the existing stock of the outgoing facility manager. Only
				  salable merchandise may be purchased.
(5) A merchandise loan must be repaid to the
				  SLA by a licensed manager in monthly installments of no less than two percent
				  of gross sales to pay loan balance in full. A licensed manager shall not allow
				  the facility inventory level to fall below that of the balance of the
				  merchandise loan and are subject to disciplinary action should this occur.
				  Managers receiving loans will sign a merchandise security agreement that will
				  be retained on file by DRS and released to the manager when loan repayment is
				  complete along with a letter from the BEP Operations Coordinator officially
				  notifying the licensed manager of their full repayment of the loan.
(6) When a merchandise loan is secured by
				  stock, a licensed manager may not permit the ownership of the stock to vest in
				  any person or organization other than the SLA.
(7) When a licensed manager leaves a business
				  enterprise, any remaining merchandise loan balance (and other unmet obligations
				  to the SLA) will be subtracted from the ending inventory to determine the
				  manager's equity in the ending stock.
(8) Merchandise loans are not allowed for
				  satellite facilities unless extenuating circumstances prevail and only after
				  approval of BEP Operations Coordinator in consultation with the ECM chair
				  person.
(9) Merchandise loans for
				  existing managers currently operating an "A" or "B" classified facility as
				  their primary may be granted at the discretion of the BEP Operations
				  Coordinator in consultation with the ECM chair person.