Business Enterprise for the Blind

PURPOSE: This rule establishes the guidelines for administration of the Business Enterprise Program of the Family Support Division, Bureau for the Blind, as mandated by the Randolph-Sheppard Act, as amended through 1974, 34 CFR 395, sections 8.051 and 8.700–8.745, RSMo. (1) Legal Authority. The Business Enterprise Program (BEP) of the Family Support Division/Rehabilitation Services for the Blind is administered according to the Randolph-Sheppard Act, as amended through 1974, 34 CFR 361.50, 34 CFR 395, sections 8.051 and 8.700—8.745, RSMo. The Family Support Division/ Rehabilitation Services for the Blind administers the Business Enterprise Program according to the terms of this rule. (2) Definitions. (A) “Administrative fee” means an assessment against the operating income from direct sales in vending facilities, including income from manager-serviced vending machines and from commissions that vending companies pay on proceeds from vending machines located in facilities in which there is an on-site manager. (B) “Assigned income” means income from commissions that vending companies pay to the nominee on proceeds from vending machines in vending facilities in which there is an on-site manager. The nominee disburses this income to the manager, according to subsection (15)(C). (C) “Blind person” is a person whose central visual acuity is no more than twenty/two hundred (20/200) in the better eye with best correction or whose field of vision in the better eye is restricted to a degree that its widest diameter subtends an angle no greater than twenty degrees (20°). (D) “Rehabilitation Services for the Blind” is the unit within the Family Support Division that administers the Business Enterprise Program. Rehabilitation Services for the Blind is referred to in this rule as RSB. (E) “Business Enterprise Program” means the total vending facility program within the Family Support Division/ Rehabilitation Services for the Blind. The Business Enterprise Program is referred to in this rule as the BEP. (F) “Cafeteria” means a full-line food service facility in which the food is prepared on-site. (G) “Certificate of Training” means the certificate that RSB presents to a blind person who successfully completes vending facility manager training. The certificate indicates the level of the training which a blind person has completed and the level at which the state licensing agency (SLA) may license the blind person, as stated in subsection (2)(T). (H) “Change fund loan” means an interest-free loan from the nominee to be used for the manager’s initial operating funds. (I) “Convenience store” means a vending facility that has over-the-counter sales but does not have on-site food preparation that requires the manager to handle unpackaged products, except for hot and cold beverages. (J) “Creditable service” means only those periods when a manager is employed as a full-time contracted BEP manager. (K) “Deputy director” means the person in the Family Support Division/Rehabilitation Services for the Blind who directs the administration of all service programs of RSB and who is referred to in this rule as deputy director. (L) “Direct competition” means the presence and operation of a vending machine or a vending facility operated by an entity other than a blind manager on the same premises as a vending facility operated by a blind manager. Vending machines or vending facilities operated in areas serving employees, the majority of whom normally do not have direct access, in terms of uninterrupted ease of approach and the amount of time required to patronize the vending facility, to the vending facility operated by a blind manager shall not be considered to be in direct competition with the vending facility that is operated by a blind manager. (M) “Family Support Division” is the state licensing agency that is designated by the Secretary of the United States Department of Education to issue licenses to blind persons for the operation of vending facilities on federal, state, and other property. The Family Support Division is referred to in this rule as the SLA. (N) “Equipment” means occupational fixtures, furnishings, machinery, tools, and accessories that are required in the operation of a vending facility. Equipment has a life of at least one (1) year and can be used repeatedly. (O) “Executive committee of blind vendors” is the executive body that is elected by the Blind Vendors of Missouri, as discussed in section (6). Blind Vendors of Missouri is referred to in this rule as BVM. (P) “Fair minimum return” means the amount RSB establishes as the minimum level of net income that a manager derives from a vending facility. (Q) “Federal property” means any building, land, or other real property owned, leased, or occupied by any department, agency, or instrumentality of the United States, including General Services Administration, the Department of Defense, the Department of Energy, and the United States Postal Service, or any other instrumentality wholly owned by the United States. (R) “Individual location,” “installation,” or “facility” means a single building or a self-contained group of buildings. In order for RSB to consider two (2) or more buildings to be a self-contained group of buildings, the buildings must be located in close proximity to each other and a majority of the employees housed in any of the buildings must move regularly from one (1) building to another in the course of official business during normal workdays. (S) “Initial inventory” means the marketable merchandise and consumable supplies that RSB determines is necessary for a manager to begin operation of a new or substantially altered vending facility. (T) “License” means the written instrument the SLA issues to a blind person and that confirms that person’s eligibility to operate a vending facility on federal, state, or other property. A Level 1 license is for the management of vending machine banks in which all income is derived from commissions. A Level 2 license is for the management of convenience stores. A Level 2.5 license is for the management of a manager-serviced vending machine route or a convenience store. A manager-serviced vending machine bank requires a Level 2.5 license. A Level 3 license is for the management of vending machine banks, convenience stores, and snacks bars. A Level 4 license is for the management of vending machine banks, convenience stores, snack bars, and cafeterias. A Level 5 license is for the management of military dining. The SLA shall issue a license only to those blind persons who are citizens of the United States, whom RSB certifies, as defined in subsection (2)(G), as qualified to operate a vending facility, who have successfully completed a six- (6-) month probationary period as an active facility manager, and who are in need of employment. (U) “Licensee” means a blind person to whom the SLA has issued a license to operate a vending facility on federal, state, or other property. (V) “Management services” means supervision, inspection, quality control, consultation, accounting, regulating, in-service training, and other related services provided on a systematic basis to support and improve vending facilities operated by blind vendors. Management services do not include those services or costs that pertain to the ongoing operation of an individual vending facility after the initial establishment period. (W) “Manager-serviced vending machines” means vending machines for which the manager is responsible for purchase of product, filling, and maintenance of the machines. The manager receives all revenue, less administrative fees, from sales and pays all operational expenses except for repair of vending machines. (X) “Net income” means operating income plus income from commissions, less administration. (Y) “Nominee” means a nonprofit corporation which, through a written agreement with the SLA, acts as the agent of the SLA in providing services to vending facility managers in the BEP. (Z) “Normal working hours” means an eight- (8-) hour work period between the approximate hours of 6:00 a.m. to 6:00 p.m., Monday through Friday. (AA) “Operating income” means income from operations, less operating expenses. (BB) “Other property” means property which is not federal property or state property and on which the SLA establishes or operates vending facilities by the use of any funds derived in whole or in part, directly or indirectly, from the operation of vending facilities on federal or state property. (CC) “Over-the-counter sales,” including “manager-serviced vending machines,” mean any transaction in which a customer purchases products which a manager has procured for the purpose of resale within the vending facility. (DD) “Probationary period” means the first six (6) months of active facility management by a certified graduate of the BEP training program. (EE) “Property management” means a person or instrumentality that grants a permit, contract, or agreement to the SLA for the operation of a vending facility at a specific location. (FF) “Set-aside funds” means funds which accrue to the nominee from all unassigned income from vending machines located on federal property and from the administrative fee that the nominee assesses against the operating income from direct sales in all vending facilities and from the administrative fee that the nominee assesses against commissions paid by vending companies on vending machine proceeds in all vending facilities in which there is a manager on-site. (GG) “Snack bar” means a vending facility with limited onsite food preparation and over-the-counter sales. (HH) “State property” means all real property, or part of real property, that is owned, leased, rented, or otherwise controlled or occupied by any department, agency or body of the state of Missouri, including roadside rest areas, except property of Department of Mental Health. State property does not include a building in which less than one hundred (100) state employees are, or will be, located during normal working hours; a building in which less than fifteen thousand (15,000) square feet of interior floor space is to be used for state government purposes or in which services are to be provided to the public; or a building that state government employees are to occupy for less than three (3) years. (II) “Supplies” means items that are expendable, necessary to carry out the day-to-day operation of a vending facility, and that are used on the premises. (JJ) “Unassigned income” means income that accrues to the nominee from commissions that vending companies pay on proceeds from vending machines on federal, state, and other property in which there is no on-site manager. The nominee uses these funds for manager and program benefits according to subsection (15)(D). (KK) “Vending facility” means a business that the SLA establishes for the sale of products. It may consist, exclusively or in combination, of automatic vending machines, convenience stores, snack bars, or cafeterias. A vending facility may consist of only a portion of a building, it may be comprised of one (1) or more locations within a building, and it may encompass more than one (1) building. (LL) “Vending facility manager” means a blind person who has been licensed by the SLA and who has a Vending Facility Manager’s Agreement. Vending facility manager is referred to in this rule as manager. (MM) “Vending Facility Manager’s Agreement” means a written document, entered into by the licensee, the SLA and the nominee that states the terms and conditions for the licensee to be on-site to operate a vending facility at a specific location. Vending Facility Manager’s Agreement, a copy of which follows this rule, is referred to in this rule as manager’s agreement. (NN) “Vending machine bank” means one (1) or more coin-operated or electronic transfer of funds vending machines that dispense articles or services and that are located in one (1) or more locations in one (1) or more buildings that RSB designates as a vending facility. Vending machine bank does not mean those machines that are operated by the United States Postal Services for the sale of postage stamps or other postal products and services, or machines located on federal property that provides services of a recreational nature. (OO) “Vending machine income” means proceeds from vending machine operations on federal, state, or other property where the machines are operated, serviced, or maintained by, or with the approval of, a department, agency, or instrumentality of the United States, Missouri, or other public or private entity. Vending machine income also includes commissions that a commercial vending company pays to the nominee on proceeds from vending machines that the commercial vending company operates, services, and maintains on federal, state, or other property for, or with the approval of, a department, agency, or instrumentality of the United States, the state of Missouri, or other public or private entity. (3) Nondiscrimination. The SLA and RSB shall administer the BEP without regard to race; color; religion; sex; national origin; veteran; secondary handicap; marital status; age; or political beliefs of blind persons who are manager applicants, trainees, licensees, or managers. The SLA and RSB shall administer the BEP without regard to race; color; religion; sex; national origin; veteran; handicap; marital status; age; or political beliefs of SLA or nominee employees and of contractors that provide goods or services to vending facilities. (4) Responsibilities of RSB. RSB, as designated by the SLA, shall carry out the following activities in the administration of the BEP: (A) RSB shall establish vending facilities on federal, state or other property. The Randolph-Sheppard Act, as amended through 1974, authorizes RSB to establish vending facilities on federal property. Sections 8.051 and 8.700–8.745, RSMo authorize RSB to establish vending facilities on state property. RSB establishes vending facilities on other public or private property at the request of the public or private entity responsible for management of the property; (B) RSB shall provide to each manager consultation and advice for developing sales techniques, merchandising and general operating of the vending facility, purchasing procedures, managerial methods or procedures to promote financial success, appearance and sanitation of the vending facility and required reporting procedures; (C) RSB may act as liaison between the manager and property management, suppliers and patrons; (D) RSB shall provide to each manager a copy of 34 CFR 395, 34 CFR 361.50, sections 8.051 and 8.700–8.745, RSMo and this rule; (E) RSB shall provide to each manager a written description of the arrangements for providing services and the manager’s agreement. If the facility is on federal property, RSB shall provide to the manager a copy of the permit that covers the operation of the vending facility. If the vending facility is not on federal property, RSB shall provide to the manager written documentation of the responsibilities of the manager, the SLA and property management in relation to operation of the vending facility. At the request of a manager, RSB shall arrange a convenient time to explain these documents to each manager; (F) RSB shall provide to each manager access to all program and financial data of the SLA and the nominee that is relevant to the operation of the BEP. The data shall include monthly and annual financial reports; provided that this disclosure does not violate applicable federal or state laws pertaining to the disclosure of confidential information. To the extent possible, RSB shall provide these data to each manager in the manager’s preferred reading medium. At the request of a manager, RSB shall arrange a convenient time to assist in the interpretation of the data; (G) RSB shall provide the Blind Vendors of Missouri (BVM) executive committee with advance written notice of matters that the executive committee will consider and of meetings that the executive committee or other managers should attend; and (H) RSB, through the authority designated to it by the SLA, shall have the ultimate responsibility for the administration of the BEP, including the expenditure of all federal and state funds, funds that are paid to the nominee by vending facility managers and funds that accrue to the nominee from commissions that vending companies pay on vending machine proceeds. RSB shall consult with the executive committee regarding program issues. If RSB does not adopt the recommendations of the executive committee, RSB shall notify the executive committee in writing of the decision RSB reaches and the reason(s) for the decision. (5) Responsibilities of the Blind Vendors of Missouri. All active managers in the BEP are members of the Blind Vendors of Missouri, an organization whose membership is limited to managers in the BEP. This organization, which meets at least one (1) time and no more than two (2) times each year, nominates individuals from its membership to serve on the executive committee of blind venders, which is referred to in this rule as the executive committee. The executive committee, to the extent possible, is representative of all managers in the BEP and functions throughout the year in behalf of all managers. (A) Meeting(s) of BVM. A quorum at any meeting of this organization shall consist of one-third (1/3) of the membership; provided, two (2) officers are present. The meeting held annually in June is referred to as the annual meeting of the organization. All meetings of the BVM shall be conducted under Robert’s Rules of Order. (B) Nomination of Executive Committee Members. RSB shall provide that, prior to the annual meeting of the BVM, a nomination ballot is sent to each manager that contains the names of all managers in the BEP who are eligible for election to positions on the executive committee that become vacant at the time of the annual meeting. To be eligible a person must be a licensed contract manager in good standing. After receipt of all nomination ballots, RSB shall compile an election ballot that contains for each position the names of the two (2) managers who received the most nominative votes. If there is a three- (3-) way tie, a run-off election will be held at the annual meeting, prior to the general election, to establish the top two (2) candidates. (C) Election of Executive Committee Members. At the annual meeting of the BVM, RSB shall provide for the managers in attendance to elect, by secret ballot, a manager to fill each vacant position on the executive committee. The manager who receives the most votes for each position assumes the elective office at the conclusion of the annual meeting. Each of the five (5) members and one (1) alternate shall serve a term of two (2) years and shall not be eligible for election to the same office for more than two (2) consecutive terms. (D) Any executive committee member who misses two (2) consecutive executive committee meetings (unless due to a personal or family emergency) will be dropped from the committee. The alternate board member shall succeed to active board member status until the next annual meeting of the BVM is held. The executive committee will function without an alternate until the annual election. If the exiting member held an officer position, the members of the executive committee shall elect, from the committee, an individual to function in that officer position until the next annual meeting when the general membership will vote for a replacement to fill the unexpired term. (6) Responsibilities of the Executive Committee of Blind Vendors of Missouri. The committee shall meet as often as is necessary, as determined by RSB and the executive committee, to carry out the following responsibilities: (A) To participate actively with RSB in major administrative, policy and program decisions that affect the overall administration of the BEP; (B) To participate actively with RSB in the development and administration of a system for the selection, transfer and promotion of managers; (C) To participate actively with RSB in developing training and retraining programs for managers; (D) To receive and transmit grievances from managers to RSB; (E) To serve as advocates for managers in grievance proceedings; (F) To sponsor, with the assistance of RSB and the nominee, meetings and instructional conferences for managers; (G) To designate, as necessary, subcommittees or individual members to carry on the functions of the executive committee between meetings of the entire executive committee; (H) All meetings of the executive committee shall be conducted under Robert’s Rules of Order. (7) Responsibilities of the Nominee. The SLA may enter into a written agreement with a nominee to act as its agent in the administration of the BEP. The responsibilities of the nominee include: (A) The nominee shall collect from each manager and promptly deposit in a designated bank an administrative fee, as defined in subsection (2)(A); (B) The nominee shall collect and promptly deposit in designated banks all commissions paid on vending machine proceeds. The nominee shall maintain separate accounts for the restricted and unrestricted fund revenue; (C) As funds are available, the nominee shall disburse setaside funds at the direction of RSB and for the purposes stated in subsection (12(B); (D) As funds are available, the nominee shall disburse unassigned income from vending machines located on nonfederal property at the direction of RSB and for the purposes stated in subsection (15)(D); and (E) The nominee shall maintain records which accurately reflect all transactions of the nominee and shall make available all records that are required for audits that may be conducted by federal or state auditors or private auditors that the nominee retains to conduct annual or special audits. (8) Vending Facility Manager Training. RSB shall train a vending facility manager through the following procedures: (A) Application for Training. Any person who is a vocational rehabilitation client of RSB may request a determination of eligibility to enter manager training. RSB shall meet the cost of manager training with vocational rehabilitation case service funds, within the guidelines stated in 13 CSR 40-91.020; (B) Criteria for Acceptance for Manager Training. A vocational rehabilitation client who is accepted for manager training shall undergo a criminal background check and shall meet the following criteria: 1. Is legally blind; and 2. Is a citizen of the United States; (C) Responsibilities of the Manager Trainee. 1. Trainees are expected to be punctual, present a clean, well-groomed appearance, be attentive, and conduct themselves in a professional manner. 2. If the trainee displays any of the following behaviors, training may be suspended immediately, with the recommendation to the training director and vocational rehabilitation counselor for termination to be effected as soon as possible: A. Insubordination; B. Inability to control temper or emotional outbursts; C. Abuse of alcohol or use of illegal drugs; D. Embezzlement of training funds or property; E. Absenteeism; F. Tardiness; G. Not completing assignments in a timely manner; and H. Lack of personal hygiene (must maintain a clean and well-groomed appearance). 3. If problems arise causing the trainee to fall behind the training schedule, for example, illness, personal problems, previously undetected skill deficiencies, attitude, etc. the trainee will be given written notice of the areas of unacceptable performance. The trainee will, if requested, be given one (1) week to correct the problem(s). After this week, the training director, with advice of the trainer, will determine if training will continue or be terminated. 4. If training is terminated, the trainee may reapply for training after the reasons for termination have been corrected. This person would then be placed on the training list as of the date of reapplication. If the trainee left the training program due to illness or family problems and re-enters within twelve (12) months from the date training was terminated, the trainee may be credited with training previously completed. Credit will be given if a one- (1-) week evaluation conducted prior to resuming training demonstrates an acceptable level of retention of initial instruction; and (D) Manager Training Requirements. Training for a Level 1 license consists of orientation to the BEP and on-the-job training. Training for a Level 2, Level 3, or Level 4 license consists of orientation to the BEP, academic course work, and on-the-job training. Training for a Level 5 license consists of a customized training for any Level 4 manager who has recently been awarded a military dining location, on all aspects of contract management for military dining. The manager who provides on-the-job training for a trainee shall complete a Trainee Evaluation Report, a copy of which follows this rule. 1. The deputy director, with the concurrence of the executive committee, may waive a portion of training for those persons who have prior education, training, or experience in food service operations. Regardless of prior education, training, or experience, all Level 1 trainees shall have a minimum of two (2) weeks BEP training and all Level 2, Level 3, or Level 4 trainees shall have a minimum of four (4) weeks BEP training. If the deputy director does not waive a portion of the training, Level 1 training is a minimum of eight (8) weeks, Level 2 is a minimum of sixteen (16) weeks, Level 3 training is a minimum of eighteen (18) weeks, and Level 4 training is a minimum of twenty-six (26) weeks. 2. When a trainee successfully completes all training, RSB will award to the trainee a Certificate of Training that certifies the person is qualified to be licensed as a vending facility manager. The Certificate of Training states the level for which the trainee is eligible to be licensed. Level 2, Level 3, and Level 4 trainees must attain a minimum score of seventy-two percent (72%) on the final exam to be eligible for licensure. 3. A certified graduate, upon assuming management of a facility, shall begin a six- (6-) month probationary period. During the probationary period, the probationary manager will receive insurance benefits normally associated with the BEP, but shall not be licensed until the probationary period has been completed. During the probationary period, a bond will be secured through established BEP procedures. If bondability cannot be achieved, the probationary manager will be terminated from the program. When the probationary period has been successfully completed and bond has been secured, the probationary manager will be issued a license. The license shall be retroactive, to include the probationary period and will establish eligibility for full benefits. 4. The deputy director may require an evaluation or additional training, or both, for any active manager whom RSB determines is not performing at a satisfactory level. The deputy director may require the manager to undergo comprehensive assessment of compensatory skills, and, or medical examinations, including visual and psychological, that the deputy director considers necessary in order to determine the manager’s ability to continue management of a vending facility. (9) Licensing of a Manager. The SLA shall issue a license only to a person who is legally blind, is a citizen of the United States, is certified by RSB as qualified to manage a vending facility, and has successfully completed a six- (6-) month probationary period as an active facility manager. (A) The license issued by the SLA shall state the level of facility the licensee is qualified to manage. (B) If the SLA has licensed a person as a vending facility manager but that person has not actively participated in the BEP through management of a facility or bidding on a facility, for three (3) years or more, the SLA may terminate the manager’s license. The SLA, upon the deputy director’s recommendation, may grant as extension of licensure beyond the three (3) year period of nonparticipation in the BEP. (10) Selection and Appointment of a Vending Facility Manager. RSB shall use the following procedures to select and appoint each manager: (A) RSB shall send written notification of each vending facility management opening to all licensees. In order for RSB to consider an applicant, a written application must be post-marked within twelve (12) calendar days of the date of written notification of the opening. In order for the application of any manager to be considered, the manager must be current in submitting Manager’s Weekly Reports, must be current in payment of administrative fees and, if applicable, must be current in all payments due the nominee. The applicant must be appropriately certified or licensed and have current National Restaurant Association’s Applied Food Service Sanitation Course certification as required in subsection (11)(D); (B) An applicant for the position of vending facility manager must sign a “Release of Information” form, allowing a review of the applicant’s records. The executive committee shall review and evaluate each application on the basis of the information the applicant provides in the application, on information RSB provides regarding the applicant’s performance as a trainee or manager and on the results of a personal interview that the executive committee conducts with each applicant. RSB retains the right to acquire any additional information, such as verification of payment to purveyors, considered relevant to an applicant’s qualifications for appointment as a manager. The executive committee shall give the deputy director the committee’s recommendation regarding appointment of a manager. The executive committee may recommend that none of the applicants be appointed; (C) If the deputy director agrees with the executive committee, the deputy director shall appoint or reject each applicant, as recommended by the executive committee. If the deputy director does not agree with the recommendation of the executive committee, the deputy director, after consultation with the executive committee, may appoint another qualified applicant as manager of the vending facility; (D) The deputy director shall send written notification of the results of the selection process to each applicant; and (E) The SLA, the nominee, and the manager will sign a manager’s agreement, which is dated the day that the manager assumes management of the vending facility. (11) Operation of a Vending Facility. The SLA, RSB, nominee, and each manager shall follow these procedures regarding the operation of a vending facility. (A) Each manager agrees to enter his/her facility at his/her own risk. Responsibility for injuries received and all related expenses thereto will be assumed by the vending facility manager. Each manager may, at his/her own expense, purchase Workers’ Compensation insurance coverage for his/herself. (B) Each manager is responsible for having the vending facility open for business on the days and during the hours specified in the permit, contract, or agreement, a copy of which will be given to the manager. The manager shall not subcontract or make other arrangements that will relieve the manager from active, personal management of the facility, unless RSB has given prior written approval. Active, personal management for the purposes of this rule shall mean the manager shall be physically present in the vending facility at least five (5) hours per day, five (5) days per week. At least half of this time must be during hours that the facility is open to the public. (C) Each manager will notify RSB in advance and within a reasonable time period before taking any voluntary leave from the vending facility, and as soon as possible in the event of involuntary leave (for example, illness). The manager will provide for substitute operation of the vending facility as may be necessitated by the manager’s absence due to illness, vacation, etc. The salary of the person who substitutes for the facility manager, or that of other emergency or temporary help, shall be paid by the vending facility manager. If a manager is absent from the vending facility for more than thirty (30) successive days due to illness, RSB may request all medical information regarding the manager’s health condition. If the medical information indicates the manager will be absent from the vending facility for as much as six (6) months, the SLA may terminate the manager’s agreement. (D) Any person who is licensed as a Level 2, Level 3, Level 4, or Level 5 manager after July 1, 1990, shall obtain recertification in the Applied Food Service Sanitation course every five (5) years. Any person who manages a Level 2, Level 3, Level 4, or Level 5 facility in a municipality that requires certification in the Applied Food Service Sanitation course shall obtain recertification every five (5) years, regardless of the date the SLA licensed the person. (E) Each manager shall maintain the facility according to the standards stated in state and local health laws and regulations and the terms stated in the permit, contract, or agreement with property management. The manager and all vending facility employees shall maintain high standards of personal hygiene and grooming. They will maintain a neat, business-like appearance while working at the facility and will operate the facility in an orderly business-like manner. (F) Children of the manager or facility employees shall not be present in the facility for the purpose of child care during the normal hours of operation. (G) RSB shall conduct a bimonthly on-site inspection of each vending facility to insure it is being managed according to the requirements of 34 CFR 395, section 8.051, RSMo, sections 8.700–8.745, RSMo, and this rule. The findings of the inspection shall be recorded on the Review of Facility (ROF) form, a copy of which follows this rule. A score of less than two point seven-five (2.75) on the ROF may require remedial training. (H) Each manager shall maintain product liability, general liability and Workers’ Compensation insurance for his/her vending facility. The nominee shall be named as the “additional insured.” The nominee, with consultation from the executive committee and as directed by RSB, shall obtain the insurance and shall bill the manager his/her proportionate share of the premium on each monthly statement. The amount charged will be adjusted annually based on prevailing rates and the annual insurance audits. (I) RSB, in consultation with the manager, shall determine and provide equipment for each vending facility. The manager shall not purchase, transfer, modify, or dispose of any vending facility equipment unless RSB has given prior written authorization. When equipment is delivered to a vending facility, the manager shall sign the invoice noting any obvious damage, potential for concealed damage, or shortage, and deliver it to RSB. If the equipment cannot be inspected at the time of delivery, it should be signed for “subject to inspection.” RSB will inspect the equipment to ensure that it is not damaged and that it meets the required specifications. The manager shall ensure appropriate care of all equipment and shall be responsible for training all vending facility employees in the proper and safe use of equipment. RSB shall maintain vending facility equipment in good repair and attractive condition. When the manager becomes aware of the need for equipment repair or replacement, the manager shall notify RSB promptly in writing. If the manager considers that repair or replacement is needed immediately, the manager may inform RSB orally of the need and shall confirm the request in writing within (5) workdays. RSB, in consultation with the manager, shall decide whether repair or replacement is needed. If emergency repair or replacement is needed, RSB shall provide oral authorization and shall confirm the authorization in writing within one (1) workday. If the manager discovers the need for emergency repair or replacement on a day when RSB offices are closed, the manager may make arrangements for repair or replacement and shall notify RSB on the first day that RSB offices are open following the discovery. The manager shall pay for any equipment repair that RSB did not authorize. The manager also shall pay the cost of repair that is needed due to negligence or abuse by the manager or vending facility employees and for expense resulting from failure to determine a minor repair such as unit not plugged in, reset button not pushed, or circuit breaker tripped. The right, title to, and interest in equipment that the SLA or the nominee purchases shall be vested in the name of the primary purchaser. The nominee shall take necessary steps to defend and maintain the SLA’s paramount right, title to, and interest in all equipment. (J) RSB shall provide an initial inventory adequate for the manager to begin operation at each new or substantially altered vending facility. Each manager will be provided with a written copy of the initial inventory and its value computed on wholesale prices at the time of purchase. On the date of the manager’s termination as manager, for whatever cause, RSB shall take an inventory of all readily marketable merchandise and consumable supplies in the vending facility. The value of the inventory shall be computed on current wholesale prices. RSB shall deduct the value of the inventory plus any cash advances or other sums that the manager owes to RSB or the nominee. The difference is the amount due and it shall be paid to the manager or the manager’s estate within ninety (90) days from the date the inventory was taken. Failure to pay the amount due within the required ninety- (90-) day period will result in a penalty to RSB of one and one-half percent (1 1/2%) of the balance, to be paid monthly until the account is settled. If the manager or the manager’s estate owes money to RSB or the nominee, RSB or the nominee shall notify the manager or the manager’s estate in writing of the amount that is owed. The manager shall pay the amount owed to RSB or the nominee within ninety (90) days from the date of the notification letter. If a manager’s estate owes money to RSB or the nominee, RSB or the nominee shall file a claim against the manager’s estate for the amount of the debt that is owed. RSB or the nominee shall assess a penalty of one and one-half percent (1 1/2%) per month of the balance that the manager of the manger’s estate owes to RSB or the nominee, until the account is settled. Each manager shall maintain an inventory of equal or greater value than the initial inventory in order to insure continuation of services and maintenance of a viable business operation. (K) If a manager is unable to furnish a change fund for the facility, the nominee may make an interest-free loan to the manager in an amount that RSB, after consultation with the manager, determines is sufficient. The manager shall repay this loan in ten (10) equal monthly installments beginning no later than ninety (90) days from the date of the loan or upon the manager’s resignation or termination as manager of the facility, whichever date occurs first. When the nominee makes an interest-free loan to a manager, the manager shall sign a promissory note, a copy of which follows this rule. (L) Each manager shall set prices for items to be sold based on market value. If a manager refuses to set prices based on market value or if a dispute arises between two (2) or more managers, RSB may establish the price at which product(s) will be sold. (M) Each manager shall operate the vending facility business on a cash basis except for such credit accounts as may be established or authorized by RSB. The manager may sell only the types of merchandise stated in the permit, contract, or agreement with property management. Merchandise types may not be added or deleted without the approval of RSB and the consent of property management. Merchandise that is purchased for the vending facility and reported on the manager’s weekly report shall not be removed from the facility unless sold. Each manager is accountable to RSB for the proceeds of the business and will handle the proceeds, including payments to suppliers and deposits of funds, in accordance with instructions from RSB. Each manager who has employees shall make required federal tax deposits at a federal reserve bank. Deposits will include employee withholdings for income taxes and Social Security and employer matching withholding for Social Security. Each manager shall collect all applicable sales taxes on gross sales and shall remit the taxes to the nominee, in the amount shown on the monthly statement. The nominee shall submit tax forms and monthly payments for all managers to the Missouri Department of Revenue and when appropriate to county and city governments. The manager shall maintain a business account which is separate from any personal account(s). The manager is liable for all debts s/he incurs in the operation of the vending facility. RSB may, with reasonable cause, require verification that a manager has paid all legal debt incurred in the operation of the vending facility and that federal tax deposits are current. (N) Subject to applicable laws, regulations, and this rule each manager shall make all personnel decisions, including hiring and termination, employee wages, benefits, and working conditions. Employee wages must be within the prevailing wage range for the job classification in the area where the facility is located. If the wage/salary exceeds the prevailing wage, the manager may be required to provide RSB with written justification. A manager may consult with RSB regarding the number of employees s/he will hire. First, preference shall be given to blind persons in need of employment. Second, preference shall be given to other disabled persons. Each manager and all vending facility employees will strive at all times to maintain a positive working relationship with management and customers of the vending facility. (O) Each manager shall submit all reports or records that RSB or the nominee requests. These reports or records shall include, but not be limited to, daily and weekly reports. The daily report shall include opening cash-on-hand, the amount of sales, the amount of pay outs, and cash-on-hand at the close of the business day. The manager’s weekly report and payroll report must include completed Manager’s Weekly Report and Vending Facility Payroll Report forms, copies of which follow this rule. In addition, supporting documentation including cash register “Z 2” tapes and all paid invoices for the week the report covers must be included. All required reports shall be postmarked no later than the fourth day following the closing date of the period the report covers. (P) At the end of each month, the nominee shall furnish to the manager a Monthly Operating Statement for the manager’s vending facility. The report will reflect the facility’s sales and expenses and the amount the manager must submit to the nominee for administrative fees, sales taxes, and insurance. The manager is responsible for personal income tax deposits due the Internal Revenue Service. A copy of the Monthly Operating Statement follows this rule. (Q) The manager shall send to the nominee the amount owed, as shown on the monthly statement with postmark no later than the twenty-fifth day of the month. If payment is delinquent, a penalty of one and one-half percent (1 1/2%) per month shall be assessed on the balance owed. If a manager is two (2) months delinquent in paying to the nominee the amounts due, the SLA may terminate the manager’s agreement or license, or both. If the manager submits any check which does not clear the bank, the nominee shall assess a penalty charge in the same amount that the bank assesses the nominee. If a manager submits two (2) checks within a twelve- (12-) month period that fail to clear the bank, the nominee shall give written notification to the manager that all future payments must be made by certified check or money order. (R) RSB shall ensure that each manager has a fair minimum return, within the following limitations. A manager may apply in writing to the nominee for an interest-free subsidy for any month during which the net income from the manager’s vending facility is less than seven hundred dollars ($700). The subsidy for one (1) month cannot exceed seven hundred dollars ($700) or the difference between seven hundred dollars ($700) and the amount of the manager’s net income from the vending facility for the month, whichever is less. The manager may apply for this interest-free subsidy no more than three (3) times. The manager must pay all amounts s/he owes to RSB or the nominee before s/he is eligible to apply for a subsidy. After a maximum of three (3) subsidies, the manager may reestablish eligibility for interest-free subsidies by repaying the full amount of all previous fair minimum return subsidies. The manager may repay the subsidies at any rate selected by the manager. The nominee does not require the manager to repay the subsidies, but failure to repay the subsidies will result in ineligibility to receive additional fair minimum return subsidies. (S) RSB shall select vending facility locations that require payments of rent or other fees only when a manager’s net income from that location is expected to justify that expense. When payments of rent or other fees are necessary, the manager shall make these payments. (T) Before beginning operation of a vending facility, the manager shall obtain and pay for all necessary state, county and city licenses and permits. These licenses and permits shall be kept current by the manager for the duration of the manager’s agreement. (U) The nominee shall pay all initial charges for purchase, installation and connecting or disconnecting telephone for the vending facility. (V) If the majority of the population in a building which houses a vending facility is transferred from that building to another on either a temporary or permanent basis, the SLA may transfer the vending facility and manager to the new building without placing the new facility on competitive bid. (W) Each manager shall maintain minimum levels of net profit from sales of nineteen percent (19%) for a Level 2 facility, fourteen percent (14%) for a Level 3 facility, and ten percent (10%) for a Level 4 facility. The maximum percent of merchandise costs shall not exceed seventy-two percent (72%) for a Level 2 facility, fifty-eight percent (58%) for a Level 3 facility, and fifty-two percent (52%) for a Level 4 facility. (X) Failure to operate a vending facility in accordance with acceptable operating standards as outlined in this section may result in the SLA placing the manager on probation for a period of time deemed sufficient to correct noted management deficiencies. The SLA may require additional training during this period. If correction is not achieved within this probationary period, the SLA may terminate the manager’s agreement or license or both according to subsection (16)(A). (12) Administrative Fees and Set-Aside Funds. RSB and the managers shall establish policies regarding set-aside funds. Set-aside funds accrue to the nominee from all commissions on vending machine proceeds in vending facilities located on federal property in which there is no manager on-site, from administrative fees that the nominee assesses against all operating income from vending facilities and administrative fee that the nominee assess on commissions on vending machine proceeds in vending facilities in which there is a manager on-site. (A) Each manager shall pay to the nominee a fee in the amount of thirteen percent (13%) of the income from net proceeds. This fee is referred to as the administrative fee and is included in the set aside funds. The nominee shall record on the manager’s monthly statement the amount of the administrative fee that the manager owes on that month’s sales. The nominee shall deduct a thirteen percent (13%) administrative fee from all commissions that vending machine companies pay on vending machine proceeds in vending facilities in which there is a manager on-site. (B) As set-aside funds are available, the nominee shall use setaside funds solely for the purposes of a fair minimum return for managers, maintenance, and replacement of vending facility equipment, purchase of new vending facility equipment, management services, and the establishment and maintenance of retirement or pension funds, including group life insurance, health insurance and contributions, and provision for paid vacation time for managers and nominee employees. (13) Seniority. A manager earns or loses seniority credit according to the following guidelines: (A) A full-time manager in the BEP shall earn one (1) month of seniority for each full month that the manager worked and paid all fees, as required by this rule, except that a licensee who works as a temporary manager shall earn only one-half (1/2) month seniority for each month that the temporary manager worked. A manager shall not accrue seniority for any month in which payment of fees or loans are delinquent; (B) A full-time manager in the BEP who resigns from a facility in good standing shall lose fifty percent (50%) of the manager’s accumulated seniority at the time the manager resigns. After an absence from the BEP of three (3) years, the manager shall lose all seniority; (C) When the SLA terminates a manager’s agreement due to the manager’s failure to adhere to the terms of this rule, the manager shall lose all seniority immediately; (D) If the SLA closes a vending facility for a reason other than the manager’s failure to adhere to the terms of this rule, the manager shall retain all seniority the manager had accumulated at the time the SLA closed the vending facility. After an absence from the BEP of three (3) years, the manager shall lose all seniority; and (E) Seniority is a factor in the vacation pay schedule and all other factors being equal may be considered in making a facility award or recommendation for award. (14) Fringe Benefits. As set-aside funds are available, the nominee shall use set-aside funds, as discussed in section (12), to meet the cost of the following benefits for managers: (A) Paid Vacation. Effective January 1, 1996, a manager shall earn vacation and the nominee shall pay the manager for earned vacation, according to the following: 1. After one (1) full year of creditable service as a BEP manager, a manager shall earn one (1) week of paid vacation. A manager is not eligible for vacation pay unless s/he is current in submitting required reports and payments of administrative fees and loans from the nominee; 2. A manager will be eligible to receive vacation pay on the anniversary date of employment as a full-time contract manager. A manager who is ineligible for vacation pay on this date will not become eligible to receive vacation pay until his/ her next anniversary of employment date. Vacation pay shall not accumulate beyond the twelve- (12-) month period.; 3. The nominee shall compute the week of earned vacation as equal to one fifty-second (1/52) of the manager’s net income for the immediately preceding twelve- (12-) month period; and 4. If a manager who is eligible for vacation pay dies, resigns from a vending facility, or, if the SLA terminates the manager’s agreement or license, RSB shall prorate the vacation pay for the number of weeks of creditable service the manager has accrued since the last anniversary date of the manager’s employment. This prorated amount shall be applied toward any debt to the SLA or nominee and any balance remaining shall go to the manager and/or to his/her estate; (B) Health Insurance and Life Insurance Coverage. RSB, with consultation from the executive committee, shall select an insurance carrier to provide health insurance and group life insurance for managers and their dependents. 1. The nominee shall pay the premiums for health insurance coverage and for a maximum of five thousand dollars ($5000) of group life insurance coverage for each manager. The manager shall pay the premiums on insurance coverage for the manager’s dependents and for any additional insurance for the manager. 2. Upon the request of a manager who resigns from the BEP or whose contract has been terminated by the SLA, the nominee may continue health and life insurance coverage for that individual and the individual’s dependents through the nominee’s insurance carrier, if allowed by the carrier, for a period not to exceed thirty (30) days. The individual must submit to the nominee prepayment of the total amount of the premium for the thirty- (30-) day extended period of coverage for the individual and the individual’s dependents; and (C) Retirement Benefits. RSB, with consultation from the executive committee, shall select a provider with which managers may invest in an individual retirement account (IRA). The manager may invest in an IRA, within the limitations stated in federal law except that payments will only be matched on a calendar year basis, for example, contributions must be made by December 31 of each year to be applied to that tax year. For each tax year, the nominee shall use income from vending machines located on nonfederal property to match each dollar a manager invests in an IRA, up to a maximum of five hundred dollars ($500) per year. In order to be eligible to participate in the IRA program, a manager’s administrative fees and change fund loan payments must be current. (15) Collection and Distribution of Income From Vending Machines. (A) Income From Vending Machines. 1. Federal property. Vending machines on federal property may be the responsibility of the federal government agency, through direct operation of the machines or through a contractual arrangement with a commercial vending company. In other situations, the state of Missouri, on behalf of the nominee, contracts with a vending company to provide vending services. A. When the vending operation is the responsibility of the federal government agency, a property management official shall be responsible for the collection of, and accounting for, the income from vending machines. B. When the state of Missouri contracts with a vending company to provide vending services, the vending company shall submit commissions and documentation on vending machine proceeds to the nominee. (B) Collection of Income From Vending Machines. 1. Federal property. When the vending operation is the responsibility of the federal government agency, at least once each quarter the property management official shall collect vending machine income and forward it to the nominee, as follows: A. One hundred percent (100%) of income from all vending machines that are in direct competition with a vending facility that is operated by a manager who is on-site, as determined by property management, with RSB’s concurrence; B. Fifty percent (50%) of all income from all vending machines that are not in direct competition with a vending facility that is operated by a manager who is on-site; and C. Thirty percent (30%) of all income from all vending machines on federal property at which fifty percent (50%) or more of the total hours worked on the premises occurs during a period other than normal working hours. (C) Distribution of Income From Vending Machines. 1. Federal property. A. Vending machine income from vending machines on federal property which has been disbursed to the state licensing agency by a property managing department, agency, or instrumentality of the United States under section 395.32, shall accrue to each blind vendor operating a vending facility on such federal property in each state in an amount not to exceed the average net income of the total number of blind vendors within such state, as determined each fiscal year on the basis of each prior year’s operation, except that vending machine income shall not accrue to any blind vendor in any amount exceeding the average net income of the total number of blind vendors in the United States. No blind vendor shall receive less vending machine income than s/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 paragraph. No limitation shall be imposed on income from vending machines, combined to create a vending facility, when such facility is maintained, serviced, or operated by a blind vendor. Vending machine income disbursed by a property managing department, agency, or instrumentality of the United States to a state licensing agency in excess of the amounts eligible to accrue to blind vendors in accordance with this paragraph shall be retained by the appropriate state licensing agency. B. The state licensing agency shall disburse vending machine income less the administrative fee, to blind vendors within the state on at least a quarterly basis. C. Federal property in which Missouri contracts with a vending machine company to provide vending service, a manager is on-site to operate a vending facility, and there are one (1) or more vending machine banks in the building at which there is no manager on-site. The nominee shall distribute to the manager all of the assigned income, less the administrative fee. The nominee also shall distribute to the manager the unassigned income, less the administrative fee, up to, but not exceeding, the average income of the total number of managers in Missouri, as determined each federal fiscal year on the basis of the prior year’s operation of the BEP, or the average income of the total number of vending facility managers in the United States, whichever is less. The nominee shall not impose a limitation on income from vending machines combined to create a vending facility when a manager services, maintains, or operates the facility. If there is a balance of unassigned income after the nominee pays the appropriate amount to the manager, the balance shall accrue to the nominee. D. On federal property in which there is no manager on-site. all commissions on vending machine proceeds shall accrue to the nominee. 2. Nonfederal property. A. Nonfederal property in which Missouri contracts with a vending company to provide vending service and a manager is on-site. On a monthly basis, the nominee shall distribute to the manager commissions from proceeds, less administrative fee, from vending machines that are listed in RSB’s contract to operate that vending facility. (I) For any facility that is of the type discussed in this subparagraph and in which a manager assumed management of the facility after July 8, 1991, the amount of income that the nominee distributes to the manager shall not exceed one hundred fifty percent (150%) of the average income of the total number of managers in Missouri, as determined each federal fiscal year on the basis of the prior year’s operation of the BEP, or the average income of the total number of vending facility managers in the United States, whichever is more. (II) If there is a balance of vending machine income after the nominee pays the appropriate amount to the manager, the balance shall accrue to the nominee. B. All income from commissions on vending proceeds from machines located on nonfederal property in which there is no manager on-site to operate a vending facility shall accrue to the nominee. (D) Use of Unassigned Vending Machine Income That the Nominee Retains. 1. Federal property. A. If approved by a majority vote of all managers, the nominee shall use unassigned income that accrues to it from vending machines located on federal property for the establishment and maintenance of retirement or pension plans, for health insurance contributions, and for the provision of paid vacation time for all managers. B. The nominee shall use any vending machine income not needed to meet the cost of benefits stated in subparagraph (15)(D)1.A. for the maintenance and replacement of equipment, the purchase of new equipment, management services and assuring a fair minimum return to managers. C. The nominee shall reduce the administrative fee charged to managers pro rata in an amount equal to the total vending machine income that remains after the nominee meets the cost of manager benefits stated in subparagraph (15) (D)1.A. 2. Nonfederal property. In consultation with the executive committee, the nominee shall use unassigned income that accrues to it from vending machine proceeds located on nonfederal property to meet the cost of the following: establishment and maintenance of retirement or pension plans, health insurance contributions, the provision of paid vacation time for all managers, maintenance and replacement of equipment, purchase of new equipment, management services, assuring a fair minimum return to managers, and other costs that RSB determines are necessary for program growth and efficient administration of the BEP. The primary purpose of unassigned income from proceeds of vending machines located on nonfederal property shall be to develop and enhance the BEP. (16) Termination of License or Manager’s Agreement. The SLA may terminate a license or manager’s agreement. (A) Reasons for Termination of License or Manager’s Agreement. Any of the following situations is sufficient reason for the SLA to terminate a manager’s license or manager’s agreement: 1. Willful or malicious destruction of, or failure to exercise reasonable and necessary care of, vending facility equipment; 2. Failure to operate the vending facility according to federal, state, or municipal law, this rule, or the terms of any permit or contract that governs the operation of the vending facility; 3. Falsification of reports or documents that are required by RSB; 4. Failure to report all sales and vending revenues on the Manager’s Weekly Report; 5. Failure to provide all sales and cost documentation, weekly, as required by RSB; 6. Failure to maintain a minimum acceptable rating of two point seven-five (2.75), as established by the executive committee and RSB, on the Review of Facility Report, a copy of which follows this rule; 7. Abandonment of vending facility, which occurs when the manager is absent from a vending facility without arranging for the ongoing operation of the vending facility; 8. Failure to pay a legally enforceable debt of the manager that arises from the operation of the vending facility; 9. Failure to pay the amount owed to the SLA and the nominee, as stated in subsection (11)(Q); 10. Failure to comply with the nondiscrimination policy that is stated in section (3); 11. Loss of visual eligibility to participate in the BEP. The licensee shall notify RSB when there is a change in the licensee’s vision that may affect eligibility to participate in the BEP. In order to verify a licensee’s continued eligibility, RSB may require a manager to have periodic examinations by an eye care specialist that RSB selects. The cost of these examinations will be borne by the BEP; 12. Use of or being under the influence of an intoxicant or illegal drug while in a vending facility; 13. Conviction of a felony; 14. RSB determines that, due to mismanagement, a manager is not operating a vending facility profitably; 15. Failure to make or provide proof of having made the required deposits when due for employee withholdings for income taxes and Social Security and employer matching withholdings for Social Security; 16. Failure to provide thirty (30) days written advance notification of termination, unless RSB agrees to a shorter notification; and 17. In addition to the reasons stated in paragraphs (16)(A)1.– 16., the SLA may terminate a manager’s agreement if problems exist between a manager and property management; RSB, manager, and property management are unable to resolve the problems; the manager does not resign from managing the facility, and the SLA considers it to be in the best interest of that facility and the BEP for the manager to be removed as manager of the facility. (B) SLA Procedures for Termination of License or Manager’s Agreement. 1. RSB shall give at least ten (10) days written notice to the licensee or manager that states the reason(s) for termination of the license or manager’s agreement and the effective date of the termination. RSB is not required to give ten (10) days written notice if the reasons for termination involve a risk of danger to public health or safety, if RSB considers there is an immediate threat of loss of BEP funds, inventory, or other property or if the manager’s continued operation of the facility would substantially damage economically the operation of the BEP. 2. RSB shall inform the licensee or manager of the right to present a grievance before the executive committee and to request grievance reviews according to section (17). 3. A manager shall relinquish the vending facility on the date that the termination becomes effective except, if the manager appeals the termination, in writing, prior to the effective date, the manager may continue to manage the vending facility until the hearing process is concluded. This exception does not apply if RSB considers there exists a danger to public health or safety or an immediate threat of loss of BEP funds, inventory, or other property. 4. RSB or the nominee shall assume management of any vending facility on the same day that the manager of the vending facility relinquishes management of the vending facility. 5. If a licensee or manager whose license or manager’s agreement has been terminated has not initiated the grievance procedure prior to the date of termination, the licensee or manager has an additional twenty (20) days after the date of termination to transmit a grievance to the executive committee. 6. If, at any time during the grievance procedure, the SLA’s decision to terminate the manager’s license or manager’s agreement is reversed, the nominee shall pay to the manager a proportionate amount of the vending facility’s average monthly net income during the twelve- (12-) month period immediately preceding the manager’s termination. The nominee shall hold in escrow all net income generated by the vending facility until the grievance process is completed. (C) Automatic Termination of a License or Manager’s Agreement. The death of a manager results in automatic termination of the individual’s license and manager’s agreement. (17) Grievance Procedures. A licensee who is dissatisfied with any action regarding the operation or administration of the BEP has access to the following grievance procedures: (A) If a licensee wishes, s/he may make a written request directly to the deputy director for an administrative review. If the licensee does not wish to appeal directly to the deputy director, s/he shall follow each level of the grievance procedures stated in section (17); (B) Review by Executive Committee. A licensee may present a grievance before the executive committee. The executive committee shall ensure that the licensee is provided guidance in seeking a remedy of the grievance. Within ten (10) days after hearing a licensee’s grievance, the executive committee shall transmit the grievance to RSB, with a written statement regarding the executive committee’s support or lack of support for the licensee’s grievance, and shall send a copy of the statement to the licensee; (C) Administrative Review. Within fifteen (15) workdays after the date of the executive committee’s report to RSB, the licensee may make a written request to the deputy director for an administrative review. Within ten (10) workdays after the receipt of the licensee’s request, the deputy director or the deputy director’s designee shall contact the licensee regarding the licensee’s request and shall provide the following information in writing to the licensee: 1. The date, time, and place of the administrative review. If possible, the administrative review shall be held within fifteen (15) workdays of the receipt of the written request for an administrative review, within regular working hours and at RSB district office that is nearest to the licensee’s vending facility. If agreed to by the licensee and the deputy director or the deputy director’s designee, the administrative review may be held on a date, at a time, and place different than specified in this paragraph; 2. The nominee shall pay necessary costs of transportation, lodging, and meals that a licensee needs in conjunction with the grievance process; 3. The nominee shall pay all costs, including travel expenses, of an interpreter or a reader when a licensee needs interpreter or reader service in conjunction with the grievance process; 4. The licensee and RSB may present written or oral evidence relevant to the grievance; 5. The licensee may be represented by counsel of the licensee’s choice, at the licensee’s expense; 6. RSB shall tape record the review proceedings; 7. Within fifteen (15) workdays after the date of the administrative review, the deputy director or the deputy director’s designee shall notify the licensee in writing of the decision. The notification shall inform the licensee of the licensee’s right to a full evidentiary hearing, referred to in this rule as a fair hearing; (D) Fair Hearing. If the licensee is dissatisfied with the results of the administrative review, the licensee may request a fair hearing. The following guidelines govern the fair hearing process: 1. The licensee must make a written request for a fair hearing to the director of the SLA within fifteen (15) workdays after the date of the decision of the deputy director or the deputy director’s designee; 2. The director of the SLA shall designate to conduct the fair hearing an impartial official who has no involvement either with the action that is at issue in the hearing or with the administration or operation of the BEP; 3. The hearing will be conducted during normal work hours in Jefferson City, Missouri unless the hearing officer decides to hold the hearing in another location; 4. The provisions of paragraphs (17)(C)2.—6. apply to the fair hearing; 5. Within twenty (20) workdays after the date of the fair hearing, the hearing officer shall notify the licensee and the SLA in writing of the decision; and 6. The director of the SLA shall have the right to review the decision of the hearing officer and shall make the final decision regarding the fair hearing. A. Within twenty (20) workdays of the mailing of the decision of the hearing officer, the director of the SLA shall notify the licensee whether the director intends to review the decision of the hearing officer. If the director fails to notify the licensee of the intent to review the decision, the decision of the hearing officer becomes a final decision. B. Within thirty (30) calendar days of notifying the licensee of the intent to review the decision of the hearing officer, the director shall notify the licensee of the final decision, including a full report of the findings and the basis for the decision; (E) Arbitration Panel. If the licensee is dissatisfied with the decision from the fair hearing, the licensee may file a written complaint with the secretary of the United States Department of Education. The licensee shall include with the written complaint all available supporting documents, including a statement of the decision of the hearing officer or director of the SLA and the basis for the decision. The secretary of the United States Department of Education shall convene an ad hoc arbitration panel to conduct a hearing and render a decision regarding the manager’s complaint; and (F) A licensee who is dissatisfied with the results of the fair hearing shall have the right to invoke the Randolph-Sheppard arbitration process. If still dissatisfied, the vendor may then seek judicial review in a federal district court. (18) Confidentiality of Information. The provisions of 13 CSR 4091.020(25) apply to the administration of the BEP. AUTHORITY: sections 8.051, 8.700–8.745, 207.010, 207.022, 209.010, 209.020, and 660.017, RSMo 2016.* Original rule filed Oct. 6, 1977, effective Jan. 13, 1978. Rescinded and readopted: Filed Aug. 4, 1988, effective Oct. 15, 1988. Rescinded and readopted: Filed Feb. 15, 1991, effective July 8, 1991. Amended: Filed May 11, 1995, effective Nov. 30, 1995. Amended: Filed Oct. 1, 2018, effective May 30, 2019. *Original authority: 8.051, RSMo 1990; 8.700, RSMo 1981, amended 2014; 8.705, RSMo 1981, amended 1985; 8.710–8.745, see the Missouri Revised Statutes; 207.010, RSMo 1945, amended 1949, 1953, 1973; 207.022, RSMo 2014; 209.010, RSMo 1939, amended 2014; 209.020, RSMo 1939, amended 2014; and 660.017, RSMo 1993, amended 1995.