Md. Code Regs. 13A.11.04.11

Current through Register Vol. 51, No. 18, September 6, 2024

Section 13A.11.04.11 - Vending Machine Income

A. Distribution of Assigned Vending Machine Income.

(1) The Division shall remit monthly, if available, or otherwise quarterly vending machine income which accrues from vending machines on federal, State, local, or private property to the vendor operating a vending facility on the property in accordance with 34 CFR § 395.32.

(2) Vending machine income remitted to a vendor shall be reported separately from gross sales and shall be included in calculating the net proceeds of the vending facility.

B. Limitations on Vending Machine Income.

(1) A vendor is entitled to vending machine income not to exceed the national average income of blind vendors for the previous year.

(2) Limitations may not be imposed on income from vending machines when the machines are maintained, serviced, and operated by a vendor within the confines of the vending facility.

(3) Vending machines may not be maintained, serviced, and operated by a vendor unless authorized by the Division.

C. Use of Unassigned Vending Machine Income.

(1) Vending machine income that does not accrue to a vendor in accordance with §A(1) of this Regulation from federal, State, local, or private properties shall be used for:

(a) Establishment and maintenance of retirement or pension plans, for health insurance contributions if so determined by a majority licensed vendors holding an operating agreement;

(b) Maintenance and replacement of equipment;

(c) The purchase of new equipment; and

(d) Management services.

(2) Any vending machine income from federal property not used for the purposes authorized in §C(1) of this Regulation shall be used in accordance with 34 CFR § 395.8(c) and Regulation .10C of this chapter.

(3) Set-aside charges, if any, shall be reduced pro-rata in an amount equal to the total of any vending machine income used for the purposes in Regulation .10C of this chapter.

(4) Vending machine income from vending machines not on federal property in excess of the amount disbursed to vendors may be used for program purposes.

Md. Code Regs. 13A.11.04.11

Regulation .11 amended effective 42:14 Md. R. 881, eff.7/20/2015