Current through Register 1533, October 25, 2024
Section 3.10 - Vending Machine Income(1) Vending machine income from vending machines on federal property which has been disbursed to the Commission by a property managing department, agency, or instrumentality of the United States under 111 CMR 3.10(3) shall accrue to each vendor operating a vending facility on such federal property in an amount not to exceed the average net income of the total number of vendors within Massachusetts, as determined each fiscal year on the basis of each prior year's operation, except that vending machine income shall not accrue to any vendor in any amount exceeding the average net income of the total number of blind vendors in the United States. No vendor shall receive less vending machine income than he was receiving during the calendar year prior to January 1, 1974, as a direct result of any limitation imposed on such income under 111 CMR 3.10(1). 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 vendor. Vending machine income disbursed by a property managing department, agency or instrumentality of the United States to the Commission in excess of the amounts eligible to accrue to vendors in accordance with 111 CMR 3.10(1) shall be retained by the Commission.(2) Vending machine income which is retained under 111 CMR 3.10(1) by the Commission shall be used by it for the establishment and maintenance of retirement or pension plans, for health insurance contributions, and for the provision of paid sick leave and vacation time for vendors, if it is so determined by a majority vote of vendors, after the Commission has provided to each such vendor information on all matters relevant to such purposes. Any vending machine income not necessary for such purposes shall be used by the Commission for the maintenance and replacement of equipment, the purchase of new equipment, management services, and assuring a fair minimum return to vendors. Any assessment charged to vendors by the Commission shall be reduced pro rata in an amount equal to the total of such remaining vending machine income.(3) The on-site official responsible for the federal property of each property managing department, agency, or instrumentality of the United States, in accordance with established procedures of such department, agency, or instrumentality, shall be responsible for the collection of, and accounting for, vending machine income from vending machines on federal property under his control and shall otherwise ensure compliance with the provisions of 111 CMR 3.10(4) through (10).(4) 100% of all vending machine income from vending machines on federal property which are in direct competition with a vending facility operated by a vendor shall accrue to the Commission which shall disburse such income to such vendor operating such vending facility on such property provided that the total amount of such income accruing to such vendor does not exceed the maximum amount determined under 111 CMR 3.10(1). In the event that there is income from such vending machines in excess of the maximum amount which may be disbursed to the vendor under 111 CMR 3.10(1) such additional income shall accrue to the Commission for purposes determined in accordance with 111 CMR 3.10(2).(5) 50% of all vending machine income from vending machines on federal property which are not direct competition with a vending facility operated by a vendor shall accrue to the Commission which shall disburse such income to the vendor operating such vending facility on such property. In the event that there is no vendor, such income shall accrue to the Commission, except as indicated under 111 CMR 3.10(6). The total amount of such income disbursed to such vendor shall not exceed the maximum amount determined under 111 CMR 3.10(1). In the event that there is income from such vending machines in excess of the maximum amount which may accrue to the vendor under 111 CMR 3.10(1), such additional income shall accrue to the Commission for purposes determined in accordance with 111 CMR 3.10(2).(6) 30% of all vending machine income from vending machines, which are not in direct competition with a vending facility operated by a vendor and which are on federal property at which at least 50% of the total hours worked on the premises occurs during a period other than normal working hours, shall accrue to the Commission which shall disburse such income to the vendor operating a vending facility on such property. In the event that there is no vendor on such property, such income shall accrue to the Commission. The total amount of such income disbursed to such vendor shall not exceed the maximum amount determined under 111 CMR 3.10(1). In the event that there is income from such vending machines in excess of the maximum amount which may be disbursed to the vendor under 111 CMR 3.10(1), such additional income shall accrue to the Commission for purposes determined in accordance with 111 CMR 3.10(1).(7) The determination that a vending machine on federal property is in direct competition with a vending facility operated by a vendor shall be the responsibility of the on-site official responsible for the federal property of each property managing department, agency or instrumentality of the United States, subject to the concurrence of the Commission.(8) The collection of vending machine income and its disbursement to the Commission shall be conducted on at least a quarterly basis.(9) All arrangements pertaining to the operation of vending machines on federal property not covered by contract with, or by permits issued to the Commission shall be renegotiated upon the expiration of the existing contract or other arrangement for consistency with the provisions of 111 CMR 3.10(9).(10) The provisions of 111 CMR 3.10 shall not apply to income from vending machines within operated retail sales outlets under the control of post exchange or ships' stores systems authorized under Title 10 of the United States Code; to income from vending machines operated by the Veterans Canteen Service; or to income from vending machines not in direct competition with a vending facility at individual locations, installations, or facilities on federal property the total of which at such individual locations, installations, or facilities does not exceed $3,000 annually.(11) The provisions of 111 CMR 3.10 shall not operate to preclude pre-existing or future arrangements, or regulations of departments, agencies, or instrumentalities of the United States, under which vendors or the Commission may either:(a) receive a greater percentage or amount of vending machine income than that specified in 111 CMR 3.10(5), (6), and (7); or(b) receive vending machine income from individual locations, installations, or facilities on federal property the total of which at such individual locations, installations or facilities does not exceed $3,000 annually.