Section R. 393.43 - Satellite sitesRule 43.
(1) If a potential concession is not expected to return to the licensee at least 120% of the applicable current federal minimum wage based on a 1-year business cycle, then a satellite site may be established. A determination to establish a satellite site shall be made by the commission with input from the locations subcommittee of the committee.(2) If a concession or a potential concession does not meet the requirements stated in subrule (1) of this rule, the concession or potential concession may become a satellite of an existing concession. The satellite shall be in the immediate vicinity of the existing concession. This subrule does not apply when a potential satellite is part of an existing facility as defined in 20 C.F.R. §395.1(h)(A).(3) A satellite shall not be established unless the state licensing agency determines that the facility will produce revenues in excess of costs. A value shall be assigned to all unpaid labor based upon the prevailing wage rate for people in the community doing the same or similar work, which shall be determined from information provided by the Michigan unemployment agency. A licensee shall produce an acceptable written plan that shall include all of the following information: (a) The number of additional employees.(b) The amount of storage space.(c) The level of service to be provided to customers (visits per day).(d) The means to be utilized for transporting stock, for example, hand cart, car, or van.(4) If no licensee in the immediate area submits a profitable plan for a satellite, then the administrator may, if practical, arrange for a private vending company to provide the requested services on a contractual basis and to forward the commissions as unassigned vending machine income to the set-aside account. At the end of a 1-year business cycle, each unassigned facility contract shall be reviewed to determine whether the facility may be established as a satellite vending facility or a separate facility.(5) When a concession that has satellites is to be placed for bid, the satellite or satellites shall be evaluated to determine whether each satellite can be an independent concession as described in subrule (1) of this rule.(6) Preference shall be given in the assignment of equipment and other resources to state and federally mandated facilities and to other existing facilities.(7) The vending facility agreement shall be amended each time a site is added to or removed from a facility.Mich. Admin. Code R. 393.43