729.10 Vending facility income and financial requirements.
(a) All income generated or derived from the operation of a vending
facility, except as otherwise proscribed by law, is the property of the licensee managing
the vending facility, except as provided under section 729.9 of this Part and subdivision
(e) of this section.
(b) A licensee may charge to the vending facility only those operating
expenses and in only such amounts as are determined by the commission to be reasonable and
necessary for the proper operation of the vending facility and for the purposes of
determining set-aside charges.
(c) Each licensee must establish and maintain a checking account for
receipts and expenses related to the operation of the vending facility. This account must
be used exclusively for the financial activities of the facility and a licensee may not
commingle personal or other funds in this account except to the extent that such funds
represent the licensee's equity in the vending facility. The licensee must be the sole
owner of this checking account.
(d) If a licensee maintains cash reserves for vacation, sick leave or
any other benefits provided to employees and the licensee retires, resigns, dies, or is
otherwise relieved from the operation of the vending facility, the licensee, or the
licensee's estate or legal representative, will be responsible for the payment to the
employees of any such accumulated benefit credits as may have been earned by such
employees, up to the date of such retirement, resignation, relief or death of the
licensee.
(e) At its option, the commission will:
(1) provide funding for liability insurance
coverage for all licensees; or
(2) require each licensee to pay a prorated
portion of a group liability insurance plan administered by the commission. Licensees must
report to the commission, in the manner and time required by the insurance company or the
commission, all accidents occurring on the premises and related insurance or legal claims
brought against them.
(f) Licensees whose vending facilities are equipped with cash registers
must:
(1) record all cash transactions on cash
register tape;
(2) use the proper cash register functions
and/or classifications;
(3) prepare and retain a final daily closeout
tape;
(4) total and clear the register daily; and
(5) promptly report cash register malfunctions
to the commission.
(g) The commission may impose penalties on licensees who violate the
rules set forth in subdivision (f) of this section. Such penalties are:
(1) for a first violation, a letter of
reprimand will be given to the licensee and it will be made a permanent part of the
licensee's record with the commission;
(2) for a second violation within one year, a
second letter of reprimand will be given to the licensee and made a permanent part of the
licensee's record. The licensee also will be placed on probation for 12 months from the
date of the letter of reprimand and the operating agreement may be terminated; and
(3) for a third violation within one year, the
commission may terminate the operating agreement and revoke the licensee's license. The
licensee may request a full evidentiary hearing held pursuant to section 729.22 of this
Part to challenge such termination and/or revocation.
(h) Each licensee must submit, on forms provided or approved by the
commission, monthly financial reports in accordance with policies and procedures
established by the commission. Such reports must be complete, accurate, and signed by the
licensee. Each licensee must conduct and record a physical merchandise inventory during
the month of December. Such inventory must be complete, accurate, signed by the licensee,
and submitted to the commission. In the event of the transfer, resignation, retirement,
death, or other removal of a licensee from the Business Enterprise Program, an inventory
will be conducted by or at the request of the commission.
(i) A licensee who fails to submit required financial reports,
set-aside of funds levy, scheduled loan payments or any other monies which may be due the
commission in accordance with the commission's policies and procedures will be considered
delinquent.
(1) The first delinquency within a 12-month
period will result in a letter to the licensee warning of the penalties to be imposed for
subsequent delinquencies within 12 months. Multiple delinquencies occurring within the
same calendar month will be considered a single delinquency.
(2) A second delinquency within 12 months of
the first delinquency will result in the licensee being placed on probation for 12 months
beginning on the date of the second delinquency.
(3) A third delinquency within 12 months of the
first delinquency will be grounds for license revocation. The licensee may request that a
full evidentiary hearing be held pursuant to section 729.22 of this Part to challenge such
revocation.
(4) If any delinquency remains unresolved for
two or more calendar months, it will be considered a second or subsequent delinquency, and
subject to the provisions set forth above.
(j) Licensees must maintain all financial records and documents for a
period of six years. Such records and documents will be made available to the commission
or its designee upon request. Such financial records must include, but are not limited to:
a cash receipts and disbursements book or ledger, a payroll book for vending facilities
with employees, receipts for disbursements, daily cash reports, bank statements, canceled
checks and cash register receipt tapes (both daily tapes and detail tapes).
(k) The commission, or an agent designated by the commission, may
conduct a financial audit of a vending facility. A licensee, upon written request by the
commission, must provide to the commission or the commission's designee all financial
records and documents requested by the commission or the commission's designee.