Tenn. Comp. R. & Regs. 1240-06-08-.01 - FACILITY EQUIPMENT

(1) The Agency shall provide sufficient equipment for the use of the licensed manager. This equipment shall remain the property of the Agency. Ownership of vending facility equipment other than that provided by the Agency shall not be vested in the Agency.

(2) No alteration, change, addition, or removal of Agency equipment shall be made without prior approval of the Agency.

(3) The manager shall report immediately any incident, theft, or defacement of equipment.

(4) A manager, with prior approval from the TBE Consultant/Specialist, may lease equipment for use in the operation of the vending facility. In no event shall the Agency be held liable for the manager's obligation under the terms of any lease or for any repairs associated with the leased equipment. The manager's obligations to any lessor shall remain in effect without regard to removal or reassignment of any manager for any reason. For purposes of determining the amount of the manager's set-aside assessment, the proceeds derived from sales of merchandise from leased equipment shall be regarded as income to the vending facility, provided that all expenses for leasing of equipment shall be deductible as a business expense from the gross income of the facility.

(5) Managers who want to place vending machines on full service or subcontract any part of their operations may do so only after getting prior approval from the Agency. The determining factors on whether or not such a request will be approved by the Agency will be profitability, quality of service, availability of adequate storage, and the desires of property management.

Notes

Tenn. Comp. R. & Regs. 1240-06-08-.01

Original rule filed December 11, 1986; effective January 25, 1987. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-405(b), and 71-4-604(c); 34 C.F.R. § 395 et seq. and C.F.R. § 395.3(a)(5).