Tenn. Comp. R. & Regs. 1240-06-10-.03 - FACILITY MERCHANDISE

(1) The merchandise available for sale in a vending facility shall be in compliance with the terms and conditions of the permit. Substantial deviations from this approved merchandise shall not be made by the manager without first seeking consent of the Agency and property management. The merchandise available for sale may be prepared on or off-site, depending upon the facility equipment, the classification of the facility, and the Health Department rules to be observed. The merchandise may be sold manually and/or dispensed through the use of vending machines.

(2) The Agency shall provide the initial stock for use by the manager. It is the obligation and responsibility of the manager to have the initial level of merchandise in the facility at all times and, if necessary to meet customers' demands, the inventory shall be increased by the manager in an amount sufficient to address the identified needs. It is required that the manager has sufficient quantity and variety of merchandise in the facility in order to satisfy the intent of this subsection. This includes properly stocking all vending machines in the facility.

(3) The value of the inventory is to be calculated at wholesale cost. Ownership of the initial stock or its current wholesale cash value shall be vested in the Agency. Ownership of all stock and/or cash above the initial inventory level shall be vested in the manager. If the TBE Consultant/Specialist suspects that the merchandise inventory is below the initial level, a complete inventory may be taken by the TBE Consultant/Specialist. The manager shall be given prior day notice of the inventory to be conducted.

(4) At the beginning of each calendar year, the manager shall conduct an inventory of all merchandise and supplies in the facility and submit it to his/her TBE Consultant/Specialist on or before February 15th of each year. In the event that a financial analysis is deemed to be appropriate at some subsequent time prior to the next scheduled inventory, the previous record referred to above shall be used as a beginning point, so that the collection of other data will be meaningful when all of it is assembled for final review.

(5) The Agency, with the active participation of the Committee, shall develop inventory control procedures, which shall be incorporated into the Operations Manual.

(6) Managers who leave TBE for whatever reason are not relieved of their responsibilities to repay any inventory shortages. The Agency may use methods that it deems appropriate to collect any such indebtedness.

(7) The manager shall determine the pricing of the merchandise to be sold in the facility provided that it is reasonably compatible with that of the vicinity competition. In some cases, pricing may be addressed in the permit and the manager is required to comply with any such provisions.

Notes

Tenn. Comp. R. & Regs. 1240-06-10-.03

Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986, effective January 25, 1987. (Formerly numbered as 1240-6-9-.01) Repeal and new rule filed April 27, 1998; effective August 28, 1998. 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), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).