Tenn. Comp. R. & Regs. 1240-06-13-.01 - PRIORITY FOR THE ESTABLISHMENT OF VENDING FACILITIES ON PUBLIC PROPERTIES IN TENNESSEE

(1) Pursuant to T.C.A. § 71-4-501 et seq., any properties owned or leased by the State, or properties owned or leased by political subdivisions of the State such as county or municipal governments, must recognize the priority granted to the Agency. The Agency must be permitted to conduct surveys of public properties to determine the feasibility of establishing one or more vending facilities on a particular property. This priority is exclusive and unconditional except for cafeteria service. With respect to cafeteria operations, the Agency must submit a bid to compete to provide the service and will have priority if its bid is within the competitive range when considered with all other bids.

(a) For purposes of determining the competitive range, the Agency's bid must be within two (2) percentage points of the bid deemed to be the winning bid. This means that if the commission of the would-be winning bid is eight (8) percent; the Agency's proposal must offer at least six (6) percent. At its sole discretion, the Public Property may elect to enter into direct negotiations with the Agency in lieu of the above. If the results of the survey substantiate that the establishment of a vending facility is feasible, property management shall take all necessary steps to insure that the installation occurs, and that the space and the utilities required are provided (at no cost to the manager) for the operation, except telephone service. The agency shall provide the necessary alterations, plumbing and equipment, merchandise, a licensed manager, and the appropriate supervision of the manager.

(b) In the event that existing buildings are purchased or leased or new buildings are constructed by any of the entities referred to above, written notice shall be given to the Agency in ample time to afford the Agency an opportunity to make plans to provide the service.

(c) All vending facility operations, except those relating to cafeteria service, shall be governed by an agreement between the Agency and property management, known as a permit. The permit shall include the location, type of facility, space available, all necessary equipment and the operating hours of the facility. For a cafeteria service, a contract between the Agency and property management will be executed which may impose certain requirements upon the manager regarding the operation, including costs for which the manager shall be responsible. In the negotiation process between the Agency and property management regarding either the terms and conditions of an occupancy permit or a contract, the area representative(s) of the Committee shall have an opportunity to participate with the Agency in making final determinations with respect to the terms and conditions of an occupancy permit or contract. The terms and conditions of the permit may be changed after consultation with the manager for purposes of soliciting his/her input. Once the changes have been made, the revised document shall be provided to the manager. The absence of an executed permit does not relieve a manager of his/her responsibilities to otherwise comply with these rules and regulations and/or to provide effective management of the vending facility.

(d) Public Property management may not require the payment of rent, utilities, or commissions as a condition for operating a vending facility on Public Property except as provided for in 1240-06-13-.01(1) above. However, the Agency, at its discretion and with the active participation of the Committee of Blind Vendors, may negotiate less restrictive agreements that do require such payments. If such payments are negotiated and are included in the permit agreement, the licensed manager will be obligated to make such payments; however, no subsequent priority is waived either expressly or by implication.

(e) In the event that any dispute between the Agency and property management regarding the granting of the priority, or the establishment or the continued operation of the facility shall be resolved in accordance with T.C.A. § 71-4- 507.

Notes

Tenn. Comp. R. & Regs. 1240-06-13-.01

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 1240-6-12-.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. Amendments filed May 25, 2017; effective 8/23/2017.

Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-1-501, 71-4-507, 71-4-603, and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.30.