Conn. Agencies Regs. § 10-303-13 - Income incentive plan

(a) Annual Net Income Incentive Plan

The annual net income incentive standard for every facility shall be recommended by the operators committee and approved by the executive director and the agency board. The annual net income incentive standard shall be the same amount for every facility.

(b) Income Incentive Payment Plan

(1) When a facility's net income for the current year, as reported by the vendor on business reports approved by the agency, is one half or less than one half of the annual net income incentive standard, the vendor may request that the board pay the vendor an amount equal to the facility's net income for the current year.

(2) When a facility's net income for the current year, as reported by the vendor on business reports approved by the agency, is less than the annual net income incentive standard but greater than one half of the annual net income incentive standard, the vendor may request that the board pay the vendor an amount equal to the difference between the annual net income incentive standard and the facility's net income for the current year.

(3) Incentive payments to vendors under the provisions of this section shall be made semi-annually. The first payment shall be made in October covering the first six months of that calendar year. The second payment shall be made in April of the succeeding year covering the second six months of the preceding calendar year.

(4) The amount of incentive payments granted under this section shall be adjusted on a semi-annual basis according to the facility's performance as presented in the business reports covering the previous six months.

(5) In no event shall total incentive payments for an income year to a vendor by the agency under this section be greater than that facility's net income for that year and in no event shall the total of a facility's net income for a year and incentive payments for that income year to a vendor by the agency under this section exceed the annual net income incentive standard.

(6) Payment by the board under this section shall be contingent upon:

(A) compliance by the vendor with all terms and conditions of the vending facility operating agreement;

(B) provision by the agency and acceptance by the vendor of management services and supervisor assistance to improve operation of the facility;

(C) the efficient operation of the facility by the vendor; and

(D) the vendor's provision to the agency of full access to all of the vendor's financial records regarding operation of the facility.

(7) Payments made under this section are attached to the facility, not to the vendor. Therefore, if a vendor who receives a payment under this section ceases to operate a facility for which a payment was granted, then a new vendor for that facility can request that the agency continue payment to him or her, on a prorated basis, in the same amount and under the same terms as were offered to the previous vendor.

(8) A vendor may receive payments under this section for the operation of only one facility, regardless of the number of facilities operated. The income of any satellite or other facility shall be considered when computing whether payments should be paid under this section, unless the vendor, for the benefit of operational continuity for the program and at the request of the agency, temporarily assumes the operation of an additional facility or facilities. In such cases, the profit from such satellite operation(s) shall not be considered when computing whether a payment should be made under this section for the operation of the primary facility.

Notes

Conn. Agencies Regs. § 10-303-13

Effective July 23, 1987; Amended March 7, 2011