Mich. Admin. Code R. 393.23 - Ending inventory

Rule 23.

(1) When a licensee leaves a facility, an ending inventory shall be taken jointly by the outgoing licensee, the incoming licensee, and the commission. The beginning inventory, including expansion, if applicable, and the ending inventory amounts shall be compared.

(2) If the initial merchandise inventory is too low, based upon the formula in R 393.22(1)(b), then an inventory adjustment shall be made by the commission. The commission shall reimburse the outgoing licensee for the difference, and the new beginning inventory amount shall be entered on the incoming licensee's inventory record and vending facility agreement.

(3) If the ending inventory amount is more than the beginning inventory amount, then there is an overage. The overage represents accrued earnings of the outgoing licensee. The outgoing licensee shall pay set-aside fees on the full amount of overage. The disposition of an overage is the responsibility of the outgoing licensee.

(4) If the ending inventory is less than the beginning inventory, then a shortage exists. If a shortage exists when the inventory is taken, then the outgoing licensee shall reimburse the commission immediately. If a licensee cannot reimburse the commission within 24 hours, then license revocation proceedings shall be initiated as described in R 393.16. As of the effective date of this rule, a repayment agreement shall not be created, without exception.

(5) When a licensee leaves a facility that has vending machines, a catalog of spare parts shall be created jointly by the outgoing licensee, the incoming licensee, and the commission. If the ending catalog of spare parts is missing parts as compared to the beginning inventory, as detailed in R 393.32(1), then the outgoing licensee shall replenish the spare parts inventory within 24 hours.

Notes

Mich. Admin. Code R. 393.23

2004 AACS