Or. Admin. Code § 585-015-0020 - Set-Aside Funds
(1) ASSESSMENT - The standard set
aside charge is eleven percent (11%) of a vending facility's monthly
net proceeds.
(2)
SET-ASIDE INCENTIVES - The Commission shall reduce the percentage of
set aside collected from a vending facility manager, by the following
amounts:
(a) Four percentage
points, if the vending facility offers exclusively healthy vending
items or local vending items. To qualify for the local vending item
incentive, 100% of items sold in all vending machines or cafeterias
must meet the definition of a Local Vending Item. To qualify for the
healthy vending item incentive, all packaged snacks in vending
machines are required to meet the Food and Nutrition Standards for
Packaged Foods, and Food and Nutrition Standards for Beverages, as
outlined in Food Service Guidelines Federal Workgroup. Food
Service Guidelines for Federal Facilities. Washington, DC: U.S.
Department of Health and Human Services; 2017. To qualify
for the healthy vending item incentive, cafeterias and snack bars are
required to implement at the Standard and Innovative Implementation
levels for all categories of prepared foods and beverages as outlined
in Food Service Guidelines Federal Workgroup. Food Service
Guidelines for Federal Facilities. Washington, DC: U.S. Department of
Health and Human Services; 2017;
(b) Three percentage points if at
least 75 percent but less than 100 percent of the offerings at the
vending facility are healthy vending items or local vending items. To
qualify for the local vending item incentive, 75% to 99% of items
sold in all vending machines or cafeterias must meet the definition
of a Local Vending Item. To qualify for the healthy vending item
incentive, 75% to 99% of items in all vending machines are required
to meet the Food and Nutrition Standards for Packaged Foods, and Food
and Nutrition Standards for Beverages, as outlined in Food
Service Guidelines Federal Workgroup. Food Service Guidelines for
Federal Facilities. Washington, DC: U.S. Department of Health and
Human Services; 2017. To qualify for the healthy vending
item incentive, cafeterias and snack bars are required to implement
75% to 99% of the Standard and Innovative Implementation Levels for
all categories of prepared foods and beverages outlined in
Food Service Guidelines Federal Workgroup. Food Service
Guidelines for Federal Facilities. Washington, DC: U.S. Department of
Health and Human Services; 2017;
(c) Two percentage points if at
least 50 percent but less than 75 percent of the offerings at the
vending facility are healthy vending items or local vending items. To
qualify for the local vending item incentive, 50% to 74% of items
sold in all vending machines or cafeterias must meet the definition
of a Local Vending Item. To qualify for the healthy vending item
incentive, 50% to 74% of items in all vending machines are required
to meet Food and Nutrition Standards for Packaged Foods, and Food and
Nutrition Standards for Beverages, as outlined in Food
Service Guidelines Federal Workgroup. Food Service Guidelines for
Federal Facilities. Washington, DC: U.S. Department of Health and
Human Services; 2017. To qualify for the healthy vending
incentive, cafeterias and snack bars are required to implement 50% to
74% of the Standard and Innovative Implementation Levels for all
categories of prepared foods and beverages outlined in Food
Service Guidelines Federal Workgroup. Food Service Guidelines for
Federal Facilities. Washington, DC: U.S. Department of Health and
Human Services; 2017;
(d) Two percentage points if the
vending facility employs at least one person who is blind, in
addition to the vending facility manager;
(e) One percentage point for each
person who is blind and is employed by the vending facility in
addition to the persons described in section 4;
(f) One percentage point if the
vending facility employs at least one person with a disability, as
defined in ORS
174.107,
or who is a veteran, as defined in ORS
408.225,
in addition to the vending facility manager; and
(g) One-half of one percentage
point for each person with a disability or veteran employed by the
vending facility in addition to the persons described in
section
(h) References -
The following link provides the criteria for healthy vending items:
https://www.cdc.gov/obesity/downloads/guidelines_for_federal_concessions_and_vending_operations.pdf.
(i) Set-aside reductions are not
cumulative. Vending facility managers who meet the requirements of
(2)(a) above will receive a 4 percentage point reduction but no more.
Vending facility managers who do not meet the requirements of (2)(a)
above will earn reductions of no more than 3 percentage
points.
(j) Vending
facility managers shall provide proof annually for the incentives for
which they qualify.
(k)
Proof for vending machines shall consist of one of the following, to
be submitted to and verified by the Business Enterprise Program:
(A) A planogram schematic of each
vending machine and photos of the machine each time it is stocked;
or
(B) Monthly inventory
records of items installed in each machine
(l) Proof for cafeterias and snack
bars shall consist of the following, to be submitted to and verified
by the Business Enterprise Program:
(A) Either of the options listed
above for vending machines, and
(B) Weekly copies of menus and
lists of items for sale, and
(C) Recipes for all menu items made
on-site
(3) DEDUCTIONS - When determining
net proceeds, the vending facility manager may deduct vending
facility operating costs or operating expenses paid during the
reported calendar month.
(a) The
allowable deduction is the actual dollar amount paid, as further
limited below:
(A) Cost of food and
products, this would include raw food and ingredients, prepared food,
vending products, and other supplies and materials for
resale;
(B) Direct
vending facility rent and utilities, this includes off-site storage,
power, phone, and internet services;
(C) Wages paid to employees,
including any spouse, domestic partner or relative by blood or
marriage, not to exceed two times the State of Oregon's minimum wage,
provided the vendor is compliant with IRS reporting;
(D) Benefits paid to employees,
including any spouse, domestic partner, or to a relative by blood or
marriage;
(E) Payroll
taxes;
(F) Business
taxes, licenses and health permits necessary to operate the vending
facility;
(G) Liability,
fire, property damage and workers' compensation insurance;
(H) Business consultant services
with prior written approval from Agency;
(I) Legal fees, directly related to
the operation of the vending facility with prior written approval
from Agency;
(J)
Accounting and banking expenses, this includes business tax
preparation, credit card processing and bank fees;
(K) Vending facility janitorial
services;
(L) Payments
for equipment owned or leased by the vending facility manager with
prior written approval of the Commission;
(M) Repairs to vending facility
equipment;
(N) Office
supplies directly related to operating the vending
facility;
(O) Automobile
expenses, the allowable expense is either the documented
business-related mileage driven, multiplied by the current Internal
Revenue Service standard mileage rate (www.IRS.gov), or the total itemized
automobile expenses for that month;
(P) Travel expenses, for business
related travel;
(Q)
Training expenses, for business related training;
(R) Miscellaneous business
expenses, each expense shall be itemized, allowable expenses include
laundry and uniform expenses, advertising and promotional expenses,
printing expenses, pest control expenses, and business-related
Interest expenses, the allowable amounts are the actual amount paid
for all miscellaneous expenses.
(b) The following deductions are
not allowed:
(A) Cost of food and
products purchased for personal use;
(B) Personal rent and
utilities;
(C) Benefits
paid to non-employees, (other than to any spouse, domestic partner,
or to a relative by blood or marriage) including health insurance,
life insurance, long term care insurance and retirement benefit
costs;
(D) Personal tax
obligations;
(E) Personal
insurance, including liability, home owners and automobile
insurance;
(F) Personal
legal costs;
(G) Personal
accounting and banking expenses;
(H) Personal travel expenses, for
non-business-related travel;
(4) USE OF SET-ASIDE - Set aside
dollars will be spent in accordance with Section 2 of HB 3253:
(1)
The Commission for the
Blind shall establish in the State Treasury a fund from the
net
proceeds of the operation of vending facilities.
Moneys deposited into the fund, including the interest earned, shall
be credited to a special checking account, separate and distinct from
the General Fund. Disbursement from the account may be made by check
signed by the person designated by the Commission. Interest earned by
the account shall be credited to the account.
(2)
Moneys in the fund
shall be used for the purposes of, and are continuously appropriated
to the Commission for:
(a)
Maintaining and replacing equipment;
(b)
Purchasing new
equipment;
(c)
Management services, including but not limited to management
training services;
(d)
Ensuring a fair
minimum of return to vending facility managers; and
(e)
Retirement or pension funds, health insurance contributions and, if
determined by a vote of vending facility managers, paid sick leave
and vacation time.
(3)
The Commission shall
provide to the Governor and to vending facility managers quarterly
reports of the account established under this
section.
(5) REPORTING - By the 20th day of
each calendar month, the vending facility manager shall provide to
the Commission the following information for assigned vending
facility:
(a) Total
sales.
(b) Total cost of
goods sold.
(c) Total
vending machine income and rebates received;
(d) Total allowable expenses paid
for employee wages;
(e)
Total allowable expense paid for employee benefits;
(f) Total paid for payroll taxes
and business taxes;
(g)
Total paid for licenses and permits to operate the vending
facility;
(h) Total paid
for liability, fire, property damage and workers' compensation
insurance;
(i) Total paid
for janitorial services;
(j) Total paid for business
consultant services;
(k)
Total allowable expense paid for legal fees.
(l) Total paid for bookkeeping and
accounting services;
(m)
Total paid for vending facility equipment repairs;
(n) Total allowable expense paid
for equipment rented or leased;
(o) Total allowable expenses paid
for vending facility related automobile mileage or
expenses;
(p) Total paid
for office supplies;
(q)
Total allowable expenses paid for miscellaneous business expenses.
Each expense must be itemized.
(6) RECORDKEEPING, FINANCIAL
REPORTING AND SET-ASIDE PAYMENTS - The vending facility manager
shall:
(a) Maintain and furnish to
the Commission reports as required;
(b) Submit set aside reports on a
Commission approved form, including required supporting
documentation, inventory data and the payment of set-aside
fees;
(c) Submit set
aside reports and set aside payments in accordance with their
operating agreement.
(7) RETENTION - Vending facility
managers shall retain the monthly information and all documentation
of sales, revenues, commissions, costs and expenses sent to the
Commission for a period of three (3) calendar years.
Notes
Statutory/Other Authority: HB3253 & ORS 183.341
Statutes/Other Implemented: ORS 346.510-346.570
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