Chapter 3304:1-21 Part 21 - Business Enterprise Program

The following terms are used throughout Chapter 3304:1-21 of the Administrative Code.

(A) “Blind/legally blind” means a physical condition in which the central visual acuity is not more than 20/200 in the better eye with correcting lenses; or in which the visual acuity with proper correction, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than twenty degrees as defined in paragraph (B) of section 3304.28 of the Ohio Revised Code.

(B) “BSVI” (i.e., bureau of services for the visually impaired) or “bureau,” in addition to the definition in paragraph (B) of rule 3304-1-01 of the Administrative Code, means the designated Ohio agency responsible for implementing the provisions of the Randolph-Sheppard Act and its amendments and sections 3304.28 to 3304.35 of the Ohio Revised Code. The “rehabilitation services commission” (RSC) is the agency responsible for overseeing BSVI.

(C) “Bureau-grantor agreement” means the signed agreement between BSVI and grantor for a business enterprise (BE) facility.

(D) “Bureau-operator agreement” means a permanent or temporary agreement between BSVI and the operator of a facility.

(E) “Business Enterprise assistant manager” means the BSVI employee who reports directly to the assistant director/BE program manager of BSVI or the director’s designee and is the principal field manager for the BE program in an assigned area of the state.

(F) “Business Enterprise program” (BEP) or “business enterprises program” means the program of services within BSVI responsible to carry out the provisions of 34 C.F.R. part 395 of the Randolph-Sheppard Act and Ohio Revised Code 3304.28 to 3304.35.

(G) “Business Enterprise program coordinator” or “BE training coordinator” means the BSVI employee who shall coordinate training for applicants qualified in accordance with rule 3304:1-21-02 of the Administrative Code and develop in-service and upward mobility training programs in addition to other duties assigned to the position.

(H) “Business Enterprise program manager” or “BE program manager” means the BSVI staff person who reports directly to the director of BSVI and is responsible for the general oversight and management of the business enterprise program throughout the state.

(I) “Business Enterprise rules” means the complete set of administrative rules governing the business enterprise program, which have been promulgated in accordance with Chapter 119. of the Revised Code. The BE administrative rules are set forth in Chapter 3304:1-21 of the Ohio Administrative Code.

(J) “Business Enterprise specialist” or “BE specialist” means the BSVI employee assigned to provide consulting services to the operator or temporary operator to maximize efficiency, income and performance, to include, although not limited to, the general areas in the job description and monitor and enforce operator compliance with applicable statutes, ordinances, codes, and rules.

(K) “Business Enterprise supervisor” or “BE supervisor” means that BSVI staff person assigned by the program manager to supervise one or more BE specialists and perform special projects, who reports directly to the BE assistant manager.

(L) “Electoral district” means any of the seven geographical areas as defined by the bureau from which representatives and alternates of the Ohio vendors representative committee are elected.

(M) “Facility” or “vending facility” means automatic vending machines, cafeterias, snack bars, cart services, shelters, counters, and such other appropriate auxiliary equipment as may be prescribed by federal regulations as being necessary for the sale of newspapers, periodicals, confections, tobacco products, foods, beverages, and other articles or services dispensed automatically or manually and prepared on or off the premises, including the vending or exchange of chances for the state lottery.

(N) “Facility announcement” means a notice that is sent to all licensees announcing a current or forthcoming permanent operator position available in an existing or newly developed business enterprise program facility.

(O) “Federal property” means any building, land, or other real property owned, leased, or occupied within the state by any department, agency, or instrumentality of the United States, or any other instrumentality wholly owned by the United States.

(P) “Grantor” means the person who is responsible for the property housing a BE facility.

(Q) “Grantor required payment” means any commission, assessment or other financial obligation of the operator required by the bureau-grantor agreement.

(R) “Inventory adjustment charge” means a reimbursement to the bureau or operator resulting from a difference between the value of facility goods on hand at the time of the closing inventory and the value of BSVI provided inventory.

(S) “License” means a written document issued by BSVI to a person authorizing such person to operate a facility on federal or other property.

(T) “Licensee” means any person licensed by BSVI to operate a facility after successfully meeting the bureau’s requirements for such license.

(U) “Ohio Vendors Representative Committee” (OVRC) means the group of operators who have been elected from their respective districts in accordance with rule 3304:1-21-12 of the Administrative Code.

(V) “Operator” or “facility manager” means a licensee who is authorized to operate a facility through a signed bureau-permanent-operator agreement and/or bureau-temporary-operator agreement.

(W) “State property” means “governmental property” as is defined in division (C) of section 3304.28 of the Revised Code.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.28 and 3304.34

Prior Effective Dates: 3/21/79, 5/1/83, 6/1/88, 1/12/90, 11/1/93, 10/4/99

(A) Bsvi shall consider for bep training a person only if that person meets the following eligibility criteria:

(1) Is a citizen of the United States;

(2) Is twenty-one years old or older;

(3) Is legally blind, as defined in paragraph (A) of rule 3304:1-21-01 of the Administrative Code;

(4) Has a high school diploma or has obtained a general education diploma;

(5) Possesses sufficient physical stamina with or without reasonable accommodations to operate a facility;

(6) Has the Necessary mobility skills to operate a facility;

(7) Demonstrates independent living skills;

(8) Has math skills to calculate fractions, decimals and percentages;

(9) Demonstrates effective oral and written communication skills;

(10) Has good interpersonal skills for a retail business environment;

(11) Has successfully completed an in-facility training experience as required;

(12) Has no past due BE program debts in Ohio or any other state.

(13) Demonstrates ability to manage personal finances responsibly;

(14) Passes required drug test;

(15) Has successfully completed a criminal background investigation consistent with the required standards for gaining admittance to federal and state facilities.

(B) Candidates for BEP training shall be recommended by a BE assistant manager upon completion of an interview with the BE assistant manager or designee and documented evidence of the above qualifications listed in paragraph (A)(1) through (A)(15) of this rule.

(C) BSVI shall issue a license to a Person who has completed, to the satisfaction of BSVI, approved training and has successfully completed the licensure exam.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29(C)

Prior Effective Dates: 3/21/1979, 5/1/1983, 1/12/1990, 11/1/1993, 10/4/1999

(A) The facility announcement of operator vacancies shall be made as follows:

(1) The BE assistant manager shall prepare a draft announcement for the available facility and submit it to the BE program manager for review and approval. Upon approval, the BE program manager shall issue the announcement to all licensed operators. The BE program manager shall provide notice of the available facility to all licensees within ten working days of notification by the assistant manager in accordance with paragraph (A)(1) of this rule. The notice shall provide for access to all of the information in paragraphs (A)(1)(a) to (A)(1)(l) of this rule, and include that a copy of the bureau-grantor agreement may be obtained from the BSVI area office of the area in which the facility is located, and the date and time on which application receipt will be closed, which date shall be no less than twenty-one calendar days from the date notice is provided. All announcements for the available facility shall include the following:

(a) The estimated starting date of the new operator;

(b) A description of the facility with:

(i) An estimate of the number of customers served each day;

(ii) Seating capacity;

(iii) The types of food services the facility provides, e.g., carry-out, vending, cafeteria, or other;

(iv) Equipment;

(v) Items stocked for sale;

(vi) Opening day cash recommendation; and

(vii) Information about whether any space, if any, is available at the facility for inventory storage or if the operator must provide off-site storage and product transport.

(c) The name, address of the facility, and the facility’s number;

(d) The yearly gross receipts and net proceeds, for as many of the three preceding fiscal years as records allow, or for a new facility, the projected yearly gross receipts and net proceeds;

(e) Reasons for fluctuation in proceeds, if known;

(f) The days and hours of operation;

(g) The number of employees presently employed, with notation that persons who are blind or otherwise disabled and are qualified for the job shall be given preference when hiring in any BE facility;

(h) Available public transportation;

(i) Projected changes in the facility (e.g., relocation and remodeling);

(j) Any special training, physical requirements, and mobility skills required for the job;

(k) The location, type, and level of competing food service; and

(l) The name, title, and office address of the aassistant manager issuing the notice.

(2) Operators who wish to bid on the available facility must submit an application, on a form prescribed by BSVI, to the BSVI area office by the announcement deadline date and time.

(3) It is the responsibility of applicants to verify receipt of application by the deadline date and time. Applications and/or supporting documentation shall not be accepted after the deadline date and time.

(4) The committee shall request written verification of the submitted application content from the BE assistant manager or from the BE program coordinator.

(5) If an applicant falsifies information on the application form, he/she shall be removed from consideration.

(B) A selection committee shall be established in each BEP geographical area:

(1) The selection committee in each area shall consist of these members:

(a) BE assistant manager (chairperson);

(b) BE specialist assigned to the facility;

(c) Area OVRC representative;

(d) Area OVRC alternate.

(2) The selection committee shall score all applications with the top three scoring candidates being selected for an interview.

(3) An interview committee shall be established and shall include all members of the selection committee and the grantor of the building in which the facility is located or his/her representative. If grantor declines or is unavailable to serve on the committee, the interview committee shall proceed with the selection process without a grantor representative.

(4) If any selection committee member cannot attend a meeting, a designee shall be appointed for the absent member, for that meeting only, in the following manner:

(a) The attending OVRC representative or alternate shall appoint, with the consent of the other members of the selection committee, an operator from that area to serve for the OVRC representative or alternate. If neither can attend, each shall appoint, with the consent of the other members of the selection committee, an operator from that area to serve;

(b) If the area has no alternate representative at the time of the selection, the OVRC representative shall appoint, with the consent of the other members of the selection committee, an operator to sit on the selection committee.

(c) If the area has neither an OVRC representative or alternate representative the chairperson of OVRC shall appoint, with the consent of the other members of the selection committee, both members from the area with the available facility to the selection committee.

(d) The BE assistant manager shall appoint, with the consent of the other members of the selection committee, an RSC staff person to serve for the BE assistant manager or BE specialist.

(5) A member of the area selection committee, who has a personal interest or conflict of interest in relation to the facility or applicants, be it direct or indirect, shall voluntarily withdraw from the selection committee for the available facility. A personal interest, direct or indirect, shall include, but not be limited to, the following examples: an operator who is assigned to the same building or complex, a family member of any applicant, or the outgoing operator of the available facility. A family member is defined as any individual who is either a relative or guardian of any applicant, or lives in the same household as any applicant. If there is a dispute over whether a member of the selection committee has a personal interest, and the member does not voluntarily withdraw, the remaining members of the selection committee shall decide the dispute by majority vote. If it is determined that a conflict exists, a designee shall be appointed in accordance with paragraphs (B)(4)(a) to (B)(4)(d) of this rule.

(C) The area selection committee shall be convened by the chairperson.

(1) The area selection committee shall consider only eligible candidates. An eligible candidate is a licensee who:

(a) Has no current and/or past due Randolph-Sheppard program charges or grantor required payments as of the application deadline date; and

(b) Is an operator who has served as an assigned operator in his/her current location for at least one hundred twenty calendar days as a party to a bureau-operator agreement and has not been barred under the provisions of paragraph (D) of this rule.

(2) If based on application scoring and/or interview(s), the area selection committee determines that none of the candidates are suited to manage the available facility, such applicants shall be declared unsuccessful.

(3) The following criteria shall be used to evaluate each applicant to determine who will qualify for an interview with each criterion being worth no more than forty points for a maximum score of two-hundred points:

(a) Interpersonal skills: defined as the candidate’s documented ability to effectively serve customers, relate to grantors, and supervise employees.

(b) Like experience and/or education: the previous employment record and education of each candidate. The primary function is to give emphasis to experience within the BE program, then to other verifiable work related education and supplemental training experiences.

(c) Reporting procedures: the timeliness and accuracy of monthly operating reports, semi-annual inventories, receipt of service charge checks, and grantor required payments for the past two years.

(d) Daily operation of current facility: the promotion and marketing strategies, recordkeeping systems, fiscal responsibility, safety and sanitation record, and the operator’s commitment to hiring employees with disabilities, and due diligence in care and maintenance of facility equipment.

(e) Efficiency of current and previous facilities: the gross profit percentage, labor percentage and net proceeds percentage for the past two years.

(4) The above selection criteria shall be applied according to detailed definitions as agreed upon by BSVI and OVRC. Selection criteria and interview scores shall be combined to arrive at a total score for the applicant not to exceed two-hundred-forty points.

(5) Any candidate who can not be rated in any category in paragraphs (C)(3)(a) to (C)(3)(e) of this rule, because it is non-applicable, will be given a default score in each of those non-applicable criteria, as determined by the selection committee prior to reviewing applications.

(6) Personal interviews shall be conducted at a site selected by the BE assistant manager. Each applicant shall be notified as to whether he/she shall be interviewed. Each interviewee shall be notified of the date, time, and place of the interview. Personal interviews shall be conducted for the top three candidates. If more than three applications are received, the selection committee will determine the top three eligible candidates using the criteria listed in paragraphs (C)(3)(a) to (C)(3)(e) of this rule. Additional applicants may be interviewed if such interviews are warranted by applicant qualifications. Notice shall be sent to all applicants within three working days of the committee’s decisions as to whether or not they will be interviewed. If only one eligible application is received, the interview may be waived by BSVI. The interview for all qualified candidates for the available facility shall be valued a maximum of eight points per question for a maximum interview score of forty points.

(7) The interview committee shall evaluate each applicant on only the following criteria: interview performance based on established benchmarks for the questions asked. These questions shall include:

(a) General business knowledge; and

(b) Issues and questions specific to the available facility; and

(c) Other questions pertinent to good management of the facility.

Such issues and questions shall be developed by the interview committee prior to the first interview and shall not change through the completion of all interviews. The interview committee shall use the same questions throughout the process for each candidate.

(8) The committee shall not deny consideration or selection to any person on the basis of color, sex, national origin, age, physical or mental impairment, or political affiliation.

(9) The chairperson shall send written notification to all interviewees of the committee’s selection within ten working days following the last interview. Interviewees may contact the chairperson to schedule an appointment to review the selection committee’s documents.

(D) A selected candidate who turns down the facility after the interview shall not be an eligible candidate for any operator openings for one hundred twenty calendar days. If the awarded facility is a new or temporarily closed location whose actual opening has been delayed more than thirty calendar days from the opening date stated in the announcement in paragraph (A)(1) of this rule, this penalty shall not apply. In such instances of post selection withdrawal, award of the available facility shall be made to the next most qualified applicant identified through the process set forth in paragraph (C) of this rule.

(E) An appeal of the selection committee’s decision may be made. Such an appeal shall be filed in accordance with the grievance procedures in rule 3304:1-21-14 of the Administrative Code within thirty days of the date the bureau’s letter of notification is mailed.

(F) In case of a tie, seniority will be used as the tie breaker for the award of the facility. Seniority will be determined by adding total number of months an operator is party to a bureau-operator and bureau-temporary-operator agreement; secondary agreements do not apply.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29(B)

Prior Effective Dates: 3/21/1979, 5/1/1983, 1/12/1990, 11/1/1993, 10/4/1999

(A) An operator’s responsibilities shall include all of the following.

(1) In employing staff, the operator shall:

(a) Consult with the BE specialist prior to creating a position and contact specialist for referrals when filling a vacant position.

(b) Give preference to: BE licensees, then people who are blind then RSC consumers with visual impairments, then other RSC consumers, and then other persons.

(c) Not deny employment to any person on the basis of color, sex, national origin, age, physical or mental impairment, or political affiliation.

(2) Except for nonattended, ancillary or satellite vending locations, each operator shall be present at the operator’s base facility, office or conducting business for said vending locations for all normal business hours each workweek unless the operator is absent from the facility in accordance with paragraph (A)(4) of this rule.

(3) Operators operating vending facilities at safety rest areas in accordance with the bureau-grantor agreement between BSVI and the Ohio department of transportation shall be present at the safety rest areas for only the time needed to service, clean and maintain the automatic vending machines located there and are prohibited from engaging in any form of personal salesmanship at the facility.

(4) If the operator is absent from the facility for more than one business day, he/she shall designate someone to assume supervision of the facility and notify the BE specialist of the designee. During the operator’s absence from the facility, all responsibilities remain with the operator and shall not be set aside by his/her absence. Written notification may be requested from the operator when the BE assistant manager deems it necessary due to attendance issues.

(a) Non-medical leave of more than thirty calendar days requires the approval of the BE specialist in writing at least two weeks prior to the leave commencing.

(b) Medical leave of absence for more than thirty calendar days shall require medical documentation.

(5) Operators, are self-employed persons. As such they are responsible for complying with federal, state, and local laws with respect to, but not limited to, taxes, workers’ compensation, unemployment insurance, and social security taxes.

(6) Operators shall subcontract the management of any part of the facility only with prior approval of the BE assistant manager.

(a) The conditions for approval are:

(i) As part of the bureau-grantor agreement; or

(ii) To increase net proceeds as compared to direct management of the proposed subcontracted sales, which does not exceed fifty percent of the net proceeds for the facility; or

(iii) To implement a partnering arrangement to produce sales from a specific product line or market segment not otherwise available or feasible for the operator to manage.

(b) All income from subcontracted sales shall become part of the facility’s gross monthly receipts and shall be reported by the operator as indicated in paragraph (B) of rule 3304:1-21-08 of the Administrative Code.

(c) All current subcontracting arrangements shall be evaluated on an individual basis and those meeting the criteria set forth in paragraph (A)(6)(a) of this rule shall be approved to remain in effect.

(7) Operators shall maintain a drug-free workplace.

(B) Upon notification from anyone that the facility has been closed, or is unattended, the BE specialist shall, take reasonable steps to safeguard the facility the grantor, and BSVI. The BE specialist shall immediately notify the BE assistant manager and/or the BE program manager and shall attempt to notify the operator.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29, 3304.30

Prior Effective Dates: 3/21/1979, 5/1/1983, 6/1/1988, 1/12/1990, 11/1/1993, 10/4/1999

(A) Equipment is owned by the Ohio rehabilitation services commission, bureau of services for the visually impaired. Equipment includes any item with a depreciable life of one year or more. The bureau shall provide for repair or replacement when necessary. The operator and the BE specialist shall jointly determine if equipment needs repair or replacement.

(B) Supplies shall be provided by the bureau initially, if necessary. This includes any item with a depreciable life of less than one year not included in paragraph (C) of this rule. Supplies shall be replaced by the operator when necessary.

(C) The bureau shall provide an initial stock inventory. Stock inventory includes items available for sale at retail in whole or as a complement or part to a retail product. The operator shall maintain this stock inventory at the level provided by the bureau or may reduce this indebtedness with the approval of the BE specialist.

(D) All reports to BSVI shall reflect a cash based accounting system. All purchases and liabilities must be liquidated, processed for collection or determined uncollectible within thirty days of the day it is incurred.

(E) The operator is responsible for routine cleaning and maintenance of the facility and the equipment.

(F) If adequate inventory storage space is not available at the facility, responsibility for providing such space may be delegated to the operator by BEP. Such storage shall be in compliance with any applicable health and property use codes.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29

Prior Effective Dates: 3/21/1979, 1/12/1990, 11/1/1993, 10/4/1999

Rescinded eff 10-1-06

(A) A bureau-operator agreement shall be entered into by BSVI and the licensee selected to become an operator by the procedure outlined in paragraphs (A) to (C)(8) of rule 3304:1-21-03 of the Administrative Code. The agreement shall specify that:

(1) BSVI and the operator have the duties and responsibilities imposed by the business enterprise rules;

(2) The operator shall operate the facility in accordance with the requirements of the bureau-grantor agreement, facility permit, or other agreement for that facility. This shall include maintaining specified hours of operation

(3) The operator’s responsibility for the facility shall be for the duration of the agreement. This responsibility shall not be set aside by the operator’s absence. The operator shall personally perform the duties imposed upon an operator by the business enterprise rules and shall not subcontract with or hire someone to perform said duties unless on leave as stated in paragraph (A)(4) of rule 3304:1-21-04 of the Administrative Code;

(4) The operator shall not, without the BE specialist’s written approval, add to or take from the facility, any equipment;

(5) The operator shall be responsible for the eventual return or reimbursement of the value of the inventory provided by BSVI except for temporary operators on fee;

(6) The operator shall receive the net monthly proceeds and pay any service charges, as defined in rule 3304:1-21-08 of the Administrative Code, from the facility, which is operated under this agreement;

(7) The operator shall make reports to BSVI in accordance with rule 3304:1-21-08 of the Administrative Code;

(8) The BSVI director may immediately suspend the bureau-operator agreement for up to two weeks:

(a) If an operator is not fulfilling the terms of the bureau-operator agreement;

(b) When the actions or inactions of the operator places BSVI in jeopardy of losing the facility because of noncompliance with the permit or bureau-grantor agreement;

(c) If the operator is absent from the location without notice causing the facility to be closed in violation of the bureau-grantor agreement;

(d) If the operator is engaging in felonious activity on the facility premises; or

(e) If the actions or inactions of the operator cause or allow conditions to exist, which present a clear and present danger to employees, visitors or the public.

The bureau may terminate the agreement at the end of the two-week period after OVRC has had an opportunity to review any available documentation provided by the bureau concerning the operator and any written submittal by the operator in his/her defense and by a majority vote affirming the action of the bureau. As provided by law, operators may seek compensation for wrongful suspension or termination under this paragraph.

(B) The bureau-operator agreement shall terminate upon:

(1) Termination of the bureau-grantor agreement;

(2) Revocation or suspension of the operator’s license in accordance with paragraph (A) of rule 3304:1-21-13 of the Administrative Code;

(3) Thirty days’ written notice by the operator to the BE assistant manager, or sooner with assistant manager approval;

(4) The date on which the closing inventory required in paragraph (G) of this rule is conducted;

(5) Notice of termination by the bureau after a two-week suspension of the bureau-operator agreement in accordance with paragraph (A)(8) of this rule.

(C) In regard to vacant facilities, BSVI, at its discretion, may enter into a bureau-temporary-operator agreement.

(D) A bureau-temporary-operator agreement may be entered into by BSVI and the agreement shall:

(1) Have the duties of the operator as noted in paragraphs (A)(1) to (A)(4) of this rule,

(2) Indicate that the temporary operator shall not take leave without approval of the BE specialist.

(3) State that prices shall not be altered by the temporary operator without the consent and/or direction of the BE specialist.

(4) State that the agreement may be terminated immediately without cause upon written notice of either party.

(E) Temporary-facility assignments shall be offered to operators/licensees listed on the temporary-assignment list for the district in which the facility, to be temporarily assigned, is located. The BE assistant manager shall maintain a temporary-assignment list for each district. Operators/licensees shall be listed on a temporary-assignment list for all districts of interest to them.

(1) Operators/licensees will be placed in rank order, the highest being the operator with the lowest average net proceeds over the twelve months preceding the date when the need for a temporary operator for the vacant facility occurs..

(2) If more than one operator/licensee on the temporary-assignment list has zero income, the assistant manager shall offer the temporary assignment to the licensee believed to have the best potential for operating the facility. “Zero income” means that an operator/licensee has an income of zero in the month that the bureau is filling the need for the temporary operator.

(3) A temporary assignment shall be offered to an operator who is currently a party to a bureau-temporary-operator agreement, after all other operators/licensees on the list have declined the temporary assignment or have been deemed unable to meet the requirements for operation of the vacant facility.

(4) In situations where there is a possibility of the loss of a facility, an exception to the low-income priority may be made by the assistant manager.

(5) A statewide temporary-assignment list shall be established as follows:

(a) The assistant manager of each district shall mail a survey to all operators/licensees in their area offering the opportunity to apply for temporary assignments. The survey shall request that each interested party complete and return the survey in order to update the temporary-assignment list by October first of each year.

(b) During the year, operators/licensees will have the opportunity each quarter to add themselves to or remove themselves from the temporary-assignment list.

(6) The operators/licensees meeting the criteria for inclusion on the temporary-assignments list shall:

(a) Not have program/grantor debts or more than two late reports or payments in the previous twelve months.

(b) Not have currently pending discipline or have been removed from a facility according to rules 3304:1-21-07 or 3304:1-21-13 of the Administrative Code within two years of the date on which the temporary assignment is offered.

(c) Not have an active management plan.

(F) The temporary operator shall be compensated by one of these methods:

(1) The temporary operator may be paid a fee agreed upon by BSVI and the temporary operator. A temporary operator so compensated shall submit a monthly operating report, and shall list the fee as a deductible expense as listed in paragraph (H)(6) of rule 3304:1-21-08 of the Administrative Code. No service charges shall be assessed to a temporary operator being paid a fee. Surplus receipts, less expenses and wages, shall be submitted with the final monthly operating report of the agreement as closing cash.

(2) If the temporary operator is a licensee, he/she may choose to receive the net monthly proceeds from the unassigned facility and pay service charges according to paragraph (I) of rule 3304:1-21-08 of the Administrative Code.

(G) When a vacant facility is filled, there shall be a detailed inventory performed. The persons involved have the following obligations:

(1) The incoming operator shall be responsible, after notification by the BE specialist, for attending the closing inventory of the prior operator or sending a representative.

(2) The exiting operator shall relinquish the facility in a clean and operable condition. That operator shall be responsible, after notification by the BE specialist, for attending the closing inventory or sending a representative.

(3) The BE specialist shall:

(a) Notify the incoming operator and the exiting operator of the date and time of the closing inventory;

(b) Conduct or provide for the inventory;

(c) Assure the facility is transferred in an operable condition;

(d) Assure that an initial inventory form, and either a bureau-operator agreement or a bureau-temporary-operator agreement, have been signed for the facility; and

(e) Assure that the incoming operator receives copies of the initial inventory, either the bureau-operator or bureau-temporary-operator agreement, and the business enterprise rules within thirty days of date closing inventory is conducted.

(H) Whenever an operator relinquishes a facility or the bureau must take charge of a facility, the BE specialist may assume temporary custody of the cash on hand until such time as outstanding service charges and inventory adjustment charges due to the bureau are resolved.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29(D)

Prior Effective Dates: 3/21/1979, 5/1/1983, 6/1/1988, 1/12/1990, 11/1/1993, 10/4/1999

(A) The operator shall be responsible for submitting reports to the BSVI area office, on forms prescribed by BSVI. Such reports shall include, but not be limited to, the following reports:

(1) A monthly operating report completed in accordance with paragraph (H) of this rule; and

(2) Each January and July, a detailed inventory of facility merchandise, submitted with the operating report noted in paragraph (H)(1) of this rule. Additional inventories may be required when the BE assistant manager deems them necessary for reasonable business purposes.

(3) A vehicle expense report submitted with the monthly operating report for any month that vehicle expenses are listed as a deductible expense.

(4) The operator shall be responsible for completing a daily cash report.

(B) At the discretion of BSVI, an operator shall report, on a form prescribed by BSVI, the subtotals of designated sources of gross monthly receipts.

(C) Each pay period, the operator shall give each employee a payroll earnings statement and the operator shall retain copies of these statements for his/her records.

(D) The BE specialist shall instruct the operator in the preparation of the reports and records required by paragraph (A) of this rule.

(E) The operator shall, upon request, provide to the BSVI local office all records and reports, or copies of the requested records or reports, related to the facility for review and/or audit purposes.

(F) Facility records shall be retained for five years.

(G) Facility-related transactions shall not be executed through the operator’s personal checking and savings accounts.

(H) In a format prescribed by BSVI, each operator shall submit to the BSVI area office a detailed, accurate, and balanced monthly report for each facility for which that operator is responsible under a bureau-operator agreement. Terms to be used in the monthly report shall be as follows:

(1) “Gross monthly receipts” means all sales, sales tax collected, discounts, gifts, rebates, federal vending machine income as described in paragraph (C)(1) of rule 3304:1-21-16 of the Administrative Code, income from subcontracted facility sales, promotional considerations, and bonuses, either monetary or in kind, which the operator has the power to obtain and control the disposition thereof, accrued from operation of a facility to any of the following:

(a) The operator or facility;

(b) A representative of the operator;

(c) An organization of which the operator is a member or with which the operator is associated;

(d) Any person or entity directly or indirectly designated by the operator.

(2) “Gross annual receipts” means the total gross monthly income in a federal fiscal year.

(3) “Net monthly proceeds” means the gross monthly income less deductible expenses, stock, and wages.

(4) “Wages” means pay to employees, paid leave time, and other fringe benefits paid to employees.

(5) “Stock” means merchandise purchased for resale as defined in paragraph (C) of rule 3304:1-21-05 of the Administrative Code.

(6) “Deductible expenses” means costs personally paid by the operator for the following goods and services necessary to operate a facility; an operator may subtract such costs from the gross monthly income if the expenses are documented by cancelled checks, receipts, or other documentation, and are paid within the report’s period. A deductible expense shall be subject to review and approval by the BE specialist.

(a) “Supplies” means expendable items which are necessary for day-to-day facility operation, but are not for resale as defined in paragraph (B) of rule 3304:1-21-05 of the Administrative Code.

(b) “Janitorial service” means a commercial firm or independent contractor to clean the facility;, or to remove trash. Such costs are deductible unless the bureau-grantor agreement, facility permit, or other BSVI agreement assigns such responsibility to someone other than the operator.

(c) Business licenses.

(d) “Telecommunications charge” means the costs for any required business telephone services.

(e) Cost of uniforms, rented or owned, and laundry charges only when used for the business.

(f) “Business advertising” means the reasonable costs of advertising and promotional activities intended to support and/or increase facility sales.

(g) Premiums for insurance coverage for off-site storage facilities.

(h) Rent/commission to grantor, if required by agreement for location.

(i) Expense for storage space.

(j) Utilities for the facility when not included in rent.

(k) Employer contribution for social security.

(l) Workers’ compensation premiums.

(m) Ohio unemployment taxes.

(n) Federal unemployment taxes.

(o) Sales taxes.

(p) Pre-approved training expenses of up to one thousand dollars per year; such training must be directly related to the job.

(q) Temporary operators on bureau-temporary-operator agreements on fee.

(r) Vehicle expenses to be used only if a vehicle is required for a facility. Any vehicle expenses listed on the monthly operating report shall require an additional vehicle expense report to be completed and submitted with that monthly operating report.

Only one method of expensing the vehicle shall be allowed each calendar year, unless a new vehicle is acquired during the year. Commuter miles, personal use of vehicle and/or depreciation costs must be excluded in either method.

Method one – actual costs shall include the business percentage of the following expenses: vehicle insurance, vehicle registration, gasoline, oil, other maintenance costs, and monthly lease or payment.

Method two – standard mileage rate, as allowed by the internal revenue service for that calendar year for each business mile.

(s) Pre-approved miscellaneous expenses. Documentation for these expenses may be requested to accompany the monthly operating report.

(t) Business dues.

(u) Professional merchandise delivery services.

(v) Pest exterminator services.

(w) Bookkeeping/accounting services.

(x) The purchase of a computer and/or business-related computer expenses.

(y) Business legal fees (not associated with any adversarial procedures against RSC).

(z) Air conditioner, filter, and fire suppression services and/or security system costs.

(aa) Banking fees.

(bb) Documented refunds to customers.

(7) Each month’s report shall be due on the tenth calendar day of the following month. A detailed, extended stock inventory is required to accompany June and December’s monthly operating report. If such day is a Saturday, Sunday, or legal holiday, the due date is the next BSVI workday. The report shall be late if not received by the BSVI area office or post-marked by the due date. The operator shall be subject to penalties for late reports as noted in paragraph (A) of this rule 3304:1-21-09 of the Administrative Code.

(I) Each month, each operator, except as noted in paragraph (F)(1) of rule 3304:1-21-07 of the Administrative Code, shall submit a service charge to BSVI.

(1) “Service charge” means the total of the fee assessed by BSVI upon the operator’s net monthly proceeds and the co-payment for maintenance and repair labor charges. The service charge shall be assessed in this manner:

(a) Ten per cent of net proceeds up to one thousand dollars; plus

(b) Fifteen per cent of net proceeds from over one thousand and one dollars up to two thousand five hundred dollars; plus

(c) Twenty per cent of net proceeds over thousand five hundred dollars; plus

(d) Co-payment fee on maintenance and repair service calls, which include on-site labor and/or mileage charges, except in the following cases:

(i) For fifteen calendar days after a piece of equipment is reassigned to a new location; or

(ii) For thirty calendar days after an operator is reassigned to a new location.

(e) Prior to October first each year, the total amount of the co-payment per service call shall be determined by BSVI in consultation with OVRC.

(2) The service charge shall be determined from the information submitted on the monthly report as described in paragraph (H) of this rule. If a closing monthly operating report is outstanding thirty days after its due date; then BSVI shall prepare a written estimate of service charges due and shall send the operator a copy of the estimate.

(3) Full payment of the service charge shall be postmarked by the fourteenth calendar day following the mailing date on the invoice. When the fourteenth day is a Saturday, Sunday, or legal holiday, then the due date shall be the next BSVI workday. The operator shall be subject to penalties for late or partial service charge payments as noted in paragraph (A) of rule 3304:1-21-09 of the Administrative Code.

(4) If the operator disagrees with a portion of the service charge, he/she must notify the assistant manager in writing of the disputed portion by the due date of the disputed service charge. The correspondence shall explain and, if possible, provide supporting documentation to verify his/her dispute. If the operator has paid the undisputed portion of the service charge, then the operator shall not be subject (for the disputed portion) to the penalties contained in paragraph (A) of rule 3304:1-21-09 of the Administrative Code.

(5) Service charges received by BSVI shall be used for:

(a) Maintenance and replacement of facility equipment;

(b) Purchase of new facility equipment;

(c) Management services including inspection, supervision, quality control, consultation, regulation, in-service training, and related services as provided to operators by BSVI.

(6) Service charges received by BSVI may also be used for the following benefits, except for any operator who has outstanding program debts. For those operators, any benefit payments shall be applied to pay off all program debts prior to distribution.

(a) Assuring a fair minimum return to an operator under a permanent-operator agreement, whose facility has been temporarily closed for more than two weeks for purposes of remodeling or by extraneous factors such as strike or disaster, may submit an invoice to BEP for payment of a stipend during the remainder of such temporary closing. The amount of this stipend shall be annually established by BSVI and OVRC and is contingent on availability of funds. A service charge shall not be levied against this amount nor shall it be shown on the monthly operating report.

(b) Contributing to a benefit fund such as a pension fund, health insurance, paid sick leave, and paid vacation. The amount of any such contribution from service charge shall be established annually by BSVI and the OVRC and shall be contingent on the availability of service charge funds. Benefit payments will be made to eligible operators from the benefits fund on or about the end of February following the end of the federal fiscal year.

(7) BSVI shall maintain a record of collections and expenditures of service charges. These records shall be subject to review by state and federal auditors.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.30

Prior Effective Dates: 3/21/1979, 5/1/1983, 6/1/1988, 1/12/1990, 11/1/1993, 10/1/1996, 10/4/1999, 1/30/2001

(A) Causes for penalty charges. Late reports, late semi-annual inventories, late or partial service charge payments, or service charge checks returned for insufficient funds, shall be cause for penalty charges and action as follows:

(1) The first time in any federal fiscal year an operator is late with a report or payment, or has a check returned for insufficient funds, he/she shall receive written notice from the area office that subsequent occurrences during the federal fiscal year shall be cause for additional monetary penalties and shall affect his/her future application for promotion/selection to facility vacancies.

(2) The second time in any federal fiscal year an operator is late with a report or payment, or has a check returned for insufficient funds, a penalty of one hundred dollars shall be added to the next billing invoice for service charge.

(3) The third time or more in any federal fiscal year an operator is late with a report or payment, or has a check returned for insufficient funds, a penalty of two-hundred dollars shall be added to the next billing invoice and the operator shall be served written notice from the assistant manager that another late occurrence may result in the implementation of the disciplinary procedures of rule 3304:1-21-13 of the Administrative Code.

(4) In applying the above cited penalties, the total number of acts that occurred during the federal fiscal year shall be used as the basis for the penalty. It is not the intent of this provision that an identical act must by repeated within the same fiscal year to warrant a higher penalty.

(5) In addition to the above cited penalties and actions, the operator shall be charged a fifty-dollar program service fee for checks returned for insufficient funds. A separate check for this fee must be submitted along with the next month’s service charge payment.

(6) An operator who has one check returned for insufficient funds shall be required to submit a certified check or money order for all subsequent payments for the remainder of the federal fiscal year.

(B) Causes for bureau-operator agreement terminations:

(1) The fifteenth day payment has not been received following hand delivery of a letter by BSVI to an operator documenting non-payment of a commission or other fee required by the bureau-grantor agreement for that facility.

(2) The date an accurate and balanced monthly operating report or inventory is forty-five days past due and has not been received by BSVI by the close of business on the forty-fifth day following hand delivery of a letter by BSVI to an operator notifying him/her that the monthly operating report or inventory was thirty days past due.

(3) The day a representative of BSVI hand carries a second thirty-day notice of past due commissions, service charge, monthly operating report or inventory in a federal fiscal year. The total number of past-due letters, which have occurred in the federal fiscal year, shall be used as the basis for this action.

(4) The date a service charge is forty-five days past due and payment in full has not been received by BSVI by the close of business of the forty-fifth day following hand delivery of a letter by BSVI to an operator notifying him/her that the service charges were thirty days past due.

(5) The date an inventory adjustment charge is forty-five days past due to BSVI and payment in full has not been received by BSVI by the close of business of the forth-fifth day following hand delivery of a letter by BSVI to an operator notifying him/her that the inventory adjustment charge due BSVI was thirty days past due.

If the operator disagrees with a portion of the inventory adjustment charge according to the procedures noted in rule 3304:1-21-14 of the Administrative Code, and has paid the undisputed portion of the inventory adjustment charge, the operator shall not be subject (for the disputed portion) to this penalty until thirty days after being notified of any dispute resolution.

(C) Program charges forty-five days past due may be cause for license revocation in accordance with rule 3304:1-21-13 of the Administrative Code.

(D) Any unpaid program charges forty-five days past due shall have a twenty-five percent penalty added to the total of unpaid program charges and shall then be forwarded to the state of Ohio, attorney general’s office, collection recovery unit in accordance with section 131.02 of the Revised Code.

Replaces: 3304:1-21-09

Effective: 10/01/2006

R.C. 119.032 review dates: 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.31

Prior Effective Dates: 3/21/1979, 5/1/1983, 1/12/1990, 11/1/1993, 10/4/1999

(A) The operator shall operate the facility consistent with the bureau-operator and bureau-grantor agreement in accordance with all of the following:

(1) The operator shall operate the facility in accordance with federal, state, and local statutes, ordinances, regulations, and rules.

(2) The operator shall display at the facility all licenses and permits issued to him/her by the bureau or any other agency of government.

(3) The operator shall provide the BE specialist with his/her current home address and telephone number and current business address and telephone number.

(4) The operator and his/her employees shall observe a high standard of personal hygiene. Their attire shall be appropriate for the facility location as determined by the BE specialist specified in the bureau-grantor agreement.

(5) The operator shall operate the facility in an efficient manner. “Efficient” means that the operator manages the facility with operating percentages at or above the limiting percentages for gross profit, net profit, wages, and miscellaneous expenses agreed upon by the operator and the specialist on the operator’s annual review or agreed upon by the area selection committee should the operator and the specialist fail to agree.

(6) Once during each federal fiscal year, the operator shall meet with the BE specialist at a mutually-acceptable location to participate in an annual performance evaluation and budget review with sales, profit, and labor projections.

(7) The operator shall acquire, maintain, and, upon request, produce evidence of adequate liability insurance as required by the bureau or grantor. This shall include vehicle and/or off-site storage areas.

(8) Unless otherwise established by contract, permit or regulation, the operator shall establish retail prices for his/her merchandise to meet the performance goal according to paragraph (A)(9) of rule 3304:1-21-11 of the Administrative Code and post such prices conspicuously in the facility.

(9) On the day of the closing inventory, the operator shall provide copies of all recent invoices and the previous semi-annual inventory. Credit will not be given for any product for which wholesale pricing information is not available at the time the closing inventory is conducted.

(B) The BE assistant manager shall inform an operator in writing, when they have evidence that demonstrates an operator is managing a facility in violation of paragraph (A)(1) through (A)(9) of this rule.

(1) The operator shall, within thirty days of being so informed, submit to the BE assistant manager a detailed written plan of corrective action. The specialist and area OVRC representative shall assist the operator in preparing a plan of corrective action. The plan shall be approved by the assistant manager within ten working days of the due date.

(2) The operator shall receive all appropriate and available assistance required to implement their approved plan of corrective action, for example, the advice and counsel of his/her specialist, OVRC representative, OVRC alternate representative, training opportunities offered by the training coordinator, and adaptive aids available and training through a BSVI counselor.

(3) An operator, who does not submit a plan of corrective action or whose plan is not approved, shall have sixty days from the date on which the plan was due to correct all noted deficiencies of which he/she has been informed. Failure to correct the noted deficiencies shall result in the termination of his/her bureau-operator agreement for that facility on the sixty-first day.

(4) An operator who does submit an approved plan of corrective action shall have one hundred twenty days from the date on which the plan was due to fully correct the deficiencies of which he/she has been informed. Failure to fully correct the noted deficiencies shall result in the termination of his/her bureau-operator agreement for that facility on the one hundred twenty-first day.

(5) Nothing in this section modifies paragraph (A)(8) of rule 3304:1-21-07 of the Administrative Code regarding the immediate temporary suspension of loss of a facility as defined in said rule.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.31

Prior Effective Dates: 3/21/1979, 1/12/1990, 10/4/1999

(A) The bureau shall:

(1) Enter into agreements or contracts, or secure permits with governmental, state, or federal properties for suitable vending facilities.

(2) Negotiate terms to include rentals, commissions, and enforcement of terms.

(3) Enter into agreements with county, municipal, or non-public entities.

(4) Establish training programs for entry and upward mobility.

(5) Establish disciplinary procedures including revocation, suspension, fines, and penalties that may affect but are limited to licensure, agreements, and licensee privileges.

(6) Invest monies derived from business enterprise operations and/or all unassigned vending income as defined in the Randolph-Sheppard Act and its amendments and rules and regulations, and the provision of the services and uses identified for application of these monies contained in federal regulations at 34 C.F.R. 395.8 (c) of the Randolph-Sheppard Act.

(7) Have reasonable right of access to any facility and/or facility storage space for purposes of operation, inspection, inventory verification, and/or recovery.

(8) Do everything necessary and proper to carry out the laws, rules and regulations governing the business enterprise program and to comply with the Americans with Disabilities Act of 1990 (public law 101-336).

(9) Annually establish performance goals for each facility.

(10) Inform the operator of patterns of inefficient, fiscally irresponsible, and/or unprofessional behavior or practices according to paragraph (A) of rule 3304:1-21-10 of the Administrative Code.

(B) General authority and responsibility shall be delegated from the director’s office to the area offices under the supervision of the assistant manager and/or the BE supervisor and/or the BE specialist. Assistant managers, BE supervisors and BE specialists shall have the direct responsibility for implementing these rules and other policy and procedural directives as may be issued by the director’s office as needed.

(C) The authority delegated to the areas with direct responsibility for such enforcement of the rules and policies placed with the assistant managers, BE supervisor or the BE specialist shall be applied to the program and the operators on a uniform basis.

(D) The BE supervisor/specialist shall:

(1) Provide the operator with a copy of the business enterprise rules in both written and his/her desired alternative format, and with forms prescribed by the business enterprise central office under rule 3304:1-21-08 of the Administrative Code;

(2) Familiarize the operator with the business enterprise rules, the terms and conditions of the bureau-operator and bureau-grantor agreements for the facility and advise him/her of the requirement to comply with them;

(3) Instruct the operator in the preparation of the reports required by paragraph (A) of rule 3304:1-21-08 of the Administrative Code;

(4) Inform the operator of federal, state, and local laws governing his/her status as a retailer, a self-employed person, and an employer;

(5) Give special assistance to newly licensed operators and operators managing new or remodeled locations;

(6) Perform semi-annual inspections and prepare a written report on a form prescribed by BSVI;

(7) Perform an annual performance appraisal, an annual equipment inventory, an annual records review, an annual budget projection, and such facility visits as required to document management and operational deficiencies and to support plans of corrective action;

(8) Advise the operator with respect to business management, record keeping, merchandising, sound retail practices, and maintaining good relations with customers, employees, and suppliers;

(9) Ensure that all facility equipment is maintained in good repair and an attractive condition; and conduct an annual physical inventory of equipment between April and June of each year;

(10) Refer to the operator, persons for employment in accordance with paragraph (A)(1)(a) of rule 3304:1-21-04 of the Administrative Code;

(11) Participate in selection committee when considering applicants for a facility for which he/she is assigned;

(12) Seek and advise BEP with respect to potential facility locations and participate in designing and establishing new facilities.

(E) The business enterprise program coordinator shall be responsible for:

(1) Coordinating the initial training for the business enterprise program trainees;

(2) Coordinating in-facility training and upward mobility seminars for licensees;

(3) Maintaining training records of all licensees;

(4) Coordinating BE staff training programs;

(5) Developing marketing and promotional material;

(6) Assisting in the development of potential facility locations and designing new facilities.

(F) The BE assistant manager shall administer the business enterprise program in his/her area.

(G) The BE program manager shall direct and monitor the operation of the business enterprise program, its staff and its funds, recommend and institute changes in the program, and perform such other duties as required by the BSVI director.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29

Prior Effective Dates: 3/21/1979, 1/12/1990, 11/1/1993, 10/4/1999

(A) The state is divided into seven electoral districts for the purpose of electing Ohio vendors representative committee (OVRC) representatives and alternates. The districts are as follows: Columbus, Zanesville, Akron-Canton, Cleveland, Toledo, Dayton, and Cincinnati.

(B) The OVRC shall be composed of seven operators who are party to a bureau-permanent-operator agreement and have been elected by the operators assigned to the same electoral district. Each member shall represent all operators assigned to his/her electoral district. An alternate representative who is party to a bureau-permanent-operator agreement shall also be elected for each electoral district.

(1) A representative and an alternate from each district shall be elected for a two-year term commencing on the first of July of the year of their election.

(2) If a representative is absent from a meeting, the alternate shall participate in that meeting with the full rights of the representative.

(3) If a representative is unable to complete a term, or ceases to be an operator, or moves from that electoral district, the alternate shall complete the term; and a new alternate shall be elected to complete the original alternate’s term, unless there are ninety days or less remaining in the term. If an alternate is unable to complete the term, or ceases to be an operator, or moves from that electoral district, or assumes the representative’s position, a new alternate shall be elected to complete the original alternate’s term, unless there are ninety days or less remaining in the term.

(4) Special elections to fill an unexpired term of a representative or an alternate, as stated in paragraph (B)(3) of this rule, shall be conducted in the following manner:

(a) The assigned assistant manager shall conduct a nominating meeting as soon as is reasonably possible.

(b) Unless a reasonable excuse is made to the assigned assistant manager prior to the nominating meeting, an operator must be present at this meeting to be nominated. Only operators may nominate and vote.

(c) If only one candidate is nominated, he/she shall be declared the winner by acclamation.

(d) If more than one candidate is nominated, the assigned assistant manager shall prepare a ballot listing all the candidates and shall distribute, by registered mail, a copy to each operator in the area within fifteen calendar days of the date of the nominating meeting.

(e) The ballot shall be counted only if it is marked for one candidate and returned in the provided envelope within thirty calendar days of the nominating meeting.

(f) The candidate receiving the most votes shall complete the original term. In case of a tie, the declared winner shall be the operator with the most seniority as an operator of those who received the tie vote, and he/she shall complete the original term.

(g) Within forty-five calendar days of the nominating meeting, the assigned assistant manager shall inform each licensee within the area, by first-class mail, of the election results.

(C) The committee representatives and alternates shall be elected as follows:

(1) Elections shall be held for OVRC representatives and alternates of Akron-Canton, Cleveland, and Cincinnati in even numbered years and for Columbus, Zanesville, Toledo, and Dayton in odd numbered years.

(2) On or before April fifteenth in the year in which the representative is to be elected, the assigned assistant manager shall conduct a nominating meeting.

(3) Unless a reasonable excuse is made to the assigned assistant manager prior to the nominating meeting, an operator must be present at this meeting to be nominated as a representative or alternate. Only operators may nominate and vote.

(4) If only one candidate is nominated, he/she shall be declared the winner by acclamation.

(5) If more than one candidate is nominated, the assigned assistant manager shall prepare a ballot listing all the candidates and shall distribute, by registered mail, a copy to each operator in the area on or before April thirtieth.

(6) The ballot shall be counted only if it is marked for one candidate and returned in the envelope provided on or before May fifteenth.

(7) The candidate receiving the most votes shall be the representative and the candidate receiving the next greatest number of votes shall be the alternate. In case of a tie, the representative shall be that operator with the most seniority. The alternate shall be that operator who has the next greatest amount of seniority.

(8) On or before May thirty-first, the assigned assistant manager shall inform each licensee within the area, by first- class mail, of the results of the election.

(9) The operators of an established OVRC electoral district may petition the bureau to recall the current elected representative or alternate for misconduct and/or neglect of duty.

(a) The petition must be signed by fifty-one per cent of the eligible voting operators of the given OVRC electoral district and shall clearly specify the charges brought against the elected representative or alternate.

(b) After receipt of the petition for recall, the BE program manager shall verify that misconduct and/or neglect of duty does exist. After verification of these charges, a ballot shall be mailed (by first-class postal mail or electronic mail) to the operators of that electoral district instructing them to vote to recall or to not recall the elected representative or alternate. A majority of the eligible voting operators of the given OVRC electoral district is required to return a ballot with an affirmative vote in order to recall a representative or alternate. The results of the ballots shall be effective immediately.

(c) If the representative is recalled and a vacant position exists, the alternate will become the representative and the bureau will conduct an election within the next thirty days to elect a new alternate. The one exception will be if the recall vote occurs in the month prior to the regular election for that area, in which case no special election for an alternate will be held.

(d) If the alternate is recalled, a special election shall be held to nominate and elect a new alternate according to paragraph (B)(4) of this rule.

(D) The committee shall elect officers in accordance with its bylaws. The committee shall establish rules by which its meetings shall be conducted.

(E) The BSVI director shall meet with the committee; special meetings of the committee shall be convened within fifteen days of the written request of the majority of its members or upon the written request of the BSVI director. Committee members shall bear the cost of their expenses related to special meetings; BSVI shall bear the cost of actual and necessary expenses of committee members for attendance at regular semiannual meetings.

(F) The committee shall:

(1) Actively participate, with BSVI, in major administrative decisions and policy and program development with respect to the BE program. Such participation shall be as follows:

(a) The chairperson of the committee shall prepare an agenda of topics to be discussed by the OVRC at each meeting.

(b) Following such discussion, the committee may formulate and offer written recommendations within fifteen days of such meetings. These recommendations shall be considered by BSVI before any decisions are made except in a situation requiring the immediate action of the director.

(2) Accept grievances of licensees and applicants and serve as advocates for such persons;

(3) Participate, as individual members, in the operator selection system;

(4) Participate, with BSVI, in developing training and re-training programs;

(5) Sponsor, with the assistance and approval of BSVI, meetings for licensees.

(G) Between the committee’s regular meetings, it may carry on its subcommittee work and share information through teleconferences.

(H) BSVI shall make a reasonable attempt to notify the chairperson of the OVRC in a timely fashion of major administrative decisions and program development and policy issues with respect to the BE program for the committee’s consideration in accordance with paragraphs (F)(1) of this rule and may invite the committee to have a member or members present at any discussion and decision-making meetings. If BSVI does not adopt the views and positions of the committee with respect to such a matter, it shall notify the committee chairperson in writing of the decision reached and the reasons therefore. This obligation shall in no way limit or qualify the director’s ability or responsibility to make any and all ordinary or emergency decisions regarding the administration of the program.

(I) BSVI shall ensure that, upon request, each operator is provided access to all program and financial data of BSVI relevant to the operation of the BE program, including quarterly and annual financial reports in accordance with the Americans with Disabilities Act of 1990 (public law 101-336), such data shall be made available in braille, large print, computer disk, or recorded tape if needed as a reasonable accommodation.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.34

Prior Effective Dates: 3/21/1979, 5/1/1983, 6/1/1988, 11/1/1993, 10/4/1999

(A) BSVI may deny, revoke, or suspend a license upon proof that the licensee or applicant:

(1) Has engaged in fraud, deception, or misrepresentation in procuring or attempting to procure a license issued by BSVI or in the operation of a BE facility;

(2) Is guilty of a felony;

(3) Is guilty of a crime of moral turpitude:

(4) Carries or possesses a firearm or concealed weapon in violation of state law;

(5) Uses or is under the influence of alcohol or other controlled substances at the work place or otherwise fails to maintain a drug-free work environment;

(6) Is mentally incompetent;

(7) Cannot perform an operator’s duties;

(8) Withdraws from the program;

(9) Does not operate the facility within the terms of the bureau-operator agreement or bureau-grantor agreement, after being given an opportunity to correct noted deficiencies as provided in paragraph (B) of rule 3304:1-21-10 of the Administrative Code;

(10) Has not displayed current capabilities as an operator (i.e., the licensee has not been a party to a bureau-operator or a bureau-temporary -operator agreement for three consecutive years);

(11) A licensee’s vision no longer meets the criterion noted in paragraph (A) of rule 3304:1-21-01 of the Administrative Code. The BSVI director shall require that a licensee submit to a vision exam and submit evidence of said vision exam performed within the past three months by an ophthalmologist selected and paid for by BSVI; or

(12) Has violated the business enterprise rules, after being given an opportunity to correct noted deficiencies as provided in paragraph (B) of rule 3304:1-21-10 of the Administrative Code.

(B) The BSVI director shall notify the licensee or applicant of the proposed action.

(1) The notice shall include all of the following:

(a) All the charges or other reasons for the proposed action;

(b) The law or rule directly involved;

(c) That a hearing may be requested, preferably in writing, within thirty days of the mailing date on the notice;

(d) That, if a hearing is requested, it shall be granted, and if a hearing is not requested by the licensee or applicant the proposed action will be taken;

(e) That, if a hearing is requested, the hearing shall be held in accordance with Chapter 119. of the Revised Code. At the hearing, the licensee or applicant may appear and legally represent himself/herself, be represented by an attorney (any fee for this counsel shall be assumed by the licensee/applicant), or present positions, arguments, or contentions in writing. At the hearing the licensee, applicant or an attorney may present evidence and examine witnesses for and against him/ her.

(2) The notice shall be sent by certified mail, return receipt requested, with a copy mailed to the attorney of record representing the licensee or applicant. If the notice is returned because of inability to deliver, a notice which contains items listed in paragraphs (B)(1)(a) to (B)(1)(e) of this rule shall be published once a week for three consecutive weeks in a newspaper of general circulation in the county where the person’s last known place of residence or business is located. If no newspaper is published in that county, then publication shall be in a newspaper published in an adjoining county. A copy of the newspaper, with the first publication of the notice marked, shall be mailed to the person at the address of his/her last known place of residence or business and the notice shall be deemed received as of the date of the last publication.

(3) If a hearing is requested, the hearing shall be conducted in accordance with the following procedures:

(a) The BSVI director shall render final hearing decisions and shall appoint a hearing officer who has been admitted to the practice of law in Ohio, and who has not been involved in the disciplinary action. The hearing officer shall have the same powers and authority in conducting a hearing as granted to BSVI;

(b) The hearing shall be held at an accessible location provided by BSVI;

(c) The date set for the hearing shall be within fifteen, but not earlier than seven days after the person has requested a hearing, unless BSVI has postponed or continued the hearing upon application of any party or upon its own motion;

(d) The licensee or applicant shall be notified, in writing by registered mail, return receipt requested, of the following (a copy of this notification shall also be mailed to the attorney or other representative of record):

(i) The date, time, and location of the fair hearing;

(ii) That the hearing shall be open; or that the hearing shall be closed due to federal regulations or state laws about confidentiality;

(iii) That the licensee/applicant and BSVI may each introduce evidence at the hearing and that any evidence which is immaterial, irrelevant, or unduly repetitious shall not be admitted.

(e) BSVI may require the attendance of witnesses and the production of books, records, and papers at the hearing;

(f) BSVI may take the depositions of witnesses in the same manner as is prescribed by law for the taking of depositions in civil actions in the court of common pleas. For that purpose, BSVI may, and upon request of any person receiving notice of the hearing shall, issue a subpoena for any witness or a subpoena duces tecum to compel the production of any books, records, or papers, directed to the sheriff of the county where the witness resides or is found. The subpoena shall be served and returned in the same manner as a subpoena in a criminal case is served and returned;

(g) Each witness shall be advised of his/her right to be accompanied, represented, and advised by his/her attorney, whose participation in the hearing shall be limited to protecting the rights of his/her client, and who may not examine or cross-examine witnesses;

(h) BSVI shall appoint a court reporter to make a record of the hearing;

(i) BSVI shall be represented by the attorney general, or any of his/her assistants, or special counsel designated by him/her;

(j) The hearing officer shall submit to BSVI a written report setting forth the findings of fact and conclusions of law and recommending an action to be taken by the bureau. A copy of the report shall, within five days of receipt by the bureau, be served upon the licensee, applicant or attorney, by certified mail, return receipt requested;

(k) The licensee or applicant may, within ten days of receipt of the copy of the hearing officer’s written report, file with BSVI written objections to the report. BSVI may grant extensions of time to the person within which to file objections. No recommendation of the hearing officer shall be approved, modified, or disapproved by BSVI until ten days after service of the report upon the person, or his/her attorney of record. The written objections shall be considered by BSVI before approving, modifying, or disapproving the recommendation of the hearing officer;

(l) BSVI may order additional testimony to be taken or permit the introduction of further documentary evidence;

(m) The hearing officer’s report and recommendation may be approved, modified, or disapproved by the BSVI director; the order of BSVI based upon such report, recommendation, transcript of testimony, and evidence shall have the same effect as such a hearing conducted by BSVI. No recommendation shall be final until confirmed and approved by the BSVI director as indicated by the order entered on its record of proceedings, and if the BSVI director modifies or disapproves the hearing officer’s recommendation, it shall include in the record of its proceedings the reasons for modification or disapproval. After the order is final, the BSVI director shall send by certified mail, return receipt requested, to the person affected, a signed certified copy of the order. A copy of the order shall be mailed to the attorneys or other representatives of record representing the party;

(n) The licensee or applicant receiving the order shall also receive a statement that the order may be appealed in accordance with section 119.12 of the Revised Code. The licensee shall also be informed that a complaint may be filed as provided by section 107d of Chapter 6A of Title XX of the U.S.C.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.31

Prior Effective Dates: 3/21/1979, 5/1/1983, 6/1/1988, 1/12/1990, 11/1/1993, 10/4/1999

(A) If an operator is dissatisfied with an action of the bureau regarding him/her, he/she shall discuss it with the BE specialist; if a licensee not assigned to a location or trainee is dissatisfied with an action, he/she shall discuss it with the BE program coordinator, An operator, licensee or trainee is encouraged to discuss the complaint with the BE assistant manager, BE program manager or OVRC representative before proceeding with filing a formal grievance.

(B) A grievance must be filed in writing and received by the BE assistant manager (or BE program manager if a grievance is being filed by a trainee or licensee not assigned to a location) within sixty calendar days from the date of notification, in writing, from BSVI of the event being grieved. The operator, licensee, or trainee shall include in the grievance a clear statement of the dispute or dissatisfaction and a desired remedy. The operator will also include in the grievance a request for or waiver of mediation to attempt to settle the dispute and state if they want an outside mediator to mediate their grievance. The BE assistant manager or BE program manager shall consider the grievance and make a decision and inform the complainant of that decision in writing within fifteen calendar days from the date of receipt of the grievance.

(C) If the operator, licensee or trainee is dissatisfied with the decision made by the BE assistant manager or the BE program manager, he/she may grieve to the BSVI director within fifteen calendar days after the receipt of the response from the assistant manager or program manager.

(1) A grievance must be filed in writing, tape recording, braille or a combination of these methods.

(2) The grievance shall state the dispute or dissatisfaction and the desired remedy.

(D) Upon receipt of a grievance the director shall:

(1) Appoint an employee of the rehabilitation services commission (RSC) not connected with the action complained of to consider the grievance within fifteen calendar days of receipt of the grievance

(2) Notify the operator, licensee or trainee of the name and business address of the RSC employee appointed to consider the grievance, of the date the grievance shall be considered and be notified that additional documentation may be sent directly to the RSC employee appointed to consider the grievance by the consideration date

(3) Assure that BSVI’s justification for the action in the grievance is submitted to the RSC employee by the consideration date.

(E) The RSC employee appointed to consider the grievance, as prescribed by paragraph (D) of this rule shall:

(1) Consider the grievance, additional comments submitted by the complainant, and the bureau’s justification on the consideration date;

(2) Submit to the director within ten calendar days of the consideration date a written report which shall include a summary of the grievance and the bureau’s justification and a recommended action to be taken by the bureau, including no action;

(3) Not discuss the grievance, additional contentions submitted by the complainant, or the bureau’s justification with anyone; except he/she may seek advice from RSC’s legal department with respect to the manner in which he/she should make the consideration and prepare the report; the RSC employee shall seek and receive such advice before he/she makes the consideration.

(F) The complainant may request the area OVRC representative to participate in the proceedings described in paragraphs (B) to (E) and (H) of this rule.

(G) The director shall notify the complainant of his/her decision on the grievance within ten calendar days of receipt of the RSC employee report on said grievance.

(H) The complainant, if dissatisfied with the director’s decision, may make a request for a formal hearing within fifteen calendar days of the date the notification was mailed. This hearing shall be conducted in accordance with the substantive terms of rule 3304:1-21-13 of the Administrative Code.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29

Prior Effective Dates: 3/21/1979, 1/12/1990, 11/1/1993, 10/4/1999

Rescinded eff 10-1-06

(A) For purposes of this rule, the following definitions are included:

(1) “Vending machine” means a coin or currency operated machine which dispenses articles or services.

(2) “Vending machines on federal property” means those which are operated, serviced, maintained or approved by a department, agency, or instrumentality of the United States; or which are operated, serviced, and maintained by a commercial vending concern which does so for, or with the approval of, a department, agency, or instrumentality of the United States. A commercial vending concern pays commissions (other than to a licensed operator).

(3) “Vending machine income” means receipts from vending machines on federal property, less the cost of goods sold (including reasonable service and maintenance costs in accordance with customary business practices of commercial vending concerns).

(B) For vending machines on federal property, the on-site official responsible for that property shall be responsible for the collection of, and accounting for, the income from those vending machines.

(1) At least once each quarter, such income shall be collected and shared with BSVI in the following manner:

(a) All income from all vending machines which are in direct competition with a facility, as determined by the on-site official with BSVI’s concurrence; and

(b) Fifty per cent of all income from all vending machines which are not in direct competition with a facility; or, if such machines are on federal property at which fifty per cent or more of the total hours worked on the premises occurs during a period other than normal facility hours, thirty per cent.

(2) The provisions of this rule shall not apply to income from any of the following:

(a) Vending machines in retail outlets controlled by a post exchange, and ships’ stores systems authorized by Title 10, U.S.C., or the veterans canteen service;

(b) Any location on federal property, not in direct competition with a facility, in which the vending machines’ annual income is under three thousand dollars;

(c) Vending machines maintained, serviced, or operated by a licensed operator;

(d) Machines operated by the United States postal service for the sale of postage stamps or other postal products and services, machines providing services of a recreational nature, and telephones.

(C) Each quarter BSVI shall dispense such income in this manner:

(1) Licensed operators of facilities located on properties noted in paragraph (A) of this rule shall receive income from machines located on those properties. The amount dispensed to each operator shall not exceed the average yearly net income of all licensed operators in the state or the amount of the average net income of all licensed operators in the United States (as determined each fiscal year on the basis of each prior year’s income), whichever is less. However, the limitations imposed by this paragraph shall not cause any operator to receive less vending machine income than received before January 1, 1974.

(2) Income from machines on federal properties which have no facility, and any income in excess of the amount noted in paragraph (B)(1) of this rule shall be retained by BSVI and used to establish and maintain retirement or pension plans, health insurance contributions, paid sick leave, and vacation plans for licensed operators, if so determined by an informed and majority vote of licensed operators.

(a) All income described in paragraph (C)(2) of this rule, as well as any state unregulated income committed to operator benefits in any federal fiscal year, shall be distributed on a yearly basis as a benefit determined by a vote of all the operators according to a formula set by the OVRC.

(b) All unclaimed funds as described in paragraph (C)(2)(a) of this rule along with the collected federal unassigned income and any state unregulated money shall be committed to operator benefits in the next federal fiscal year

(3) If licensed operators do not opt to use the excess income for such plans as noted in paragraph (C)(2) of this rule, or if there is an excess beyond the amount needed for those plans, such income shall be used in the same manner as service charges are used per paragraph (I)(5) of rule 3304:1-21-08 of the Administrative Code. If any excess is left service charges shall be reduced pro rata in an amount equal to that income.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 3304.29(D), 3304.35

Prior Effective Dates: 5/1/1983, 10/15/1999

(A) BSVI shall conduct a public hearing for administrative rules in this chapter which are filed in compliance with Chapter 119. of the Revised Code.

(B) At least thirty days before the public hearing, BSVI shall prepare a notice of public hearing, which includes all of the following:

(1) A statement that it is BSVI’s intention to propose, amend, or rescind rules.

(2) The date, time, and place of the hearing.

(3) A general statement of the subject matter to which the proposed rule(s), amendment(s), or rescission(s) relate.

(4) The reason for proposing, amending, or rescinding the rule(s).

(5) A statement that the rule(s) shall be available for review, free of charge, at the office of the BSVI director.

(6) A statement that the notice of the public hearing and/or the full text(s) of the rule(s) is available from the office of the BSVI director by any person who requests it and pays a fee not to exceed the cost of copying and mailing.

(7) A statement that the public hearing shall be conducted in accordance with Chapter 119. of the Revised Code.

(C) At least thirty days before the public hearing for administrative rules for this chapter, BSVI shall:

(1) Mail, by first-class postal mail or electronic mail, the notice of public hearing to the members and alternates of the OVRC and to radio reading services.

(2) Submit the notice of public hearing to the legislative service commission for publication in the register of Ohio.

(D) The members and alternates of the committee listed in paragraph (C)(1) of this rule shall be requested to notify the groups they represent about the public hearing.

Effective: 10/01/2006

R.C. 119.032 review dates: 04/04/2005 and 10/01/2011

Promulgated Under: 119.03

Statutory Authority: 3304.29(D)

Rule Amplifies: 119.03(A)(4), 3304.29(D)

Prior Effective Dates: 12/27/1982, 4/22/2002

[This rule designated an internal management rule. For a copy of this rule, contact the Ohio Legislative Service Commission.]