3304:1-21-07 Closing, opening and transitioning a facility.

(A) When a facility is transitioned through award, temporary or permanent closing, or combined with an existing facility, or when there is a change in the BOA or operator status, there shall be a detailed stock and equipment inventory performed. BE shall count all stock inventory they determine to be saleable and usable for the location.

(B) The operator obligations:

(1) The outgoing and incoming operator or their designee assisted by BE shall complete the closing inventory for stock/supplies and BE equipment;

(2) The exiting operator shall relinquish the facility in a clean and operable condition;

(3) One week prior to the day of closing inventory the outgoing operator shall provide BE with a copy of the most recent semi-annual inventory and a list of new products and prices for products not listed in the semi-annual inventory;

(4) On the day of the closing inventory the outgoing operator and the incoming operator will agree on the fair market value of any products that prices have not been provided prior to the closing inventory date. BE will assign a fair market value to the products if the operators cannot come to an agreement;

(5) Within one week following the date of the closing inventory the incoming operator may submit to BE a written request stating the value of specific items not to be included in the value of the opening inventory. BE will have final determination of items to be included or excluded for the value of the incoming operator's opening inventory;

(6) The outgoing operator shall submit the closing MOR to BE within thirty days of receipt of closing inventory documentation from BE; and

(7) The outgoing operator shall submit payment of the final service charge, any outstanding inventory charges and any other charges within thirty days of submission of the closing MOR.

(C) The BE obligations:

(1) Schedule and notify the outgoing and the incoming operator of date and time of the closing stock and equipment inventory;

(2) Prepare inventory closing forms for closing inventory, utilizing the most recent semi-annual stock inventory from the outgoing operator;

(3) Organize and represent BE at the stock and equipment inventory as described in paragraph (A) of this rule. On the day of the closing stock and equipment inventory, BE will obtain the agreement and signature of the outgoing operator or their designee on the stock and equipment inventory count. Upon request, BE shall provide a copy of the stock and equipment inventory count;

(4) Assure the facility is transferred in an operable condition and provide the incoming and outgoing operator a current copy of the facility equipment inventory signed by the incoming and outgoing operators and BE;

(5) Complete a closing inspection noting facility and equipment condition and cleanliness signed by the incoming and outgoing operators and BE;

(6) Assure that an inventory form of that day's count and either a BOA/BTOA, have been signed by the operator for the facility the day of the closing inventory; and

(7) Assure that the incoming operator receives copies of the detailed stock inventory, BOA/BTOA, and the administrative rules governing the BE program within fifteen calendar days of date closing inventory is conducted. This time may be extended when BE takes charge of a facility pursuant to paragraph (D) of this rule.

(D) Whenever BE must take charge of a facility, due to the suspension of the BOA or BTOA pursuant to paragraph (F) of rule 3304:1-21- 06 of the Administrative Code, or the termination of the BOA or BTOA pursuant to paragraph (G) of rule 3304:1-21- 06 or rule 3304:1-21-10 of the Administrative Code, BE may assume temporary custody of the cash on hand until such time as outstanding service charges and inventory adjustment charges due BE are resolved.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/17/2015 and 01/01/2021
Promulgated Under: 119.03
Statutory Authority: 3304.29(D)
Rule Amplifies: 3304.30, 3304.34
Prior Effective Dates: 1/1/10