7 Colo. Code Regs. § 1105-1-9.405

Current through Register Vol. 47, No. 24, December 25, 2024

Section 7 CCR 1105-1-9.405 - SET-ASIDE FUND [Rev. eff. 7/1/08]

A set-aside fund shall be established and managed, pursuant to 20 U.S.C. § 107b(3) and 34 CFR Part 395.3(a)(11)(iv) and 395.9(a).

A. Pursuant to 34 CFR Part 395.9(b), set-aside funds may expended only for the purposes of:

1. Maintenance and replacement of equipment;

2. Purchase of new equipment;

3. Management services;

4. Assuring a fair minimum of return to Licensed Blind Operators; or,

5. Retirement or pension plans, health insurance, and other specified benefits after a vote of the entire body

B. The State Licensing Agency shall:

1. Utilize the Colorado, department, and division procurement rules and source selection methods in order to prevent a greater charge for any purpose than is reasonably required for that purpose.

2. Maintain adequate records to support the reasonableness of the charges for each of the purposes listed in this §, including any reserves necessary to assure that such purposes can be achieved on a consistent basis.

9.405.1Set-Aside Assessment [Rev. eff. 7/1/08]

A. The set-aside assessment (or administrative fee) is a charge levied against the net proceeds of each Business Enterprise Location, which represents a certain percentage of the net proceeds realized as a result of the facility's operation.

B. The Blind Operator is responsible for the payment of this assessment to the State Licensing Agency each month.

C. Net proceeds are determined from net sales, less merchandise cost and other allowable business expenses, plus commissions, vending machine income remitted to the Licensed Blind Operator, and rebates and bonuses paid to the Licensed Blind Operator.

D. The amount of set-aside assessment may not be deducted as an expense in computing net proceeds.

E. The set-aside (percentage of net proceeds) to be paid to the State Licensing Agency by each Blind Operator is predicated upon a schedule negotiated between the State Licensing Agency and the Colorado Elected Committee, and determined to be sufficient for the operation of the State Licensing Agency. The set-aside schedule must

1. Allow for the retention of reasonable reserves by the State Licensing Agency.

2. Not exceed a maximum of thirteen percent (13%) per Business Enterprise Location

3. Be approved by the U.S. Rehabilitation Services Administration prior to implementation

9.405.2Schedule [Rev. eff. 7/1/08]

In accordance with current accounting schedule, Blind Operators shall remit payments plus business expenses determined reasonable at the discretion of the State Licensing Agency, as reasonably notified.

7 CCR 1105-1-9.405

40 CR 04, February 25, 2017, effective 3/17/2017

41 CR 05, March 10, 2018, effective 3/30/2018

42 CR 03, February 10, 2019, effective 3/2/2019

42 CR 17, September 10, 2019, effective 9/30/2019

43 CR 02, January 25, 2020, effective 3/1/2020

45 CR 21, November 10, 2022, effective 11/30/2022