Section 150-15-10 - SETTING ASIDE OF FUNDS1. The SLA shall establish in writing the extent to which funds are to be set aside from the net proceeds of vending facilities; and, to the extent applicable, from vending machine income under 34 CFR § 395.8(c).2. Funds may be set aside under this section only for the purposes of:A. Maintenance and replacement of equipment;B. Purchase of new equipment;D. Fair minimum return to managers; orE. Establishment and maintenance of retirement or pension funds, health insurance contributions, paid sick leave and vacation time, if it is determined by a majority vote of managers and those who are licensed and authorized to operate a facility after the agency provides each manager information on all matters relevant to the proposed purposes.3. Adequate records shall be maintained to support the reasonableness of the charges for set-aside referred to this section.4. Set-aside may be established, with the active participation of the State Committee of Blind Managers and subject to the approval of Rehabilitation Services Administration (RSA).5. Determination of the net proceeds shall be made by subtracting all expenses including, but not limited to, merchandise purchased for resale, insurance(s), and wages, but shall not include pay to the manager or set-aside payments.6. During any monthly period when net proceeds are less than an amount equal to the current federal minimum wage rate multiplied by the number of hours the manager was present in the vending facility (maximum of 40 hours per week) and during which the facility was open for business, the requirement to pay the set-aside assessment may be waived.7. Charges for the items listed in Section (2) above shall be determined in the following manner: A. Equipment shall be replaced or repaired at the discretion of the SLA in the manner which is most cost effective while maintaining the facility's current capabilities.B. The purchase of new equipment shall be at the discretion of the SLA and in a manner that will maintain the facility's current capabilities or enhance future profits to the location.C. Prior to purchase of management services other than those provided by the program, the SLA shall verify whether such charges are reasonable in comparison with fees charged for like services throughout the area in which service is to be performed. Management services are generally limited to necessary supervisory and inspection services, merchandising and bookkeeping assistance, display and other business techniques, and practices to improve the operation of the vending facility.8. The purpose of fair minimum return is to ensure an equitable financial return to the manager when the net proceeds of the site fail to do so. When a fair minimum return is established, the SLA, in its discretion, may augment the net proceeds by an amount necessary to bring the monthly income of the manager up to the fair minimum return. Wages paid to family members may not exceed one and one half (1 1/2) times the prevailing minimum wage for 40 hours per week if fair minimum return is requested. Fair minimum return is defined as an amount equal to the current federal minimum wage multiplied by the number of hours during which a manager was present in the vending facility (up to a maximum of 40 hours per week) and during which the facility was open for business; fair minimum return is computed by averaging the net proceeds for the number of weeks in the monthly reporting period. Since inventory change and other operating expenses can affect net proceeds, such factors shall be considered when calculating fair minimum return. If the business is seasonal in nature and like businesses normally would not provide the established minimum return, then the fair minimum payment shall not apply.
9. Managers may use checking accounts for receipts and disbursements pertinent to the operation of the facility. Such accounts will be used exclusively for the fiscal affairs of the facility, and the manager will not co-mingle personal or other funds in this account except to the extent that such funds represent equity in the business.10. It is the responsibility of the manager to make certain that the rate of cash withdrawals does not exceed the rate of net profit to the facility. It is also the manager's responsibility to provide cash reserves for contingencies such as vacation and sick leave or other purposes as may be necessary for the proper operation of the facility.12-150 C.M.R. ch. 15, § 10