Vending stand program: rules and regulations, application for designation as a state licensing agency, set-aside funds for Georgia's Vocational Rehabilitation Program, July 1, 1955 [July 1, 1955]

GECRGIA STATE DEPARTMENT OF EDUCATION DIVISION OF VOCATIONAL REHABILITATION
ATLANTA
***
VENDING STAND PROORAM Rules and Regulations Application for Designation as a State Licensing Agency
Set - Aside Funds For
GEORGIA'S VOCATIONAL REHABILITATION PROGRAM
July 1, 1955
11. D. Collins Executive Officer State Board of Vocationel Education
P. s. Barrett
Director of Vocational Rehabilitation

APPLICATION FOR DESIGNATION AS:
STATE LICENSING AGENCY UNDER THE RANDOLPH-SHEPPARD ACT
A. legal Authority for Administration cf the Program.
The Georgia Vocational Rehabilitation Act, No. 321, passed ~J the General Assembly in 1951, places the responsibility for
the administration and supervision of the Vendin~ Stand Program under the State Board of Vocational Education. The legal authority for licensing blind individuals to operate Vending Stands is
stipulated in Section 4 (d) of this Act, including the authority
to issue regulations having the force and effect of law in the State.
B. State Agency Rules and Regulations.
The State Agency will issue such rules and regulations, in accordance with State law, as may be necessary for the operation of the Vending Stand Program.
c. State Agency Organization.
1. The Agency is a unit of the 3tate Department of Education and the Director is responsible to the State Board of Vocational Education, through its Executive Officer, for the operation of the Vocational Rehabilitation Program.
2. The responsibility for the over-all supervision of the Vending Stand Program is vested in the Supervisor of Services for the Blind by the Director. The Supervisor of Business Enterprises, working under the supervision of the Supervisor of Services for the Blind, is directly responsible for the supervision of staff personnel. The Unit working with the Vending Stand Program is coordinated with the over-all Program of Rehabilitation. The State is divided into districts, and the personnel assigned to the Vending Stand Program utilizes the services of other Rehabilitation personnel in their respective area. The Supervisor of Services for the Blind consults with the Director and his staff of the various units and sections and has available the same technical assistance as all other phases of the Vocational Rehabilitation Program. This procedure assures an integrated and well coordinated Program.

C. State Agency Organization (Continued)
3. The positions established for the Vandine Stand Program are as follows:
(1) Supervisor of Services for the Blind (2) Supervisor of Business Enterprises (J) Vocational Rehabilitation counselor
(4) Placement Agent for the Blind (5) Senior Accountant
(6) Clerical Personnel
D. Selection of Suitable Locations for Vending Stands.
1. Each location for a Vending Stand will be selected after it has been determined that the establishment of a Vending Stand at that particular location 1Nill contribute to the maximum development of economic opportunities for the blind and vall provide for the r:1ost productive utilization of program assets.
2. This determination will be made upon the basis of an evaluation of all relevant factors disclosed and recorded as the result of a comprehensive survey of the particular location.
). The evaluation of locations for Vending Stands vdll take into consideration such factors as population, traffic, competition, continued availability and type of premises, potential return upon investment, and other applicable items.
E. Provision of Necessary Equipment and Initial Stocks of Iv~erchandise.
The Licensing Agency assumes full responsibility for providing each Vending Stand established under the Program, suitable and adequate equipment, and adequate initial stocks of merchandise, as provided within the regulations, from State and Federal Rehabilitation funds. When necessary, funds (except for the purpose of purchasing initial stocks) will be supplemented by moneys from the Georgia Cooperative Services for the Blind, Inc., a non-profit Corporation of Georgia, under the supervision of the State Agency.

F Sources of Funds for the Management of the Program.
Funds for the management of the Program are obtained from State and Federal appropriations.
G. Funds Set Aside from Vending Stands Proceeds.
Proceeds from the operation of Vending Stands will be used only for the following purposes:
1. Maintenance and replacement of equipment;
2. The purchase of new equipment;
3. Management services; and
4. Assuring a fair minimum return to operators of Vending
Stands.
In no case will the amounts to be set aside for each of the above purposes exceed the amount determined by the Director of the Office of Vocational Rehabilitation to be reasonable.
H. State Agency Relationship to Operators.
The policies and standards governing the relationship of the licensing, selection, duties and supervision of the operators are the direct responsibility of the Licensing Agency.
1. Selection of Operators.
In licensing qualified applicants, preference shall be given to blind persons who are in need of employment and who have resided for at least one year in the State. Licenses ~~11 be issued only to persons who are determined to be:
(a) Blind. "Blind" is defined to mean a person having not more than 10 percentum visual acuit,y in the better eye with correction. This means a person who has (1) not more than 20/200 central visual acuity in the better eye after correction; or (2) an equally disabling loss of the visual field; i.e., a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than twenty degrees. Such blindness shall be certified by a duly licensed Ophthalmologist.

H. State Agency Relationship to Operators 1. Selection of Operators (Continued)
(b) Citizen of the United States
(c) At least 21 years of age; and
(d) Certified by the State Vocational Rehabilitation Agency as qualified to operate a Vending Stand.
2. Supervision of Operators.
The Licensing Agency assumes responsibility for providing to the Vending Stand operators such supervision and assistance as may be necessary to insure the operation of each Vending Stand in the most productive and efficient manner possible.
The individual operator will be required to agree:
(a) To perform faithfully, and to the best of his ability, the necessary duties in connection with the operation of a Vending Stand, in accordance with the standards prescribed by the Licensing Agency; and
(b) To furnish such reports as the Licensing Agency may, from time to time require.
3. Financial Participation of Operators.
Each operator will receive the proceeds of the operation of the Vending Stand he operates, including the income from vending machines within reasonable proximity to and in direct competition with the Vending Stand, less operatin;; costs and funds set aside for the following:
(a) :Maintenance and replacement of equipment
(b) The purchase of new equipment
(c) Nmnagement services; and
(d) Assurin6 a fair minimum return to operators of Vending Stands.

H. State Agency Relationship to Operators (Continued)
4. Transfer of Operators.
When circmnstances are such that it is deemed to be to the best interests of nanagement and the operator of a Vending Stand to transfer operator to another Stand, necessary steps will be taken to insure smooth, uninterrupted operations. It is the policy of the Licensing Agency to promote operators whose records indicate they are capable of operating larger Stands and to transfer operators in instances when it is deemed advisable for them to take over other Stands in other areas due to factors beyond their control. Management will always try to up-grade operators who merit promotion.
5. Training of Operators.
Operators fer Ven::ling Stands are pro>rided with tutorial training for periods of four to eight weeks, dependinG on the individual needs, in a specific training Stand under a competent sighted trainer. Tutorial and other trainin:; are designed to improve efficiency in Stand Jr,anazement.
I. Utilization of the Services of Another Agency or Organization.
The LicensinG Ar.ency has a written ac;reement ,,dth the Georgia Cooperative Services for the Blind, Inc., a nun-profit Corporation.
1. The i'irittE:n acre2m~nt between the Licensing Agency and the Georg~.& Cocp:::rative Serv~ces f-:r the Blind, Inc._, cle2.:!:'~.y stat:.;s that the L~-~ensing Agency shalJ. retain fu:!.l responsibility fer che :.:ctnagement and operation of all phases of the Frogram.
2. The written agreement provides for the Georgia Cooperative Services fo:c- the Blind, Inc., to furnish the follmnri.ng:
(a) AdviscrJ and consultative services
(b) Assistance in the location and selection of Stands
(c) Management services

I. Utilization of the Services of Another Agency or Organization 2 (Continued)
(d) Maintenance and replacement of equipment
(e) The purchase of new equipment, when not other~~se provided by the Licensing Agency.
3. No charges v:ill be collected from operators except as specified in such written agreement.
4. The Licensing Agency exercises full control over any function
with respect to funds for the purchase of new equipment and/or for assuring a fair minimum return to operators, except to collect and hold solely for disposition in accordance with the order of the Licensing Agency, any charges authorized for those purposes by the Licensing Agency.
5. The Licensing Agency shall have control with respect to the
selection, placement, financial participation, and termination of the operators and the preservation, utilization, and disposition of the program assets.
Necessar,y personnel to provide training for new operators, to give adequate supervision and to rllaintain accounting records will be employed by the Georgia Cooperative Services for the Blind, Inc. The Supervisor of Business Enterprises makes periodic reviews of work being performed and studies inventories, auditor's reports and other data for evaluation purposes.
Services to be provided by the Georgia Cooperative Services for the Blind, Inc., are as follows:
(a) Maintenance and replacement of equipment
(b) New equipment -vrhere necessary
(c) Management services, including day to day superv~s~on of the operators of the Vending Stands, collecting and disbursing funds.
(d) In-service training of operators
(e) Assistance to operators in matters of display, merchandising and other good business practices
(f) Maintenance of necessary accounts and provision of necessary reports to the Licensing Agency.

( I. Utilization of the Services of Another Agency or Organization (Continued)
The Georgia Cooperative Services for the Blind, Inc., will be reimbursed in the amount of the cost of the services they render. Reimbursement from the funds set aside from the proceeds of the Vending Stands will be limited to the purposes listed in Paragraph G 11 11 of this Application, "Funds Set Aside from Vending Stand Proceeds".
Necessar,r records for accounting purposes are maintained in the Central Office by staff employed by the Georgia Cooperative Services for the Blind, Inc., working under the supervision of the Supervisor of Business Enterprises, for the Licensing Agency. These records are audited annually by a Certified Public Accountant. The Supervisor of Business Enterprises is responsible for the fiscal controls of the Vending Stand Program.
J. Vesting Title to Equipment and Stock in Another Agency or Organization as Nominee.
The right, title to, and interest in Vending Stand equipment and stock used in the Program is vested in the Georgia ~vision of Vocational Rehabilitation.
K. Further Conditions for Approval of Applications
The Licensing Agency will:
1. Cooperate with the Director of the Office of Vocational Rehabilitation in carrfing out the purpose of the Act;
2. Take effective action, including the termination of licenses, to car~J out full responsibility for the management and operation of each Vending Stand in its Program in accordance with its established rules and regulations, the regulations promulgated by the Secretary, and the terms and conditions governing the permit;
3. Submit promptly to the Director a description of any changes in
the legal authority of the Licensing Agency, its rules and regulations, and any other matters which form a part of the application;
L.

K. Further Conditions for Approval of Applications (Continued)
4. Furnish each operator a copy of its rules and regulations and
a description of the arrangements for providing services, and take adequate steps to assure that each operator understands the provision of such documents, the provisions of the permit, ~~d any ngreement under which he operates, as evidenced b,y his signed statement;
5. Make such reports in such form and containing such information
as the Director may from time to time require and comply with such provisions as the Director may from time to time find necessar,y to assure the correctness and verification of such reports; and
6. Provide to any blind licensee dissatisfied with any action
arising from the operation or administration of the Vending Stand Program an opportunit,y for a fair hearing.
APPROVED

Governor

~.r:lsC:.ee-~--cj
~ -~ Superint:ndent of Schools
June 21, 1955 Date

RULES AND REGULATIONS GOVERNING THE VENDING STAND PROGRAM FOR THE GEORGIA LICENSING AGENCY
A. Legal Authority for Administration of the Program.
The Georgia Vocational Rehabilitation Act, No. 321, passed by the General Assembly in 1951, places the responsibility for the administration and supervision of the Vending Stand Program under the State Board of Vocational Education. The lB~al authority for licensing blind individuals to operate Vending Stands is
stipulated in Section 4 (d) of this Act, including the authority
to issue regulations having the force and effect of law in the State. Rules and regulations apply to all Vending Stands established under the program.
B. Issuance and Conditions of Licenses.
1. Preference will be given to blind persons who are in need of employment, and who have resided for at least one year in the State. Licenses will be issued only to persons who are determined by the Licensing Agency to be:
(a) Blind. "Blind" is defined to mean a person having not more than 10 percentum visual acuity in the better eye with correction. This means a person who has (1) not more than 20/200 central visual acuity in the better eye after correction; or (2) an equally disabling loss of the visual field; i.e., a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than hventy degrees. Such blindness shall be certified by a duly licensed Ophthalmologist;
(b) Citizens of the United States;
(c) At least 21 years of age; and
(d) Certified by the State Vocational Rehabilitation Agency as qualified to operate a Vending Stand.
2. Licenses vrill be issued for an indefinite period, but subject to termination if, after affording the operator an opportunity for a fair hearing, the Licensing Agency finds that the Vending Stand is not being operated in accordance with its rules and regulations, the terms and conditions of the permit, or the agreement with the operator.

B. Issuance and Conditions of Licenses (Continued)
3. Income from vending rr~chines within reasonable proximity to,
and in direct competition ~~th the Vending Stand, will be assigned to the operator. (A vending machine is considered to be in reasonable proximity to, and when in the power of the Licensing Agency to serve such assignment in direct competition vdth the Stand if it vends articles of a type authorized by the permit and is so located that it attracts customers who would otherwise patronize the Vending Stand.)
C. Termination of Licenses.
Any license to an individual for the operation of a Vending Stand on Federal or other property may be terminated when the State Agency finds that the Vending Stand is not being operated in accordance with its rules and regulations, the terms and conditions governing the permit, or the agreement with the operator.
D. Fair Hearings for Operators.
An opportunity for a fair hearing will be afforded to each operator dissatisfied with any action arising from the operation or administration of the Vending Stand Program or to his personal representative, or next of kin, with respect to the determination of the amount to be paid by the Licensing Agency for an operator's ownership in the equipment.
It is a policy of the Licensing Agency to follow the following procedures to assure operators a fair hearing:
(1) An operator shall have the right to be represented at the hearing by counsel or by a friend;
(2) Hearings shall be held within a reasonable time after the request therefor and at a time and place reasonably convenient to the operator;
(3) The operator shall hav~ an adequate opportunity to present his case and for cross-examination;
(4) The hearings shall be held before a responsible official or
panel acting for the Licensing Agency;

D. Fair Hearing for Operators (Continued)
(5) The decision shall be based upon the information abduced
at the hearing. If the official or panel which held the hearing does not have authority to make the final decision, the verbatim transcript of the testimony and exhibits (or an official report con~aining the substance of what transpired at the hearing), together with all papers and reports filed in the proceedings, and the hearing officer or panel's recommendation, shall constitute the exclusive record for decision and shall be available to the operator;
(6) The decision shall be in writing and shall set forth the issue,
the relevant facts brought out at the hearing, the pertinent provisions in law and Agency policy, and the reasoning that led to the decision. The operator shall be forwarded a copy of the decision immediately upon its issuance;
(7) The decision shall constitute the official action of the State Licensing Agency in relation to the action which was the subject of the hearing.
E. Furnishing Equipment and Initial Stocks.
The Licensing Agency is responsible for (1) furnishing each Vending Stand with adequate, suitable equipment and for the maintenance and repair of such equipment, and (2) for furnishing each Vending Stand ivith adequate initial stocks of merchandise.
F. Right, Title to, and Interest in Vending Stand Equipment and Stock.
The right, title to, and interest in Vending Stand equipment and stock used in the Program is vested in the GeorGia Division of Vocational Rehabilitation.
G. Setting Aside of Funds.
The Division of vocational Rehabilitation will set aside (or cause to be set aside) from the proceeds of the operation of the Vending Stands funds to the extent necessary only for the purposes of:
1. Maintenance and replacement of equipment;

G. Setting Aside of Funds (Continued)
2. The purchase of new equipment;
). Management services; and
4. Assuring a fair minimum of return to operators of Vending
Stands.
In no case will the anounts set aside for each of the above purposes exceed the amount determined by the Director of the Office of Vocational Rehabilitation to be reasonable.
The charge for each of the above listed purposes will be determined on the basis of records of expenditures made for each of these purposes over a reasonable period of time, ~~th allowances for reasonable charges for improving services, fluctuations in costs, and for program expansion. The charges will be re-evaluated periodically and necessary adjustments made. Adequate records will be maintained to support the reasonableness of the charge for e~ch of the purposes listed above.
H. Policies Governing the Duties, Supervision, Transfer, and Participation of Operators.
The Licensing Agency's rules and regulations provide that the proceeds of the operation of each Vending Stand shall accrue to the operator, after paying operating costs and reasonable charges for:
1. Maintenance and replacement of equipment;
2. The purchase of new equipment;
). Management services; and
4. Assuring a fair minimum of return to operators of Vending
Stands.
The Licensing Agency's rules and regulations further provide that the operator shall:

H. Policies Governing the Duties, Supervision, Transfer, and Participation of Operators (Continued)
(a) Perform faithfully and to the best of his ability the necessary duties in connection with the operation of the Vending Stand in accordance with the State Agency'::; rules and regulations and standards issued pursuant thereto, the terms of the permit, and the agreement with the operator.
~) Cooperate with officials and duly authorized representatives of the Licensing Agency in connection with their official program responsibilities.
(c) Operate the Vending Stand in accordance with all applicable health laws and regulations.
(d) Furnish such reports as the State agency may from time to time require.
Supervision of Operators.
Supervisory services will be provided on a regular and systematic basis to insure :
( i) Each Vending Stand will be operated in a sound and
efficient manner;
( ii) Adequate stock of merchandise will be maintained;
(iii) Equipment will be repaired or replaced when necessary; and
( iv) Each Vending Stand is being operated in accordance with the regulations of the State Agency and the regulations of the Federal Agency having charge of the property on which the Vending Stand is located.
Transfer of Operators.
When circumstances are such th0t it is deemed to be to the best interests of management and the operator of a Vending Stand to transfer the operator to another Stand, necessary steps will be taken to insure smooth, uninterrupted operations. It is a policy

H. Policies Governing the Duties, Supervision, Transfer, and Participation of Operators
Transfer of Operators (Continued)
of the Licensing Agency to promote operators whose records indicate they are capable of operating larger Stands and to transfer operators in instances when it is deemed advisable for them to take over other Stands in other areas due to factors beyond their control.
Management vdll always try to up-grade operators who merit promotion.
I. Explanation to Operator of His Rights and Responsibilities.
Each operator will be f~rnished a copy of the Licensing Agency's rules and regulations and a description of the arrangements for providing services to the operator. The Licensing Agency will take adequate steps to assure that each operator understands the provisions of such documents and the provisions of the permit and any agreements under which he operates, as evidenced by his signed statement.

Setting Aside of Funds by the Licensing Agency

The Georgia Rehabilitation Ageney will set aside (or cause to be set aside) from the proceeds of the operation of the vending stands funds to the extent necessary only for the purpose of:

1. Maintenance and replacement of equipment;

2. The purchase of new equipment;

3. Management services;

4. Assuring a fair minimum of return to operators of vending
stands.

Funds to provide the above services will be derived as follows:

Dry Stands

1% of first $400.00 gross sales

4% of second 11

11

11

6% Of third II

II

II

S% of all sales over $1,200o00

Stand Selling Soft Drinks

2% of first $400.00 gross sales

5% ,f second 11

11

11

?% Of third II

II

II

9% ~f third over ~1,200.00 per period

A reduction in administrative cost of 1% has been made (effective
7-1-55) on all gross sales.

The Agency anticipates sales in the fiscal year of 1955-1956 of $650,000.00. Based on ubove table of administrative charges this would produc~ setaside funns on an average of 5% of gross sales. This would prJvide setaside funds for 1955-1956 in the amount of $32,500QOO. These funds will
be requirP-d fur purposes indicated:

1, MANAGEMENT SERVICES

$12,550.00

This will provid~:

Salary and expense of supervisory personnel $11,000.00

Office supplies, postage, advertising, drayage,

storage, and miscellaneous expenses

950.00

Certified Public Accountant annual audit fee 600.00

In the fiscal year 1954-1955, management services paid for out of set aside funds totaled $12,818.00.

2. MAINTENANCE, REPAIR AND REPLACEMENT OF EQUIPHENT

$ 9,.300.00

Planned expenditure for maintenance and repair of

equipment in 1955-1956

$ 4,200.00

The Agency bases this estimate on ten years experience in the repair and maintenance of counters, refrigeration equipment, automatic vending machines and other necessary equipment.

Planned expenditure for replacement of equipment in

1955-1956

$ 5,100.00

The Agency has forty-four (44) beverage coolers, forty-eight (48) automatic vending machines, and fifteen (15) electric coffee urns. These items of equipment range in age from 10 years to 6 months. To minimize repair and maintenance expense, to
maintain present standards of modern equipment and
to maximize sales and profits, a plan of systematic
replacement of these major equipment items is
followed. In 1955-1956, five beverage coolers (cost $2350), six automatic vending machines {cost $2400) and two electric coffee urns (cost ~360) will be replaced.

Cost of maintenance and repair of equipment in 1954-1955 was ~3,510.00G Cost of replacement of worn-out and obsolete
equipment in 1954-1955 was )4,290.00. Total cost of maintenance, repair and replacement of equipment in 1954-1955 was '.?7, 800.00.

.3. NEW EQUIPHENT

$ 3,600.00

Most equipment purchases will be made from Federal-State funds. However, experience shows that purchases from set aside funds are sometimes necessary. Some examples are:

(a) Addition of automatic vending machine to serve new work area in expanding industrial plant where stand is already established and case is closed.

(b) For the purchase of new equipment when state funds are temporarily exhausted.

(c) For additional counters, displays, and beverage coolers necessary to expand established business to full potential.

Thirty-six hundred dollars {~3600.00) was required in 1954-1955 to purchase new equipment from set aside funds.

4. ASSURrnG A FAIR MINIMUM RETURN 'J'O OPERATORS

$ 6,800.00

The Agency proposes, in addition to a reduction of 1% on administrative costs, to raise the guarantee from $80.00 to ~95.00 per four week period on Class A stands and to raise the guarantee from $60.00 to ~75.00 per four week period on
Class B stands. This would pass on to the operators savings
resulting from discontinuance of fringe benefits as directed
by Public Law 565.

Percentage wise set aside funds are as follows:

Management servica approximately Maintenance, repair and replacement New equipment Fair minimum return

Total

This would leave the Agency only ~250a00 for emergencies.

38.9% 28.8%
11.1%
21.]!
99.9%

These changes will assure the operators of a minimum earning of 19% of their gros~ sales.