1. (a) The net proceeds from vending machines operated by private persons in state or federal buildings for profit must be paid into the vocational rehabilitation small business enterprise revolving fund on a quarterly basis. Income derived from vending machines in federally owned or leased buildings will be held and accounted for separately from any income from vending machines in state owned or leased buildings and will be expended only to assist licensees on federal property.

2. (b) If a vending machine is in direct competition with a licensee in the same building, the net proceeds from the machine accrue to the licensee in an amount not to exceed the lesser of

   1. (1) the average net income of all licensees within the state, determined each federal fiscal year on the basis of the prior federal fiscal year's operation; or
   2. (2) an amount equal to the average net income of all blind vending facility operators in the United States, determined on the basis of the prior fiscal year's operation.
3. (c) This section does not apply to income from a vending machine which is part of a vending facility operated by a licensee.

4. (d) The division will retain the net proceeds from vending machines not in direct competition with a licensed vending facility and net proceeds exceeding the requirements of (b) of this section. The division will use the proceeds to aid licensees by providing for

   1. (1) vacation time, health insurance plans, retirement, and pension plans;
   2. (2) maintenance of equipment;
   3. (3) purchase of new or replacement equipment;
   4. (4) management and consultative services;
   5. (5) a fair minimum return to beginning licensees; and
   6. (6) all or part of the cost of constructing new vending facilities.
5. (e) Use of the net proceeds committed by the division to benefits described in (d)(1) of this section will be determined by a majority of licensees on a biennial basis.

(Eff. 7/17/83, Register 87)

Authority: AS 23.15.020