(b) Appearance of vendor and employees of the vendor.

1. (1) The vendor and all relief and extra employees are expected to be neat and clean in appearance at all times.
2. (2) The vendor shall have ultimate responsibility for the conduct and appearance of all permanent or temporary extra help in the employment of the vendor assigned to the facility.

(d) Cigarette and tobacco permits.

1. (1) After the first cigarette and tobacco permits that are purchased as part of the initial stocks and equipment, the vendor will be responsible for obtaining on an annual basis and displaying such permits in accordance with applicable state rules.
2. (2) The fees for the permits will be charged as miscellaneous operating expenses.

(f) Credit.

1. (1) Customer credit shall be granted at the discretion of the vendor.
2. (2) Credit arrangements with wholesalers and suppliers will be left up to the individual vendor provided that such arrangements do not result in undue complaints or problems.

(i) Petty cash.

1. (1) An amount of petty cash shall be maintained at a level that coincides with good business practices.
2. (2) The amount of petty cash is shown on the weekly sales report as cash at the beginning of the day each Friday.

3. (3)

   1. (A) If petty cash is stolen, it will be replaced only once during the period reporting year and after a police report is turned in to the Vending Facility Program.
   2. (B) Replacement will be limited to the assigned amount but only up to a maximum of four hundred dollars ($400).
4. (4) No other moneys will be replaced.

(j) Pricing of merchandise.

1. (1) Prices of merchandise will be maintained at competitive levels, e.g., those charged by like establishments within the geographic area.
2. (2) However, prices will be maintained at levels high enough to ensure a reasonable profit.

(k) Suppliers.

1. (1) Vendors will make every effort to work out problems with suppliers.
2. (2) If problems cannot be resolved, the vendor may call the specialist for assistance.

(l) Telephone usage.

1. (1) Collect calls to the offices of the specialists or other agency personnel are requested to be kept to an absolute minimum.
2. (2) When necessary, long distance calls that are business related may be charged as operating expenses.
3. (3) Vendors should use the In-WAT State Calling System.

(m) Training.

1. (1) Training a prospective vendor.

   1. (A) If requested to do so by the Vending Facility Program Training Specialist, the vendor will be expected to provide on-the-job training to a person who is enrolled in the training program to become a licensed vendor.
   2. (B) The vendor will provide the training under the guidance and supervision of the training specialist.
   3. (C) The vendor will receive a fee for providing training services.
   4. (D) Vendors will be selected to provide training based upon their demonstrated skills and abilities to train prospective vendors.
   5. (E) A Trainer Agreement Form (see Appendix A) will be completed by the vendor when providing training.

2. (2) Vendor in-service training.

   1. (A)

(i) Periodically, in-service training will be conducted for licensed vendors.

1. (ii) The training will be provided in order to keep vendors aware of innovations in management and merchandising techniques and of changes in policy and procedure.

   1. (B) When there is documented evidence on file that a vendor has failed to conform to policy and procedures, or whose management or merchandising skills are less than adequate, it may be necessary that the vendor be provided intensive refresher training.

(n) Coin wrappers.

1. (1) The program will not be responsible for supplying coin wrappers.
2. (2) Vendors should contact the banking or other financial institution with which they do business and request supplies of coin wrappers from such institutions.

(o) Sandwich labels.

1. (1) Effective March 1, 1986, the program will no longer be responsible for supplying sandwich labels at cost to vendors.
2. (2) Vendors should contact a printing company of the vendor's choice in the vendor's local community to request supplies of printed sandwich labels.
3. (3) The cost of these labels may be deducted as an operating expense of the business.

(p) Firearms or weapons.

1. (1) Vendors and their staff are forbidden to possess firearms or weapons under any circumstances in the vending facilities or on the premises on which the vending facility is located.
2. (2) Weapons are determined by state law.
3. (3) Violation of this policy is grounds for automatic revocation of the operating license.

(q) Smoking/no smoking.

1. (1) The program will comply with the specifications of any building manager or grantor concerning the designation of a vending facility as a smoking or nonsmoking area.
2. (2) This policy shall apply to all vending facilities whether in public or private buildings.
3. (3) In situations where smoking has been disallowed by the building manager in a vending facility, the licensed blind vendor shall also comply with the designation of a nonsmoking area if the licensed blind vendor happens to be a smoker.

4. (4)

   1. (A) Neither the program staff nor the licensed blind vendor shall be responsible, however, for enforcement of nonsmoking policies in a vending facility, and the program will not purchase no smoking signs unless extenuating circumstances such as the potential loss of a facility is involved if the program does not purchase said signs.
   2. (B) The program will not under any circumstances purchase no smoking signs in federal or state facilities.
   3. (C) Such signs or other enforcement shall be the responsibility of the granting federal or state agency or designated federal or state property manager.

(r)

1. (1)

   1. (A) Vendors whose average profit percentage, excluding rent, is under thirty percent (30%) gross or sixteen percent (16%) net for eight (8) prior periods will be given a written warning by the Vending Facility Program Administrator that he or she has three (3) operating periods beginning with the next to raise such percentage to thirty percent (30%) gross or sixteen percent (16%) net or above or he or she may be placed on probation subject to subsequent disciplinary action in accordance with 22 CAR § 5-505.
   2. (B) Included in the written warning will be a list of deficiencies and plan of operations for improvement.
   3. (C) Also, the vendor is not eligible to bid on any location while in violation of this policy.

2. (2) The specialist will:

   1. (A) Assist the vendor in implementing procedural changes to improve operations during the three (3) operating periods; and
   2. (B) Submit to the administrator a biweekly progress report noting action taken to improve operations (due on the first and fifteenth of each month following the date of receipt of warning).
3. (3) In the event the three (3) operating periods fall during a time of inactivity for the location (e.g., plant closings, summer break, etc.), an extension may be given with the approval of the administrator.

4. (4)

   1. (A) At the end of the three (3) operating periods, the specialist shall certify to the administrator those vendors whose average profit, excluding rent, continues to fall below thirty percent (30%) gross or sixteen percent (16%) net.

   2. (B) Included in such certification shall be a recommendation to:

      1. (i) Place the vendor on probation subject to subsequent disciplinary action in accordance with 22 CAR § 5-505;
      2. (ii) Close the location and place vendor in displaced status; or
      3. (iii) Continue operations based upon extenuating circumstances with written approval of the administrator.

5. (5) Such recommendations shall be based upon the following conditions:

   1. (A)

      1. (i) Probation.
      2. (ii) If the vendor has failed to correct the deficiencies noted in the written warning or failed to follow the improvement plan and the average profit percentage, excluding rent, continues below thirty percent (30%) gross or sixteen percent (16%) net, he or she may be placed on probation subject to subsequent disciplinary action in accordance with 22 CAR § 5-505;

   2. (B)

      1. (i) Closure of location.
      2. (ii) If the vendor has followed the plan of improvement and corrected any deficiencies noted in the written warning, and the average profit percentage, excluding rent, continues to fall below the thirty percent (30%) gross or sixteen percent (16%) net margin, he or she may be placed in displaced status and the location closed due to unsuitability as a profitable operation.
      3. (iii) He or she retains all rights and privileges afforded a displaced vendor as provided in this part; and

   3. (C)

      1. (i) Operation under adverse conditions.
      2. (ii) If the vendor has corrected any deficiencies noted in the written warning and followed the improvement plan, and the average profit percentage, excluding rent, continues to fall below the thirty percent (30%) gross or sixteen percent (16%) net margin, the administrator may authorize continued operation of the facility.
      3. (iii) For continued operation under adverse conditions, the specialist must certify in writing to the administrator that closure of such a location would be detrimental to the program as a whole.
      4. (iv) The specialist shall continue to report biweekly (on the first and the fifteenth) regarding actions taken to improve profitability of the location.

(s) Telephone bills.

1. (1) Vendors are authorized to charge as an operating expense the maximum charge for a single business line telephone.
2. (2) Features such as call waiting, call forwarding, or other accessories will not be allowed as operating expenses.
3. (3) Vendors are responsible for the purchase of their own telephone instrument, and this is not an allowable equipment or operating expense.
4. (4) Payment of telephone bills is the responsibility of the individual licensed vendor and not the responsibility of the program.

5. (5)

   1. (A) Long distance charges will not normally be allowed as an operating expense.
   2. (B) If a vendor feels that a long distance charge was necessary for the operation of the vending facility and no other alternatives were available, then the vendor should submit an itemized list of the long distance charges as supplied by the operating telephone company for long distance service to the respective specialist for approval.
   3. (C) An explanation of the applicable long distance charge or charges must be submitted in writing by the licensed blind vendor to the vendor's specialist.

(t) Drugs or alcohol.

1. (1) Possession, use, or consumption of drugs, alcohol, or other substances by the vendor or their staff while on the premises is not allowed.
2. (2) Violation of this policy is grounds for automatic revocation of the operating license.

3. (3) Reasonable exceptions to this policy will apply to medication as prescribed by:

   1. (A) A doctor;
   2. (B) A dentist; or
   3. (C) Another healthcare professional.

(u) Nonemployees.

1. (1) Any person who is not employed by the vendor as extra help, whether essential or nonessential, will not be allowed to stay or loiter in the location.

2. (2) Suppliers, regular customers, and repair individuals are excluded.

   1. (v) Merchandise loss.
3. (1) Merchandise that is stolen or damaged due to circumstances beyond the manager's control will be replaced.

4. (2) The manager must:

   1. (A) Inform their specialist of the loss; and
   2. (B) Send them a written list of the merchandise that needs to be replaced.
5. (3) When the list is received and processed, a check will be sent for the merchandise replacement.

(w) Background checks.

1. (1) As of August 6, 2018, Division of Arkansas State Police background checks are required for extra help workers upon application to work in the program and/or as a manager at an assigned location.
2. (2) The background check will be processed with the application for work.
3. (3) The applicant must process the ASP-122 form and, once hired, the program will reimburse the applicant for the cost.
4. (4) Managers are not allowed to have the applicant at the site or assign duties to extra help workers until clearance of the background check is completed and the application processed.
5. (5) The manager must inform their specialist of all extra help workers at their assigned facility.
6. (6) Failure to comply with this policy will be grounds for disciplinary actions in accordance with 22 CAR § 5-505.