812 Vending Income

As prescribed in 34 CFR 395.32, each department, agency, or instrumentality of the United States shall be responsible for the collection of, accounting for, and disbursement of vending machine income to the SLA from vending machines under the control of on-site or property management officials.

812.1 Description

“Vending machine income” means receipts or commissions from vending machine operations (other than those of a blind vendor), as follows:

  • Receipts from vending machine operations on federal property, after deducting the cost of goods sold (including reasonable service and maintenance costs in accordance with customary business practices of commercial vending concerns) where the machines are operated, serviced, or maintained by, or with the approval of, a department, agency, or instrumentality of the United States.
  • Commissions paid by a commercial vending concern that operates, services, and maintains vending machines on federal property for, or with the approval of, a department, agency, or instrumentality of the United States.

Note: These funds are not subject to the 1.5 percent operating fee due to the Postal Service.

812.2 Records

Separate records of vending machine income are kept for each Post Office, station, branch, annex, other building, or self-contained group of buildings. When the Postal Service leases space to other agencies, the installation head must acquire income data from the tenants controlling the vending machines.

812.3 Exceptions

Funds from the following equipment are not included in total vending machine income:

812.4 Percentage

Effective January 2, 1975, vending machine income from vending machines on federal property must accrue to the SLA that administers the Randolph-Sheppard Act program in the state. The share of income that must be paid to the SLA depends on the determination of “direct competition” or “no direct competition” with any vending facility on the premises operated by a blind vendor.

If there is no direct competition, the percentage of vending machine income that accrues to the SLA depends on the total amount of annual vending machine income and the hours during which most employees work at the building.

The following table shows how the SLA’s share is determined:

 

Determining the Share of Vending Machine Income
Due the State Licensing Agency

Direct Competition

Total Annual Vending Machine Income in
Postal Service Building

If more than 50% of total work hours occur…

During normal working hours…

Outside normal working hours…

Then the share due the SLA is…

Yes

Varies

100%

100%

No

$3000 or less

0

0

No

More than $3000

50%

30%