Chapter DWD 60

DWD 60.09(1)(b)2.a. a. All rights, title to and interest in business enterprise equipment may be vested in an operator, as authorized by s. 47.03 (4), Stats., and the Randolph-Sheppard Act, provided that the operator has competently operated the business enterprise under supervision of the department for one year, and if the organization responsible for the building in which the business enterprise is located grants permission. The vendor-owner shall remain under supervision of the department.

DWD 60.09(1)(b)2.b. b. The business enterprise equipment shall be sold at a fair value based on the condition and serviceability of the equipment at the time of sale. Merchandise shall be sold at the original purchase price. Total payment shall be due to the department when the bill of sale is signed.

DWD 60.09(1)(b)2.c. c. A bill of sale between the operator and the department shall contain the terms and conditions of the sale, in accordance with this chapter and the conditions of any permit or contract governing the premises on which the business enterprise is located. Upon completion of the sale the operator shall be responsible for maintaining, repairing, and replacing all business enterprise equipment, and the set-aside charge for these services is suspended. In the event the operator fails to meet all obligations to provide proper maintenance, repair and replacement of equipment, the department may elect to make the necessary repair or replacement and charge the vendor-owner for such repair or replacement.

DWD 60.09(1)(b)2.d. d. The department retains a first option to repurchase within 90 days the equipment and stock in the event the vendor-owner dies, ceases to be a licensee, transfers to another business enterprise, or requests in writing purchase by the department. If the option to repurchase is not exercised, the department shall, if requested, provide a written statement to the vendor-owner giving the reasons for not exercising the option.

DWD 60.09(1)(c) (c) Receipt of equipment. Equipment furnished to the operator or removed by the department from the operator shall be acknowledged by a receipt signed by the operator or his or her agent or by the department’s representative, as is appropriate.

DWD 60.09(1)(d) (d) Care of equipment. Equipment furnished by the department shall be used only for the purpose stated in the operator’s agreement. The operator shall exercise reasonable care in the use and maintenance of that equipment in order to keep it in good condition.

DWD 60.09(1)(e) (e) Change or addition of equipment. The operator shall not add to or change any piece of equipment without prior written approval of the department.

DWD 60.09(2) (2) Initial stock.

DWD 60.09(2)(a) (a) Department responsibility.

DWD 60.09(2)(a)1. 1. The department shall provide each business enterprise with an adequate initial stock, including merchandise, supplies, and operating capital, as determined by the department to be adequate to begin operation. This level shall be adjusted annually by an index determined by current wholesale prices for such stock.

DWD 60.09(2)(a)2. 2. The department shall reimburse the operator if he or she leaves a particular location due to transfer, resignation or dismissal, for any usable and salable stocks and supplies above the current adjusted level. The operator shall reimburse the department if the closing inventory is less than the current adjusted level. In the event of an operator’s death, the estate shall be reimbursed accordingly or the estate shall reimburse the department. The department shall determine the amount to be paid to or collected from an operator or an operator’s estate within 60 calendar days after completion of the closing inventory. Payment or collection shall occur within 30 days after determination of the amount to be paid or collected.

DWD 60.09(2)(b) (b) Operator responsibility.

DWD 60.09(2)(b)1. 1. The operator shall acknowledge initial stock furnished by the department by signing a receipt to that effect.

DWD 60.09(2)(b)2. 2. The operator shall maintain a stock level and amount of operating capital adequate to conduct the business enterprise efficiently and effectively, as determined by the department.

DWD 60.09(3) (3) Bonding. All operators except vendor-owners shall be bonded and shall be assessed an annual bonding charge by the department.

DWD 60.09(4) (4) Income from vending machines.

DWD 60.09(4)(a) (a) Income from vending machines on state or other property within reasonable proximity to and in direct competition with a business enterprise shall be assigned to the operator of such business enterprise. A vending machine is in reasonable proximity to and in direct competition with a business enterprise if it vends articles of a type authorized in the permit and is so located that it attracts customers who would otherwise patronize the business enterprise.

DWD 60.09(4)(b) (b) Income from vending machines not within reasonable proximity to or in direct competition with a business enterprise may be used for management services for the business enterprise program.

DWD 60.09(4)(c) (c) In all cases, income from vending machines shall be distributed as provided under the Randolph-Sheppard Act and 34 CFR 395.8.

DWD 60.09(5) (5) Insurance.

DWD 60.09(5)(a) (a) Every business enterprise shall have adequate liability and fire insurance at levels established by the state of Wisconsin office of risk management.

DWD 60.09(5)(b) (b) If the department obtains the necessary insurance coverage, the operator shall reimburse the department.

DWD 60.09(5)(c) (c) Unless otherwise agreed, the first premium for insurance coverage for each new business enterprise shall be paid by the department as a part of the initial installation costs.

DWD 60.09(6) (6) Licenses and permits.

DWD 60.09(6)(a) (a) Each business enterprise shall have all licenses and permits required by law for the conduct of the business enterprise.

DWD 60.09(6)(b) (b) If the department obtains the required licenses and permits, the operator shall reimburse the department for them.

DWD 60.09 History History: Cr. Register, May, 1983, No. 329, eff. 6-1-83; correction in (1) (b) 2. a. made under s. 13.93 (2m) (b) 7., Stats.

DWD 60.10 DWD 60.10 Operating the business enterprise.

DWD 60.10(1) (1) Operator behavior.

DWD 60.10(1)(a) (a) General. The operator shall:

DWD 60.10(1)(a)1. 1. Perform faithfully and to the best of his or her ability all duties necessary to the proper conduct and operation of the business enterprise;

DWD 60.10(1)(a)2. 2. Operate the business in compliance with all applicable provisions of federal, state, and local law;

DWD 60.10(1)(a)3. 3. Operate the business in accordance with this chapter and the permit or contract with the controlling body or organization of the building or property in which the business is located; and

DWD 60.10(1)(a)4. 4. Cooperate with duly authorized representatives of the department in the performance of their official responsibilities.

DWD 60.10(1)(b) (b) Prohibited behavior by operator and employes. The operator or any employe of the operator, while engaged in the pursuit of duties and responsibilities as operator on the premises where the business enterprise is located or elsewhere, shall refrain from any action or conduct which may bring or reflect discredit to the business enterprise operation, to the owner or manager of the premises where the business enterprise is located or to the department’s business enterprise program. Such prohibited action or conduct shall include, but shall not be limited to, the following:

DWD 60.10(1)(b)1. 1. Use of alcoholic beverages, controlled substances as defined in ch. 961, Stats., or other drugs unless prescribed by a physician for the user;

DWD 60.10(1)(b)2. 2. The presence or possession of alcoholic beverages, except as these relate to the business, on the premises where the business enterprise is located;

DWD 60.10(1)(b)3. 3. Conduct offensive under current community standards;

DWD 60.10(1)(b)4. 4. The use of language blatantly offensive to a reasonable person;

DWD 60.10(1)(b)5. 5. Embezzlement;

DWD 60.10(1)(b)6. 6. The making of false reports; or

DWD 60.10(1)(b)7. 7. The commission of a felony or a misdemeanor.

DWD 60.10(1)(c) (c) Prohibited absences. Except as otherwise provided in this chapter, absentee management, supervision and operation of the business enterprise and the realization of its net proceeds by the operator in absentia for other than brief, non-routine periods is prohibited.

DWD 60.10(1)(d) (d) Relief periods. The operator may establish a schedule of relief periods for employes during business hours, subject to the approval of the department.

DWD 60.10(1)(e) (e) Vacations. The operator may take a maximum of 30 working days vacation each calendar year after notifying the department of the name, address, and telephone number of the relief operator.

DWD 60.10(1)(f) (f) Illness. Necessary absence of the operator due to personal illness is allowable if the absence does not exceed one period of 30 consecutive working days in any calendar year, or 2 or more periods totaling not more than 45 working days in any calendar year. The department may extend the allowable period of absence where special circumstances exist.

DWD 60.10(2) (2) Employment practices.

DWD 60.10(2)(a) (a) Operator responsibility. The operator shall:

DWD 60.10(2)(a)1. 1. Employ and compensate such employes as are necessary to the effective and efficient operation of the business enterprise;

DWD 60.10(2)(a)2. 2. Employ and compensate a relief operator to insure continuous operation of the business enterprise during an absence of the licensed operator;

DWD 60.10(2)(a)3. 3. Comply with all applicable labor and civil rights laws;

DWD 60.10(2)(a)4. 4. Limit the persons employed to preclude unnecessarily excessive costs;

DWD 60.10(2)(a)5. 5. Terminate the employment of any person whose continued employment is detrimental to the business enterprise;

DWD 60.10(2)(a)6. 6. Keep and preserve legally required detailed records of payroll and payroll deductions; and

DWD 60.10(2)(a)7. 7. Observe the following order of preference in hiring qualified persons:

DWD 60.10(2)(a)7.a. a. Severely disabled applicants.

DWD 60.10(2)(a)7.b. b. Non-severely disabled applicants.

DWD 60.10(2)(a)7.c. c. Non-disabled applicants.

DWD 60.10(2)(b) (b) Department responsibility. The department shall:

DWD 60.10(2)(b)1. 1. Assist each operator in identifying qualified disabled persons to be considered for employment; and

DWD 60.10(2)(b)2. 2. Notify the operator of any situation arising from the operator’s employment practices which is detrimental to the operation and requires prompt and immediate correction.

DWD 60.10(3) (3) Cash basis and credit.

DWD 60.10(3)(a) (a) The operator shall transact all business on a 30 calendar day cash basis and shall pay all obligations promptly when due.

DWD 60.10(3)(b) (b) The operator shall pay and discharge any obligations within 30 days after written notice from the department that:

DWD 60.10(3)(b)1. 1. The operator is delinquent in the payment of any business accounts; or

DWD 60.10(3)(b)2. 2. The department has received a complaint concerning monies due a business creditor of the operator, or has been asked to provide assistance in the collection of these monies.

DWD 60.10(4) (4) Merchandise. Only merchandise of a class or type authorized by the permit or contract shall be sold by the operator or the operator’s employes.

DWD 60.10(5) (5) Display of license. The operator shall at all times conspicuously display at the business enterprise location the license issued by the department and shall neither cause nor permit the license to be covered or removed.

DWD 60.10(6) (6) Records and reports.

DWD 60.10(6)(a) (a) Operator responsibility. The operator shall:

DWD 60.10(6)(a)1. 1. Establish and maintain a business checking account in a depository commercial bank chartered to do business in the state of Wisconsin, deposit all business receipts and revenues therein, and insure that business and personal funds shall not become mingled in the account;

DWD 60.10(6)(a)2. 2. Keep and preserve a full and complete record of all receipts and disbursements required by internal revenue service guidelines;

DWD 60.10(6)(a)3. 3. Prepare and submit to the department, on or before the 5th working day of each month, a sales report for the previous month along with all bills paid that month;

DWD 60.10(6)(a)4. 4. Make available to the department during regular business hours all records and books of account for the purpose of review or audit; and

DWD 60.10(6)(a)5. 5. Provide or report to the department in the form prescribed information about the business enterprise required by this chapter or otherwise requested by the department.

DWD 60.10(6)(b) (b) Department responsibility. The department shall assist the operator in the establishment of proper books of account and record-keeping procedures.

DWD 60.10(7) (7) Payment of fees. The operator shall, within 30 days from the date of invoice, send all fees to the department which are owed to the department for the preceding month. Fees may be paid by check or money order made payable to the department’s business enterprise program and sent to the address on the invoice.

DWD 60.10(8) (8) Penalty for late report or fees.

DWD 60.10(8)(a) (a) All reports required pursuant to sub. (6) (a) received after the due date shall be assessed a late penalty charge as determined annually by the department in consultation with the committee.

DWD 60.10(8)(b) (b) All fees required pursuant to s. DWD 60.11 received after the due date shall be assessed an interest charge of 1% per month (12% per annum) of the unpaid balance.

DWD 60.10(8)(c) (c) If the reports or fees are late due to reasons beyond the operator’s control, the penalty may be waived by the department upon receipt of the set-aside fees or fully completed reports accompanied by a statement justifying the lateness.

DWD 60.10(9) (9) State sales tax.

DWD 60.10(9)(a) (a) Every operator shall obtain a Wisconsin seller’s permit in the operator’s name.

DWD 60.10(9)(b) (b) If the department obtains the seller’s permit, the operator shall reimburse the department for the permit.

DWD 60.10(9)(c) (c) The operator shall pay in full within prescribed time limits all state sales tax due and shall comply with the provisions of ss. 77.51 and 77.52, Stats.

DWD 60.10 History History: Cr. Register, May, 1983, No. 329, eff. 6-1-83.

DWD 60.11 DWD 60.11 Set-aside funds.

DWD 60.11(1) (1) Requirement. The department shall collect, maintain and administer funds from the net proceeds of the operation of each business enterprise, including vendor-owned enterprises, in accordance with provisions of this section.

DWD 60.11(2) (2) Amount.