Let’s Talk About Your Vending
Tennessee Business Enterprises (TBE) is the state program charged with the responsibility of providing vending services on properties owned or leased by the state or any local government entity. Larger vending facilities are generally assigned to a licensed blind vendor. However, some locations due to size, location, and other factors may not be appropriate for a blind vendor. In those situations, TBE will arrange for a private third party vendor to provide the service. Here are answers to frequently asked questions we often get about these third party vending arrangements.
What is the legal authority for this third party vending program?
T.C.A. 71-4-504
Does TBE have the right to ALL vending on government properties?
No, airports and elementary and secondary schools are specifically exempt from the law.
How does the process work if we want vending?
· TBE’s Third Party Vending Specialist should be contacted;
· A survey will be conducted by TBE;
· A decision will be made to either assign the vending to a licensed blind vendor or to a private third party vendor; and,
· Machines are installed and service initiated.
Under what circumstances would TBE choose to assign vending to a third party vending company?
Some facilities are too small to support a blind vendor either as a stand alone facility or when combined as part of a vending route. Other facilities are located in remote areas that make transportation difficult for a blind person. Many other factors could come into play when making such decisions.
Does the government entity have any say as to who the third party vendor will be?
Yes, you are the customer and it is TBE’s goal to satisfy your wishes. TBE will take into consideration any recommendation by the government entity. This may include brand preferences such as Coca-Cola rather than Pepsi. However, the ultimate decision rests with TBE and the decision could hinge on whether or not the company is willing to pay a competitive commission.
What if the government entity already has a contract with a vending company?
TBE does not wish to put any government entity in a position of liability by forcing it terminate a contract. Generally, TBE will make arrangements with the current vendor to start sending all commissions to TBE until the contract has been satisfied.
Who gets the commissions from third party vending?
Tennessee Business Enterprises
How are the funds used by TBE?
TBE uses the funds to enhance services to people who are blind and participate in the program. A significant portion of the funds go toward paying for health insurance coverage for blind persons who would not otherwise have coverage.
Does the government entity get any of the money generated by the vending machines?
Generally, the answer is no. However, there may be circumstances where TBE would agree to a revenue sharing arrangement. This would only happen in those situations where the loss of vending machine revenue will have a significant budgetary impact on the local entity. Such revenue sharing arrangements will generally be time limited.
What about pricing of products?
TBE will ensure that prices are competitive with others in the general locale. TBE is moving toward having consistent pricing at all of its third party vending locations but it will be awhile before that becomes a reality.
What if we don’t want TBE?
If the government entity feels that the law is not applicable or is dissatisfied in way with TBE’s actions, it has the right to file a complaint with the Secretary of State’s Office pursuant to T.C.A. 71-4-506. Otherwise, if it wants vending, it has no choice except to go through TBE to secure the service. As an alternative, the government entity may choose to have all vending machines removed from its property.
What if we choose to just ignore the law?
If TBE becomes aware of vending that it did not arrange and the government refuses to cooperate, TBE will notify the County Audit Division of the State Comptroller’s Office which may result in an audit finding. TBE may also choose to file a complaint with the Secretary of State’s Office as provided for in T.C.A. 71-4-506.
How do I get more information?
For more information, please contact:
Mr. Duane Hill, Third Party Vending Specialist
Tennessee Business Enterprises
400 Deaderick Street, 14th Floor
Nashville, TN 37248-6200
Tel: 615-313-5601
Fax: 615-313-6617
E-Mail: W.Duane.Hill@state.tn.us
