UTS 130 Vending Machine Contracts

Sec. 1 Purpose

All vending machine services contracts must be awarded, entered into, and managed in accordance with applicable laws and The University of Texas System policies and procedures, in a fiscally prudent and ethical manner.

Sec. 2 Principles

This policy is intended to provide specific guidance to University of Texas System institutions regarding vending machine services contracts given the significant state regulation of those contracts.  Each UT institution will process vending machine services contracts in accordance with this policy.

Sec. 3 Authority

Texas law authorizes installation and operation of vending machines on property owned or controlled by UT System institutions pursuant to a written agreement approved by the Board of Regents, in areas designated in advance by the President of a UT institution, or by the Chancellor for The University of Texas System Administration.

Sec. 4 Auxiliary Enterprise Operations

Vending machine operations at UT System institutions are auxiliary enterprise operations that must be conducted in accordance with applicable laws.

Sec. 5 Student Participation

Vending machine contracts for sale of food or beverages must (a) include meaningful input from students in initial selection or renewal of the contractor; and (b) require the contractor to hold periodic meetings or forums to provide students with a reasonable opportunity to discuss the contractor's performance.

Sec. 6 Vending Machine Transactions

a) Use and Scope of UT System Standard Vending Machine Services Contract. The UT System standard Vending Machine Services Contract should be used to document vending machine services transactions for vending machines offering typical food and beverage items. If UT System institutions are contracting for (a) coin or card-operated laundry machines, amusement games, or other goods or services substantially different from typical food and beverage items; or (b) additional beverage-related services, such as fountain beverage supplies; or beverage pouring; or advertising, promotional or sponsorship rights, the UT System standard Vending Machine Services Contract must be substantially revised to accommodate those goods and services.

b) Legal Review. The UT System Office of General Counsel must review and approve vending machine services contracts as to legal matters prior to Board of Regents approval, if a vending machine services contract deviates in any way from the UT System standard Vending Machine Services Contract (other than completion of blanks); or, if a vending machine services contract renewal, extension or amendment (a) deviates in any way from the UT System standard Renewal, Extension and Amendment of Vending Machine Services Contract (other than completion of blanks), or (b) substantively modifies the UT System standard Vending Machine Services Contract.

c) Board Approval. Applicable laws require submittal of all vending machine services contracts, renewals, extensions and amendments to the Board of Regents for approval.

d) Submission and Notification to Texas Comptroller of Public Accounts. After approval by the Board of Regents and execution of a vending machine services contract, renewal, extension or amendment by both parties, the applicable UT System institution must forward an executed copy to the Texas Comptroller of Public Accounts, along with a statement (a) describing the locations of the vending machines, and (b) indicating the contract, renewal, extension or amendment was approved by the Board of Regents.

Sec. 7 Use of Funds Derived from Vending Machine Operations

All revenue earned from vending machine operations by UT System institutions  should be retained and deposited (or invested) by the institution in accordance with Texas Education Code, Sections 51.003 and 51.0031.

Definitions

Auxiliary enterprise - a business activity that is conducted at a State agency, provides a service to the agency, and is not paid for with appropriated money; and is subject to Texas Government Code, Chapter 2252, Subchapter C.