Adm 82.12(21) (21)“Expiration" means the specified end of the DVB certification, at the close of the three-year certification period.
Adm 82.12(22) (22)“Financial adviser" has the meaning given in s. 16.283 (1) (d), Stats.
Adm 82.12 Note Note: Section 16.283 (1) (d) of the Statutes reads as follows: “ `Financial adviser' means a business that serves as an adviser with regard to the sale of evidences of indebtedness or other obligations.
Adm 82.12(23) (23)“General partner" means a partner in a limited partnership who participates fully in the profits, losses and management of a partnership and who is personally liable for its debts.
Adm 82.12(24) (24)“Industry standard" means the usual and customary practice in the delivery of products or services within a particular business sector, such as procurement, billing payment and performance.
Adm 82.12(25) (25)“Interest" means a right, claim, financial or legal share in a business.
Adm 82.12(26) (26)“Investment firm" has the meaning given in s. 16.283 (1) (e), Stats.
Adm 82.12 Note Note: Section 16.283 (1) (e) of the Statutes reads as follows: “ `Investment firm' means a business that serves as a manager, co-manager, or in any other underwriting capacity with regard to the sale of evidences of indebtedness or other obligations or as a broker-dealer as defined in s. 551.102 (4)."
Adm 82.12(27) (27)“Issued shares" means the shares of a corporation which its articles of incorporation have authorized for issuance and which have actually been sold to subscribers. They may include treasury shares.
Adm 82.12(28) (28)“Joint venture agreement" means a written agreement signed by each joint venturer specifying the terms and conditions of the joint venture.
Adm 82.12(29) (29)“Limited liability company" means a company formed under ch. 183, Stats., or under a similar statute of another state, and similar in structure to a partnership, but its members are not personally liable for the entity's debts and liabilities. Its members may participate in the management of the company without risking personal liability.
Adm 82.12(30) (30)“Limited partner" means any partner in a limited partnership who is not a general partner.
Adm 82.12(31) (31)“Limited partnership" has the meaning given in s. 179.01 (7), Stats.
Adm 82.12 Note Note: Section 179.01 (7) of the Statutes defines a “Limited partnership" as being a partnership formed by 2 or more persons under chapter 179 of the Statutes “and having one or more general partners and one or more limited partners."
Adm 82.12(32) (32)“Marital-property agreement" means an agreement that complies with s. 766.58, Stats.
Adm 82.12(33) (33)“Marital property laws" means ch. 766, Stats.
Adm 82.12(34) (34)“Marital-property waiver" means a form provided by the department to document separate control and management of a business under marital property laws.
Adm 82.12(35) (35)“Nonprofit organization" means an organization as defined in s. 108.02 (19), Stats.
Adm 82.12(36) (36)“On-site visit" means a visit to an applicant's physical place of business for the verification of information submitted in the application and accompanying documentation.
Adm 82.12(37) (37)“Parent company" means a company that has at least a majority direct-voting control over another company.
Adm 82.12(38) (38)“Partnership" has the meaning given in s. 178.0102 (11), Stats.
Adm 82.12 Note Note: Section 178.0102 (11) of the Statutes reads as follows: ““Partnership" or “domestic partnership" means an association of 2 or more persons, except to the extent provided in s. 178.0801 (6), to carry on as co-owners a business for profit whose governing law is the law of this state, and which is subject to this chapter, including an association that has become and is still subject to this chapter. The term includes a limited liability partnership."
Adm 82.12(39) (39)“Partnership agreement" means a written agreement signed by each partner specifying the terms and conditions of the partnership.
Adm 82.12(40) (40)“Partnership interest" means a partner's share of the profits and losses of the partnership and the right to receive distributions of partnership assets.
Adm 82.12(41) (41)“Principal place of business" means the physical location at which or from which a business performs, is maintained, or operates the majority of its business.
Adm 82.12(42) (42)“Recertification" means the process by which DVB status is reconfirmed, prior to expiration at the close of the three-year certification period.
Adm 82.12(43) (43)“Renewal" means a one-year continuation of a DVB certification, at the end of each of the first two years of the three-year certification period, as subject to a review by the department.
Adm 82.12(44) (44)“Retailer" means the seller of goods or commodities directly to consumers at a retail price.
Adm 82.12(45) (45)“Secretary" means the secretary of the department.
Adm 82.12(46) (46)“Securities" means stocks, bonds, notes, convertible debentures, warrants or other documents that represent a share in a business, or a debt owed by a business.
Adm 82.12(47) (47)“Shares" means the units into which the proprietary interests in a corporation are divided.
Adm 82.12(48) (48)“Sole proprietorship" means a business in which one person owns all the assets of the business and is solely liable for all the debts of the business.
Adm 82.12(49) (49)“Stock-affirmation form" means a form provided by the department and affirmed by the applicant stating that the stock ownership of the corporation is as presented in the application, and in which the applicant agrees to notify the department in the event that additional stock is sold.
Adm 82.12(50) (50)“Stock certificate" means a certificate issued by a corporation certifying that the named person is the owner of a designated number of shares of stock.
Adm 82.12(51) (51)“Subsidiary" means a corporation in which one other corporation owns a majority of the voting shares.
Adm 82.12(52) (52)“Treasury shares" means the shares which have been issued but later re-acquired by a corporation and which have not been canceled or restored to the status of authorized but unissued shares.
Adm 82.12(53) (53)“Unissued shares" means shares which the corporation is authorized to issue but which have not yet been distributed to shareholders or subscribers.
Adm 82.12(54) (54)“Useful business function" means the provision of materials, supplies, equipment or services to customers, including the state. Acting as a conduit to transfer funds to a business that is not certified under this chapter does not constitute a useful business function, unless doing so is a normal industry practice.
Adm 82.12(55) (55)“Voting shares" means those shares that give the holder the right to vote for directors and other matters – in contrast to non-voting shares, which simply entitle the holder to dividends, if any.
Adm 82.12(56) (56)“Wholesaler" means a middle person or distributor who sells mainly to retailers, other merchants, and industrial commercial institutional users, as distinguished from consumers.
Adm 82.12 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11; corrections in (1), (15) made under s. 13.92 (4) (b) 6., Stats., corrections in (4), (8), (16), (22), (26) made under s. 13.92 (4) (b) 7., Stats., Register September 2011 No. 669; correction in (1) made under s. 13.92 (4) (b) 6., Stats., Register December 2011 No. 672; correction in (38) made under s. 13.92 (4) (b) 7., Stats., Register March 2017 No. 735.
Adm 82.20 Adm 82.20 Certification criteria. In order to become certified as a DVB — a business, financial adviser, or investment firm shall meet all of the following eligibility standards:
Adm 82.20(1) (1)The business, financial adviser, or investment firm satisfies all of the criteria in the DVB definition in s. Adm 82.12 (17).
Adm 82.20(2) (2)If the business, financial adviser, or investment firm is a sole proprietorship, a disabled veteran owns 100 percent of the company assets.
Adm 82.20(3)(a)(a) If the business, financial adviser, or investment firm is a partnership, each partner shall act as a principal in his or her own behalf and as agent of his or her co-partners, and general rules of law applicable to agents shall apply with equal force in determining rights and liabilities of partners. One or more disabled veterans shall own at least 51 percent of the partnership interests.
Adm 82.20(3)(b) (b) If the business, financial adviser, or investment firm is a limited partnership, one or more disabled veteran general partners shall own at least 51 percent of the general partnership interest and exert at least 51 percent of the control of the partnership. The disabled veteran general and limited partners shall receive at least 51 percent of the partnership's profits and benefits, including tax credits, deductions and postponements.
Adm 82.20 Note Note: See section Adm 82.12 for definitions of general partner, limited partner, limited partnership, and partnership.
Adm 82.20(4) (4)If the business, financial adviser, or investment firm is a limited liability company, one or more disabled veterans own at least 51 percent of membership interests in the LLC organization, and exert at least 51 percent of the management and control among the members. The disabled veteran owners also participate in all risks and profits of the organization at a rate commensurate with their membership interests.
Adm 82.20(5) (5)If the business, financial adviser, or investment firm has a corporate form of organization, one or more disabled veterans own at least 51 percent of all voting stock of the corporation. Any voting agreements among the shareholders do not dilute the beneficial ownership, the rights, or the influence of the disabled veteran owners of the stock or classes of stock of the corporation. The disabled veteran owners possess the right to all customary incidents of ownership, such as the ability to transfer stock, title possession, and enter binding agreements.
Adm 82.20 Note Note: Nonprofit corporations do not meet the for-profit condition in section Adm 82.12 (17) (intro.) and therefore are not eligible for certification.
Adm 82.20(6) (6)If the business, financial adviser, or investment firm is a joint venture, one or more disabled veteran-owned entities hold at least 51 percent of the beneficial ownership interest in the joint venture, and exert at least 51 percent of the control and management of the joint venture. The disabled veteran-owned entity partners of the joint venture are certified or are eligible for certification as a DVB.
Adm 82.20(7) (7)If the business, financial adviser, or investment firm is a subsidiary or affiliate, one or more disabled veterans own at least 51 percent of the parent company.
Adm 82.20 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11; correction in (1) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672.
Adm 82.22 Adm 82.22 Documentation of being a disabled veteran. An applicant shall submit the verification specified in s. 16.283 (1) (b), Stats.
Adm 82.22 Note Note: Section 16.283 (1) (b) of the Statutes, as reprinted under section Adm 82.12 (16), defines “disabled veteran" and addresses verification of that status by the department of veterans affairs.
Adm 82.22 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11; correction made under s. 13.92 (4) (b) 7., Stats., Register September 2011 No. 669.
Adm 82.24 Adm 82.24 Determination of ownership.
Adm 82.24(1)(1)An applicant shall meet all of the following eligibility standards:
Adm 82.24(1)(a)1.1. The ownership by one or more disabled veterans is real, substantial and continuing, going beyond the pro-forma ownership of the business as reflected in its ownership documents.
Adm 82.24(1)(a)2. 2. Each disabled veteran owner shares in all risk and profits commensurate with his or her ownership interest as demonstrated by a detailed examination of the substance of his or her business arrangements with others.
Adm 82.24(1)(a)3. 3. Each disabled veteran owner receives the customary incidents of ownership, such as salary, rights to dividends, ownership of assets and ownership of intangible assets such as copyrights and patents.
Adm 82.24(1)(b) (b) The contributions of capital and expertise by the disabled veteran owner or owners to acquire their interest in the business is real and substantial, and in proportion to the interest acquired.
Adm 82.24(2) (2)Contributions of personal or professional services alone are not real and substantial for the purposes of this section, except these contributions shall receive consideration when given in conjunction with other tangible forms of investment. Other insufficient contributions include promises to contribute capital or expertise in the future, a note payable to the business or to its owners who are not disabled veterans, or the mere participation as an employee.
Adm 82.24(3) (3)Disabled veterans shall hold at least 51 percent of the securities that constitute ownership of a business.
Adm 82.24(4) (4)Securities or assets of a business that are held in trust are not considered as held by a disabled veteran in determining the ownership of a business, except under the following circumstances:
Adm 82.24(4)(a) (a) The beneficial owner of the securities or assets held in trust is a disabled veteran, and the trustee is a disabled veteran.
Adm 82.24(4)(b) (b) A disabled veteran is the sole grantor of assets held in a revocable living trust, and a disabled veteran is the beneficiary and trustee.
Adm 82.24(5) (5)The department may not consider securities that are held by any guardian for a minor, in determining ownership and control.
Adm 82.24(6) (6)An ownership interest arising in a spouse who is not a disabled veteran, solely because of the operation of marital property laws, may not disqualify an applicant from certification if both spouses certify that the disabled veteran or his or her duly authorized representative performs the majority of the control and management of the business.
Adm 82.24 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.
Adm 82.25 Adm 82.25 Documentation of ownership.
Adm 82.25(1)(a) (a) An applicant shall submit documentation showing ownership of at least 51 percent of the business by a disabled veteran. This documentation may include, but is not limited to, the three preceding years of business taxes, a current business financial statement, business licenses, buy-out agreements and financial agreements.
Adm 82.25(1)(b) (b) For a sole proprietorship, additional documentation may include, but is not limited to, canceled checks used to purchase ownership.
Adm 82.25(1)(c) (c) For a partnership, additional documentation may include, but is not limited to, partnership agreements, purchase agreements, and salary and profit-sharing records.
Adm 82.25(1)(d) (d) For a corporation, additional documentation may include, but is not limited to, articles of incorporation, corporate by-laws, a corporate-borrowing resolution, stock certificates, stock-affirmation forms, and salary and profit-sharing records.
Adm 82.25(1)(e) (e) For a joint venture, additional documentation may include, but is not limited to, a joint venture agreement that is written and signed by all of the joint venturers. Each joint venture agreement shall specify all of the following:
Adm 82.25(1)(e)1. 1. The capital contribution made by each joint venturer, the control each will exercise, and the distribution of profit and loss. The agreement shall allocate the control and the distribution of profit and loss in proportion to the contributions of the joint venturers.
Adm 82.25(1)(e)2. 2. The useful business function the joint venture will perform and the part of the work each joint venturer will do.
Adm 82.25(2) (2)The department may require documentation showing how and when the disabled veteran's interest in the business was acquired.
Adm 82.25(3)(a)(a) The department shall apply the following rules in situations in which marital assets form a basis for ownership of a business:
Adm 82.25(3)(a)1. 1. When marital assets other than the assets of the business in question are held jointly or as marital property by both spouses, and are used to acquire the ownership interest asserted by the disabled veteran, the department shall conclude that the disabled veteran acquired his or her ownership interest in the business with his or her own individual resources, provided that the other spouse irrevocably renounces and transfers all rights in the ownership interest in the manner sanctioned by the laws of the state in which either spouse or the business is domiciled. The department may not count a greater portion of joint or marital property assets toward ownership than state law would recognize as belonging to the qualifying member of the business.
Adm 82.25(3)(a)2. 2. The application for DVB certification shall include a copy of the document that is used for legally transferring and renouncing the rights as required in subd. 1.
Adm 82.25(3)(b) (b) In instances where a disabled veteran and a person who is not a disabled veteran are married and the marital ownership is not clearly established, the department may request a marital-property waiver form in which both spouses certify that only the disabled veteran spouse or his or her duly authorized representative controls and manages the business, or an affidavit stating that the spouses have signed a marital-property agreement in which the spouse who is not a disabled veteran relinquishes control and management of the business.
Adm 82.25 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.
Adm 82.28 Adm 82.28 Determination of control.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.