Adm 84.09(1)(b)(b) Whether the minority owner or owners have the responsibility for the supervision of the firm’s employees.

Adm 84.09(1)(c)(c) Whether the minority owner or owners have a working knowledge of the technical requirements of the business.

Adm 84.09(2)(2) Where the actual day-to-day management is delegated to a nonminority individual, the minority management requirement may be met if the minority owner or owners have the ultimate power to hire and fire the manager.

Adm 84.10Adm 84.10 Documentation of active management.

Adm 84.10(1)(1) The department shall require evidence that the minority owner or owners actively manage the business. Such evidence may include, but is not limited to, the following:

Adm 84.10(1)(b)(b) Evidence that the minority owner or owners have delegated work assignments to the firm’s employees.

Adm 84.10(1)(c)(c) Documentation, such as a resume, that the minority owner or owners have the education or work experience in the skill areas required to produce the product or service provided by the business.

Adm 84.10(2)(2) Where the actual day-to-day management is delegated to a nonminority individual, documentation, such as a signed contract, that the minority owner or owners have the ultimate power to hire and fire the manager.

Adm 84.11Adm 84.11 Determination of performance of a useful business function. Factors which shall be considered in determining whether the applicant is performing a useful business function include, but are not limited to, the following:

Adm 84.11(2)(2) The adequacy of the business’ resources to carry out its business functions.

Adm 84.11(3)(3) The degree to which the business is independent of control or substantial influence by another business. Business relationships which tend to defeat the useful business function include, but are not limited to, shared space, equipment, employees or other resources and financing agreements.

Adm 84.11(4)(4) Whether the business acts as a conduit to transfer funds to a nonminority business, unless doing so is a normal industry practice.

Adm 84.11 NoteNote: Brokering arrangements are an example of the type of business activity which might be considered to be acting as a conduit. However, if such brokering arrangements are prevalent within the industry, such as in the oil distribution industry, the department would not consider the business to be acting as a conduit.

Adm 84.12Adm 84.12 Documentation of performance of a useful business function. The department shall require evidence that the business is performing a useful business function. Such evidence may include, but is not limited to, the following:

Adm 84.12(1)(1) Contracts, purchase orders, invoices and other documents demonstrating that the business has customers other than the state.

Adm 84.12(2)(2) Evidence that the quantity, type and condition of the business’ equipment and inventory are adequate to carry out its business functions.

Adm 84.12(3)(3) Loan and other financing agreements, leases, employee contracts, payroll records and other documents demonstrating that the business relationships with a nonminority business do not preclude it from performing a useful business function.

Adm 84.12(4)(4) Contracts, purchase orders, invoices and other documents showing that the business has a diversity of suppliers and is not acting as a conduit for a single supplier.

Adm 84.13Adm 84.13 Special circumstances. Any one of the following circumstances creates a presumption that the minority business does not satisfy the eligibility standards for certification as a minority business enterprise. In such instances, the applicant has the burden of establishing to the department’s satisfaction that the minority owner or owners meet the eligibility standards despite the existence of one or more of the following factors:

Adm 84.13(2)(2) Firms whose ownership or control has changed within one year prior to an application for certification.

Adm 84.13(3)(3) Transfers of shares of stock from nonminorities to minorities that occur within one year prior to an application for certification.

Adm 84.13(4)(4) Firms with authorized but unissued shares which, if issued, could result in less than 51% minority ownership of the business or in less than dominant control by minority owners.