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.

Adm 84.13(5)(5) Firms subject to conversion rights which, if exercised, would result in less than 51% minority ownership of the business or in less than dominant control by minority owners.

Adm 84.13(6)(6) Firms in which one or more of the minority owners is a former or current employee of a nonminority person or business firm which has an ownership interest in or a business relationship with the applicant firm, particularly if the nonminority person or firm is in a substantially similar line of business.

Adm 84.13(7)(7) Firms whose directors, management or both, are substantially the same as those of a nonminority firm which has an ownership interest in, an investment in, or a business relationship with the applicant firm, particularly if the nonminority firm is in a substantially similar line of business.

Adm 84.13(8)(8) Firms which share indistinguishable facilities, such as office space, production, distribution or storage facilities, machinery and equipment or employees with a nonminority firm.

Adm 84.14Adm 84.14 Certification procedure for Wisconsin businesses.

Adm 84.14(1)(a)(a) Any business that meets the standards for certification may file an official application with the department.

Adm 84.14 NoteNote: Application forms are available from and should be submitted to: WI Supplier Diversity Program, Department of Administration, P.O. Box 7970, Madison, WI 53707-7970.

Adm 84.14(1)(b)(b) Upon receipt of the application, the department shall review the application for completeness and for compliance with the requirements of s. 16.287, Stats., and s. Adm 84.03.

Adm 84.14(1)(c)(c) The department may request applicants to provide additional information or documentation to provide clarification and substantiation of or to resolve any ambiguities or inconsistencies in their application form.

Adm 84.14(1)(d)(d) The department may impose a time limit of not less than 30 days in which the applicant must provide the requested information. A reasonable extension may be given by the department for good cause shown by the applicant. Requests for time extensions should be made to the program and should specify the length of time for which the extension is being requested and the reasons for the request.