Adm 82.32(3)(a) (a) The composition of the business’s governing body.

Adm 82.32(3)(b) (b) The functioning of the governing body.

Adm 82.32(3)(c) (c) The content of shareholder’s agreements, bylaws, or state incorporation statutes.

Adm 82.32 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.

Adm 82.33 Adm 82.33 Documentation of active management. The applicant shall submit evidence that one or more disabled veteran owners or their duly authorized representatives actively manage the business. This evidence may include, but is not limited to, the following:

Adm 82.33(1) (1) Signed purchase orders, invoices and contracts.

Adm 82.33(2) (2) Evidence that the disabled veteran owners or their duly authorized representatives have delegated work assignments to the business employees.

Adm 82.33(3) (3) Documentation, such as résumés, showing that the disabled veteran owners or their duly authorized representatives have the education or work experience in the skill areas required to produce the product or service provided by the business.

Adm 82.33(4) (4) Where the actual day-to-day operational management is delegated to a person other than a disabled veteran owner or his or her duly authorized representative, documentation, such as a signed contract, showing that the disabled veteran owners or their duly authorized representatives have the ultimate power to hire and fire that person.

Adm 82.33 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.

Adm 82.36 Adm 82.36 Determination of performance of a useful business function. Factors that the department may consider in determining whether a disabled veteran-owned entity is performing a useful business function include the following:

Adm 82.36(1) (1) The degree to which the business has customers other than the state.

Adm 82.36(2) (2) The adequacy of the business’s resources to carry out its business functions.

Adm 82.36(3) (3) The degree to which the business is independent of control or substantial influence by another business. Business relationships that tend to defeat the useful business function include shared space, equipment, employees, or other resources, and financing agreements.

Adm 82.36(4) (4) Whether the business acts as a conduit to transfer funds to a business that is not owned by a disabled veteran, unless doing so is a normal industry practice.

Adm 82.36 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.

Adm 82.37 Adm 82.37 Documentation of performance of a useful business function. The applicant shall submit evidence that the business is performing a useful business function. This evidence may include, but is not limited to, the following:

Adm 82.37(1) (1) Contracts, purchase orders, invoices, and other documents demonstrating that the business has customers.

Adm 82.37(2) (2) Evidence that the quantity, type and condition of the business’s equipment and inventory are adequate to carry out its business functions.

Adm 82.37(3) (3) Loans and other financing agreements, leases, employee contracts, payroll records and other documents demonstrating that the business’ relationships with businesses that are owned by other than disabled veterans do not preclude it from performing a useful business function.

Adm 82.37(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 82.37 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.

Adm 82.40 Adm 82.40 Special circumstances. Any one of the following circumstances creates a presumption that an applicant does not satisfy the eligibility standards for certification as a DVB. In such instances, the applicant has the burden of establishing to the department’s satisfaction that the business meets the eligibility standards despite the existence of one or more of the following factors:

Adm 82.40(1) (1) The business was formed less than three years but at least one year prior to an application for certification.

Adm 82.40(2) (2) The ownership or control of the business has changed within two years prior to an application for certification.

Adm 82.40(3) (3) Shares of stock transferred from a person other than a disabled veteran to a disabled veteran owner of the business, within two years prior to an application for certification.

Adm 82.40(4) (4) The business has unissued shares that, if issued, could result in less than 51 percent disabled veteran ownership of the business or in less than dominant control by disabled veteran owners or their duly authorized representatives.

Adm 82.40(5) (5) The business is subject to conversion rights that, if exercised, would result in less than 51 percent disabled veteran ownership of the business or in less than dominant control by disabled veteran owners or their duly authorized representatives.

Adm 82.40(6) (6) One or more of the disabled veteran owners is a former or current employee of a business which is not owned by a disabled veteran and which has an ownership interest in or a business relationship with the applicant, particularly if the business that is not owned by a disabled veteran is in a substantially similar line of business.