Section 82.28. Determination of control.

 

(1)  Factors that the department may consider in determining whether one or more disabled veteran owners control a business include the following:

(a) Authority and restrictions as indicated in the articles of incorporation, by-laws, minutes of corporate meetings, bank signature cards, partnership and joint venture agreements and other business agreements and documents.

(b) Membership of one or more disabled veteran owners on the board of directors.

(c) Holdings by disabled veteran owners of the voting interests in the business.

(d) The managerial experience, knowledge and expertise of the disabled veteran owners in such areas as finance, budgeting, personnel, production, marketing and research.

(e) Whether the disabled veteran owners have the authority to make policy decisions in such areas as finance, budgeting, personnel, production, marketing and research.

(f) Whether the daily business operations are controlled by one or more duly authorized representatives of one or more disabled veterans.

(g) Whether the disabled veteran owners or their duly authorized representatives are substantially unconnected with the principal place of business, such as by being incarcerated.

(2)  An applicant's assertion of being independent from a business that is owned by other than a disabled veteran may not rest solely on recognition of the disabled veteran owners by governmental taxing authorities. Other test criteria may include the following:

(a) An applicant's relationship with any business that is not owned by a disabled veteran, which involves any long-term contract or lease agreements.

(b) The existence of working agreements with any business that is not owned by a disabled veteran.

(c) An applicant's status as a party to any contract or lease agreement on terms at variance with industry standards or prudent business practices.

(d) The existence of restrictive financing agreements with any business that is not owned by a disabled veteran or any financial institution which impose undue limitations on the applicant.

(e) Interlocking stock ownership of the applicant and any business that is not owned by a disabled veteran in the same industry.

(f) Common directors or officers between the applicant and any business that is not owned by a disabled veteran.

(g) An applicant's use of employees, equipment, expertise, facilities, or other resources from a business that is not owned by a disabled veteran.

(h) The receipt of financial benefits, such as profits and wages, that are not commensurate with the duties performed, by a business that is not owned by a disabled veteran.

(i) An applicant that cannot operate without licenses, permits or insurance held by another business.

(j) An applicant that does not possess all legal requirements necessary to its operation.

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