Section 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:

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

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

(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.

(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.

(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.

(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.

(7)  An applicant's directors or management or both, are substantially the same as those of a business which is not owned by a disabled veteran and which has an ownership interest in, an investment 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.

(8)  The business shares indistinguishable facilities, such as office space; production, distribution or storage facilities; machinery and equipment; or employees, with a business that is not owned by a disabled veteran.

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