Section 83.40. Special circumstances.

  Any one of the following circumstances creates a presumption that an applicant does not satisfy the eligibility standards for certification as a WBE. 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 within one year prior to an application for certification.

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

(3)  Shares of stock transferred from a male-owned business to a woman owner of the business, within one year prior to an application for certification.

(4)  The business has unissued shares that, if issued, could result in less than 51% woman ownership of the business or in less than dominant control by women owners.

(5)  The business is subject to conversion rights that, if exercised, would result in less than 51% woman ownership of the business or in less than dominant control by women owners.

(6)  One or more of the women owners is a former or current employee of a male-owned business that has an ownership interest in or a business relationship with the applicant, particularly if the male-owned business 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 male-owned business that has an ownership interest in, an investment in, or a business relationship with the applicant, particularly if the male-owned business 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 non-woman-owned business.

History: CR 06-113 : cr. Register May 2007 No. 617 , eff. 6-1-07.