Section 84.03. Certification criteria.

  In order to be certified as a minority business enterprise, a business shall meet the following eligibility standards:

(1)  Be at least 51% owned, controlled and actively managed by one or more minority group members.

(a) In a sole proprietorship, the sole proprietor shall be a minority.

(b) In a partnership, the minority owner or owners shall act as general partner, own at least 51% of the partnership interest, and exert at least 51% of the control and management of the partnership.

(c) In a corporate form of organization, the minority owner or owners shall own at least 51% of all outstanding stock, including voting stock, of the corporation. Any voting agreements, voting trusts, loan agreements, or shareholder agreements among the shareholders shall not dilute the beneficial ownership, the rights or the influence of the minority owners of the stock or classes of stock of the corporation.

(d) In a joint venture, the minority owned business shall hold at least 51% of the beneficial ownership interest in the joint venture, and shall exert at least 51% of the control and management of the joint venture. The minority owned business partner of the joint venture shall be certified or be eligible for certification as a minority business enterprise.

(e) In a subsidiary or affiliate, the parent company shall be at least 51% owned by a minority owner or owners.

(2)  Be performing a useful business function.

History: Cr. Register, September, 1987, No. 381 , eff. 10-1-87.