Section 84.12. Documentation of performance of a useful business function.

  The department shall require evidence that the business is performing a useful business function. Such evidence may include, but is not limited to, the following:

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

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

(3)  Loan and other financing agreements, leases, employee contracts, payroll records and other documents demonstrating that the business relationships with a nonminority business do not preclude it from performing a useful business function.

(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.

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