Section 84.13. Special circumstances.

  Any one of the following circumstances creates a presumption that the minority business does not satisfy the eligibility standards for certification as a minority business enterprise. In such instances, the applicant has the burden of establishing to the department's satisfaction that the minority owner or owners meet the eligibility standards despite the existence of one or more of the following factors:

(1)  Firms formed within one year prior to an application for certification.

(2)  Firms whose ownership or control has changed within one year prior to an application for certification.

(3)  Transfers of shares of stock from nonminorities to minorities that occur within one year prior to an application for certification.

(4)  Firms with authorized but unissued shares which, if issued, could result in less than 51% minority ownership of the business or in less than dominant control by minority owners.

(5)  Firms subject to conversion rights which, if exercised, would result in less than 51% minority ownership of the business or in less than dominant control by minority owners.

(6)  Firms in which one or more of the minority owners is a former or current employee of a nonminority person or business firm which has an ownership interest in or a business relationship with the applicant firm, particularly if the nonminority person or firm is in a substantially similar line of business.

(7)  Firms whose directors, management or both, are substantially the same as those of a nonminority firm which has an ownership interest in, an investment in, or a business relationship with the applicant firm, particularly if the nonminority firm is in a substantially similar line of business.

(8)  Firms which share indistinguishable facilities, such as office space, production, distribution or storage facilities, machinery and equipment or employees with a nonminority firm.

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