Chapter Adm 82

Chapter Adm 82

DISABLED VETERAN-OWNED BUSINESS CERTIFICATION PROGRAM

Adm 82.10   Purpose.

Adm 82.12   Definitions.

Adm 82.20   Certification criteria.

Adm 82.22   Documentation of being a disabled veteran.

Adm 82.24   Determination of ownership.

Adm 82.25   Documentation of ownership.

Adm 82.28   Determination of control.

Adm 82.29   Documentation of control.

Adm 82.32   Determination of active management.

Adm 82.33   Documentation of active management.

Adm 82.36   Determination of performance of a useful business function.

Adm 82.37   Documentation of performance of a useful business function.

Adm 82.40   Special circumstances.

Adm 82.50   Certification procedure for disabled veteran-owned entities.

Adm 82.52   Renewal procedure.

Adm 82.55   Recertification procedure.

Adm 82.60   Decertification criteria.

Adm 82.65   Decertification procedure.

Adm 82.70   Informal hearing procedure.

Adm 82.75   Appeal procedure.

Adm 82.80   Notification of changes in application information.

Adm 82.90   Certification of a business, financial adviser, or investment firm by another public agency.

Adm 82.95   Certification criteria for a corporation owned by a nonprofit organization.

Ch. Adm 82 Note Note: Chapter Comm 103 was renumbered chapter Adm 82 under s. 13.92 (4) (b) 1., Stats., Register December 2011 No. 672.

Adm 82.10 Adm 82.10 Purpose. Pursuant to s. 16.283 (4), Stats., this chapter sets forth the criteria and procedures for certification, certification renewal, recertification, and decertification of a disabled veteran-owned business, financial adviser, or investment firm.

Adm 82.10 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11; correction made under s. 13.92 (4) (b) 7., Stats., Register September 2011 No. 669.

Adm 82.12 Adm 82.12 Definitions. In this chapter, unless the context requires otherwise:

Adm 82.12(1) (1) “Administrator” means the administrator of the division of enterprise operations in the department.

Adm 82.12(2) (2) “Affiliate” means a company effectively controlled by another, such as a branch, division, or subsidiary, and includes a company in which there is ownership, direct or indirect, by another company, of 5 percent or more of the voting stock.

Adm 82.12(3) (3) “Appeal” means a written request by an applicant to reconsider a determination of a denial of application, certification renewal, recertification or decertification.

Adm 82.12(4) (4) “Applicant” means any business, financial adviser, or investment firm that applies to the department for certification as a disabled veteran-owned business, financial adviser, or investment firm under s. 16.283 (3), Stats., and this chapter, through submission of application forms.

Adm 82.12(5) (5) “Application” means the forms, whether paper or electronic, all documentation requested by the department, and a report of an on-site visit, if one was conducted by the department, upon which the department will base its decision to grant or deny certification, certification renewal or recertification.

Adm 82.12(6) (6) “Assets” means the real and personal property of a business.

Adm 82.12(7) (7) “Beneficial ownership” means ownership of the rights in a business that are the normal incidents of owning a business.

Adm 82.12(8) (8) “Business” has the meaning given in s. 16.283 (1) (a), Stats.

Adm 82.12 Note Note: Section 16.283 (1) (a) of the Statutes reads as follows: “ ‘Business’ means a sole proprietorship, partnership, limited liability company, joint venture, or corporation.”

Adm 82.12(9) (9) “Capital contribution” means the cash or property contributed to a business, and may include a financial investment in the business or the contribution of property, space, patents and copyrights.

Adm 82.12(10) (10) “Control” means the power to direct the day-to-day and long-term operation and management of a business.

Adm 82.12 Note Note: Departmental assessments of operational and managerial control will rest upon the peculiarities of the industry of which the business is a part.

Adm 82.12(11) (11) “Conversion rights” means any agreement, option, scheme or documents that will create any rights which, if exercised, would result in less than 51 percent disabled-veteran ownership of the business, or less than dominant control by a disabled-veteran owner or his or her duly authorized representative, or both.

Adm 82.12(12) (12) “Corporation” means a corporation organized for profit, with capital stock.

Adm 82.12(13) (13) “Decertification” means the process by which the department determines that a certified DVB no longer meets the eligibility criteria, and then rescinds the certification status.

Adm 82.12(14) (14) “Denial” means the department’s reaction to an applicant that does not meet the certification eligibility requirements.

Adm 82.12(15) (15) “Department” means the department of administration.

Adm 82.12(16) (16) “Disabled veteran” has the meaning given in s. 16.283 (1) (b), Stats.

Adm 82.12 Note Note: Section 16.283 (1) (b) of the Statutes reads as follows: “ ‘Disabled veteran’ means a person who is verified by the department of veterans affairs as being all of the following at the time the person applies for certification under sub. (3):

Adm 82.12 Note 1. A veteran, as defined in s. 45.01 (12).

Adm 82.12 Note 2. A resident of this state.

Adm 82.12 Note 3. A person who is in receipt of an award from the U.S. department of veterans affairs of a service-connected disability rating under 38 USC 1114 or 1134.”

Adm 82.12(17) (17) “Disabled veteran-owned business, financial adviser, or investment firm” or “DVB” means a sole proprietorship, general partnership, corporation, limited liability company or joint venture, which is organized for a profit basis and which fulfills all of the following requirements:

Adm 82.12(17)(a) (a)

Adm 82.12(17)(a)1. 1. If privately owned, it is at least 51 percent owned, controlled, and actively managed by one or more disabled veterans who are either U.S. citizens or lawfully admitted to the United States for permanent residence, as defined under 8 USC 1101 (a)(20), except as provided in subd. 2.

Adm 82.12(17)(a)2. 2. One or more duly authorized representatives of one or more disabled veterans may control the management and daily business operations of the business, financial adviser, or investment firm.

Adm 82.12(17)(b) (b)

Adm 82.12(17)(b)1. 1. If publicly owned, at least 51 percent of the stock is owned and controlled by one or more disabled veterans who are either U.S. citizens or lawfully admitted to the United States for permanent residence, as defined under 8 USC 1101 (a)(20); and the management and daily operations are controlled by one or more of those disabled veterans, except as provided in subd. 2.

Adm 82.12(17)(b)2. 2. One or more duly authorized representatives of one or more disabled veterans may control the management and daily business operations of the business, financial adviser, or investment firm.

Adm 82.12(17)(c) (c) It is currently performing a useful business function.

Adm 82.12(17)(d) (d) It has its principal place of business in this state.

Adm 82.12 Note Note: Section 8 USC 1101 (a)(20) reads as follows “The term ‘lawfully admitted for permanent residence’ means the status of having been lawfully accorded the privilege of residing permanently in the United States as an immigrant in accordance with the immigration laws, such status not having changed.”

Adm 82.12(18) (18) “Disabled veteran-owned entity” means a disabled veteran-owned business, financial adviser, or investment firm.

Adm 82.12(19) (19) “Distributor” means one that markets or sells merchandise, such as a wholesaler.

Adm 82.12(20) (20) “Duly authorized representative” has the meaning given in s. 45.04 (1) (a), Stats.

Adm 82.12 Note Note: Section 45.04 (1) (a) of the Statutes reads as follows: “ ‘Duly authorized representative’ means any person authorized in writing by the veteran to act for the veteran, the veteran’s guardian if the veteran is adjudicated incompetent, or a legal representative if the veteran is deceased. Where for proper reason no representative has been or will be appointed, the veteran’s spouse, an adult child, or, if the veteran is unmarried, either parent of the veteran shall be recognized as the duly authorized representative.”