Chapter Adm 83

Adm 83.28   Determination of control.

Adm 83.29   Documentation of control.

Adm 83.32   Determination of active management.

Adm 83.33   Documentation of active management.

Adm 83.36   Determination of performance of a useful business function.

Adm 83.37   Documentation of performance of a useful business function.

Adm 83.40   Special circumstances.

Adm 83.50   Certification procedure for Wisconsin businesses.

Adm 83.52   Renewal procedure.

Adm 83.55   Recertification procedure.

Adm 83.60   Decertification criteria.

Adm 83.65   Decertification procedure.

Adm 83.70   Informal hearing procedure.

Adm 83.75   Appeal procedure.

Adm 83.80   Notification of changes in application information.

Adm 83.90   Certification of a Wisconsin business by another public agency.

Adm 83.92   Certification criteria for a non-Wisconsin business.

Adm 83.94   Certification procedure for a non-Wisconsin business.

Adm 83.96   Certification criteria for a for-profit corporation owned by a nonprofit organization.

Ch. Adm 83 Note Note: Chapter Comm 104 was created by emergency rule effective February 9, 2007. Chapter Comm 104 was renumbered chapter Adm 83 under s. 13.92 (4) (b) 1., Stats., Register December 2011 No. 672.

Adm 83.10 Adm 83.10 Purpose. Pursuant to s. 16.285 (1) (c), Stats., this chapter sets forth the criteria and procedures for certification, certification renewal, recertification, and decertification of woman-owned businesses.

Adm 83.10 History History: CR 06-113: cr. Register May 2007 No. 617, eff. 6-1-07; correction made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672.

Adm 83.12 Adm 83.12 Definitions. In this chapter:

Adm 83.12(1) (1) “Administrator” means the administrator of the division of enterprise operations in the department.

Adm 83.12(2) (2) “Affiliate” means a company effectively controlled by another, such as a branch, division, or subsidiary. As prescribed in 15 USC 80a-2, an affiliate includes a company in which there is ownership, direct or indirect, by another company, of 5% or more of the voting stock.

Adm 83.12(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 83.12(4) (4) “Applicant” means any business that applies to the department for certification as a woman-owned business enterprise under s. 16.285 (1), Stats., and this chapter, through submission of application forms.

Adm 83.12(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 83.12(6) (6) “Assets” means the real and personal property of a business.

Adm 83.12(7) (7) “Authorized shares” means the shares that a corporation is authorized to issue by its articles of incorporation.

Adm 83.12(8) (8) “Beneficial ownership” means ownership of the rights in a business that are the normal incidents of owning a business.

Adm 83.12(9) (9) “Broker” means a person who acts as an intermediary between a buyer or seller, usually charging a commission for value added.

Adm 83.12(11) (11) “Business” means a sole proprietorship, general partnership, corporation, limited liability company, limited liability partnership, or joint venture, organized for a profit basis — except where the context implies that this term is referring instead to buying or selling commodities or services.

Adm 83.12(12) (12) “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 83.12(13) (13) “Control” means the power to direct the day-to-day and long-term operation and management of a business.

Adm 83.12 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 83.12(14) (14) “Conversion rights” means any agreement, option, scheme or documents that will create any rights which, if exercised, would result in less than 51% woman ownership of the business, or less than dominant control by woman owners or both.

Adm 83.12(15) (15) “Corporation” means a corporation organized for profit, with capital stock.

Adm 83.12(16) (16) “Decertification” means the process by which the department determines that a WBE no longer meets the eligibility criteria, and then rescinds the certification status.

Adm 83.12(17) (17) “Denial” means the office’s reaction to an applicant that does not meet the certification eligibility requirements.

Adm 83.12(18) (18) “Department” means the department of administration.

Adm 83.12(19) (19) “Distributor” means one that markets or sells merchandise, such as a wholesaler.

Adm 83.12(20) (20) “Expiration” means the specified end of the WBE certification, at the close of the three-year certification period.

Adm 83.12(21) (21) “General partner” means a partner who participates fully in the profits, losses and management of a partnership and who is personally liable for its debts.

Adm 83.12(22) (22) “Industry standard” means the usual and customary practice in the delivery of products or services within a particular business sector, such as procurement, billing payment and performance.

Adm 83.12(23) (23) “Interest” means a right, claim, financial or legal share in a business.

Adm 83.12(24) (24) “Issued shares” means the shares of a corporation that have been authorized and actually sold to subscribers. They may include treasury shares.

Adm 83.12(25) (25) “Joint venture agreement” means a written agreement signed by each joint venture specifying the terms and conditions of the joint venture.

Adm 83.12(26) (26) “Limited liability company” means a company similar in structure to a partnership, but its members are not personally liable for the entity’s debts and liabilities. Its members may participate in the management of the company without risking personal liability.

Adm 83.12(27) (27) “Marital-property agreement” means an agreement that complies with s. 766.58, Stats.

Adm 83.12(28) (28) “Marital property laws” means ch. 766, Stats.

Adm 83.12(29) (29) “Marital-property waiver” means a form provided by the department to document separate control and management of a business under marital property laws.

Adm 83.12(30) (30) “Nonprofit organization” means an organization as defined in s. 108.02 (19), Stats.

Adm 83.12(31) (31) “Non-Wisconsin business” means a business that neither is incorporated under ch. 180, Stats., nor has its principal place of business in Wisconsin.

Adm 83.12(31m) (31m) “Office” means the office of women’s business ombudsmen, in the department.

Adm 83.12(32) (32) “On-site visit” means a visit to an applicant’s physical place of business for the verification of information submitted in the application and accompanying documentation.

Adm 83.12(33) (33) “Parent company” means a company that has at least a majority direct-voting control over another company.

Adm 83.12(34) (34) “Partnership” means a contract entered into by two or more persons in which each agrees to furnish a part of the capital or labor for a business enterprise, and by which each partner shares in some fixed proportion in profits and losses.

Adm 83.12(35) (35) “Partnership agreement” means a written agreement signed by each partner specifying the terms and conditions of the partnership.

Adm 83.12(36) (36) “Partnership interest” means a partner’s share of the profits and losses of the partnership and the right to receive distributions of partnership assets.

Adm 83.12(37) (37) “Principal place of business” means the physical location at which or from which a business performs, is maintained, or operates the majority of its business.

Adm 83.12(38) (38) “Recertification” means the process by which WBE status is reestablished, prior to expiration at the close of the three-year certification period.

Adm 83.12(39) (39) “Renewal” means a one-year continuation of a WBE certification, at the end of each of the first two years of the three-year certification period, as subject to a review by the department.

Adm 83.12(40) (40) “Retailer” means the seller of goods or commodities directly to consumers at a retail price.

Adm 83.12(41) (41) “Secretary” means the secretary of the department.

Adm 83.12(42) (42) “Securities” means stocks, bonds, notes, convertible debentures, warrants or other documents that represent a share in a business, or a debt owed by a business.

Adm 83.12(43) (43) “Shares” means the units into which the proprietary interests in a corporation are divided.

Adm 83.12(44) (44) “Sole proprietorship” means a business in which one person owns all the assets of the business and is solely liable for all the debts of the business.

Adm 83.12(45) (45) “Stock-affirmation form” means a form provided by the department and affirmed by the applicant stating that the stock ownership of the corporation is as presented in the application, and in which the applicant agrees to notify the department in the event that additional stock is sold.

Adm 83.12(46) (46) “Stock certificate” means a certificate issued by a corporation certifying that the named person is the owner of a designated number of shares of stock.

Adm 83.12(47) (47) “Subsidiary” means a corporation in which one other corporation owns a majority of the voting shares.

Adm 83.12(48) (48) “Treasury shares” means the shares which have been issued but later re-acquired by a corporation and which have not been canceled or restored to the status of authorized but unissued shares.

Adm 83.12(49) (49) “Unissued shares” means shares which the corporation is authorized to issue but which have not yet been distributed to shareholders or subscribers.

Adm 83.12(50) (50) “Useful business function” means the provision of materials, supplies, equipment or services to customers in addition to this state.  Acting as a conduit to transfer funds to other than a woman-owned business does not constitute a useful business function, unless doing so is a normal industry practice.

Adm 83.12(51) (51) “Value added” means something that is added to a product or service by a marketer or distributor which warrants a markup in the retail price.

Adm 83.12(52) (52) “Voting shares” means those shares that give the holder the right to vote for directors and other matters, in contrast to non-voting shares, which simply entitle the holder to dividends, if any.

Adm 83.12(53) (53) “Woman-owned business, woman-owned business enterprise, or WBE” means a sole proprietorship, general partnership, corporation, limited liability company, limited liability partnership, or joint venture, which is organized for a profit basis and which fulfills all of the following requirements:

Adm 83.12(53)(a) (a) If privately owned, it is at least 51% owned, controlled, and actively managed by one or more women who are either U.S. citizens or lawfully admitted to the United States for permanent residence, as defined under 8 USC 1101 (a) (20).

Adm 83.12(53)(b) (b) If publicly owned, at least 51% of the stock is owned and controlled by one or more women 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 women.

Adm 83.12 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 83.12(54) (54) “Wholesaler” means a middle person or distributor who sells mainly to retailers, other merchants, and industrial commercial institutional users, as distinguished from consumers.

Adm 83.12(55) (55) “Wisconsin business” means a business that either is incorporated under ch. 180, Stats., or has its principal place of business in Wisconsin.

Adm 83.12 History History: CR 06-113: cr. Register May 2007 No. 617, eff. 6-1-07; correction in (1), (4), (10), (17), (18) made under s. 13.92 (4) (b) 6., 7., Stats., and renumbering of (10) to (31m) under s. 13.92 (4) (b) 1., Stats., Register December 2011 No. 672.

Adm 83.20 Adm 83.20 Certification criteria. In order to become certified as a woman-owned business enterprise, a business shall meet all of the following eligibility standards:

Adm 83.20(1) (1) The business satisfies all of the criteria in the WBE definition in s. Adm 83.12 (53).

Adm 83.20(2) (2) If the business is a sole proprietorship, a woman owns 100% of the company assets.

Adm 83.20(3) (3) 

Adm 83.20(3)(a) (a) If the business is a partnership, 2 or more persons agree to carry on a business or venture together, upon the terms of mutual participation in the profits and losses of the business. The partnership is a contract of mutual agency, each partner acting as a principal in her or his own behalf and as agent of his or her co-partners, and general rules of law applicable to agents shall apply with equal force in determining rights and liabilities of partners.