Adm 82.32(1)(b) (b) Departmental assessments of operational management shall rest upon the peculiarities of the industry of which the business is a part. In order to clarify the level of operational management of the disabled veteran owner or his or her duly authorized representative, the department may consider each of the following:

Adm 82.32(1)(b)1. 1. ‘Experience.’ The disabled veteran owner or his or her duly authorized representative has education, demonstrable working knowledge or experience in the area of specialty or industry claimed in the application.

Adm 82.32(1)(b)2. 2. ‘Responsibility for decision-making.’

Adm 82.32(1)(b)2.a. a. The disabled veteran owner or his or her duly authorized representative makes basic decisions pertaining to the daily operation of the business, such as the purchase of goods, equipment, business inventory and services.

Adm 82.32(1)(b)2.b. b. The disabled veteran owner or his or her duly authorized representative supervises the business’s employees.

Adm 82.32(1)(b)3. 3. ‘Technical competence.’

Adm 82.32(1)(b)3.a. a. The disabled veteran owner or his or her duly authorized representative has technical competence in the industry or specialty of the business or a working knowledge of the technical requirements of the business sufficient to critically evaluate the work of subordinates.

Adm 82.32(1)(b)3.b. b. The disabled veteran owner or his or her duly authorized representative has the ability to perform in his or her area of specialty or expertise without substantial reliance upon finances and resources – such as equipment, automobiles and facilities – of entities that are not owned by disabled veterans.

Adm 82.32(1)(b)4. 4. ‘Connection to the principal place of business.’ The disabled veteran owner or his or her duly authorized representative is not substantially removed from the principal place of business, such as by being incarcerated.

Adm 82.32(2) (2) Delegated operational management. Where the actual day-to-day operational management is delegated to a person other than a disabled veteran owner or his or her duly authorized representative, the active-management requirements may be met if the disabled veteran owner or his or her duly authorized representative has the ultimate power to hire and fire that person.

Adm 82.32(3) (3) Potential constraints on operational management. In reviewing governance documents and issues, the department shall give special attention to the extent to which all of the following aspects affect the ability of the disabled veteran owner or his or her duly authorized representative to direct the management and policies of the business:

Adm 82.32(3)(a) (a) The composition of the business’s governing body.

Adm 82.32(3)(b) (b) The functioning of the governing body.

Adm 82.32(3)(c) (c) The content of shareholder’s agreements, bylaws, or state incorporation statutes.

Adm 82.32 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.

Adm 82.33 Adm 82.33 Documentation of active management. The applicant shall submit evidence that one or more disabled veteran owners or their duly authorized representatives actively manage the business. This evidence may include, but is not limited to, the following:

Adm 82.33(1) (1) Signed purchase orders, invoices and contracts.

Adm 82.33(2) (2) Evidence that the disabled veteran owners or their duly authorized representatives have delegated work assignments to the business employees.

Adm 82.33(3) (3) Documentation, such as résumés, showing that the disabled veteran owners or their duly authorized representatives have the education or work experience in the skill areas required to produce the product or service provided by the business.

Adm 82.33(4) (4) Where the actual day-to-day operational management is delegated to a person other than a disabled veteran owner or his or her duly authorized representative, documentation, such as a signed contract, showing that the disabled veteran owners or their duly authorized representatives have the ultimate power to hire and fire that person.

Adm 82.33 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.

Adm 82.36 Adm 82.36 Determination of performance of a useful business function. Factors that the department may consider in determining whether a disabled veteran-owned entity is performing a useful business function include the following:

Adm 82.36(1) (1) The degree to which the business has customers other than the state.

Adm 82.36(2) (2) The adequacy of the business’s resources to carry out its business functions.

Adm 82.36(3) (3) The degree to which the business is independent of control or substantial influence by another business. Business relationships that tend to defeat the useful business function include shared space, equipment, employees, or other resources, and financing agreements.

Adm 82.36(4) (4) Whether the business acts as a conduit to transfer funds to a business that is not owned by a disabled veteran, unless doing so is a normal industry practice.

Adm 82.36 History History: EmR1041: emerg. cr., eff. 11-14-10; CR 11-004: cr. Register September 2011 No. 669, eff. 10-1-11.

Adm 82.37 Adm 82.37 Documentation of performance of a useful business function. The applicant shall submit evidence that the business is performing a useful business function. This evidence may include, but is not limited to, the following:

Adm 82.37(1) (1) Contracts, purchase orders, invoices, and other documents demonstrating that the business has customers.