21 CRR-NY 9606.4NY-CRR
21 CRR-NY 9606.4
21 CRR-NY 9606.4
9606.4 Eligibility criteria.
The following criteria shall be used to determine whether a business enterprise is eligible to be certified as a minority or woman-owned business enterprise.
(a) Ownership. The following criteria regarding ownership shall be applied for the purpose of determining whether an applicant should be granted or denied minority or woman-owned business enterprise status, or whether such status should be revoked:
(1) the contribution of the minority group member(s) or woman owner must be proportionate to their equity interest in the business enterprise, as demonstrated by, but not limited to, contributions of money, property, equipment or expertise;
(2) the business enterprise must demonstrate that it is an independent, continuing entity which has been actively seeking contracts or orders and regularly and actively performing business activities;
(3) a sole proprietorship must be owned by a minority group member or women;
(4) a partnership must demonstrate that minority group members or women have a 51 percent or greater share of the partnership; and
(5) a corporation must have issued at least 51 percent of its authorized voting and all other stock to minority group members or women shareholders.
(b) Control. An eligible applicant must be an independent business enterprise. The ownership and control by the minority group member or women must be real, substantial and continuing and must go beyond the pro forma ownership of business as reflected in the ownership documents. The minority group member or women owner shall enjoy the customary incidents of ownership and shall share in the risk and profits, in proportion with their ownership interest in the enterprise. Determinations as to whether minority group members or women control the business enterprise will be made according to the following criteria:
(1) Decisions pertaining to the operation of the business enterprise must be made by minority group members or women claiming ownership of that business enterprise. The following will be considered in this regard:
(i) Minority group or women must have experience or technical competence in the business enterprise seeking certification.
(ii) Minority group members or women must demonstrate the working knowledge and ability needed to operate the business enterprise.
(iii) Minority group members or women must show that they devote time on an ongoing basis to the daily operation of the business enterprise.
(2) Articles of incorporation, corporate by-laws, partnership agreements and other agreements including, but not limited to, loan agreements, lease agreements, supply agreements, credit agreements or other agreements must permit minority group members or women who claim ownership of the business enterprise to make those decisions without restrictions.
(3) Minority group members or women must demonstrate control of negotiations, signature authority for payroll, leases, letters of credit, insurance bond, banking services and contracts, and other business transactions through production of relevant documents.
21 CRR-NY 9606.4
Current through June 30, 2021
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: JULY 31, 2023, is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Admisnistrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of the NYS Rules.