"Independent ownership and control" or "independently owned and controlled" applies
both to individual SBEs, SLBEs and ELBEs and to SBEs and SLBEs engaged in a joint
venture with other businesses. For an individual SBE, SLBE or ELBE, "independent ownership
and control" shall mean the degree to which owners of the SBE, SLBE or ELBE participate
in and are capable of participating in the decisions affecting day-to-day operations
of the business, by considering the ability of the owners of the SBE, SLBE or ELBE
to function and carry out daily business activities without relying upon others who
are not owners or employees of the SBE, SLBE or ELBE, such as consultants, advisers,
accountants, or owners' relatives. In determining the ability of the owners of the
SBE, SLBE or ELBE to operate the business, the department may consider the owners'
work experience, including experience in the primary industry in which the firm is
seeking SBE, SLBE or ELBE certification, specialized training, education, and any
other factors the director deems relevant.
For SBEs involved in a joint venture with a non-SBE as permitted by this chapter,
"independent ownership and control" shall be determined by considering the participation
of the owners of the SBE in the decisions affecting day-to-day operations of the joint
venture, the ability of the owners of the SBE to function and carry out those daily
business activities assigned to the SBE by agreement of the parties to the joint venture
without assistance from the non-SBE business. "Independent ownership and control"
also may be determined by considering the proportionate interest of the owners of
the SBE in the capital, assets, profits and losses of the joint venture.
In determining whether a joint venture is independently owned and controlled by the
owners of the SBE, the director may use discretion in weighing the foregoing factors,
as well as any other factor, which, in the director's opinion, affects independent
ownership and control.
