123:2-16-03 Certification of business structure.

(A) The equal opportunity division of the department of administrative services shall require the following criteria of a business seeking certification as an EDGE business enterprise:

(1) If the applying business is a corporation:

(a) At least fifty-one per cent of the board of directors and at least fifty-one per cent of the principal executive officers are economically and socially disadvantaged as defined in this chapter, and that these persons have ultimate control over the management and day-to-day operations of the business, including but not limited to finances, management decisions and policies.

(b) Economically and socially disadvantaged persons own at least fifty-one per cent of each class of corporate stock.

(2) If the applying business is a partnership:

(a) The economically and socially disadvantaged owners have ultimate control over the management and day-to-day operations of the business, including but not limited to finances, management decisions and policies.

(b) At least fifty-one per cent of each class of partnership interest is owned by partners who are economically and socially disadvantaged as defined in this chapter.

(3) If the applying business is a sole proprietorship:

(a) The sole proprietor is an economically and socially disadvantaged person as defined in this chapter.

(b) The sole proprietor has ultimate control over the management and day-to-day operations of the business, including but not limited to finances, management decisions, and policies.

(c) The sole proprietor has the entire interest in the capital, assets, profits and losses of the business, not including mortgages and other types of financial arrangements secured by assets or bonds secured by revenues.

(4) If the applying business is an association:

(a) The association is organized pursuant to Chapter 1785. of the Revised Code, and,

(b) At least fifty-one per cent of the members of the association are economically and socially disadvantaged as defined in this chapter, and that these persons have ultimate day-to-day control over the management including but not limited to finances, management decisions and policies.

(5) If the applying business is a limited liability company:

(a) The company is organized pursuant to Chapter 1705. of the Revised Code.

(b) At least fifty-one percent of the members of the limited liability company are economically disadvantaged individuals as defined in this Chapter.

(c) At least fifty-one percent of the contributions of capital to the limited liability company are provided by economically and socially disadvantaged members of the company.

(d) The economically and socially disadvantaged members of the limited liability company have ultimate control over the management and day-to-day operations of the company, including, but not limited to, finances, management decisions and policies.

(B) The equal opportunity division of the department of administrative services shall consider the following criteria in determining control and ownership of a business applying for EDGE certification:

(1) The owner maintains and demonstrates authority to direct the management and policies of the business,

(2) The owner controls the daily decisions of the business,

(3) The owner is responsible for the employment decisions of the business,

(4) The owner holds possession of the requisite licenses associated with the nature of the business,

(5) The owner has ownership of the securities of the business,

(6) Any other criteria the division deems relevant that demonstrates control and ownership of the business.

(C) Failure to provide requested information in a timely manner may delay the processing of the certificate application.

(D) Except as otherwise required by law, all financial statements and records submitted by an applicant to the equal opportunity division shall not be released to the public unless such documents are determined to be public records pursuant to section 149.43 of the Revised Code.

(E) Upon determining that the owner and business have demonstrated qualification for certification in the EDGE program, as outlined in this section, the equal employment opportunity coordinator of the department of administrative services shall certify the business.

(F) If the equal opportunity coordinator of the department of administrative services determines that the business or business owner does not meet the criteria set forth in this chapter, the division shall notify the applicant of its decision by mail. The notification shall include the applicant's appeal rights as set forth in Chapter 119. of the Revised Code.

(G) The equal opportunity division of the department of administrative services shall have the right to conduct on-site inspections at any location of a business seeking certification. The divisions shall give appropriate notice.

(H) The EDGE certification issued pursuant to this section shall be in effect for a period not to exceed two years from the date of certification provided that the EDGE business enterprise is not decertified pursuant to rule 123:2-16-06 of the Administrative Code. The maximum amount of time a business may participate in the EDGE program is ten years.

Eff 11-26-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 123.152
Rule amplifies: RC 123.152
R.C. 119.032 review dates: 11/26/2009