§ 28-79. MBEs and WBEs – Control.

(a) In general.

(1) The ownership and control by minorities or women must be:

(i) real and substantial; and

(ii) indicated by the customary incidents of ownership, as demonstrated by an examination of the substance rather than the form of ownership and operating arrangements.

(2) The minority or women owners must possess the power:

(i) to direct or cause the direction of the management and policies of the business enterprise; and

(ii) to make day-to-day decisions, as well as decisions on matters of management, policy, and operations.

(b) Restrictions precluded.

(1) The business enterprise may not be subject to any formal or informal restrictions that limit the customary discretion of the minority or women owners.

(2) There may not be any restriction, whether by partnership agreement, charter requirements, or other arrangement, that prevents the minority or women owners from making business decisions without the cooperation or vote of any owner who is not a minority or a woman.

The operating arrangements and the ownership and control by the minority-group members must have been in operation for at least 12 months before applying for certification.