HARRY HUGHES, Governor                                    1957

BE CONSIDERED A MINORITY BUSINESS ENTERPRISE WITHIN THE MEANING
OF THIS SECTION, WHERE THE ACTUAL MANAGEMENT OF THE BUSINESS IS
CONTRACTED OUT TO INDIVIDUALS OTHER THAN THE OWNER, THOSE PERSONS
WHO HAVE THE ULTIMATE POWER TO HIRE AND FIRE THE MANAGERS MAY,
FOR THE PURPOSES OF THIS SECTION, BE CONSIDERED AS CONTROLLING
THE BUSINESS.

(V) ALL SECURITIES WHICH CONSTITUTE OWNERSHIP
OR CONTROL OF A CORPORATION FOR PURPOSES OF ESTABLISHING IT AS A
MINORITY BUSINESS ENTERPRISE UNDER THIS SECTION SHALL BE HELD
DIRECTLY BY MINORITIES. NO SECURITIES HELD IN TRUST, OR BY ANY
GUARDIAN FOR A MINOR, SHALL BE CONSIDERED AS HELD BY MINORITIES
IN DETERMINING THE OWNERSHIP OR CONTROL OF A CORPORATION.

(VI) THE CONTRIBUTIONS OF CAPITAL OR EXPERTISE
BY THE MINORITY OWNERS TO ACQUIRE THEIR INTERESTS IN THE BUSINESS
SHALL BE REAL AND SUBSTANTIAL. INSUFFICIENT CONTRIBUTIONS
INCLUDE A PROMISE TO CONTRIBUTE CAPITAL, A NOTE PAYABLE TO THE
BUSINESS OR ITS OWNERS WHO ARE NOT SOCIALLY AND ECONOMICALLY
DISADVANTAGED, OR THE MERE PARTICIPATION AS AN EMPLOYEE, RATHER

THAN AS A MANAGER.

(VII) THE CERTIFYING AGENCY SHALL GIVE SPECIAL
CONSIDERATION TO THE FOLLOWING ADDITIONAL CIRCUMSTANCES IN
DETERMINING ELIGIBILITY:

1. NEWLY FORMED BUSINESSES AND BUSINESSES
WHOSE OWNERSHIP OR CONTROL HAS CHANGED SINCE THE DATE OF THE
ADVERTISEMENT OF THE CONTRACT ARE CLOSELY SCRUTINIZED TO
DETERMINE THE REASONS FOR THE TIMING OF THE FORMATION OF OR
CHANGE IN THE BUSINESSES;

2. A PREVIOUS OR CONTINUING

EMPLOYER-EMPLOYEE RELATIONSHIP BETWEEN OR AMONG PRESENT OWNERS IS
CAREFULLY REVIEWED TO ENSURE THAT THE EMPLOYEE-OWNER HAS
MANAGEMENT RESPONSIBILITIES AND CAPABILITIES DISCUSSED IN THIS
SECTION; AND

3. ANY RELATIONSHIP BETWEEN A MINORITY
BUSINESS ENTERPRISE AND A BUSINESS WHICH IS NOT A MINORITY
BUSINESS ENTERPRISE WHICH HAS AN INTEREST IN THE MINORITY
BUSINESS ENTERPRISE IS CAREFULLY REVIEWED TO DETERMINE IF THE
INTEREST OF THE NONMINORITY BUSINESS CONFLICTS WITH THE OWNERSHIP
AND CONTROL REQUIREMENTS OF THIS SECTION.

(4) (5) By September 15, 1988, the WSSC shall issue
a report concerning the implementation and administration of the
program through June 30, 1988, together with any appropriate
recommendations, to the Montgomery County and Prince George's
County Senate and House Delegations.

(5) (6) The provisions of this subsection shall be
null and void and may not be enforced after July 1, 1989.