34 Tex. Admin. Code § 20.283 - Evaluation of Active Participation in the Control, Operation, and Management of Entities
(a) In determining
the extent of active participation in the control, operation and management
necessary for qualification as a HUB, the comptroller may consider all relevant
evidence. In considering and applying the factors set forth in this subsection,
the comptroller will consider actual roles and responsibilities of the
qualifying owners, rather than titles or statements of intention regarding the
owners' role. Factors which may be considered include, but are not limited to:
(1) appearance and relative scope of
responsibility of qualifying owners in articles of incorporation or partnership
formation documents;
(2) duties and
rights of shareholders or partners relative to operational decisions affecting
the short term and long term goals of the business;
(3) any restrictive language in articles of
incorporation or partnership agreements applicable to qualifying
owner;
(4) whether any licenses,
certificates, or permits required to operate the business are held by or in the
name of the qualifying owner, and whether the qualifying owner is qualified to
hold such licenses or permits pursuant to applicable laws and
regulations;
(5) the percentages of
profit and risk available to the qualifying owner under the corporate or
partnership agreements;
(6) ability
of other owners or partners to dilute either the ownership percentage or
operational powers of the qualifying owner;
(7) whether the qualifying owner has full
time employment elsewhere that might conflict with full participation in
operation of the business;
(8) the
percentage of government versus non-government contracts performed by the
business where the qualifying owner actively participates in the bidding of the
contract or the performance of the work;
(9) the period of time a qualifying owner
participated in the active management and operation of the business prior to
the business seeking HUB status; and
(10) whether and to what extent the HUB
business shares management, board members, partners, employees, or other
resources with another business in amounts or ways which might indicate that
they are related or affiliated businesses.
(b) The comptroller may request any
additional information it considers necessary to evaluate an applicant as a
HUB.
(c) Qualifying owners must be
able to make independent and unilateral business decisions which guide the
future and destiny of the business, and must be proportionately responsible for
the direction and management of the business. Absentee or titular ownership by
qualifying owners who do not take an active role in controlling and
participating in the business is not consistent with the definition of a
HUB.
Notes
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