Section 27-710. DISTRIBUTORSHIPS

 

710.1In determining whether an applicant meets the requirements for minority participation in the sheltered market as set forth in D.C. Code §1-1148(a) (1981), and to ensure compliance with the performance requirements for bona fide MBE's set forth in D.C. Code, §1-1147(c) and (d) (1981), the Commission shall review the extent to which a bona fide minority participant qualifies as a "distributorships."

 

710.2For purposes of §710, the term "distributorship" means any legal entity organized in any form, other than a joint venture, to engage in lawful commercial transactions involving the sale of goods or services for resale; or any entity which sells chiefly to other vendors, retailers, industrial, institutional, or commercial users for resale or business use.

 

710.3The term "distributorship" includes a business which owns, operates, or maintains an establishment that produces on the premises the materials, goods, articles, or equipment of the character in which the applicant claims to be a distributorship; but the term does not include a business which only performs minimal operation on or minimal assembly of items being procured.

 

710.4In order to qualify as a distributorship, an applicant shall meet the following minimum eligibility requirements in addition to certification requirements stipulated in §702 of this chapter:

 

(a)Maintain an establishment in which materials, goods, articles, or equipment of the character in which the applicant claims to be a distributorship are bought, kept in stock, and sold to wholesale or retail customers on a recurring basis in the usual course of business; and

 

(b)Demonstrate that its business is an established and on-going concern regularly dealing in the particular materials, goods, articles, or equipment of the character offered to the District of Columbia.

 

source

Final Rulemaking published at 33 DCR 5659, 5662 (September 12, 1986). 4, 1983).