710.1 In 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."

710.2 For 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.

710.3 The 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.

710.4 In 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).