N.J. Admin. Code § 17:47-1.3

Current through Register Vol. 57, No. 1, January 6, 2025

Section 17:47-1.3 - Standards of certification for LGBTQ+ businesses

(a) A business may be eligible to be certified as an LGBTQ+ business, as set forth in this section.

(b) In order to be eligible as an LGBTQ+ business, a business must be a sole proprietorship, partnership, joint venture, corporation, or other business entity authorized pursuant to the laws of the United States, which is at least 51 percent owned, operated, and controlled by persons who identify as LGBTQ+.

(c) In order to be eligible to be certified, an LGBTQ+ business must be independently owned, operated, and controlled and can demonstrate the ability to be considered a "going concern," as the business has sufficient resources needed to continue operating indefinitely by normal industry standards. A business shall meet the following standards to be certified as an LGBTQ+ business:

1. Ownership. A business shall be deemed to be independently owned, operated, and controlled, if its management, as specified in its certification application, is responsible for both its daily and longterm operation, and that management owns at least 51 percent interest in the business and consists of individuals who identify as LGBTQ+. The ownership and control by members of the LGBTQ+ community shall be real, substantial, and continuing, demonstrating authority over the affairs of the business, and shall go beyond the pro forma ownership of the business as, reflected in its ownership documents.

2. Business Entity. Recognition of the business as a separate entity for tax or corporate purposes is not necessarily sufficient for recognition as an LGBTQ+ business. In determining whether a potential LGBTQ+ business is an independent business, all relevant factors shall be considered, including the date the business was established and the degree to which financial, equipment leasing, and other relationships with non-LGBTQ+ businesses vary from industry practice.

3. Licensing. When a professional or occupational license or certification is required by Federal or State law to perform the primary business operations of the applicant business, and the LGBTQ+ business does not possess the applicable license or certification, the LGBTQ+ owner shall demonstrate competence in the affairs of the business, in order to satisfy the requirement for managerial and operational control.

N.J. Admin. Code § 17:47-1.3

Adopted by 55 N.J.R. 493(a), effective 3/6/2023