Sec. 126.613. - Jacksonville Small and Emerging Businesses certification criteria.

(a) Each JSEB must provide financial statements prepared by a certified public accountant and participate in one or more training, education, or mentoring programs during each 36-month period commencing from the certification date and provide evidence of such to the JSEB Administrator. (b) A business may not be in the program for a total of more than 15 years from the date of the JSEB's first contract as a prime contractor of the City or as a subcontractor retained by a prime contractor of the City, whichever is earlier, provided, however, that participation may be increased by two one-year periods for good cause as determined by the JSEB Administrator. (c) To be certified as a JSEB, (1) A for-profit small business must meet the following criteria: a. The business must be a for-profit small business concern, including, but not limited to, a sole proprietorship, partnership, corporation, or limited liability company; b. The business must have annual gross revenue not exceeding $12,000,000. For a business in existence for one to three years, the annual gross revenue shall be the average of the preceding year(s). For a business in existence for four years or more, the annual gross revenue shall be the average of the immediately preceding three years. The averaged annual gross revenue maximum threshold amount shall be subject to annual analysis by the JSEB Administrator and reviewed by the JSEB Monitoring Committee pursuant to Section 126.607 herein; c. The business must be managed and controlled by a JSEB eligible person(s). As used in this Part, a JSEB eligible person means, a person with an ownership of at least 51 percent of the business being certified, and who, 1. Meets the residency requirements as follows: i. Is a resident of Duval County for a minimum 12 consecutive month period immediately preceding the JSEB application date, or ii. Is a resident of Duval, St. Johns, Nassau, Baker, or Clay County if the business has a principal place of business in Duval County for a minimum 18-month consecutive period immediately preceding the JSEB application date; 2. Is a citizen of the United States, or lawfully admitted permanent resident of the United States; 3. Has held such ownership interests in the business for at least one year; 4. Has made real and substantial contributions of capital or expertise to acquire the ownership interest in the business; and, 5. Has an overall understanding of, and managerial and technical competence, experience and expertise, directly related to the business operations and work. d. The business must perform a commercially useful function typical of the field for which certification is granted; e. The business must have expertise normally required by the industry for the field for which certification is sought; f. The business must have all current licenses required by local, State, or federal law, to perform the services for which certification is sought; g. The business must not be a front, broker, or pass-through as defined in Subpart A of this Chapter. Familial relationships where capital is provided for the business will be subject to scrutiny and possible rejection; h. A business must not be subject to any formal or informal restrictions that limit the customary discretion of the managing JSEB eligible person. There can be no restrictions through corporate charter provisions, by-law provisions, contracts or any other formal or informal devices that prevent the managing JSEB eligible person, without the cooperation or vote of a non-qualifying person or entity, from making any business decision of the business. i. A business must be in the business of the commercially useful function for which certification is sought for a minimum 12 consecutive month period immediately preceding the JSEB application date. This requirement is retroactive to the enactment of Ordinance 2021-117-E. Any business that was denied certification solely on the basis of not being in business for one year at the time of the application may re-apply for certification within 12 months of the effective date of this subsection as soon as the business meets the 12-month in-business requirement notwithstanding Section 126.621 (b)(5). (2) A non-profit small business must meet the following criteria: a. The business must be incorporated in the state of Florida in compliance with F.S. Ch. 617, and maintain a 501(c)(3) tax-exempt status from the IRS; b. The business must maintain an incorporation status as "active" by the Florida Department of State, Division of Corporations; c. The business must be in compliance with all applicable requirements of Florida Statutes, including, but not limited to, F.S. Ch. 496 (the Solicitation of Contributions Act, requirements for entities who solicit donations from a location in Florida or from people in Florida); d. The business must have annual gross revenue, averaged over the immediately preceding three-year period, not exceeding $2,000,000. The averaged annual gross revenue maximum threshold amount shall be subject to annual analysis by the JSEB Administrator and reviewed by the JSEB Monitoring Committee pursuant to Section 126.607 herein; e. The business has a principal place of business in Duval County for a minimum 12 consecutive month period immediately preceding the JSEB application date; f. The business must perform a commercially useful function typical of the field for which certification is granted; g. The business must have expertise normally required by the industry for the field for which certification is sought; h. The business must have all current licenses required by local, State, or federal law, to perform the services for which certification is sought; i. The business must not be a front, broker, or pass-through as defined in Subpart A of this Chapter; j. The business must not be subject to any formal or informal restrictions that limit the customary discretion of the governing board or chief executive officer; k. The business must have, and renew annually, written approval of the governing board to participate as a member of the JSEB program, subject to annual analysis by the JSEB Administrator. (d) For the purpose of this Part, business manager(s) means, as to a for-profit business: the managing JSEB eligible person(s); and, as to a non-profit business: the chief executive officer authorized by the governing board. As used in this Part, managed and controlled means that the business managers must actually exercise control over the business operations, work, management and policy. Indicia of management and control are set forth below. (1) The business managers may delegate various areas of the management or daily operations of the business to hired or appointed persons who are not JSEB eligible persons only if such delegation is typical in the industry for such businesses. Such delegations of authority must be revocable, and the business managers must retain the power to direct and discharge any such hired or appointed person. (2) The business managers cannot engage in outside employment or other business interests that conflict with the management of the JSEB business or prevents the business managers from devoting sufficient time and attention to the affairs of the JSEB business to manage and control its activities unless such activities would be appropriate with commensurate businesses, in order to avoid sham or fraudulent certifications. (e) Only an independent business may be certified as a JSEB. For the purpose of this Part, an independent business means one whose viability does not depend on its relationship with another business. Recognition of an applicant business as a separate entity for tax or corporate purposes is not necessarily sufficient to demonstrate that a business is independent. Issues to be considered to determine business independence include: (1) The extent to which the JSEB has ongoing relationships with non-JSEBs in such areas as personnel, facilities, equipment, financial and/or bonding support, and other resources. (2) The extent to which present or recent family, or employer/employee relationships between the JSEB business managers compromise the JSEB's independence. (3) The extent to which a pattern of exclusive or primary dealings with a prime contractor demonstrates compromised independence of the JSEB. (4) The consistency of relationships between the JSEB and non-JSEBs with normal industry practices. (f) A business shall be certified only for specific types of work for which the business has the capacity and expertise and the business managers have the management and control of the business operations over the type of work. (Ord. 2021-117-E , § 5; Ord. 2023-765-E , § 1; Ord. 2024-437-E , § 3; Ord. 2025-148-E , § 4; Ord. 2025-795-E , § 2)