District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0206 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	MURIELBOWSER
2	2	MAYOR
3	3	March26,2025
4	4	TheHonorablePhilMendelson,Chairman
5	5	CounciloftheDistrictofColumbia
6	6	JohnA.WilsonBuilding
7	7	1350PennsylvaniaAvenue,NW
8	8	Washington,DC20004
9	9
10	10	DearChairmanMendelson:
11	11	EnclosedforconsiderationbytheCouncilisthe“CertifiedBusinessEnterpriseProgramComplianceand
12	12	EnforcementSupportEmergencyDeclarationResolutionof2025,”the“CertifiedBusinessEnterprise
13	13	ProgramComplianceandEnforcementSupportEmergencyAmendmentActof2025,”andthe“Certified
14	14	BusinessEnterpriseProgramComplianceandEnforcementSupportTemporaryAmendmentActof
15	15	2025.”
16	16	‘TheresolutionandaccompanyingemergencyandtemporarybillsclosegapsintheDistrict'sCertified
17	17	BusinessEnterprise(CBE)Programbymakingcriticalamendmentstosections2302,2331,2346,and
18	18	2363oftheSmallandCertifiedBusinessEnterpriseDevelopmentandAssistanceActof2005(“the
19	19	Act”).
20	20	Morespecifically,theseamendmentswill:(1)establishuniformhearingproceduresforalldepartmental
21	21	enforcementactionsbeforeOAH;(2)clarifycurrentdefinitionsoradddefinitionstocriticaltermsused
22	22	throughouttheAct;(3)reinstateprovisionspreviouslypassedbyCouncilrelatedtothelocalbusiness
23	23	enterprisetestthathavesincelapsed;and(4)rightsizejointventureperformancerequirementsfor
24	24	certifiedbusinessenterprises.
25	25	‘Thesenecessary,time-sensitivechangeswillallowtheDistricttomoreeffectivelyandefficiently
26	26	administertheDistrict'sCBElawsaswellasenforcetheDistrict'sCBEcompliancerequirements.
27	27
28	28	TurgetheCounciltotakepromptandfavorableactionontheenclosedlegislation.
29	29	Sincerely,
30	30	M
31	31	Endtosures. 2
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47	47	~~
48	48	//
49	49	Chairman Phil Mendelson
50	50	at the request
51	51	of the Mayor
52	52	A BILL
53	53	fN THE COUNCIL OF THE DISTRICT OF COLUMBIA
54	54	18 To amend, on an emergency basis, the Small and Certified Business Enterprise Development and
55	55	19 Assistance Act
56	56	of 2005 to require a business applying for certification as a local business
57	57	20 enterprise to be independently owned and operated; to amend minimum certified business
58	58	21 enterprise performance requirements in a certified joint venture; and to establish uniform
59	59	22 hearing procedures for enforcement actions.
60	60	23
61	61	24 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
62	62	25 act may be cited as the "Certified Business Enterprise Program Compliance and Enforcement
63	63	26 Support Emergency Amendment Act of2025".
64	64	27 Sec.
65	65	2. The Small and Certified Business Enterprise Development and Assistance Act of
66	66	28 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code§ 2-218.01 et seq.), is
67	67	29 amended as follows:
68	68	30 (a) Section 2302 (D.C. Official Code§ 2-218.02)
69	69	is amended as follows:
70	70	3 I (1) Paragraph (7)
71	71	is amended to read as follows:
72	72	32 "(7) "Economically disadvantaged individual" means an individual who owns at
73	73	I
74	74	- - - 2
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80	80	33 least a 51% interest in a business enterprise and whose personal net worth does not exceed the
81	81	34 limits set by the federal Department of Transportation, pursuant to 49 CFR § 26.68."
82	82
83	83	35 (2) Paragraph (8A) is amended to read as follows:
84	84	36 "(8A) Equity impact enterprise" means a business enterprise that is a resident-
85	85	37 owned business, small business enterprise, and disadvantaged business enterprise."
86	86	38 (3) Paragraph (9) is redesignated as paragraph (8B).
87	87	39 (4) A new paragraph (9) is added to read as follows:
88	88	40 "(9) "Formal complaint" means a complaint that is submitted to the Department
89	89	41 in writing, sworn to by the complainant, and notarized.".
90	90	42 (5) A new paragraph (lOA) is added to read as follows:
91	91
92	92	43 "(l OA) "Informal complaint" means a complaint other than a formal complaint
93	93	44 and includes complaints submitted in person, by email, by telephone, or through the
94	94	45 Department's complaint hotline.".
95	95	46 (6) A new paragraph (1OB) is added to read as follows:
96	96	47 "(10B) "Independently owned and operated" means that the business enterprise
97	97
98	98	48 manages and controls its day-to-day operations without being subject to control, restriction,
99	99	49 modification, or limitation by another business enterprise or not-for-profit business that has an
100	100	50 ownership or other financial interest in the business enterprise.".
101	101	51 (7) Paragraph (13B) is redesignated as paragraph (13C).
102	102
103	103	52 (8) A new paragraph (13B) is added to read as follows:
104	104	53 "(13B) "Person" means any individual, firm, partnership, joint venture, general
105	105	54 partner of a partnership, limited liability company, registered limited liability partnership, foreign 3
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112	112	55 limited liability partnership, association, corporation, unincorporated business, company,
113	113	56 syndicate, estate, trust, business trust, trustee, trustee in bankruptcy, receiver, executor,
114	114
115	115	57 administrator, assignee, fiduciary, or entity of any kind.".
116	116	58 (b) Section 2331 (D.C. Official Code § 2-218.31) is amended by adding a new
117	117	59 paragraph (IA) to read as follows:
118	118	60 "(lA)(A) Is:
119	119	61 "(i) Independently owned and operated;
120	120	62 "(ii) More than 50% owned, operated, and controlled by a District-
121	121
122	122	63 based enterprise or not-for-profit business; or
123	123	64 "(iii) Owned by a non-District-based business enterprise that is more
124	124	65 than 50% owned by District residents;".
125	125	66 (c) Section 2346(b)(2)(A) (D.C. Official Code§ 2-218.46(b)(2)(A)) is amended as
126	126	67 follows:
127	127	68 "(2)(A) Each government-assisted construction and non-construction contract for
128	128	69 which a certified joint venture is selected as a beneficiary and is granted points or a price reduction
129	129
130	130	70 pursuant to section 2343 or is selected through a set-aside program under this subpart shall include
131	131	71 a requirement that each certified business enterprise holding a majority or minority interest in the
132	132	72 certified joint venture shall, with its own organization and resources, perform a percentage of the
133	133	73 work equal to or greater than its percentage interest in the joint venture, and, if the certified joint
134	134	74 venture subcontracts, at least 35% of the subcontracted effort shall be with certified business
135	135	75 enterprises.".
136	136	76 (d) Section 2363 (D.C. Official Code§ 2-218.63) is amended as follows: 4
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141	141	77 (1) Subsection (c) is amended by striking the phrase", in accordance
142	142	78 with procedures set forth in subsection (e) of this section,".
143	143	79 (2) Subsection (e) is amended as follows:
144	144	80 (A) Paragraphs (1 ), (2), and (3) are amended to read as follows:
145	145	81 "(e)(l)(A) Any person may file with the Department a formal or informal complaint
146	146	82 alleging a violation of this act.
147	147	83 "(B) The Department shall maintain a hotline for the filing of informal
148	148	84 complaints.
149	149
150	150	85 "(2) Except as provided in paragraph (3) of this subsection, the Department shall
151	151	86 investigate each formal or informal complaint filed with it.
152	152
153	153	87 "(3) The Department may dismiss a complaint without conducting an investigation
154	154	88 if the Department determines the complaint is frivolous or otherwise without merit. If the
155	155	89 Department dismisses a formal complaint as frivolous or otherwise without merit, the
156	156	90 Department shall prepare a report that includes:
157	157
158	158	91 "(A) A statement detailing the formal complaint, including the name,
159	159	92 address, and telephone number of the person filing the complaint;
160	160	93 "(B) The name of the person or certified joint venture alleged to be in
161	161	94 violation of this act;
162	162	95 "(C) The name of the person or certified joint venture alleged to be in
163	163	96 violation of this act;
164	164
165	165	97 "(D) Any other information considered in rendering the determination; and 5
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170	170	98 (B) Paragraph (4) is repealed.
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172	172	99 (C) New paragraphs (5) and (6) are added to read as follows:
173	173
174	174	100 "( 5) After the completion of an investigation conducted pursuant to this
175	175	1O1 subsection, the Department shall take such enforcement action, if any, it deems appropriate.
176	176	102 "(6) The Department shall maintain a record listing all formal complaints,
177	177	103 which shall contain:
178	178	104 "(A) The name of the person alleged to be in violation of this act:
179	179	105 "(B) The date the formal complaint was made to the Department: and
180	180	106 "(C) A description of the formal complaint.".
181	181
182	182	107 (3) Subsection (g) is amended to read as follows:
183	183	108 "(g)(l) Except as provided in paragraph (8) of this subsection, before issuing a civil
184	184	109 penalty to, or denying, suspending, changing, or revoking a certification, a person or a certified
185	185	110 joint venture, the Department shall issue a notice of determination to the person or certified joint
186	186	111 venture. The notice of determination shall describe the:
187	187	112 "(A) Basis for the Department's determination;
188	188	113 "(B) Proposed penalty, if any; and
189	189	114 "(C) Process and timeline by which the person or certified joint venture
190	190	115 may request a hearing.
191	191
192	192	116 "(2) Pursuant to paragraph (3) of this subsection, a person, or a designated
193	193	117 representative on behalf of a certified joint venture, may request a hearing before the Office of
194	194	118 Administrative Hearings within 10 days after receiving the notice. If the person or certified joint 6
195	195	119 venture does not request a hearing within that time, the civil penalty, denial, suspension, change,
196	196
197	197	120 or revocation shall become final, and the person or certified joint venture shall be deemed to
198	198
199	199	121 have waived the opportunity for judicial review.
200	200
201	201	122 "(3) If a hearing is requested, the Office of Administrative Hearings shall consider
202	202
203	203	123 the matter pursuant to section 19 of the Office of Administrative Hearings Establishment Act of
204	204
205	205	124 2001, effective March 6, 2002 (D.C. Law 14-76; D.C. Official Code§ 2-1831.16), and the rules
206	206
207	207	125 issued pursuant to it. The Department shall bear the burden of establishing the violation by a
208	208
209	209	126 preponderance of the evidence.
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211	211	127 "(4) The Office of Administrative Hearings shall conduct such hearing based
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213	213	128 on the record developed by the Department. The decision of the Office of Administrative
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215	215	129 Hearings shall be the final administrative decision for the purpose of judicial review.
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217	217	130 "(5) Notice of a final suspension or revocation of a certification shall be published
218	218
219	219	131 on the Department's website.
220	220
221	221	132 "(6) A business enterprise or joint venture whose certification has been revoked
222	222
223	223	133 shall not be eligible to apply for a new certification from the Department until 36 months after
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225	225	134 the date that the revocation became final.
226	226
227	227	135 "(7)(A) The Department may at any time, upon motion by a business enterprise or
228	228
229	229	136 joint venture whose certification has been suspended or revoked, remove the suspension or
230	230
231	231	137 reissue a certification if the Department determines that it is in the District government's interest
232	232
233	233	138 to remove the suspension or reissue the certification before the end of the 36-month period and
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235	235	139 the removal or reissuance will not endanger the health, safety, or welfare of the general public. 7
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241	241	140 "(B) In determining whether to remove a suspension or reissue a
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243	243	141 certification, the Department shall consider whether the business enterprise or joint venture
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245	245	142 submitted satisfactory proof that conditions within, or actions by, the business enterprise or joint
246	246
247	247	143 venture that led to the suspension or revocation have been corrected.
248	248
249	249	144 "(C) A business enterprise or joint venture whose certification is reissued
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251	251	145 shall cease to be subject to the 36-month waiting period established in paragraph (6) of this
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253	253	146 subsection.
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255	255	147 "(8)(A) If, after an investigation, the Department determines that a business
256	256
257	257	148 enterprise or joint venture certified under this act has violated any provision of this act in such a
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259	259	149 manner as to present an imminent danger to the health, safety, or welfare of any person or the
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261	261	150 general public, the Department may summarily suspend the certification of the business
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263	263	151 enterprise or joint venture upon issuing the notice of determination described in paragraph ( l) of
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265	265	152 this subsection.
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267	267	153 "(B)(i) The notice of determination shall inform the business enterprise or
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269	269	154 joint venture of the reason for the summary suspension and the right to request a hearing before
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271	271	155 the Office of Administrative Hearings pursuant to this subsection.
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273	273	156 "(ii) If a business enterprise or joint venture timely requests
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275	275	157 a hearing on a summary suspension, the Office of Administrative Hearings shall conduct the
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277	277	158 hearing within 14 days after receiving the request, unless a longer period of time is agreed to by
278	278
279	279	159 the business enterprise or joint venture, and shall issue a decision within 14 days after the record
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281	281	160 of the hearing closes.".
282	282
283	283	161 Sec. 3. Fiscal impact statement. 8
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289	289	162 The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal
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291	291	163 impact statement required by section 4a of the General Legislative Procedures Act of 1975,
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293	293	164 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code§ l-301.47a).
294	294
295	295	165 Sec. 4. Applicability.
296	296
297	297	166 This act shall apply as of March 1, 2025.
298	298
299	299	167 Sec. 5. Effective date.
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301	301	168 This act shall take effect following approval by the Mayor (or in the event of veto by
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303	303	169 the Mayor, action by the Council to override the veto), and shall remain in effect for no longer
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305	305	170 than 90 days, as provided for emergency acts of the Council of the District of Columbia in
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307	307	171 section 412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87
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309	309	172 Stat. 788; 89 D.C. Official Code § l-204.12(a)).