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