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A BILL 1
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26-665 3
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 6
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To amend, on a temporary basis, the Small and Certified Business Enterprise Development and 10
Assistance Act of 2005 to require a business applying for certification as a local business 11
enterprise to be independently owned and operated, to amend minimum certified business 12
enterprise performance requirements in a certified joint venture, and to establish uniform 13
hearing procedures for enforcement actions. 14
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act 16
may be cited as the “Certified Business Enterprise Program Compliance and Enforcement Support 17
Temporary Amendment Act of 2026”. 18
Sec. 2. The Small and Certified Business Enterprise Development and Assistance Act of 19
2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.01 et seq.), is 20
amended as follows: 21
(a) Section 2302 (D.C. Official Code § 2-218.02) is amended as follows: 22
(1) Paragraph (7) is amended to read as follows: 23
“(7) “Economically disadvantaged individual” means an individual who owns at 24
least a 51% interest in a business enterprise and whose personal net worth does not exceed the 25
limits set by the federal Department of Transportation, pursuant to 49 CFR § 26.68.” 26
(2) Paragraph (8A) is amended to read as follows: 27
“(8A) Equity impact enterprise” means a business enterprise that is a resident- 28
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owned business, small business enterprise, and disadvantaged business enterprise.” 29
(3) Paragraph (9) is redesignated as paragraph (8B). 30
(4) A new paragraph (9) is added to read as follows: 31
“(9) “Formal complaint” means a complaint that is submitted to the Department in 32
writing, sworn to by the complainant, and notarized.”. 33
(5) A new paragraph (10A) is added to read as follows: 34
“(10A) “Informal complaint” means a complaint other than a formal complaint and 35
includes complaints submitted in person, by email, by telephone, or through the Department’s 36
complaint hotline.”. 37
(6) A new paragraph (10B) is added to read as follows: 38
“(10B) “Independently owned and operated” means that the business enterprise 39
manages and controls its day-to-day operations without being subject to control, restriction, 40
modification, or limitation by another business enterprise or not-for-profit business that has an 41
ownership or other financial interest in the business enterprise.”. 42
(7) Paragraph (13B) is redesignated as paragraph (13C). 43
(8) A new paragraph (13B) is added to read as follows: 44
“(13B) “Person” means any individual, firm, partnership, joint venture, general 45
partner of a partnership, limited liability company, registered limited liability partnership, foreign 46
limited liability partnership, association, corporation, unincorporated business, company, syndicate, 47
estate, trust, business trust, trustee, trustee in bankruptcy, receiver, executor, administrator, 48
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assignee, fiduciary, or entity of any kind.”. 49
(b) Section 2331 (D.C. Official Code § 2-218.31) is amended by adding a new paragraph 50
(1A) to read as follows: 51
“(1A)(A) Is: 52
“(i) Independently owned and operated; 53
“(ii) More than 50% owned, operated, and controlled by a District-54
based enterprise or not-for-profit business; or 55
“(iii) Owned by a non-District-based business enterprise that is more 56
than 50% owned by District residents;”. 57
(c) Section 2346(b)(2)(A) (D.C. Official Code § 2-218.46(b)(2)(A)) is amended to read as 58
follows: 59
“(2)(A) Each government-assisted construction and non-construction contract for 60
which a certified joint venture is selected as a beneficiary and is granted points or a price reduction 61
pursuant to section 2343 or is selected through a set-aside program under this subpart shall include 62
a requirement that each certified business enterprise holding a majority or minority interest in the 63
certified joint venture shall, with its own organization and resources, perform a percentage of the 64
work equal to or greater than its percentage interest in the joint venture, and, if the certified joint 65
venture subcontracts, at least 35% of the subcontracted effort shall be with certified business 66
enterprises.”. 67
(d) Section 2363 (D.C. Official Code § 2-218.63) is amended as follows: 68
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(1) Subsection (c) is amended by striking the phrase “, in accordance with 69
procedures set forth in subsection (e) of this section,”. 70
(2) Subsection (e) is amended as follows: 71
(A) Paragraphs (1), (2), and (3) are amended to read as follows: 72
“(e)(1)(A) Any person may file with the Department a formal or informal complaint 73
alleging a violation of this act. 74
“(B) The Department shall maintain a hotline for the filing of informal 75
complaints. 76
“(2) Except as provided in paragraph (3) of this subsection, the Department shall 77
investigate each formal or informal complaint filed with it. 78
“(3) The Department may dismiss a complaint without conducting an investigation 79
if the Department determines the complaint is frivolous or otherwise without merit. If the 80
Department dismisses a formal complaint as frivolous or otherwise without merit, the Department 81
shall prepare a report that includes: 82
“(A) A statement detailing the formal complaint, including the name, 83
address, and telephone number of the person filing the complaint; 84
“(B) The name of the person or certified joint venture alleged to be in 85
violation of this act; 86
“(C) The facts and law considered in rendering the determination; and 87
“(D) Any other information considered in rendering the determination.”. 88
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(B) Paragraph (4) is repealed. 89
(C) New paragraphs (5) and (6) are added to read as follows: 90
“(5) After the completion of an investigation conducted pursuant to this subsection, 91
the Department shall take such enforcement action, if any, it deems appropriate. 92
“(6) The Department shall maintain a record listing all formal complaints, which 93
shall contain: 94
“(A) The name of the person alleged to be in violation of this act; 95
“(B) The date the formal complaint was made to the Department; and 96
“(C) A description of the formal complaint.”. 97
(3) Subsection (g) is amended to read as follows: 98
“(g)(1) Except as provided in paragraph (8) of this subsection, before issuing a civil penalty 99
to, or denying, suspending, changing, or revoking a certification, a person or a certified joint 100
venture, the Department shall issue a notice of determination to the person or certified joint 101
venture. The notice of determination shall describe the: 102
“(A) Basis for the Department’s determination; 103
“(B) Proposed penalty, if any; and 104
“(C) Process and timeline by which the person or certified joint venture may 105
request a hearing. 106
“(2) Pursuant to paragraph (3) of this subsection, a person, or a designated 107
representative on behalf of a certified joint venture, may request a hearing before the Office of 108
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Administrative Hearings within 10 days after receiving the notice. If the person or certified joint 109
venture does not request a hearing within that time, the civil penalty, denial, suspension, change, or 110
revocation shall become final, and the person or certified joint venture shall be deemed to have 111
waived the opportunity for judicial review. 112
“(3) If a hearing is requested, the Office of Administrative Hearings shall consider 113
the matter pursuant to section 19 of the Office of Administrative Hearings Establishment Act 114
of 2001, effective March 6, 2002 (D.C. Law 14-76; D.C. Official Code § 2-1831.16), such 115
hearing pursuant to the Office of Administrative Hearings Establishment Act of 2001, 116
effective March 6, 2002 (D.C. Law 14-76; D.C. Official Code § 2-1831.01 et seq), and the rules 117
issued pursuant to it. The Department shall bear the burden of establishing the violation by a 118
preponderance of the evidence. 119
“(4) The Office of Administrative Hearings shall conduct such hearing based on the 120
record developed by the Department. The decision of the Office of Administrative Hearings shall 121
be the final administrative decision for the purpose of judicial review. 122
“(5) Notice of a final suspension or revocation of a certification shall be published 123
on the Department’s website. 124
“(6) A business enterprise or joint venture whose certification has been revoked shall 125
not be eligible to apply for a new certification from the Department until 36 months after the date 126
that the revocation became final. 127
“(7)(A) The Department may at any time, upon motion by a business enterprise or 128
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joint venture whose certification has been suspended or revoked, remove the suspension or reissue 129
a certification if the Department determines that it is in the District government’s interest to remove 130
the suspension or reissue the certification before the end of the 36-month period and the removal or 131
reissuance will not endanger the health, safety, or welfare of the general public. 132
“(B) In determining whether to remove a suspension or reissue a certification, 133
the Department shall consider whether the business enterprise or joint venture submitted satisfactory 134
proof that conditions within, or actions by, the business enterprise or joint venture that led to the 135
suspension or revocation have been corrected. 136
“(C) A business enterprise or joint venture whose certification is reissued 137
shall cease to be subject to the 36-month waiting period established in paragraph (6) of this 138
subsection. 139
“(8)(A) If, after an investigation, the Department determines that a business 140
enterprise or joint venture certified under this act has violated any provision of this act in such a 141
manner as to present an imminent danger to the health, safety, or welfare of any person or the 142
general public, the Department may summarily suspend the certification of the business enterprise 143
or joint venture upon issuing the notice of determination described in paragraph (1) of this 144
subsection. 145
“(B)(i) The notice of determination shall inform the business enterprise or 146
joint venture of the reason for the summary suspension and the right to request a hearing before the 147
Office of Administrative Hearings pursuant to this subsection. 148
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“(ii) If a business enterprise or joint venture timely requests a hearing 149
on a summary suspension, the Office of Administrative Hearings shall conduct the hearing within 150
14 days after receiving the request, unless a longer period of time is agreed to by the business 151
enterprise or joint venture, and shall issue a decision within 14 days after the record of the hearing 152
closes.”. 153
Sec. 3. Applicability. 154
This act shall apply as of March 29, 2026. 155
Sec. 4. Fiscal impact statement. 156
The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 157
statement required by section 4a of the General Legislative Procedures Act of 1975, approved 158
October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 159
Sec. 5. Effective date. 160
(a) This act shall take effect following approval by the Mayor (or in the event of veto by the 161
Mayor, action by the Council to override the veto) and a 30-day period of congressional review as 162
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 163
1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 164
(b) This act shall expire after 225 days of its having taken effect. 165