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MURIELBOWSERMAYOR
February26,2026
‘TheHonorablePhilMendelson
Chairman
CounciloftheDistrictofColumbia
JohnA.WilsonBuilding
1350PennsylvaniaAvenue,NW, Suite504
Washington,DC 20004
DearChairmanMendelson:
EnclosedforconsiderationandadoptionbytheCounciloftheDistrictofColumbiaisthe“SupportingLocalBusinessEnterprisesEmergencyDeclarationResolutionof2026,”the “SupportingLocalBusinessEnterprisesEmergencyAmendmentActof2026,”the“SupportingLocalBusinessEnterprisesTemporaryAmendmentActof2026,”andthe“SupportingLocalBusinessEnterprisesAmendmentActof2026.”
Theresolutionandaccompanyingemergency,temporaryandpermanentbillsamendtheSmallandCertifiedBusinessEnterpriseDevelopmentandAssistanceActof2005(“CBEAct”),byclarifyingthequalificationsforcertaincertifiedbusinessenterprise(“CBE”)categories,enhancingexistingpenalties,clarifyingrelevantcontractingandsubcontractingrequirements,andestablishinginvoicingandpaymentrequirements.
Morespecifically,theseamendments:(1)proposeanewpenaltystructurethatwouldrequireabeneficiarytopaythedifferencebetweenthedollaramountitwasrequiredtosubcontracttoCBEsandtheactualdollaramountsubcontractedtoCBEs;(2)prohibitbeneficiariesfromsubcontractinganyoftheir35%spendinggoaltoanenterpriseinwhichthebeneficiaryhasanownershipinterest;(3)waivedeveloper,acquisition,andgeneralcontractorfeesthat,whentotaled,areunreasonablydisproportionatetothepercentageofitsequityinvestmentintheproject;(4)establishuniformhearingproceduresforenforcementactionsundertheCBEAct;(5)expandthedefinitionofbeneficiarytoincludenon-profitentities;(6)requirebeneficiariestoinvoicetheDistrictforundisputedworkperformedonagovernmentassistedprojectevery30days,andfollowingreceiptofpaymentbytheDistrict,topaysubcontractorsforworkproperlyinvoicedandsatisfactorilyperformed;(7)requireapplicantsforcertificationasalocalbusinessenterprisetobeindependentlyownedandoperated:(8)requireeachCBEholdinganinterestinacertifiedjointventurethatisselectedasabeneficiarytoperformapercentageoftheworkthatisequaltoorgreaterthanitspercentageinterestinthejointventure.
ThesechangeswillstrengthentheDistriet’sCBElawsandhelpstrengthenthelocalbusinesscommunity.
urgetheCounciltotakepromptandfavorableactionontheenclosedlegislation.
Sincerely, 5
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Chaim1an Phil Mendelson
at the request of the Mayor
A PROPOSED RESOLUTION
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
15 To declare the existence of an emergency with respect to the need to amend the Small and
16 Certified Business Enterprise Development and Assistance Act of 2005 to require a
17 business applying for certification as a local business enterprise to be independently
18 owned and operated, to establish uniform hearing procedures for enforcement actions, to
19 expand the scope of the Department of Small and Local Business Development's
20 complaint hotline, to add penalties for any business enterprise that violates the act, to
21 include non-profit entities as beneficiaries subject to certified business enterprise
22 subcontracting and reporting requirements, to establish minimum and maximum periods
23 of revocations for violations under the act, to increase the penalty for beneficiaries who
24 fail to show commercially reasonable best efforts to meet subcontracting requirements, to
25 prevent a beneficiary from fulfilling subcontracting requirements by hiring a certified
26 business enterprise in which it has an ownership interest, to limit eligibility requirements
27 for equity sponsors to prevent conflicts of interest, to protect equity sponsors from
28 bearing disproportionate project costs on projects and protect equity sponsor voting
29 rights, to clarify contracting and subcontracting requirements for certified business
30 enterprise beneficiaries, to eliminate moot Department reporting requirements, to
31 establish certification procedures during a public health emergency, and to repeal the
32 Living Wage Certification Program, Triennial Review of Program and Subchapter, and
33 Volunteer Corp of Executives and Entrepreneurs provisions of the Act; and to amend the
34 Quick Payment Act to impose invoice submission timing requirements on beneficiaries
35 and to authorize fines and other penalties for failure to comply with the invoicing
36 requirements.
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38 RESOLVED , BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
39 resolution may be cited as the "Supporting Local Business Enterprises Emergency Declaration
40 Resolution of 2026".
41 Sec. 2. (a) A Certified Business Enterprise (CBE) is a business enterprise certified by the
42 Department of Small and Local Business Development (DSLBD) as a local business enterprise.
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(b) Businesses with CBE certification may receive preference when submitting bids or 43
proposals for procurement and contracting opportunities. 44
(c) There are currently over 1,940 businesses participating in the District’s CBE Program. 45
(d) From 2020 through 2025, the Council passed a series of emergency and temporary 46
bills including the Local Business Enterprise Clarification Emergency Amendment Acts of 2020, 47
2021 , 2022, and 2023; the Local Business Enterprise Clarification Temporary Amendment Acts 48
of 2020, 2021, 2022, and 2023; the Certified Business Enterprise Program Compliance and 49
Enforcement Support Emergency Amendment Acts of 2024 and 2025; and the Certified Business 50
Enterprise Program Compliance and Enforcement Support Temporary Amendment Acts of 2024 51
and 2025, to close identified loopholes in the law that were misaligned with the spirit and intent 52
of the CBE law and threatened the integrity of the CBE Program. 53
(e) Emergency and temporary provisions currently enacted through the Certified Business 54
Enterprise Program Compliance and Enforcement Support Temporary Amendment Act of 2025, 55
effective August 29, 2025 (D.C. Law 26-25; 72 DCR 9564), are set to expire on March 29, 2026. 56
(f) Accordingly, emergency legislation is needed to maintain provisions passed by the 57
Council in addition to other key provisions identified that align with the spirit of the law. 58
(g) Failure to move these amendments will have an adverse effect on CBE program 59
administration, agency operations, and agency compliance and enforcement mechanisms. 60
Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute 61
emergency circumstances making it necessary that the Certified Business Enterprise Program 62
Compliance and Enforcement Support Emergency Amendment Act of 2026 be adopted after a 63
single reading. 64
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Sec. 4. The Secretary of the Council shall transmit a copy of this resolution, upon its 65
adoption, to the Mayor of the District of Columbia. 66
Sec. 5. This resolution shall take effect immediately. 67