B 26-0664

                                                                        ENROLLED ORIGINAL
                                             AN ACT
                    IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
 To amend, on an emergency basis, the Small and Certified Business Enterprise Development and
       Assistance Act of 2005 to require a business applying for certification as a local business
       enterprise to be independently owned and operated, to amend minimum certified business
       enterprise performance requirements in a certified joint venture, and to establish uniform
       hearing procedures for enforcement actions.
      BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act
may be cited as the “Certified Business Enterprise Program Compliance and Enforcement Support
Emergency Amendment Act of 2026”.
        Sec. 2. The Small and Certified Business Enterprise Development and Assistance Act of
2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.01 et seq.), is
amended as follows:
        (a) Section 2302 (D.C. Official Code § 2-218.02) is amended as follows:
                (1) Paragraph (7) is amended to read as follows:
                “(7) “Economically disadvantaged individual” means an individual who owns at
least a 51% interest in a business enterprise and whose personal net worth does not exceed the
limits set by the United States Department of Transportation, pursuant to 49 C.F.R. § 26.68.”.
                (2) Paragraph (8A) is amended to read as follows:
                “(8A) “Equity impact enterprise” means a business enterprise that is a resident-
owned business, small business enterprise, and disadvantaged business enterprise.”.
                (3) Paragraph (9) is redesignated as paragraph (8B).
                (4) A new paragraph (9) is added to read as follows:
                “(9) “Formal complaint” means a complaint that is submitted to the Department in
writing, sworn to by the complainant, and notarized.”.
                (5) A new paragraph (10A) is added to read as follows:
                “(10A) “Informal complaint” means a complaint other than a formal complaint and
includes complaints submitted in person, by email, by telephone, or through the Department’s
complaint hotline.”.
                (6) A new paragraph (10B) is added to read as follows:
                “(10B) “Independently owned and operated” means that the business enterprise
                                                 1
                                                                          ENROLLED ORIGINAL
manages and controls its day-to-day operations without being subject to control, restriction,
modification, or limitation by another business enterprise or not-for-profit business that has an
ownership or other financial interest in the business enterprise.”.
                 (7) A new paragraph (13A-i) is added to read as follows:
                 “(13A-i) “Person” means any individual, firm, partnership, joint venture, general
partner of a partnership, limited liability company, registered limited liability partnership, foreign
limited liability partnership, association, corporation, unincorporated business, company, syndicate,
estate, trust, business trust, trustee, trustee in bankruptcy, receiver, executor, administrator,
assignee, fiduciary, or entity of any kind.”.
         (b) Section 2331 (D.C. Official Code § 2-218.31) is amended by adding a new paragraph
(1A) to read as follows:
                 “(1A)(A) Is:
                                  “(i) Independently owned and operated;
                                  “(ii) More than 50% owned, operated, and controlled by a District-
based enterprise or not-for-profit business; or
                                  “(iii) Owned by a non-District-based business enterprise that is more
than 50% owned by District residents;”.
         (c) Section 2346(b)(2)(A) (D.C. Official Code § 2-218.46(b)(2)(A)) is amended by striking
the phrase “the certified business enterprise perform at least 35% of the contracting effort with its
own organization and resources and, if it subcontracts, 35% of the subcontracted effort shall be
with certified business enterprises.” and inserting the phrase “each certified business enterprise
holding a majority or minority interest in the certified joint venture shall, with its own organization
and resources, perform a percentage of the work equal to or greater than its percentage interest in
the joint venture, and, if the certified joint venture subcontracts, at least 35% of the subcontracted
effort shall be with certified business enterprises.” in its place.
         (d) Section 2363 (D.C. Official Code § 2-218.63) is amended as follows:
                 (1) Subsection (c) is amended by striking the phrase “, in accordance with
 procedures set forth in subsection (e) of this section, that” and inserting the word “that” in its
 place.
                 (2) Subsection (e) is amended as follows:
                         (A) Paragraphs (1), (2), and (3) are amended to read as follows:
         “(e)(1)(A) Any person may file with the Department a formal or informal complaint
alleging a violation of this act.
                         “(B) The Department shall maintain a hotline for the filing of informal
complaints.
                 “(2) Except as provided in paragraph (3) of this subsection, the Department shall
investigate each formal or informal complaint filed with it.
                 “(3) The Department may dismiss a complaint without conducting an investigation
if the Department determines the complaint is frivolous or otherwise without merit. If the
                                                   2
                                                                          ENROLLED ORIGINAL
Department dismisses a formal complaint as frivolous or otherwise without merit, the Department
shall prepare a report that includes:
                         “(A) A statement detailing the formal complaint, including the name,
address, and telephone number of the person filing the complaint;
                         “(B) The name of the person or certified joint venture alleged to be in
violation of this act;
                         “(C) The facts and law considered in rendering the determination; and
                         “(D) Any other information considered in rendering the determination.”.
                         (B) Paragraph (4) is repealed.
                         (C) New paragraphs (5) and (6) are added to read as follows:
                “(5) After the completion of an investigation conducted pursuant to this subsection,
the Department shall take such enforcement action, if any, it deems appropriate.
                “(6) The Department shall maintain a record listing all formal complaints, which
shall contain:
                         “(A) The name of the person alleged to be in violation of this act;
                         “(B) The date the formal complaint was made to the Department; and
                         “(C) A description of the formal complaint.”.
                (3) Subsection (g) is amended to read as follows:
        “(g)(1) Except as provided in paragraph (8) of this subsection, before issuing a civil penalty
to, or denying, suspending, changing, or revoking a certification, a person or a certified joint
venture, the Department shall issue a notice of determination to the person or certified joint
venture. The notice of determination shall describe the:
                         “(A) Basis for the Department’s determination;
                         “(B) Proposed penalty, if any; and
                         “(C) Process and timeline by which the person or certified joint venture may
request a hearing.
                “(2) Pursuant to paragraph (3) of this subsection, a person, or a designated
representative on behalf of a certified joint venture, may request a hearing before the Office of
Administrative Hearings within 10 days after receiving the notice. If the person or certified joint
venture does not request a hearing within that time, the civil penalty, denial, suspension, change, or
revocation shall become final, and the person or certified joint venture shall be deemed to have
waived the opportunity for judicial review.
                “(3) If a hearing is requested, the Office of Administrative Hearings shall consider
such hearing pursuant to the Office of Administrative Hearings Establishment Act of 2001,
effective March 6, 2002 (D.C. Law 14-76; D.C. Official Code § 2-1831.01 et seq.), and the rules
issued pursuant to it. The Department shall bear the burden of establishing the violation by a
preponderance of the evidence.
                “(4) The Office of Administrative Hearings shall conduct such hearing based on the
record developed by the Department. The decision of the Office of Administrative Hearings shall
be the final administrative decision for the purpose of judicial review.
                                                  3
                                                                            ENROLLED ORIGINAL
                 “(5) Notice of a final suspension or revocation of a certification shall be published
on the Department’s website.
                 “(6) A business enterprise or joint venture whose certification has been revoked shall
not be eligible to apply for a new certification from the Department until 36 months after the date
that the revocation became final.
                 “(7)(A) The Department may at any time, upon motion by a business enterprise or
joint venture whose certification has been suspended or revoked, remove the suspension or reissue
a certification if the Department determines that it is in the District government’s interest to remove
the suspension or reissue the certification before the end of the 36-month period and the removal or
reissuance will not endanger the health, safety, or welfare of the general public.
                        “(B) In determining whether to remove a suspension or reissue a certification,
the Department shall consider whether the business enterprise or joint venture submitted satisfactory
proof that conditions within, or actions by, the business enterprise or joint venture that led to the
suspension or revocation have been corrected.
                        “(C) A business enterprise or joint venture whose certification is reissued
shall cease to be subject to the 36-month waiting period established in paragraph (6) of this
subsection.
                 “(8)(A) If, after an investigation, the Department determines that a business
enterprise or joint venture certified under this act has violated any provision of this act in such a
manner as to present an imminent danger to the health, safety, or welfare of any person or the
general public, the Department may summarily suspend the certification of the business enterprise
or joint venture upon issuing the notice of determination described in paragraph (1) of this
subsection.
                        “(B)(i) The notice of determination shall inform the business enterprise or
joint venture of the reason for the summary suspension and the right to request a hearing before the
Office of Administrative Hearings pursuant to this subsection.
                                 “(ii) If a business enterprise or joint venture timely requests a hearing
on a summary suspension, the Office of Administrative Hearings shall conduct the hearing within
14 days after receiving the request, unless a longer period of time is agreed to by the business
enterprise or joint venture, and the Office of Administrative Hearings shall issue a decision within
14 days after the record of the hearing closes.”.
       Sec. 3. Applicability.
       This act shall apply as of March 29, 2026.
       Sec. 4. Fiscal impact statement.
       The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
statement required by section 4a of the General Legislative Procedures Act of 1975, approved
October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
       Sec. 5. Effective date.
                                                    4
                                                                        ENROLLED ORIGINAL
        This act shall take effect following approval by the Mayor (or in the event of veto by the
Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 90
days, as provided for emergency acts of the Council of the District of Columbia in section 412(a) of
the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; D.C. Official
Code § 1-204.12(a)).
               ___________________________________
               Chairman
               Council of the District of Columbia
_________________________________
Mayor
District of Columbia
                                                 5