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B 26-0664

Certified Business Enterprise Program Compliance and Enforcement Support Emergency Amendment Act of 2026

26th Council Period (2025-2026)

Strengthens CBE certification by enforcing independent ownership/control, increasing enforcement and hearing procedures, and ensuring CJVs allocate work proportionally to certified

Act A26-0334 Published in DC Register Vol 73 and Page 008193, Expires on Aug 27, 2026
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Bill Summary · B 26-0664

Summary of Bill B26-0664: Certified Business Enterprise Program Compliance and Enforcement Support Emergency Amendment Act of 2026

Note: This is an emergency measure that would take effect March 29, 2026 and remain in effect for up to 90 days.

1) Purpose and Intent

  • To amend the Small and Certified Business Enterprise Development and Assistance Act of 2005 on an emergency basis.
  • Primary aims:
    • Strengthen certification standards by requiring that a local business applying for certification as a local business enterprise (LBE) be independently owned and operated.
    • Tighten minimum performance requirements for certified joint ventures (CJVs) and enhance enforcement procedures.
    • Establish uniform hearing procedures for enforcement actions carried out by the Department.

2) Key Provisions and Changes

A. Definitions and Eligibility

  • Redefines and adds several key terms:
    • Independently owned and operated: a business that manages and controls day-to-day operations without control or financial interest by another business or not-for-profit entity.
    • Economically disadvantaged individual: must own at least 51% of the business and meet personal net worth limits per 49 CFR § 26.68.
    • Equity impact enterprise: defined as a resident-owned, small, and disadvantaged business enterprise.
    • Formal complaint: a written, sworn, notarized complaint filed with the Department.
    • Informal complaint: complaints submitted via in-person, email, phone, or hotline.
    • Person: broad definition including individuals and various business forms and entities.
    • The bill adds new certification status criteria for CJVs in § 2331(1A), describing criteria for "Independently owned and operated," including:
    • More than 50% ownership, operation, and control by a District-based enterprise or not-for-profit, or
    • Ownership by a non-District-based business that is >50% owned by District residents.

B. Certification and Joint Venture Requirements

  • Section 2302 amendments (definitions and eligibility) support a stricter standard for LTBE certification, emphasizing independent ownership and control.
  • Section 2346(b)(2)(A) requires government-assisted contracts that utilize CJVs to enforce that each majority/minority interest holder in the JV performs a proportional share of the work with its own resources, and that at least 35% of subcontracted work be performed by certified business enterprises.

C. Complaint Intake and Enforcement Procedures

  • Section 2363 and related subsections revise enforcement and hearing procedures:
    • Formal and informal complaints may be filed with the Department; the Department will maintain a hotline for informal complaints.
    • The Department generally must investigate complaints, but may dismiss frivolous or meritless formal complaints (with a detailed reporting requirement if dismissed).
    • Creation of a formal record of complaints maintained publicly by the Department.
    • Notice of determination must be issued before civil penalties, certification actions (denial, suspension, modification, or revocation) are imposed.
    • People or CJVs may request a hearing within 10 days of notice; otherwise, decisions become final.
    • If a hearing is requested, the Office of Administrative Hearings (OAH) will conduct the proceeding, with the Department bearing the burden of proof by a preponderance of the evidence.
    • Final OAH decision is the final administrative decision for judicial review.
    • Publication of final suspension or revocation notices on the Department’s website.
    • Revoked certifications require a 36-month wait before applying for a new certification, with a provision to potentially shorten the waiting period if the Department finds that conditions that led to the suspension/revocation have been corrected and it is in the public interest to reinstate.
    • Summary suspensions may be used for imminent danger, with expedited hearing timelines (requested within 14 days, decision within 14 days after hearing record closes, unless extended by agreement).

3) Affected Parties

  • Businesses seeking certification as Local Business Enterprises (LBEs) and Certified Joint Ventures (CJVs) under the DC program.
  • District-based enterprises, not-for-profit entities, and other business structures owned by District residents or District-based entities.
  • Department of Small and Local Business Development (or the relevant DC Department administering the CBE program) as the enforcement and review body.
  • Affected contractors on government-assisted construction and non-construction contracts involving CJVs.

4) Procedural and Timeline Aspects

  • Effective date: March 29, 2026.
  • Emergency provision: in effect for up to 90 days unless extended or made permanent later.
  • Hearing timelines:
    • Mandatory notice of determination precedes penalties.
    • 10-day window to request a hearing with the OAH.
    • If requested, hearing conducted under existing OAH procedures with a ruling as the final agency decision.
    • Summary suspension hearing timeline: hearing within 14 days of request, decision within 14 days after close of the record.
  • Revocation consequences: 36-month waiting period before seeking a new certification, with potential early reinstatement if conditions are corrected and public interest is served.

5) Fiscal Impact

  • The Act includes a fiscal impact statement prepared by the Budget Director, consistent with the Council’s required process.

6) Summary Assessment

  • The bill strengthens the integrity of the CBE certification process by clarifying ownership and control standards, expanding complainant options (formal and informal), and standardizing enforcement and hearing procedures.
  • It increases accountability for CJVs to ensure work allocation aligns with ownership interests and certification status.
  • It introduces stronger interim enforcement tools (including summary suspensions) to address imminent public health, safety, or welfare concerns.

Compiled from official sources — confirm details with the bill’s official record.

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