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B 26-0665

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

26th Council Period (2025-2026)

The act tightens CBE certification by enforcing independent ownership, sets joint venture work-share rules, and standardizes expedited enforcement and hearings.

Act A26-0349 Published in DC Register Vol 73 and Page 009206
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Bill Summary · B 26-0665

Summary: Certified Business Enterprise Program Compliance and Enforcement Support Temporary Amendment Act of 2026 (B26-0665)

Purpose and intent

This bill temporarily amends the District of Columbia’s Small and Certified Business Enterprise Development and Assistance Act of 2005. Its primary aims are to:
- tighten certification standards for Local Business Enterprises (LBEs) by ensuring independent ownership and operation.
- raise or modify performance requirements for certified joint ventures.
- establish uniform hearing procedures for enforcement actions and streamline complaint handling.

The act is titled a temporary measure and is set to expire 225 days after it takes effect.

Key provisions

1) Definitions and eligibility changes

  • Adds stricter definitions to clarify who qualifies as economically disadvantaged and how equity impact enterprises are categorized.
  • Introduces new definitions for complaints:
    • Formal complaint: written, sworn, and notarized.
    • Informal complaint: non-formal channels (in person, email, phone, hotline).
  • Defines “independently owned and operated” as day-to-day control and management being free from control by another business enterprise or not-for-profit with ownership or financial interest.

2) Certification requirements for LBEs and joint ventures

  • Amends Section 2331 to specify criteria for entities considered independently owned and operated, including:
    • More than 50% ownership/control by a District-based enterprise or by District residents if owned by a non-District enterprise.
  • For certified joint ventures receiving government contracting benefits, requires that each party with majority or minority interest perform work according to its percentage interest. If subcontracting, at least 35% of subcontracted work must be with certified BEs.

3) Complaint handling and enforcement procedures

  • Removes a prior procedural reference and broadens hearing and enforcement framework:
    • The Department may investigate formal and informal complaints.
    • The Department will maintain a hotline for informal complaints.
    • The Department may dismiss frivolous or meritless complaints and must document such dismissals in a report.
    • After investigation, the Department can take enforcement actions as appropriate.
    • A public record will list formal complaints with basic details.
  • Establishes formal hearing rights:
    • Notice of determination must include basis, proposed penalty, and hearing process.
    • Hearings can be requested within 10 days; if not requested, penalties become final.
    • If a hearing is held, the Office of Administrative Hearings issues the final decision.
    • Final suspensions or revocations are published on the Department’s website.
    • Revoked certifications require a 36-month waiting period before reapplication, with potential for earlier reinstatement in certain cases if the Department finds it in the government’s interest and conditions have been corrected.
    • Summary suspensions may be imposed for imminent danger, with expedited hearing timelines.

4) Administrative timelines and remedies

  • Summary suspension procedures and expedited timelines are defined to ensure rapid action when public safety is at risk.
  • The hearing and enforcement framework places the Department in the role of enforcing compliance, with a structured path to appeal via the Office of Administrative Hearings.

Who is affected

  • Businesses seeking certification as Local Businesses Enterprises (LBEs).
  • Certified joint ventures using DBE-like programs and government contracts.
  • District-based, resident-owned, or majority/minority-interest entities involved in certified joint ventures.
  • Departments overseeing certification, complaints, and enforcement actions.

Applicability and expiration

  • Effective March 29, 2026, with a 225-day sunset period after taking effect unless extended.
  • Includes transitional elements for complaint intake and enforcement during the temporary window.

Fiscal and procedural notes

  • The Council adopts the Budget Director’s fiscal impact statement.
  • The act outlines specific procedural steps for complaints, investigations, hearings, and public notice.

This bill represents a targeted, temporary tightening of the District’s CBE program compliance and enforcement framework, emphasizing independent ownership, performance integrity in joint ventures, and standardized, expedited enforcement procedures.

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

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