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District of Columbia Official Code 2001 Edition. |
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Division I. Government of District. |
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Title 2. Government Administration. |
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Chapter 2. Contracts. |
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Subchapter IX-A. Small, Local, and Disadvantaged Business Enterprise Development and Assistance. |
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Part D. Programs for Certified Business Enterprises. |
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Subpart 1. Certified Business Enterprises.
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A business enterprise shall be eligible for certification as a local business enterprise if the business enterprise:
(1) Has its principal office located physically in the District of Columbia;
(2) Requires that its chief executive officer and the highest level managerial employees of the business enterprise maintain their offices and perform their managerial functions in the District;
(2A) Meets 1 of the 4 following standards:
(A) More than 50% of the assets of the business enterprise, excluding bank accounts, are located in the District;
(B) More than 50% of the employees of the business enterprise are residents of the District;
(C) The owners of more than 50% of the business enterprise are residents of the District; or
(D) More than 50% of the total sales or other revenues are derived from transactions of the business enterprise in the District; and
(3)(A) Is licensed pursuant to Chapter 28 of Title 47;
(B) Is subject to the tax levied under Chapter 18 of Title 47; or
(C) Is a business enterprise identified in § 47-1808.01 (1) through (5) and more than 50% of the business is owned by residents of the District.
(Oct. 20, 2005, D.C. Law 16-33, § 2331, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-192, § 2132(a), 53 DCR 6899; July 18, 2008, D.C. Law 17-207, § 2(f), 55 DCR 6107.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-192, in subsec. (a)(2), deleted "and" from the end; and added subsec. (a)(2A).
D.C. Law 17-207, in par. (2A), substituted "Meets 1" for "Meets 3".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(c) of the Department of Small and Local Business Development Subcontracting Clarification Temporary Amendment Act of 2006 (D.C. Law 16-214, March 6, 2007, law notification 54 DCR 2761).
For temporary (225 day) amendment of section, see § 2(f) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2331 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2132(a) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2132(a) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2(c) of Department of Small and Local Business Development Subcontracting Clarification Emergency Amendment Act of 2006 (D.C. Act 16-513, October 25, 2006, 53 DCR 9091).
For temporary (90 day) amendment of section, see § 2(c) of Department of Small and Local Business Development Subcontracting Clarification Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-575, December 19, 2006, 54 DCR 24).
For temporary (90 day) amendment of section, see § 2132(a) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 2(f) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(f) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
For temporary (90 day) addition of sections, see §§ 2 to 4 of Department of Transportation Streetscape Construction Survival Fund Emergency Act of 2010 (D.C. Act 18-658, December 28, 2010, 58 DCR 63).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
Law 16-192, the "Fiscal Year Budget Support Act of 2006", was introduced in Council and assigned Bill No. 16-679, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 9, 2006, and June 6, 2006, respectively. Signed by the Mayor on August 8, 2006, it was assigned Act No. 16-476 and transmitted to both Houses of Congress for its review. D.C. Law 16-192 became effective on March 2, 2007.
For Law 17-207, see notes following § 2-218.02.
Miscellaneous Notes
Short title: Section 2131 of D.C. Law 16-192 provided that subtitle K of title II of the act may be cited as the "Local, Small, and Disadvantaged Businesses Enhancement Amendment Act of 2006".
(a) A business enterprise shall be eligible for certification as a small business enterprise if the business enterprise:
(1)(A) Is a local business enterprise; or
(B) Repealed.
(2) Is independently owned, operated, and controlled; and
(3)(A) Is certified by the United States Small Business Administration as a small business concern under the Small Business Act, approved July 18, 1958 (72 Stat. 863; 15 U.S.C. § 631 et seq.); or
(B) Has had average annualized gross receipts for the 3 years preceding certification not exceeding the following limits:
Construction, Heavy (Street and Highways, Bridges, etc.) $ 23 million
Construction, Building (General Construction, etc.) $ 21 million
Construction, Specialty Trades $ 13 million
Goods and Equipment $ 20 million
General Services $ 19 million
Professional Services, Personal Services (Hotel, Beauty, $ 5 million
Laundry, etc.)
Professional Services, Business Services $ 10 million
Professional Services, Health and Legal Services $ 10 million
Professional Services, Health Facilities Management $ 19 million
Manufacturing Services $ 10 million
Transportation and Hauling Services $ 13 million
Financial Institutions $ 300 million.
(b) A business enterprise that is affiliated with another business enterprise through common ownership, management, or control shall be eligible for certification as a small business enterprise if:
(1) The business enterprise seeking certification as a small business enterprise is a local business enterprise;
(2) The consolidated financial statements of the affiliated business enterprises do not exceed the average annualized gross receipt limits established by subsection (a)(3)(B) of this section; and
(3) In the event of a parent-subsidiary affiliation, the parent company qualifies for certification as a small business enterprise.
(c) If a business enterprise seeking certification as a small business enterprise is affiliated only with one or more business enterprises that are in a different line of business, subsection (b) of this section shall not apply, and the business enterprise shall be eligible for certification as a small business enterprise if it meets the requirements of subsection (a) of this section.
(Oct. 20, 2005, D.C. Law 16-33, § 2332, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-192, § 2132(b), 53 DCR 6899.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-192 repealed subsec. (a)(1)(B); and, in subsec. (b)(1), deleted "or a qualified metropolitan area business enterprise" following "local business enterprise". Prior to repeal, subsec. (a)(1)(B) read as follows:
"(B) Is a qualified metropolitan area business enterprise;"
Emergency Act Amendments
For temporary (90 day) addition, see § 2332 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2132(b) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2132(b) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2132(b) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 16-192, see notes following § 2-218.31.
(a) A business enterprise shall be eligible for certification as a disadvantaged business enterprise if the business enterprise is:
(1) Owned, operated, and controlled by economically disadvantaged individuals; and
(2)(A) Is a local business enterprise; or
(B) Repealed.
(b) A business enterprise that is affiliated with another business enterprise through common ownership, management, or control shall be eligible for certification as a disadvantaged business enterprise if:
(1) The business enterprise seeking certification as a disadvantaged business enterprise is a local business enterprise;
(2) In the event of a parent-subsidiary affiliation, both enterprises meet the requirements of subsection (a) of this section; and
(3) The business enterprise has an average annualized gross receipts totaling $75 million or less.
(Oct. 20, 2005, D.C. Law 16-33, § 2333, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-192, § 2132(c), 53 DCR 6899; Apr. 20, 2010, D.C. Law 18-141, § 2(f), 57 DCR 1485.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-192 repealed subsec. (a)(2)(B); and, in subsec. (b)(1), deleted "or a qualified metropolitan area business enterprise" following "local business enterprise". Prior to repeal, subsec. (a)(2)(B) read as follows:
"(B) Is a qualified metropolitan area business enterprise;"
D.C. Law 18-141, in subsec. (b), deleted "and" from the end of par. (1); substituted "; and" for a period at the end of par. (2), and added par. (3).
Emergency Act Amendments
For temporary (90 day) addition, see § 2333 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2132(c) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2132(c) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2132(c) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 16-192, see notes following § 2-218.31.
For Law 18-141, see notes following § 2-218.02.
(Oct. 20, 2005, D.C. Law 16-33, § 2334, 52 DCR 7503; Mar. 3, 2007, D.C. Law 16-192, § 2132(d), 53 DCR 6899.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2334 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) repeal of section, see § 2132(d) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) repeal of section, see § 2132(d) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) repeal of section, see § 2132(d) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 16-192, see notes following § 2-218.31.
A business enterprise shall be eligible for certification as a resident-owned business if it meets the definition of resident-owned business pursuant to § 2-218.02.
(Oct. 20, 2005, D.C. Law 16-33, § 2335, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2335 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
A business enterprise shall be eligible for certification as a longtime resident business if it meets the definition of longtime resident business pursuant to § 2-218.02.
(Oct. 20, 2005, D.C. Law 16-33, § 2336, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2336 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
A local business enterprise shall be eligible for certification as a local business enterprise with principal offices located in an enterprise zone if its principal offices are located in an enterprise zone as defined by § 2- 218.02.
(Oct. 20, 2005, D.C. Law 16-33, § 2337, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2337 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
A business enterprise shall be eligible for certification as a veteran-owned business enterprise if the business enterprise:
(1) Meets the definition of a small business enterprise as described in § 2- 218.32;
(2) Is not less than 51% owned and operated by one of more veterans (as defined in 38 U.S.C. § 101(2));
(3) In the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more veterans; and
(4) One or more veterans control the management and daily operations.
(Oct. 20, 2005, D.C. Law 16-33, § 2338, as added Apr. 20, 2010, D.C. Law 18-141, § 2(g), 57 DCR 1485.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 18-141, see notes following § 2-218.02.
A business enterprise shall be eligible for certification as a local manufacturing business enterprise if the business enterprise:
(1) Meets the definition of a local business enterprise as described in § 2- 218.31;
(2) Makes a product through a process involving raw materials, components, or assemblies, usually on a large scale, with different operations divided among different workers;
(3) Has an annual revenue of $2 million in the manufactured product; and
(4) Has its principal location of manufacturing in the District of Columbia.
(Oct. 20, 2005, D.C. Law 16-33, § 2339, as added Apr. 20, 2010, D.C. Law 18-141, § 2(g), 57 DCR 1485.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 18-141, see notes following § 2-218.02.
(a) A business enterprise shall be eligible for certification as a joint venture business enterprise if the joint venture has a member that owns a majority interest or minority interest in the joint venture business enterprise and meets the definition of a certified business enterprise pursuant to § 2- 218.02.
(b) For the purposes of this section, the term:
(1) "Majority interest" means:
(A) More than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise or more than 50% of the total value of all of the joint venture business enterprise;
(B) A financial contribution to the enterprise of more than 50%; and
(C) More than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise.
(2) "Minority interest" means:
(A) Less than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise or less than 50% of the total value of all of the joint venture business enterprise;
(B) A financial contribution to the enterprise of less than 50%; and
(C) Less than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise.
(c) The Department shall consider the defined contributions and defined benefits provided by each member of the joint venture, which shall be demonstrated by the following information:
(1) Organizational documents of the joint venture, including the joint venture agreement, the operating agreement, and any other agreement between or among the members; and
(2) Documentation of the financial contribution of each member, including access to bank records and organizational resolutions and agreements.
(d) Decisions concerning the affairs of the business shall require the consent of those members with voting rights holding at least a majority interest in the business.
(Oct. 20, 2005, D.C. Law 16-33, § 2339a, as added Apr. 20, 2010, D.C. Law 18-141, § 2(g), 57 DCR 1485.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 18-141, see notes following § 2-218.02.
