§ 2–218.31. Local business enterprises.

*NOTE: This section includes amendments by temporary legislation that will expire on February 10, 2023. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

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;

(1A)(A) Is:

(i) Independently owned, operated, and controlled;

(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 or not-for-profit business that is more than 50% owned by District residents.

(B) For the purposes of this paragraph, the term "Independently owned, operated, and controlled" includes a business enterprise that 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.

(2) Requires that its chief executive officer and the highest level managerial employees of the business enterprise perform their managerial functions in their principal office located in the District;

(2A) Can demonstrate one of the following:

(A) More than 50% of the employees of the business enterprise are residents of the District;

(B) The owners of more than 50% of the business enterprise are residents of the District;

(D) More than 50% of the business enterprise’s gross receipts are District gross receipts; and

(3) Can demonstrate one of the following:

(A) The business enterprise is licensed pursuant to Chapter 28 of Title [47];

(B) The business enterprise is subject to the tax levied under Chapter [18] of Title 47; or

(C) The business enterprise 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; June 10, 2014, D.C. Law 20-108, § 2(i), 61 DCR 3892; Oct. 22, 2015, D.C. Law 21-36, § 2082, 62 DCR 10905; June 30, 2022, D.C. Law 24-139, § 2(a), 69 DCR 005060.)

Section References

This section is referenced in § 2-218.02 and § 2-218.39.

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”.

The 2014 amendment by D.C. Law 20-108 substituted “perform their managerial functions in their principal office located in the District” for “maintain their offices and perform their managerial functions in the District” in (2); and rewrote (2A) and (3).

The 2015 amendment by D.C. Law 21-36 rewrote (2A)(C); added (2A)(D); and made related changes.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 2(a) of Local Business Enterprise Clarification Emergency Amendment Act of 2022 (D.C. Act 24-382, Apr. 25, 2022, 0 DCR 0).

For temporary (90 days) amendment of this section, see § 2(a) of Local Business Enterprise Clarification Emergency Amendment Act of 2021 (D.C. Act 24-118, July 21, 2021, 68 DCR 007323).

For temporary (90 days) amendment of this section, see § 2(a) of Local Business Enterprise Clarification Emergency Amendment Act of 2020 (D.C. Act 23-476, Nov. 2, 2020, 67 DCR 13267).

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).

For temporary (90 days) Certified Business Enterprise compliance, see §§ 2 to 6 of the Certified Business Enterprise Compliance Emergency of 2013 (D.C. Act 20-62, April 30, 2013, 60 DCR 6403, 20 DCSTAT 1410).

For temporary (90 days) repeal of D.C. Law 20-108, § 4(c), see § 7005 of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) repeal of D.C. Law 20-108, § 4(c), see § 7005 of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) repeal of D.C. Law 20-108, § 4(c), see § 7005 of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 2082 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2(a) of Local Business Enterprise Clarification Temporary Amendment Act of 2022 (D.C. Law 24-139, June 30, 2022, 69 DCR 005060).

For temporary (225 days) amendment of this section, see § 2(a) of Local Business Enterprise Clarification Temporary Amendment Act of 2021 (D.C. Law 24-35, Sept. 22, 2021, 68 DCR 007989).

For temporary (225 days) amendment of this section, see § 2(a) of Local Business Enterprise Clarification Temporary Amendment Act of 2020 (D.C. Law 23-179, Dec. 23, 2020, 67 DCR 13242).

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).

For temporary (225 days) addition of provisions concerning Certified Business Enterprise compliance, see §§ 2 to 6 of the Certified Business Enterprise Compliance Temporary Amendment Act of 2013 (D.C. Law 20-13, July 23, 2013, 60 DCR 7601, 20 DCSTAT 1760).

Short Title

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”.

Editor's Notes

Applicability of D.C. Law 20-108:

Section 4(a) of D.C. Law 20-108 provided that applications pending as of June 10, 2014, shall not be subject to the provisions of the act.

Section 4(b) of D.C. Law 20-108 provided that, except as provided in § 2-218.46(f), contracts existing or pending as of June 10, 2014, shall not be affected by the provisions of the act.

Section 4(c) of D.C. Law 20-108 provided that the act shall apply upon the inclusion of its fiscal effect in an approved budget and financial plan, as certified by the Chief Financial Officer to the Budget Director of the Council in a certification published by the Council in the District of Columbia Register.

Section 4(c) of D.C. Law 20-108 was repealed by D.C. Law 20-155, § 7005.

Applicability of D.C. Law 21-36: Section 2083 of D.C. Law 21-36 provided that section 2082 of the act shall apply as of June 10, 2014.