Supporting Local Business Enterprises Temporary Amendment Act
Summary
The D.C. Council introduced B26-0608, the Supporting Local Business Enterprises Temporary Amendment Act of 2026, amending the Small and Certified Business Enterprise Development and Assistance Act of 2005. The bill proposes a new penalty structure requiring beneficiaries to pay the difference between required and actual CBE subcontracting amounts, prohibits subcontracting to entities with ownership interests, and expands the beneficiary definition to include non-profit entities.
What changed
B26-0608 proposes significant changes to the District of Columbia's CBE (Certified Business Enterprise) Act including: (1) a new penalty requiring beneficiaries to pay the difference between required (35%) and actual CBE subcontracting amounts; (2) prohibition on beneficiaries subcontracting any portion of the 35% goal to enterprises in which they hold ownership; (3) expansion of beneficiary definition to include non-profit entities; (4) requirements for joint ventures to perform work proportional to ownership interest; and (5) 30-day invoicing and payment requirements for subcontractors on government-assisted projects.
Regulated entities receiving District government assistance should review the legislation and prepare for expanded compliance obligations. Non-profit organizations previously excluded from CBE requirements should assess whether they now qualify as beneficiaries. The bill is currently under Council review with an amendment in the nature of a substitute available. Public comment periods may apply before final passage.
What to do next
- Review current subcontracting practices to ensure compliance with the 35% CBE spending goal
- Assess whether non-profit status triggers new beneficiary obligations under the expanded definition
- Monitor Council proceedings for final passage and implementation timeline
Penalties
Beneficiaries must pay the difference between the dollar amount required to subcontract to CBEs and the actual amount subcontracted
Source document (simplified)
Under Council Review
- LIMS Home
- Legislation Detail
B26-0608 - Supporting Local Business Enterprises Temporary Amendment Act of 2026
- Introduced
- First Reading
- Final Reading
- Mayoral Review
- Congressional Review
- Official Law
Introduced by Chairman Mendelson at the request of the Mayor Committee Referral Retained by the Council with comments from the Committee on Committee of the Whole, Subcommittee on Local Business Development
Legislative History
Feb 26, 2026
B26-0608 Introduced by Chairman Mendelson at Office of the Secretary View Introduction
Mar 03, 2026
Retained by the Council with comments from the Committee on Committee of the Whole, Subcommittee on Local Business Development
Mar 31, 2026
Legislative Meeting
- └ Postponed to: Next Legislative Meeting
Other Documents
- B26-0608_Memorandum
- Amendment in the Nature of a Substitute: B26-0608: Supporting Local Business Enterprises Temporary Amendment Act of 2026
Legislation Text
Page 1 / 24 Zoom 100% MURIEL BOWSER MAYOR February 26, 2026 ‘The Honorable Phil Mendelson Chairman Council of the District of Columbia John A. Wilson Building 1350 Pennsylvania Avenue, NW, Suite 504 Washington, DC 20004 Dear Chairman Mendelson: Enclosed for consideration and adoption by the Council of the District of Columbia is the “Supporting Local Business Enterprises Emergency Declaration Resolution of 2026,” the “Supporting Local Business Enterprises Emergency Amendment Act of 2026,” the “Supporting Local Business Enterprises Temporary Amendment Act of 2026,” and the “Supporting Local Business Enterprises Amendment Act of 2026.” The resolution and accompanying emergency, temporary and permanent bills amend the Small and Certified Business Enterprise Development and Assistance Act of 2005 (“CBE Act”), by clarifying the qualifications for certain certified business enterprise (“CBE”) categories, enhancing existing penalties, clarifying relevant contracting and subcontracting requirements, and establishing invoicing and payment requirements. More specifically, these amendments: (1) propose a new penalty structure that would require a beneficiary to pay the difference between the dollar amount it was required to subcontract to CBEs and the actual dollar amount subcontracted to CBEs; (2) prohibit beneficiaries from subcontracting any of their 35% spending goal to an enterprise in which the beneficiary has an ownership interest; (3) waive developer, acquisition, and general contractor fees that, when totaled, are unreasonably disproportionate to the percentage of its equity investment in the project; (4) establish uniform hearing procedures for enforcement actions under the CBE Act; (5) expand the definition of beneficiary to include non-profit entities; (6) require beneficiaries to invoice the District for undisputed work performed on a government assisted project every 30 days, and following receipt of payment by the District, to pay subcontractors for work properly invoiced and satisfactorily performed; (7) require applicants for certification as a local business enterprise to be independently owned and operated: (8) require each CBE holding an interest in a certified joint venture that is selected as a beneficiary to perform a percentage of the work that is equal to or greater than its percentage interest in the joint venture. These changes will strengthen the Distriet’s CBE laws and help strengthen the local business community. urge the Council to take prompt and favorable action on the enclosed legislation. Sincerely, 5
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