PR 23-0955 — Local Business Enterprise Clarification Emergency Declaration Resolution of 2020

2ENROLLED 4ORIGINAL ______________________________A _______________________________RESOLUTION Councilmember23-518 BrookeIN PintoTHE CouncilmemberCOUNCIL KenyanOF R.THE DISTRICT OF COLUMBIA September 22, 2020 To declare the existence of an emergency with respect to the need to close a loophole in the existing law that allows large out-of-state firms to certify as local business enterprises.

McDuffieRESOLVED, 7BY 9 A PROPOSED RESOLUTION _________________ IN THE COUNCIL OF THE DISTRICT OF COLUMBIACOLUMBIA, ______________That Tothis declareresolution themay existencebe ofcited anas emergency with respect to the need“Local toBusiness closeEnterprise aClarification loopholeEmergency inDeclaration theResolution existing law that allows large out of state2020”. firms to certify as local business enterprises.

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the “Local Business Enterprise Clarification Declaration Resolution of 2020”.

(a) The goal of the District of Columbia’s Department of Small and Local Business Development is to stimulate and foster the economic growth and development of businesses based in the District of Columbia.

Due to a loophole in existing law, many largelarge, and out-of-District firmsbusinesses have been able to legally certify as local business enterprises.

(b) Although,Between there are over 1,800 certified business enterprises (“CBEs”), between 2016 and 2018, a total of 1,326 businessbusinesses firms were awarded contracts under the District’s procurement process.

AmongOf the 1,326 firms,businesses, 730 (55%) were located within the District and 596 (45%) were located outside of the District.

AmongAlthough thethere 1,326are firms,over 8701,800 (66%)certified werebusiness non-enterprises CBEs(“CBEs”) andregistered 456in (34%)the District, of the businesses awarded contracts, 870 (66%) were CBEs.non-CBEs.

(c)Only Numerous456 small(34%) andwere localCBEs. businesses based in the District have and continue to voice concern over being excluded from competition for District contracts by larger non-District based firms.

(d)(c) Further,Numerous sincesmall theand publiclocal health emergency began, businesses based in the District have experiencedconcerns, amongand thecontinue largestto sharevoice ofconcerns, revenueover lossbeing inexcluded from the nationcompetition andfor itDistrict iscontracts estimatedby thatlarger onenon-District-based inbusinesses. 4 small businesses face permanent closure.

(e)(d) EmergencyAlso, legislationsince isthe neededpublic tohealth ensureemergency thatbegan, localbusinesses firmslocated have a fair shot in the District’sDistrict contractinghave andexperienced procurementamong process and to ensure the CBElargest Programshare works for the benefit of firmsrevenue thatloss arein trulythe local.United States.

It is estimated that one in 4 small businesses located in the District face permanent closure.

(e) Emergency legislation is needed to ensure that local businesses have a fair shot in the District’s contracting and procurement process and that the CBE Program works for the benefit of businesses that are truly local.