Redefining Small Business Growth and Leadership in DC

WASHINGTON – Today, the Committee on Economic Development, chaired by At-Large Councilmember Kwame R. Brown, passed two critical pieces of legislation.  The “Department of Small and Local Business Development Amendment Act of 2009” (B18-332), authored by Councilmember Brown, will redefine how the District grows small businesses while putting teeth in the Certified Business Enterprise (CBE) laws.  The Committee also approved legislation (B18-304) that protects affordable housing for families in the Southwest Waterfront and continues to allow this shovel ready project to move forward.

“The District needs a new model for economic growth that follows a set of economic principles, which guide the government, business owners and residents towards a more profitable future,” said Councilmember Brown.  “In addition, we need to create policies that bolster the middle-class and make the District a family friendly city.  The legislation helps create more local wealth and diverse ownership, while maintaining the integrity and accountability of the local small business certification process.”

A New Model for Economic Growth

The DSLBD Act is one bill in a series of legislation that Councilmember Brown has introduced this Council period to create an environment for economic resurgence in the District.  The legislation:

Helps create true local wealth by:

• Requiring that business owners who claim local ownership status and receive preference points list the District as their primary and sole residence for property, sales and employee tax purposes;
• Ensuring that 35% of the subcontracting for non-construction contracts as well as construction go to local small businesses;
• Requiring that no more than 25% of the current 20% CBE equity participation requirement may be in the form of development services alone; and
• That if a developer is unable to meet the 20% CBE equity participation requirement, that the District shall be the recipient of the outstanding CBE equity participation sum, which will be dedicated to vocational education programs and small businesses.

Increases diversity in ownership by:

• Establishing the certification categories and preference points for Veteran-owned and Local Manufacturing business enterprises.

Maintains integrity and accountability by:

• Establishing fraudulent activity and penalties relating to business enterprise certification;
• Creates penalties for Joint Ventures that violate the requirements of the CBE Agreement;
• Establishes a hotline for reporting violations of the certification laws;
• Authorizes the Attorney General to enforce violations;
• Authorizes the Director of DSLBD to assess penalties for violations;
• The bill authorizes the District of Columbia Auditor to perform compliance, review, and enforcement for the Department of Small and Local Business Development; and
• Establishes reporting requirements for certain agencies and contractors.

The legislation is the combined work of years of public hearings, feedback and analysis.  Committee staff researched the best practices of other governments including Maryland.  Earlier this year, Maryland passed House Bill 389 which established new penalties for violating the laws and regulations.  The staff incorporated some of those ideas into the DSLBD Act.

Other important economic development laws and legislation authored this year by Councilmember Brown include the “Get DC Residents Training for Jobs Now Act” (FY10 Budget); the “Stimulus Accountability Emergency Act” (A18-0143); the “District Land Disposition Emergency Act” (A18-140); the “Small Business Stabilization and Job Creation Strategy Act” (B18-433); and the “Neighborhood Commercial Corridor Tax Relief Strategy Act” (B18-238).

Revitalizing the Southwest Waterfront

Moving shovel ready projects forward has also been a priority for the Committee.  Last month alone, the Committee passed three land dispositions, which were later approved by the Council.  Today, the Committee passed the “Affordable Housing For-Sale and Rental Distribution Amendment Act of 2009,” which protects affordable housing in the Anacostia Waterfront Zone and keeps the Southwest Waterfront project moving forward.  Affordable housing advocates, such as the DC Fiscal Policy Institute, spoke in favor of the legislation during a recent public hearing.

For more information or to interview Councilmember Brown, please contact Press Secretary Michael Price at 202-445-4510 or mprice@dccouncil.us.

 

 

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