Section 27-700. CERTIFICATION POLICY

 

700.1The Commission shall certify bona fide local minority business enterprises which meet the requirements of the Act and this chapter for participation in the various programs of the District of Columbia operated under the auspices of the Commission for the promotion and enhancements of minority business opportunities in the District of Columbia.

 

700.2In considering each application for certification, the Commission shall determine whether persons represented in the application are members of a "minority," as defined in the Act, by reviewing the application and accompanying documentation, the results of staff investigations, and other relevant information. Other relevant information may include the following:

 

(a)Birth certificates;

 

(b)Employment records;

 

(c)Educational records;

 

(d)EEO and affirmative action records; and

 

(e)Other evidence of the minority status of persons named in the application.

 

700.3In determining whether an applicant meets the requirements for minority participation set forth in §3 of the Act, the Commission shall review the extent to which bona fide minority participants have actual rights of ownership and control of the business enterprise, including the proportion of ownership and control over decision-making, day-to-day operations, and profit and loss.

 

700.4The Commission shall consider the extent to which the minority participants could operate the business enterprise in the absence of the non-minority participants.

 

700.5The Commission shall review relevant documents and information including, but not limited to, the following:

 

(a)Shareholders' agreements, pooling agreements, buy-sell agreements, voting trusts, management agreements, lease and rental agreements, and deeds or other evidence of ownership of real property;

 

(b)Non-voting preferred stock, debentures and other debt instruments, dividends, and returns of capital or debt investment; and

 

(c)Other information relating to the operation, management, accounts, and financing of the business enterprise.

 

700.6In determining whether a minority business whose principal office is physically located outside the District of Columbia is a local business enterprise, the Commission shall consider the following factors:

 

(a)The applicant's principal office is located in the Washington Standard Metropolitan Statistical Area;

 

(b)More than thirty percent (30%) of assets of the business enterprise are located in the District of Columbia;

 

(c)More than fifty percent (50%) of the applicant's employees are residents of the District of Columbia;

 

(d)The owner(s) of more than fifty percent (50%) of the business enterprise are residents of the District of Columbia;

 

(e)More than thirty percent (30%) of the total sales or other revenues is derived from the transactions of the business enterprise in the District of Columbia; and

 

(f)Any other factors that indicate significant business or economic relations with the District of Columbia by the business enterprise.

 

700.7In addition to the factors to be considered in §700.6, a minority business whose principal office is located physically outside the District of Columbia shall only be considered a local business enterprise if it also meets one of the following:

 

(a)It is licensed pursuant to §7 of "An Act Making appropriations to provide for the expenses of the government of the District of Columbia for the fiscal year ending June thirtieth, nineteen hundred and three, and for other purposes," approved July 1, 1902 (32 Stat. 622; D.C. Code, §47-2801 et seq.,(1981)); or

 

(b)It is subject to the tax levied under title X of the "District of Columbia Income and Franchise Tax Act of 1947," approved July 16, 1947 (61 Stat. 349; D.C. Code, §47-1810.1 et seq., (1981)).

 

700.8In addition to the information supplied in the application and documents accompanying the application, the Commission may require an applicant to supply or provide access to additional information and documents relevant to the Commission's investigation and determination of the applicant's status as a local minority business enterprise. This additional information and documents may also be requested by the Commission in connection with any recertification, compliance review, investigation, or other Commission process undertaken pursuant to the Act or chapters 6 or 7 of this title.

 

700.9Certification may be limited by the Commission to one (1) or more program areas. MBE's shall be eligible to participate only in those sheltered market program areas for which they are certified.

 

700.10Certification shall be valid for a period of two (2) years from the date of approval by the Commission, unless revoked by the Commission. Renewal of certification shall be in accordance with the recertification procedures set forth in this chapter.

 

authority

Unless otherwise noted, the authority for this chapter is §5(a) of the Minority Contracting Act of 1976, D.C. Law 1-95, D.C. Code §1-1144(a) (1981).

source

Final Rulemaking published at 26 DCR 2771 (December 21, 1979); as amended by Final Rulemaking published at 30 DCR 5734, 5736 (November 4, 1983).