Certified joint venture.

A joint venture shall be eligible for certification as a certified joint venture if the joint venture intends to submit a response to solicitation in which the joint venture will provide goods or perform services, and has a member that owns a majority or minority interest in the joint venture and meets the definition of a certified business enterprise pursuant to § 2-218.02(1D). A joint venture shall be certified for a specific solicitation. The Department shall promulgate regulations that provide for a simplified procedure for the certification of a joint venture if the joint venture, having the same participants and structure, has been certified by the Department on a previous government-assisted project. The Department shall have the authority to certify a joint venture for all public, public-private, and private projects. For the purposes of this section, the term: “Majority interest” means: More than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise or more than 50% of the total value of all of the joint venture business enterprise; A financial contribution to the enterprise of more than 50%; and More than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise. “Minority interest” means: Less than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise or less than 50% of the total value of all of the joint venture business enterprise; A financial contribution to the enterprise of less than 50%; and Less than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise. In determining whether a joint venture is eligible to be certified as a certified joint venture, the Department shall consider the totality of the circumstances, including the defined contributions and defined benefits provided by each member of the joint venture, which shall be demonstrated by the following information: Organizational documents of the joint venture, including the joint venture agreement, the operating agreement, and any other agreement between or among the members of the joint venture; and Documentation of the financial contribution of each joint venture member, including access to bank records and organizational resolutions and agreements. Decisions concerning the affairs of the business shall require the consent of those members with voting rights holding at least a majority interest in the business. A joint venture shall relinquish its status as a certified joint venture if it has not been awarded the contract or if the solicitation has been withdrawn or cancelled. Unless a joint venture’s certification is relinquished pursuant to subsection (e) of this section, a certified joint venture shall retain its certification for the duration of the contract awarded through the solicitation for which it was certified, including any extension of the contract. A joint venture shall not be certified: To meet the small and certified business enterprise subcontracting requirements set forth in § 2-218.46; or To meet the small and certified business equity and development participation requirements set forth in § 2-218.49a. A certified joint venture shall receive preference points or price reductions in accordance with § 2-218.43 as follows: If the Department determines that a certified business enterprise owns a majority interest in the joint venture, the joint venture shall receive the preference points or price reductions that the certified business enterprise would receive in accordance with § 2-218.43; provided, that if the certified joint venture is formed to serve as a general contractor on a project, the joint venture shall be required also to establish to the reasonable satisfaction of the Department that: Any bond for the project shall be provided by the certified business enterprise, and the certified business enterprise participant shall be solely and individually liable as the principal to the surety for at least 51% of each claim asserted under the bond; The individual primarily responsible for project decisions, such as the project executive, shall be provided by the certified business enterprise; and At least 50% of the staff that the joint venture will devote to the project will be provided by the certified business enterprise. If the Department determines that a certified business enterprise owns a minority interest in the joint venture, the Department’s certification of the joint venture shall indicate such and specify the preference points or price reductions that the joint venture shall receive, but in no event shall the preference points or price reductions exceed 50% of the preference points or price reductions that would otherwise be applicable to the certified business joint venture partner. Similar to the requirements set forth in paragraph (1)(A), (B), and (C) of this subsection, the Department may adopt regulations that establish additional industry-specific requirements for the certification of a joint venture that has a majority interest held by a certified business enterprise. Section 4(c) of D.C. Law 20-108 was repealed by D.C. Law 20-155, § 7005. 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(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. 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.