The District’s business organization laws have changed very little over the decades since they were first codified. The result? Many sections are greatly outdated, incomplete and haphazard -- hindering the District’s ability to draw and keep businesses. Most of DC Code Titles 29 and 33, where the business organization laws are found, were codified between 1870 and 1962 and are out of sync with current business practices.   For example, current laws do not contemplate the extensive use of electronic commerce. There is no statute authorizing general entity transactions such as mergers, conversions interest changes and domestications.  Nor is there a statute regulating limited cooperative associations or business trusts.  According to the Small Business and Entrepreneurship Council, the District ranks as the worst place in the country for small businesses.

Development of new laws began in 2007. A group of attorneys and business representatives have worked over the last couple of years to propose new District code on uniform and a model acts developed by of the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Bar Association (ABA). Their goal is to have a business code in the District that is state-of-the-art and would make the District the preferred place to incorporate.  The proposal is not focused on changing fees or taxes for existing businesses, but rather, is focused on the administrative and organizational hurdles that need to be addressed. Anyone interested in the changes is strongly encouraged to review the proposed law B18-500 posted online here.

Interested parties are also encouraged to attend an informational session that will focus on changes in the non-profit chapter to be held next Wednesday January 27, 2010 from 12:00-1:00 in Room 412 here at the Wilson Building or the hearing scheduled for February 11, 2010 at 3:00 in the Council Chamber March 31st, 2:00 pm, in Room 412.  To sign up to testify or submit written testimony, please contact Committee Clerk Spencer Maguire at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

UPDATE [2/9/10]: Due to incliment weather, the hearing scheduled for February 11th has been postponed until Wednesday, March 31, 2010 at 2:00 p.m. in Room 412.