Commercial Broker Quarterly: Spring 2002 - GWCAR, Greater Washington Commercial Association of REALTORS(R)

CBQ >> Spring 2003 Issue

For Better or Worse, MBR Repealed
If Repeal Goes Through, Businesses Would Be Subject to Antiquated Law

by Thorn Prozen, Esquire
Associate at Arnold & Porter

On June 3, the District of Columbia City Council voted 7-6 to repeal the Master Business Registration/License law in its entirety.

While the repeal seems like a victory, it appears that the law is back to the way it was before the creation of the MBR program, the same law we have had since 1908.

A second reading of the repeal legislation, proposed by Councilman Jack Evans, will take place in July. The council will have an opportunity to revisit Councilmembers Sharon Ambrose and Harold Brazil's efforts to resolve the MRB problems.

The original Master Business License program was enacted at the behest of the DC Financial Control Board and, despite the work of a local blue ribbon regulatory reform panel, the plan which emerged from the District's Department of Consumer and Regulatory Affairs was impractically and frustratingly complicated, required hours of research and paperwork for the application process and it was never made clear who was covered and who wasn't.

Councilmembers Ambrose and Brazil and their staffs were in consultation with REALTORS^® and other business groups regarding the issue. Their proposed substantial reworking of the program would accomplish the following:

Exclude real estate agents currently licensed by the government of the District of Columbia who are engaged in real estate sales practice under the supervision of, and working in the District of Columbia office of, a real estate broker currently licensed by the government of the District of Columbia;
Exclude real estate brokers and agents engaged in real estate practice who do not have an office in the District of Columbia;
Raise the threshold gross receipts requirement from $2,000 in the original program to $20,000;
Allow for businesses with multiple offices or locations to apply only once for a Master Business Registration, noting all the addresses on one application form (each location would be, however, subject to an additional fee);
Greatly simplify the application process and eliminate the requirement for Clean Hands Certification and Certificate of Occupancy (or home occupation permit) attachments, relying instead on self certification;
Eliminate the Class A and Class B structure under the original program and require simply a registration for what are called "General Businesses" (business which do not require inspections from the city);
Exclude condominium associations, cooperative associations, homeowners associations, parent-teacher associations, affiliated business entities (as long as the parent is covered), businesses carrying on business activity in the District for less than 30 days in a year, and religious organizations engaged only in religious practice;
Extend the current compliance amnesty period from May 31 to July 31.