ga

On July 3, 2019, The Honorable Ralph S. Northam , Virginia’s 73nd Governor, signed into effect Executive Order Number 35, for the purpose of
“Advancing Equity for Virginia’s Small, Women, and Minority Owned (SWaM)  and Service Disabled Veteran-Owned Businesses.”
For the Press Release, click here
For the full text of Executive Order 35, click here

Executive Order 35 rescinds and replaces Executive Order 20 (2014), signed into effect  On July 22, 2014,
by The Honorable Terence R. McAuliffe, Virginia’s 72nd Governor.
For the full text of Executive Order 20, click here

Legislation that impacts Virginia small businesses.

Legislative Sessions by Year:
237x255

Bills Tracked by the Virginia Department of Small Business and Supplier Diversity
In the 2022 General Assembly Session

 

 

House bills

HB 358 Veteran-owned small businesses; waiving of fees.
Introduced by: John J. McGuire, III

SUMMARY AS INTRODUCED:
Veteran-owned small businesses; waiving of fees. Directs the Secretary of Veterans and Defense Affairs and the Secretary of Commerce and Trade, in conjunction with the Department of Small Business and Supplier Diversity, to examine the waiving of fees associated with permits necessary to establish a small business for veteran-owned small businesses.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb358

 

HB 476 Retail Small Business Grant Program and Fund; created.
Introduced by: Kathleen Murphy

SUMMARY AS INTRODUCED:
Retail Small Business Grant Program and Fund. Establishes the Retail Small Business Grant Program and Fund to support existing Virginia small businesses, attract new businesses, increase the Commonwealth’s tax base, create new job opportunities for Virginia residents, and enhance commercial activity in Virginia. The bill provides that an eligible Virginia small business, defined in the bill, is eligible for grants of up to $50,000. The total amount of grants awarded in a fiscal year is capped at $10 million.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb476

 

HB 772 Administrative Process Act; powers and duties of executive branch agencies.
Introduced by: M. Keith Hodges

SUMMARY AS INTRODUCED:
Administrative Process Act; powers and duties of executive branch agencies; regulatory compliance officer. Provides that each executive branch agency in the Commonwealth authorized to promulgate regulations shall designate one person to serve as the regulatory compliance officer for that agency and provides for the powers and duties of such regulatory compliance officer.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb772

 

HB 814 Small Business and Supplier Diversity, Department of; agency procurement enhancement plans.
Introduced by: Luke E. Torian

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; agency procurement enhancement plans. Directs the Department of Small Business and Supplier Diversity to annually review and provide feedback on state agencies’ plans to enhance procurement from small, women-owned, and minority-owned businesses.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb814

 

HB 815 Small Business and Supplier Diversity, Department of; mentorship program.
Introduced by: Luke E. Torian

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; mentorship program. Directs the Department of Small Business and Supplier Diversity (SBSD) to administer a mentorship pilot program under which established businesses, or industry sector experts, act as mentors to start-up women-owned or minority-owned businesses.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb815

HB 817 Grants and public procurement; grants or contracts issued by Governor, state agency, etc.
Introduced by: Luke E. Torian

SUMMARY AS INTRODUCED:
Grants and public procurement. Requires that for any grant or contract issued or entered into by the Governor, any state agency, or any locality, such entity shall inquire whether the grant recipient, bidder, offeror, or contractor is a small, women-owned, or minority-owned business and whether it is certified by the Department of Small Business and Supplier Diversity (SBSD) for procurement enhancement. If such business is eligible but not certified, the bill directs the SBSD to provide it with information on the certification process and encourage it to apply for certification.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb817

 

HB 820 Small Business and Supplier Diversity, Department of; disparity study.
Introduced by: Luke E. Torian

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; disparity study. Requires the Department of Small Business and Supplier Diversity to conduct a disparity study every five years, next due no later than January 1, 2026.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb820

 

HB 891 Noncitizens of the United States; removes certain terminology in the code of Va.
Introduced by: Alfonso H. Lopez

SUMMARY AS INTRODUCED:
Noncitizens of the United States; terminology. Removes the term “alien” as it pertains to persons who are not citizens or nationals of the United States and replaces it with synonymous language, as appropriate, throughout the Code of Virginia.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb891

 

HB 928 One-stop small business permitting program; DSBSD to develop improvement plan.
Introduced by: Alfonso H. Lopez

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; improvement plan for the one- stop small business permitting program. Requires the Department of Small Business and Supplier Diversity to develop a detailed improvement plan for the Department’s one-stop small business permitting program and to provide the plan to the House Committees on Labor and Commerce and Appropriations and the Senate Committees on Commerce and Labor and Finance and Appropriations by November 1, 2022.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb928

 

HB 963 Small Business and Supplier Diversity, Department of; community groups and universities.
Introduced by: Suhas Subramanyam

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; community groups and universities. Requires the Department of Small Business and Supplier Diversity to maintain a list of community groups, state and local governments, Community Development Financial Institutions, business and trade associations, and universities to be consulted in exercising the powers and fulfilling the duties of the Department. All community groups and universities maintained on the list shall be notified of all actions taken by the agency and provided an opportunity to comment prior to any permanent action taking place, such as the promulgation of regulations. The bill requires the Department to continue to work with such groups maintained on the list to develop targeted outreach and programming to build business capacity and encourage businesses to obtain appropriate certifications. The bill adds Community Development Financial Institutions, defined in the bill, to the lists of groups for which the Department shall promote the mobilization of activities and resources and that the Department is required to maintain on the list of community groups.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb963

 

HB 966 Va. Public Procurement Act; executive branch agencies’ goals for participation by small businesses.
Introduced by: Suhas Subramanyam

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; executive branch agencies’ goals for participation by small businesses; requirements. Provides that executive branch agencies shall formulate policies and procedures for a set-aside program, which shall, at a minimum, require that purchases up to certain amounts be set aside for small businesses and micro-businesses, defined in the bill, certified by the Department of Small Business and Supplier Diversity.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=hb966

 

Senate bills

SB 128 Small Business and Supplier Diversity, Department of; redefines “small business.”
Introduced by: Mark D. Obenshain

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; definitions; small business. Redefines “small business” for the purpose of programs for the Department of Small Business and Supplier Diversity and programs for the Virginia Public Procurement Act to allow a cooperative association organized pursuant to Chapter 3 (Cooperative Associations) of Title 13.1 as a nonstock corporation to qualify as a small business if it is at least 51 percent independently controlled by one or more members who are U.S. citizens or legal resident aliens and, together with affiliates, has 250 or fewer employees or average annual gross receipts of $10 million or less averaged over the previous three years.
Details https://lis.virginia.gov/cgi-bin/legp604.exe?ses=221&typ=bil&val=sb128

 

The 2021 legislative session saw the following legislation enacted:

House bills:

HB 1830 Virginia Small Business Financing Authority; members to have small business lending experience.
Introduced by: Christopher T. Head

SUMMARY AS INTRODUCED:
Virginia Small Business Financing Authority; Board of Directors; membership; small business lending experience. Requires at least five of the nine citizen members of the Virginia Small Business Financing Authority to have experience in small business lending. This bill is a recommendation of the Joint Legislative Audit and Review Commission.
Details: https://lis.virginia.gov/cgi-bin/legp604.exe?ses=211&typ=bil&val=HB1830

 

HB 2170 Virginia Small Business Financing Authority; risk-based review of outstanding loans; report.
Introduced by: Candi Mundon King

SUMMARY AS INTRODUCED:
Virginia Small Business Financing Authority; risk-based review of outstanding loans; report. Requires the Virginia Small Business Financing Authority to conduct a risk-based review of all outstanding loans at least annually and report the results of such review to the Board of Directors. This bill is a recommendation of the Joint Legislative Audit and Review Commission.
Details: https://lis.virginia.gov/cgi-bin/legp604.exe?ses=211&typ=bil&val=HB2170

 

HB 2171 Virginia Small Business Financing Authority; annual report; utilization or award.
Introduced by: Candi Mundon King

SUMMARY AS INTRODUCED:
Virginia Small Business Financing Authority; annual report; utilization or award of loan and grant program funds. Requires the Virginia Small Business Financing Authority to include in its annual report information regarding the percentage of loan and grant program funds utilized or awarded by the Authority during the preceding fiscal year. This bill is a recommendation of the Joint Legislative Audit and Review Commission.
Details: https://lis.virginia.gov/cgi-bin/legp604.exe?ses=211&typ=bil&val=HB2171

 

HB 2172 Small, women-owned, and minority-owned businesses; right to appeal denial of initial certification.
Introduced by: Candi Mundon King

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; certification of small, women-owned, and minority-owned businesses; right to appeal denial of initial certification. Requires the Department of Small Business and Supplier Diversity to adopt regulations to establish a process for businesses that are denied initial certification as a small, women-owned, or minority-owned business to appeal such denial on the basis that the Department made a mistake in denying the business’s application for certification. This bill is a recommendation of the Joint Legislative Audit and Review Commission.
Details: https://lis.virginia.gov/cgi-bin/legp604.exe?ses=211&typ=bil&val=HB2172

 

 

Senate bills:

SB 1369 Department of Small Business and Supplier Diversity; definitions; small business.
Introduced by: Mark D. Obenshain

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; definitions; small business. Redefines “small business” for the purpose of programs for the Department of Small Business and Supplier Diversity to allow a cooperative association organized pursuant to Chapter 3 (Cooperative Associations) of Title 13.1 as a nonstock corporation to qualify as a small business if it is at least 51 percent independently controlled by one or more members who are U.S. citizens or legal resident aliens and, together with affiliates, has 250 or fewer employees or average annual gross receipts of $10 million or less averaged over the previous three years. The bill also redefines “small business” for the purpose of programs for the Virginia Public Procurement Act to allow a cooperative association organized pursuant to Chapter 3 (Cooperative Associations) of Title 13.1 as a nonstock corporation to qualify as a small business if it is controlled by one or more members who are U.S. citizens or legal resident aliens and, together with affiliates, has 250 or fewer employees or average annual gross receipts of $10 million or less averaged over the previous three years.
Details: https://lis.virginia.gov/cgi-bin/legp604.exe?ses=211&typ=bil&val=SB1369

is-1

The 2020 legislative session saw the following legislation enacted:

 

House bills:

HB 432 Public utilities; use of small, woman-owned, or minority-owned business.
Introduced by: Jennifer Carroll Foy

SUMMARY AS PASSED HOUSE:
Public utilities; use of small, women-owned, or minority-owned business. Provides that in any proceeding in which the State Corporation Commission is required to determine whether costs incurred by a public utility in its delivery or provision of any goods or service are reasonable or prudent, the incremental portion of the costs incurred as a result of its contracting with a small, women-owned, or minority-owned business to deliver or provide the goods or service will not be found to be unreasonable or imprudently incurred if the costs of contracting with the small, women-owned, or minority-owned business do not exceed, by more than three percent, the costs that would have been incurred had it used the lowest-cost qualified business. The measure applies to businesses that are certified as small, women-owned, or minority-owned by the Department of Small Business and Supplier Diversity.

SUMMARY AS INTRODUCED:
Public utilities; use of small, woman-owned, or minority-owned business. Provides that in any proceeding in which the State Corporation Commission is required to determine whether costs incurred by a public utility in its delivery or provision of any goods or service are reasonable or prudent, the incremental portion of the costs incurred as a result of its contracting with a small, woman-owned, or minority-owned business to deliver or provide the goods or service will not be found to be unreasonable or imprudently incurred if the costs of contracting with the small, woman-owned, or minority-owned business do not exceed, by more than five percent, the costs that would have been incurred had it used the lowest-cost qualified business. The measure applies to businesses that are certified as small, woman-owned, or minority-owned by the Department of Small Business and Supplier Diversity.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB432

 

HB 437 DGS; disposition of surplus materials, permit sale to military spouse-owned businesses.
Introduced by: Jennifer Carroll Foy

SUMMARY AS PASSED HOUSE:
Department of General Services; disposition of surplus materials; permit sale to active military-owned and military spouse-owned businesses. Requires the Department of General Services to permit surplus materials to be sold, prior to public sale or auction, to active military-owned and military spouse-owned businesses.

SUMMARY AS INTRODUCED:
Department of General Services; disposition of surplus materials; permit sale to military spouse-owned businesses.
 Requires the Department of General Services to permit surplus materials to be sold, prior to public sale or auction, to military spouse-owned businesses. The bill requires the Director of the Department of Small Business and Supplier Diversity to adopt reasonable regulations to implement a program to certify, upon request of the business owner, that he holds a “Military spouse-owned business” status.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB437

 

HB 558 Micro-business; enhancement of participation in local procurement.
Introduced by: Joseph C. Lindsey

SUMMARY AS PASSED:
Enhancement of micro-business participation in local procurement. Allows any locality to enact an ordinance to enhance micro-business participation in local government procurement practices. Such measures may include special designation of local micro-businesses, providing technical support to micro-businesses, setting target goals for micro-business participation in the local procurement process, and other reasonable measures intended to promote micro-business participation in the locality. “Micro-business” is defined as a small, women-owned, or minority-owned business with no more than 25 employees.

SUMMARY AS INTRODUCED:
Enhancement of micro-business participation in local procurement. Allows any locality to enact an ordinance to enhance micro-business participation in local government procurement practices. Such measures may include special designation of local micro-businesses, providing technical support to micro-businesses, setting target goals for micro-business participation in the local procurement process, and other reasonable measures intended to promote micro-business participation in the locality. “Micro-business” is defined as a small, women-owned, or minority-owned business with no more than 25 employees.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB558

 

HB 1078 Virginia Public Procurement Act; process for competitive negotiation, etc.
Introduced by: Patrick A. Hope

SUMMARY AS PASSED:
Virginia Public Procurement Act; process for competitive negotiation; including employment of persons with a disability as a factor in evaluating proposals. Provides that, except with regard to contracts for architectural, professional engineering, transportation construction, or transportation-related construction services, a public body may include a proposer’s employment of persons with disabilities to perform the specifications of the contract as a factor in evaluating a proposal.

SUMMARY AS PASSED HOUSE:
Virginia Public Procurement Act; process for competitive negotiation; including employment of persons with a disability as a factor in evaluating proposals. Provides that, except with regard to contracts for architectural or professional engineering services, a public body may include a proposer’s employment of persons with disabilities to perform the specifications of the contract as a factor in evaluating a proposal.

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; process for competitive negotiation;
including employment of persons with a disability as a factor in evaluating proposals. Provides that a public body may include a proposer’s employment of persons with disabilities to perform the specifications of the contract as a factor in evaluating a proposal.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1078

 

HB 1201 Virginia Public Procurement Act; determination of no responsibility, local option.
Introduced by: Kathy K.L. Tran

SUMMARY AS PASSED HOUSE:
Virginia Public Procurement Act; determination of nonresponsibility; local option to include criteria in Invitation to Bid. Allows any locality to include in the Invitation to Bid criteria that may be used in determining whether a bidder who is not prequalified by the Virginia Department of Transportation is a responsible bidder. Such criteria may include a history or good faith assurances of (i) completion by the bidder and any potential subcontractors of specified safety training programs established the U.S. Department of Labor, Occupational Safety and Health Administration; (ii) participation by the bidder and any potential subcontractors in apprenticeship training programs approved by state agencies or the U.S. Department of Labor; or (iii) maintenance by the bidder and any potential subcontractors of records of compliance with applicable local, state, and federal laws. This bill is identical to SB 380.

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; determination of non responsibility;
local option to include criteria in invitation to bid. Allows any locality to include in the invitation to bid criteria that may be used in determining whether a bidder possesses the moral and business integrity and reliability that will assure good faith performance that is required of a responsible bidder. Such criteria may include a history or good faith assurances of (i) completion by the bidder and any potential subcontractors of specified safety training programs established the U.S. Department of Labor, Occupational Safety and Health Administration; (ii) participation by the bidder and any potential subcontractors in apprenticeship training programs approved by state agencies or the U.S. Department of Labor; or (iii) maintenance by the bidder and any potential subcontractors of records of compliance with applicable local, state, and federal laws.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1201

 

HB 1209 New Americans, Office of; created within Department of Social Services.
Introduced by: Kathy K.L. Tran 

SUMMARY AS PASSED:
Department of Social Services; Office of New Americans created. Establishes the Office of New Americans within the Department of Social Services and the Office of New Americans Advisory Board to assist with immigrant integration within the Commonwealth on an economic, social, and cultural level. The Office shall provide (i) advice and assistance regarding the citizenship application process; (ii) assistance with securing employment, housing, and services for which such persons may be eligible; (iii) information to localities and immigration service organizations about state programs that help such persons find and secure employment, housing, and services for which they may be eligible; and (iv) information to localities and immigration service organizations regarding health epidemics and unlawful predatory actions, such as human trafficking, gang recruitment, and fraudulent financial and other schemes, to which communities of such persons may be especially vulnerable. The Advisory Board shall report annually to the Governor and the General Assembly on the activities of the Office of New Americans and provide recommendations for improving state policies and programs to support the economic, linguistic, and civic integration of new Americans throughout the Commonwealth. This bill is identical to SB 991.

SUMMARY AS PASSED HOUSE:
Department of Social Services; Office of New Americans created. Establishes the Office of New Americans within the Department of Social Services and the Office of New Americans Advisory Board to assist with immigrant integration within the Commonwealth on an economic, social, and cultural level. The Office shall provide (i) advice and assistance regarding the citizenship application process; (ii) assistance with securing employment, housing, and services for which such persons may be eligible; (iii) information to localities and immigration service organizations about state programs that help such persons find and secure employment, housing, and services for which they may be eligible; and (iv) information to localities and immigration service organizations regarding health epidemics and unlawful predatory actions, such as human trafficking, gang recruitment, and fraudulent financial and other schemes, to which communities of such persons may be especially vulnerable. The Advisory Board shall report annually to the Governor and the General Assembly on the activities of the Office of New Americans and provide recommendations for improving state policies and programs to support the economic, linguistic, and civic integration of new Americans throughout the Commonwealth.

SUMMARY AS INTRODUCED:
Department of Social Services;
Office of New Americans created. Establishes the Office of New Americans within the Department of Social Services, as well as an advisory board, to assist immigrant integration within the Commonwealth on an economic, social, and cultural level. The Office shall provide (i) advice and assistance regarding the citizenship application process; (ii) assistance with securing employment, housing, and services for which such persons may be eligible; (iii) information to localities and immigration service organizations about state programs that help such persons find and secure employment, housing, and services for which they may be eligible; and (iv) information to localities and immigration service organizations regarding health epidemics and unlawful predatory actions, such as human trafficking, gang recruitment, and fraudulent financial and other schemes, to which communities of such persons may be especially vulnerable. The Advisory Board shall report to the Director of the Office, who will submit to the Governor and the General Assembly an annual executive summary of the interim activity and work of the Board no later than the first day of each regular session of the General Assembly. The bill renames the Office of Newcomer Services as the Division of Newcomer Services and establishes the division as a subdivision of the Office of New Americans.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1209

 

HB 1221 One-stop small business; permitting program, written guidance.
Introduced by: Kathy K.L. Tran 

SUMMARY AS PASSED HOUSE:
Department of Small Business and Supplier Diversity; one-stop small business permitting program; guidance regarding responsibilities for maintaining a business. Requires the Department of Small Business and Supplier Diversity to develop and provide guidance to businesses with newly approved permits regarding responsibilities and requirements for maintaining the business. The bill also requires regulatory agencies, by November 30 of each year, to provide the Department with information outlining any changes to the agency’s policies and regulations. The bill has a delayed effective date of July 1, 2021.

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; one-stop small business permitting program;
guidance regarding responsibilities for maintaining a business. Requires the Department of Small Business and Supplier Diversity to develop and provide written guidance to businesses with newly approved permits regarding responsibilities and requirements for maintaining the business.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1221

 

HB 1407 Misclassification of employees as independent contractors; Department of Taxation to investigate.
Introduced by: Jeion A. Ward 

SUMMARY AS PASSED:
Misclassification of employees as independent contractors; Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers’ Compensation) unless it is demonstrated that such individual is an independent contractor. The Department of Taxation shall determine whether an individual is an independent contractor by applying Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.

SUMMARY AS PASSED HOUSE:
Misclassification of employees as independent contractors; Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers’ Compensation) unless it is demonstrated that such individual is an independent contractor. The Department of Taxation shall determine whether an individual is an independent contractor by applying Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.

SUMMARY AS INTRODUCED:
Misclassification of employees as independent contractors;
Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers’ Compensation) unless and until it is shown to the satisfaction of the Department of Taxation that such individual is an independent contractor under Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1407

 

HB 1505 Small Business and Supplier Diversity, Department of; small business grant funds.
Introduced by: Clinton L. Jenkins

SUMMARY AS ENACTED WITH GOVERNOR’S RECOMMENDATION:
Department of Small Business and Supplier Diversity; small business grant funds. Repeals the Small Business Jobs Grant Fund Program. Under the bill, any cash balances in the Small Business Jobs Grant Fund will be transferred to the Small Business Investment Grant Fund. The bill decreases the amount of an eligible grant under the Small Business Investment Grant Fund from the lesser of 50 percent of the qualified investment or $50,000 to the lesser of 25 percent of the qualified investment or $50,000. The bill also allows the Virginia Small Business Financing Authority to utilize the any cash balances transferred from the Small Business Jobs Grant Fund to the Small Business Investment Grant Fund to implement a grant program for certain small businesses affected by the novel coronavirus (COVID-19) pandemic public health crisis during the period for which the Governor has declared a state of emergency. The bill contains an emergency clause.

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; small business grant funds. Repeals the Small Business Jobs Grant Fund Program.
Under the bill, any cash balances in the Small Business Jobs Grant Fund as of the effective date will be transferred to the Small Business Investment Grant Fund. The bill also decreases the amount of the eligible grant under the Small Business Investment Grant Fund from fifty percent to twenty-five percent of the investment amount.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1505

 

 

Senate bills:

SB 380 Virginia Public Procurement Act; determination of nonresponsibility, local option.
Introduced by: Jeremy S. McPike

SUMMARY AS PASSED:
Virginia Public Procurement Act; determination of nonresponsibility; local option to include criteria in Invitation to Bid. Allows any locality to include in the Invitation to Bid criteria that may be used in determining whether a bidder who is not prequalified by the Virginia Department of Transportation is a responsible bidder. Such criteria may include a history or good faith assurances of (i) completion by the bidder and any potential subcontractors of specified safety training programs established by the U.S. Department of Labor, Occupational Safety and Health Administration; (ii) participation by the bidder and any potential subcontractors in apprenticeship training programs approved by state agencies or the U.S. Department of Labor; or (iii) maintenance by the bidder and any potential subcontractors of records of compliance with applicable local, state, and federal laws. This bill is identical to HB 1201.

SUMMARY AS PASSED SENATE:
Virginia Public Procurement Act; determination of nonresponsibility; local option to include criteria in invitation to bid. Allows any locality to include in the Invitation to Bid criteria that may be used in determining whether a bidder who is not prequalified by the Virginia Department of Transportation is a responsible bidder. Such criteria may include a history of (i) completion by the bidder and any potential subcontractors of specified safety training programs established by the U.S. Department of Labor, Occupational Safety and Health Administration; (ii) participation by the bidder and any potential subcontractors in apprenticeship training programs approved by state agencies or the U.S. Department of Labor; or (iii) maintenance by the bidder and any potential subcontractors of records of compliance with applicable local, state, and federal laws.

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; determination of nonresponsibility; local option to include criteria in invitation to bid. Allows any locality to include in the invitation to bid criteria that may be used in determining whether a bidder possesses the moral and business integrity and reliability that will assure good faith performance that is required of a responsible bidder. Such criteria may include a history or good faith assurances of (i) completion by the bidder and any potential subcontractors of specified safety training programs established the U.S. Department of Labor, Occupational Safety and Health Administration; (ii) participation by the bidder and any potential subcontractors in apprenticeship training programs approved by state agencies or the U.S. Department of Labor; or (iii) maintenance by the bidder and any potential subcontractors of records of compliance with applicable local, state, and federal laws.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+SB380

 

SB 458 Microloans for Veterans Program and Fund; created.
Introduced by: Bryce E. Reeves 

SUMMARY AS PASSED SENATE:
Microloans for Veterans Program and Fund; creation and administration. Creates the Microloans for Veterans Program and Fund to be administered by the Virginia Small Business Financing Authority (the Authority). The bill directs the Virginia Community College System, working with the Authority and other state agencies, to develop a curriculum to provide education and mentorship to veterans. The Authority is authorized to issue loans of up to $10,000 to veterans who agree to participate in such curriculum and meet other requirements (tier 1 loans). The Authority is authorized to issue loans of up to $50,000 to veterans who have completed the requirements associated with a tier 1 loan and agree to meet advanced education and mentorship requirements (tier 2 loans). The provisions of the bill are contingent on funding in a general appropriation act.

SUMMARY AS INTRODUCED:
Microloans for Veterans Program and Fund;
creation and administration. Creates the Microloans for Veterans Program and Fund to be administered by the Virginia Small Business Financing Authority (the Authority). The bill directs the Authority to work with the Department of Veterans Services, the Department of Small Business and Supplier Diversity, and the Virginia Community College System to develop a curriculum of education and mentorship related to finance and business planning. The Authority is authorized to issue loans of up to $10,000 to veterans who agree to participate in such curriculum and meet other requirements (tier 1 loans). The Authority is authorized to issue loans of up to $50,000 to veterans who have completed the requirements associated with a tier 1 loan and agree to meet advanced education and mentorship requirements (tier 2 loans).
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+SB458

 

SB 744 Misclassification of employees as independent contractors; Department of Taxation to investigate.
Introduced by: Jeremy S. McPike

SUMMARY AS PASSED SENATE:
Microloans for Veterans Program and Fund; creation and administration. Creates the Microloans for Veterans Program and Fund to be administered by the Virginia Small Business Financing Authority (the Authority). The bill directs the Virginia Community College System, working with the Authority and other state agencies, to develop a curriculum to provide education and mentorship to veterans. The Authority is authorized to issue loans of up to $10,000 to veterans who agree to participate in such curriculum and meet other requirements (tier 1 loans). The Authority is authorized to issue loans of up to $50,000 to veterans who have completed the requirements associated with a tier 1 loan and agree to meet advanced education and mentorship requirements (tier 2 loans). The provisions of the bill are contingent on funding in a general appropriation act.

SUMMARY AS INTRODUCED:
Misclassification of employees as independent contractors; Department of Taxation to investigate and enforce;
civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers’ Compensation) unless and until it is shown to the satisfaction of the Department of Taxation that such individual is an independent contractor under Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.
Details: https://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+SB744

The 2019 legislative session saw the following legislation enacted:

House bills:

HB 2161 General Services, Department of; disposition of surplus materials.
Introduced by: Jennifer Carroll Foy

Bill text as passed House and Senate (HB2161ER)

SUMMARY AS PASSED HOUSE:
Department of General Services; disposition of surplus materials; service disabled veteran-owned businesses and veterans service organizations. Requires the Department of General Services to permit surplus materials to be sold, prior to public sale or auction, to (i) service disabled veteran-owned businesses and (ii) veterans service organizations.

SUMMARY AS INTRODUCED:
Department of General Services; disposition of surplus materials; veteran-owned small business and veterans service organizations. Provides that the Department of General Services shall permit surplus materials to be sold to (i) small businesses certified by the Department of Small Business and Supplier Diversity that are (a) military spouse-owned or (b) veteran-owned and (ii) veterans service organizations.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2161

 

 

HB 2192 Public school buildings and facilities; modernization.
Introduced by: Nick Rush

Bill text as passed House and Senate (HB2192ER)

SUMMARY AS PASSED:
Modernization of public school buildings and facilities. Provides that it is the legislative intent that public school buildings and facilities be designed, constructed, maintained, and operated to generate more electricity than consumed, and allows local school boards to enter into leases with private entities to achieve that goal if the school board owns or operates a school building or facility that has been properly modernized, generates energy derived from sunlight, and if the solar generating facility is properly interconnected. The bill also provides that private entities that contract with local school boards to modernize public school buildings and facilities may receive financing from the Virginia Small Business Financing Authority

SUMMARY AS PASSED HOUSE:
Modernization of public school buildings and facilities. Provides that it is the legislative intent that public school buildings and facilities be designed, constructed, maintained, and operated to generate more electricity than consumed, and allows local school boards to enter into leases with private developers to achieve that goal. The bill also provides that private developers that contract with local school boards to modernize public school buildings and facilities may receive financing from the Virginia Small Business Financing Authority.

SUMMARY AS INTRODUCED:
Modernization of public school buildings and facilities. Establishes standards for the design, construction, maintenance, and operation of public school buildings and facilities and allows for a local school division to enter into a lease agreement with a private entity to meet such standards. The bill would allow for net energy metering in public school buildings and facilities. The bill would also authorize the Virginia Resources Authority to provide partial funding for school modernization projects, effective January 1, 2020.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2192

 

 

HB 2328 Virginia Public Procurement Act; proscribed subcontracting by certain small businesses.
Introduced by: Joseph P. McNamara

Bill text as passed House and Senate (HB2328ER)

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; proscribed subcontracting by certain small businesses. Prohibits a small business from subcontracting with any other business with which it has an affiliated business entity relationship if such small business (i) has been awarded a contract by a public body as part of an enhancement or remedial measure authorized by the Governor and (ii) the award of such contract is conditioned upon the small business’s qualification as part of a subcategory of small businesses established as part of the enhancement program
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2328

 

 

HB 2347 Small Business Investment Grant Fund; recapture of awards.
Introduced by: Charniele L. Herring

Bill text as passed House and Senate (HB2347ER)

SUMMARY AS PASSED HOUSE:
Small Business Investment Grant Fund; recapture of awards. Provides that if an eligible investor is awarded a grant from the Small Business Investment Grant Fund and the small business in which the investment was made (i) relocates outside of the Commonwealth within two years of the award of the grant or (ii) closes within two years of the award of the grant as a result of a criminal conviction on the part of any officer, director, manager, or general partner of such business relating to his involvement with the business, such investor shall forfeit the grant and refund such moneys to the Virginia Small Business Financing Authority. The bill also advances the starting date for an eligible investor to receive a grant from July 1, 2016, to July 1, 2019, and advances the end date for receiving such a grant from January 1, 2019, to January 1, 2022.

SUMMARY AS INTRODUCED:
Small Business Investment Grant Fund; recapture of awards. Provides that if an eligible investor is awarded a grant from the Small Business Investment Grant Fund and the small business in which the investment was made (i) relocates outside of the Commonwealth within two years of the award of the grant or (ii) closes within two years of the award of the grant as a result of a criminal conviction on the part of any officer, director, manager, or general partner of such business relating to his involvement with the business, such investor shall forfeit the grant and refund such moneys to the Virginia Small Business Financing Authority.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2347

 

 

HB 2741 Clean Energy Advisory Board; established, solar energy installation rebates.
Introduced by: Lashrecse D. Aird

Bill text as passed House and Senate (HB2741ER)

SUMMARY AS PASSED HOUSE:
Clean Energy Advisory Board; low-to-moderate income solar loan and rebate pilot program and fund. Establishes the Clean Energy Advisory Board (the Board) as an advisory board in the executive branch of government for the purpose of establishing a pilot program for disbursing loans or rebates for the installation of solar energy infrastructure in low-income and moderate-income households. The bill provides that the Board shall have a total membership of 15 members, consisting of 14 nonlegislative citizen members and the Director of the Department of Mines, Minerals and Energy, who shall serve ex officio. The bill establishes the Low-to-Moderate Income Solar Loan and Rebate Fund to be used to fund loans or rebate payments to electric customers who complete solar installations or energy efficiency improvements. The bill provides that the pilot program is open to any Virginia resident whose household income is at or below 80 percent of the state median income or regional median income, whichever is greater. The bill establishes application requirements and procedures for the review and approval or denial of applications. The bill requires that each applicant document the installation of energy efficiency services to demonstrate that such services lower home energy consumption by at least 12 percent prior to the submission of an application. The bill has an expiration date of July 1, 2022.

SUMMARY AS INTRODUCED:
Clean Energy Advisory Board; Clean Energy Rebate Fund; solar energy installation rebates; low-income and moderate-income households. Establishes the Clean Energy Advisory Board (the Board), an advisory board in the executive branch of government that is authorized to advise the Director of the Department of Mines, Minerals and Energy (the Director) on the disbursement of rebates under a rebate program established by the bill for the installation of solar energy infrastructure in low-income and moderate-income households. The bill provides that the Board shall have a total membership of 11 members, consisting of 10 nonlegislative citizen members and the Director, who shall serve ex officio. The bill establishes the Clean Energy Rebate Fund to receive the proceeds of bond sales by the Virginia Small Business Financing Authority and the Virginia Resources Authority and then to disburse rebates to qualified customers.

The bill provides that the rebate program is open to any Virginia resident whose household income is at or below 80 percent of the state median income or regional median income, whichever is greater. The bill establishes application requirements, procedures for the review and approval or denial of applications, requirements for installation of systems, and procedures for the disbursement of rebates. The bill requires that each applicant document the installation of energy efficiency services to demonstrate that such services lower home energy consumption by at least 12 percent prior to the submission of an application. The bill provides that the rebate shall be in the amount of $2 per DC watt for up to six kilowatts of solar capacity installed. The bill has an expiration date of July 1, 2022.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2741 

 

Senate bills:

SB 1592 Department of Small Business and Supplier Diversity; certification of a small business.
Introduced by: Siobhan S. Dunnavant

Bill text as passed Senate and House (SB1592ER)

SUMMARY AS PASSED:
Department of Small Business and Supplier Diversity; certification of certain small businesses. Directs the Director of the Department of Small Business and Supplier Diversity to amend its regulation regarding the certification of businesses as any subcategory of small businesses established as part of an enhancement or remedial measure authorized by the Governor to provide that a business that is certified as any subcategory of small business pursuant to the small business certification program administered by the Director may be certified using full-time equivalents to determine the number of employees.

SUMMARY AS PASSED SENATE:
Department of Small Business and Supplier Diversity; certification of certain small businesses. Directs the Director of the Department of Small Business and Supplier Diversity to amend its regulation regarding the certification of businesses as small businesses and any subcategory of small businesses established as part of an enhancement or remedial measure authorized by the Governor to provide that a business that is certified as a small business or any subcategory of small business pursuant to the small business certification program administered by the Director may be certified using full-time equivalents to determine the number of employees.

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; certification of a small business as a micro business. Directs the Director of the Department of Small Business and Supplier Diversity to amend its regulation regarding the certification of businesses as micro businesses to provide that a business that is certified as a small business pursuant to the small business certification program administered by the Director pursuant to subdivision 8 of § 2.2-1606 may be certified as a micro business if it, together with its affiliates, has 25 or fewer full-time equivalents and average annual gross receipts of $3 million or less averaged over the previous three years.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+SB1592

 

 

SB 1331 Public school buildings and facilities; modernization.
Introduced by: William M. Stanley, Jr.

Bill text as passed Senate and House (SB1331ER)

SUMMARY AS PASSED:
Modernization of public school buildings and facilities. Provides that it is the legislative intent that public school buildings and facilities be designed, constructed, maintained, and operated to generate more electricity than consumed, and allows local school boards to enter into leases with private entities to achieve that goal if the school board owns or operates a school building or facility that has been properly modernized, generates energy derived from sunlight, and if the solar generating facility is properly interconnected. The bill also provides that private entities that contract with local school boards to modernize public school buildings and facilities may receive financing from the Virginia Small Business Financing Authority.

SUMMARY AS PASSED SENATE:
Modernization of public school buildings and facilities. Provides that it is the legislative intent that public school buildings and facilities be designed, constructed, maintained, and operated to generate more electricity than consumed, and allows local school boards to enter into leases with private developers to achieve that goal. The bill also provides that private developers that contract with local school boards to modernize public school buildings and facilities may receive financing from the Virginia Small Business Financing Authority.

 SUMMARY AS INTRODUCED:
Modernization of public school buildings and facilities. Establishes standards for the design, construction, maintenance, and operation of public school buildings and facilities and allows for a local school division to enter into a lease agreement with a private entity to meet such standards. The bill would allow for net energy metering in public school buildings and facilities. The bill would also authorize the Virginia Resources Authority to provide partial funding for school modernization projects, effective January 1, 2020.
Details: Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+SB1331S

The 2018 legislative session saw the following legislation enacted:

 

House bills

HB 237 One-stop small business permitting program; extends sunset date.
Introduced by: Terry G. Kilgore

SUMMARY AS INTRODUCED:
One-stop small business permitting program. Extends the date by which the State Corporation Commission and the Department of Small Business and Supplier Diversity are required to complete aspects of the one-stop small business permitting program from June 30, 2018, to January 1, 2020. The measure also (i) deletes a provision regarding the implementation of a hyperlink from the SCC’s eFile system to the Business Permitting Center, (ii) amends the description of the processes to be established for the electronic collection and exchange of data or information, and (iii) deletes requirements for biannual progress reports.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?181+sum+HB237

 

 

Senate bills

SB 386 Va. Public Procurement Act; SWaM program, participation of service disabled veteran-owned business.
Introduced by: Bill R. DeSteph, Jr.

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; SWaM program; participation of service disabled veteran-owned businesses. Provides that contracts and subcontracts awarded to service disabled veteran-owned businesses shall be credited toward the small business, women-owned, and minority-owned business contracting and subcontracting goals of state agencies and state contractors.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?181+sum+SB386

 

SB 651 Va. Public Procurement Act; executive branch agency’s goals for participation by small businesses.
Introduced by: Jeremy S. McPike

SUMMARY AS PASSED:
Virginia Public Procurement Act; executive branch agency’s goals for participation by small businesses; requirements. Expands the requirement under the Virginia Public Procurement Act that any executive branch agency’s goals for participation by small businesses include a minimum of three percent participation by service disabled veteran businesses from when such agencies are contracting only for information technology goods and services to when such agencies are contracting for any goods and services. The bill contains technical amendments.

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; state agency’s goals for participation by small businesses; requirements. Expands the requirement under the Virginia Public Procurement Act that any state agency’s goals for participation by small businesses include a minimum of three percent participation by service disabled veteran businesses from when such agencies are contracting only for information technology goods and services to when such agencies are contracting for any goods and services.
Details:  http://lis.virginia.gov/cgi-bin/legp604.exe?181+sum+SB651

The 2017 legislative session saw the following legislation enacted:

 

House bills

HB 1858 Small Business and Supplier Diversity, Department of; certification of certain businesses.
Introduced by: Alfonso H. Lopez

SUMMARY AS PASSED HOUSE:
Department of Small Business and Supplier Diversity; certification of small, women-owned, and minority-owned businesses.Authorizes the Director of the Department of Small Business and Supplier Diversity to adopt regulations that mandate certification without any additional paperwork of any small, women-owned, or minority-owned business that has obtained certification under any federal small, women-owned, and minority-owned business certification program.

 SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; certification of small, women-owned, and minority-owned businesses.Authorizes the Director of the Department of Small Business and Supplier Diversity to adopt regulations that provide a process for evaluating existing certification programs of other states, the District of Columbia, and territories of the United States, in addition to evaluating existing local, state, and private sector certification programs that meet the minimum requirements established by the Department for certification of small, women-owned, and minority-owned businesses, and to mandate certification without any additional paperwork of any such business that has obtained certification under any of those certification programs and any business that has obtained certification under any federal certification program.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?ses=171&typ=bil&val=hb1858

 

Effective July 1, 2017, new legislation allows for the reciprocal certification of SWaM certification to companies that are certified by the Small Business Administration (SBA) in specific certification programs and designations without requiring the company to complete the full SWaM application process.

The Department of Small Business and Suppler Diversity (SBSD) has updated the certification applications and process to fast track these key certifications. Click Here
SBSD has adjusted the certification process to allow business who have been certified with the following federal designations to receive immediate recognition of those certifications:
SBA 8A:  Details on the program can be found on the SBA site.  Click Here
EDWOSB: Details on the program can be found on the SBS site.  Click Here
VOSB/SDVOSB: Details on these Programs can be found on the VA site.  Click Here

 

Senate bills

SB 1192 Small Business and Supplier Diversity, Department of; powers of the Director.
Introduced by: Bryce E. Reeves

SUMMARY AS PASSED SENATE:
Department of Small Business and Supplier Diversity; powers of the Director; out-of-state applicants for certification as a small, women-owned, or minority-owned business. Requires, as a prerequisite for approval, that any out-of-state business applying with the Department of Small Business and Supplier Diversity for certification in Virginia as a small, women-owned, or minority-owned business possess the equivalent certification in the business’s state of origin. The bill exempts an out-of-state business located in a state that does not have a small, women-owned, or minority-owned business certification program.

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; powers of the Director; out-of-state applicants for certification as a small, women-owned, or minority-owned business. Requires, as a prerequisite for approval, that any out-of-state business applying with the Department of Small Business and Supplier Diversity for certification in Virginia as a small, women-wned, or minority-owned business possess the equivalent certification in the business’s state of origin.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?171+sum+SB1192

Commonwealth of Virginia’s
2020 Disparity Study

July 13, 2011
Disparity Study

January 13, 2010
Disparity Study

January 12, 2004
Disparity Study

VCU 2018
Economic Impact Study