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Legislation that impacts Virginia small businesses.

Bills that Small Business and Supplier Diversity (SBSD) is tracking in the 2019 legislative session.

 

House bills

HB 1892 Small business procurement enhancement program; established, report.
Introduced by: Matthew James

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; small business procurement enhancement program. Establishes a small business procurement enhancement program (the Program) with a statewide goal of 42 percent of small business utilization in all discretionary spending by state agencies in procurement orders, prime contracts, and subcontracts. In addition, the bill (i) provides for a small business set-aside for competition among all small businesses for state agency purchases up to $100,000 for goods and nonprofessional services and up to $50,000 for professional services and (ii) establishes qualification criteria for participation in the Program by business operations on the basis of the total number of employees or annual gross receipts, averaged over the previous three years.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB1892

 

HB 2153 Virginia Small Business Emergency Bridge Loan Fund; created.
Introduced by: Christopher P. Stolle

SUMMARY AS INTRODUCED:
Small Business Financing Authority; Virginia Small Business Emergency Bridge Loan Fund created. Creates the Virginia Small Business Emergency Bridge Loan Fund (the Fund) to provide short-term direct loans to eligible small businesses adversely affected by a disaster for which a state of emergency has been declared. The bill provides that the Fund shall be managed and administered by the Small Business Financing Authority with guidance from the Director of the Department of Small Business and Supplier Diversity and in coordination with the Virginia Department of Emergency Management. The bill also provides that loans provided from the Fund shall be (i) for a minimum amount of $1,000 up to a maximum amount of $10,000, (ii) provided interest-free, and (iii) repaid by the end of the loan term, which term shall be set by the Authority for a minimum of 90 days but not to exceed 180 days.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2153

 

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

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 2164 Small Business and Supplier Diversity, Department of; redefines “small business.”
Introduced by: Glenn R. Davis

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; definitions; small business. Redefines “small business” for the purposes of programs for the Department of Small Business and Supplier Diversity and the Virginia Public Procurement Act to mean a business that together with its affiliates has both 250 or fewer employees and average annual gross receipts, less the cost of goods sold by the business, of $10 million or less averaged over the previous three years. Currently for these programs, a business qualifies as a small business if, together with its affiliates, it has either 250 or fewer employees or average annual gross receipts of $10 million or less averaged over the previous three years.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2164

 

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

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

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 2348 Economic development investments and grants; increases minimum wage requirements.
Introduced by: Charniele L. Herring

SUMMARY AS INTRODUCED:
Economic development investments and grants; minimum wage requirements. Increases the minimum wage requirements from 135 percent to 175 percent of the federal minimum wage for new jobs to be eligible for economic development incentives under the Small Business Jobs Grant Fund Program or the Virginia Jobs Investment Program.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2348

 

HB 2366 Small businesses; changes definition, implementation of certification programs, report.
Introduced by: Barry D. Knight

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; implementation of certification programs for small businesses; definition of small business; report. Changes the definition of small business, beginning July 1, 2019, to mean a business that (i) is not dominant in its field of operation, as determined by the Department of Small Business and Supplier Diversity (the Department); (ii) is at least 51 percent independently owned and operated by one or more individuals who are U.S. citizens or legal resident aliens; and (iii) together with affiliates, has 250 or fewer employees and average annual gross receipts, excluding the cost of goods and equipment, of $10 million or less averaged over the previous three years. Under current law, a business must be independently owned and controlled by one or more individuals who are U.S. citizens or legal resident aliens and, together with affiliates, have 250 or fewer employees or annual gross receipts of $10 million or less averaged over the previous three years. The bill provides that any business entity that the Department has certified as a small business prior to July 1, 2019, shall have the expiration date of such certification extended for an additional one-year period, after such time the business shall be required to meet the requirements for certification in effect at that time. The bill also provides that the Director of the Department shall annually review forms and processes related to small business certification to reduce the administrative and paperwork burden on small businesses seeking certification and recertification. The bill (a) includes a definition of “field of operation”; (b) requires the Secretary of Commerce and Trade to evaluate the small business certification program at three-year intervals, reporting to the Governor and General Assembly by December 1, 2022, and December 1, 2025; and (c) directs the Department to establish and educational outreach initiative to inform and prepare businesses for the changes in the small business certification program.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2366

 

HB 2398 Small Business and Supplier Diversity, Department of; defines “small business.”
Introduced by: Alfonso H. Lopez

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; definitions; small business. Redefines “small business” for the purposes of programs for the Department of Small Business and Supplier Diversity and the Virginia Public Procurement Act to mean a business that together with its affiliates has both 250 or fewer employees and average annual gross receipts of $10 million or less averaged over the previous three years. Currently for these programs, a business qualifies as a small business if, together with its affiliates, it has either 250 or fewer employees or average annual gross receipts of $10 million or less averaged over the previous three years
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2398

 

HB 2730 Va. Public Procurement Act; service disabled veteran businesses procurement enhancement program.
Introduced by: John J. McGuire, III

SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; service disabled veteran businesses procurement enhancement program.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+HB2730

 

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

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 1036 Small business procurement enhancement program; established, report.
Introduced by: L. Louise Lucas

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; small business procurement enhancement program. Establishes a small business procurement enhancement program (the Program) with a statewide goal of 42 percent of small business utilization in all discretionary spending by state agencies in procurement orders, prime contracts, and subcontracts. In addition, the bill (i) provides for a small business set-aside for competition among all small businesses for state agency purchases up to $100,000 for goods and nonprofessional services and up to $50,000 for professional services and (ii) establishes qualification criteria for participation in the Program by business operations on the basis of the total number of employees or annual gross receipts, averaged over the previous three years.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+SB1036

 

SB 1098 Small Business and Supplier Diversity, Department of; redefines “small business.”
Introduced by: David W. Marsden

SUMMARY AS INTRODUCED:

Department of Small Business and Supplier Diversity; definitions; small business. Redefines “small business” for the purposes of programs for the Department of Small Business and Supplier Diversity and the Virginia Public Procurement Act to mean a business that together with its affiliates has both 250 or fewer employees and average annual gross receipts of $10 million or less averaged over the previous three years. The bill provides that gross receipts shall not include the cost of goods and equipment. Currently, under these programs, a business qualifies as a small business if, together with its affiliates, it has either 250 or fewer employees or average annual gross receipts of $10 million or less averaged over the previous three years.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+SB1098

 

SB 1394 Small businesses; changes definition, implementation of certification programs, report.
Introduced by: Rosalyn R. Dance

SUMMARY AS INTRODUCED:
Department of Small Business and Supplier Diversity; implementation of certification programs for small businesses; definition of small business; report. Changes the definition of small business, beginning July 1, 2019, to mean a business that (i) is not dominant in its field of operation, as determined by the Department of Small Business and Supplier Diversity (the Department); (ii) is at least 51 percent independently owned and operated by one or more individuals who are U.S. citizens or legal resident aliens; and (iii) together with affiliates, has 250 or fewer employees and average annual gross receipts, excluding the cost of goods and equipment, of $10 million or less averaged over the previous three years. Under current law, a business must be independently owned and controlled by one or more individuals who are U.S. citizens or legal resident aliens and, together with affiliates, have 250 or fewer employees or annual gross receipts of $10 million or less averaged over the previous three years. The bill provides that any business entity that the Department has certified as a small business prior to July 1, 2019, shall have the expiration date of such certification extended for an additional one-year period, after such time the business shall be required to meet the requirements for certification in effect at that time. The bill also provides that the Director of the Department shall annually review forms and processes related to small business certification to reduce the administrative and paperwork burden on small businesses seeking certification and recertification. The bill (a) includes a definition of “field of operation”; (b) requires the Secretary of Commerce and Trade to evaluate the small business certification program at three-year intervals, reporting to the Governor and General Assembly by December 1, 2022, and December 1, 2025; and (c) directs the Department to establish and educational outreach initiative to inform and prepare businesses for the changes in the small business certification program.
Details: http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+SB1394

 

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

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

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

Address:
101 N. 14th Street, 11th Floor Richmond, VA 23219
Phone:
1(804) 786-6585
Email:
sbsd@sbsd.virginia.gov
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