RD327 - Report of the Study Group Examining the Possible Consolidation of the Department of Business Assistance (DBA) Into The Virginia Economic Development Partnership (VEDP) and/or the Department of Minority Business Enterprise (DMBE) - November 1, 2008


Executive Summary:
I. STUDY BACKGROUND - LEGISLATIVE AND BUDGETARY CONTEXT

HB 1522 was introduced during the 2008 General Assembly session and called for the elimination of DBA and the subsequent transfer of its programs to the VEDP. This measure passed the House of Delegates but was passed by indefinitely in the Senate Committee on Commerce and Labor. (*1)

Paragraph G of Item 105, Chapter 879, 2008 Acts of Assembly (2008 Appropriations Act) provided the following language:

The Secretary of Commerce and Trade shall evaluate the efficacy of and the financial and programmatic efficiencies that could be generated by consolidating the Department of Business Assistance into an appropriate agency within the Commerce and Trade Secretariat. Agencies that the Secretary shall consider consolidating the Department of Business Assistance into shall include, but not be limited to, the Virginia Economic Development Partnership and the Department of Minority Business Enterprises. As part of this evaluation, the Secretary shall develop a process to transfer the workforce-related service activities at the Department of Business Assistance to the Virginia Economic Development Partnership. The evaluation shall include, but not be limited to, establishing the goals of the new agency; measurable objectives to assess the future performance of the agency; the strategies to carry out the objectives; and identification and description of the activities and services to be reorganized, enhanced, curtailed, or eliminated. The Secretary of Commerce and Trade shall report its findings to the Chairmen of the House Appropriations and Senate Finance Committees by November 1, 2008, with a detailed review of the plan for completing the consolidation.

ll. FORMATION OF STUDY GROUP

In order to generate substantial dialogue and discussion on this topic, the Secretary of Commerce and Trade created a Study Group to examine several permutations that outline possible options for the programmatic alignment of business and economic development services in the Commonwealth.

The members of the Study Group included:

• The Honorable Patrick O. Gottschalk (Chair, Secretary of Commerce and Trade)
• The Honorable Viola O. Baskerville (Secretary of Administration)
• The Honorable Daniel G. LeBlanc (Senior Advisor to the Governor for Workforce)
• Mr. Hugh Keogh (President, Virginia Chamber of Commerce)
• Mr. Matthew James (President, Virginia Economic Developers Association)
• Mr. Oliver Singleton (President, Metropolitan Business League)
• Mr. Robert Nealon (Chair, Virginia Small Business Advisory Board)
• Mr. Bryce Jewett (President and CEO, Jewett Machine and Automation)

The work of the Study Group was supported by staff from the Office of the Secretary of Commerce and Trade. In addition, staff from DBA and DMBE as well as VEDP provided the Study Group with detailed information on agency programs and operations as needed throughout the course of the study.
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(*1) See Appendix A for text of House Bill 1522.