RD441 - 2009 Annual Executive Summary of the Small Business Commission


    Executive Summary:
    Introduction.

    The Small Business Commission was established to study, report and make recommendations on issues of concern to small businesses in the Commonwealth. The powers and duties of the Commission include:

    • Evaluating the impact of existing statutes and proposed legislation on small businesses;

    • Assessing the Commonwealth's small business assistance programs and examining ways to enhance their effectiveness; and

    • Providing small business owners and advocates with a forum to address their concerns.

    The co-chairs of the Commission are Senator W. Roscoe Reynolds and Delegate Jeffrey M. Frederick. The other legislative members of the Commission are Delegate R. Lee Ware, Jr., Delegate G. Glenn Oder, Delegate William R. Janis, Delegate Clarence E. Phillips, Delegate Algie T. Howell, Jr., Senator Frank M. Ruff, Jr., Senator R. Creigh Deeds, and Senator George L. Barker. The gubernatorial appointees are Robert A. Archer, Lana McG Ingram, Marilyn H. West, and Carlos Del Toro.

    2008-2009 Interim Activities.

    The Small Business Commission held two meetings during the 2009-2010 interim.

    Friday, May 22, 2009.

    The Small Business Commission ("Commission") met in Richmond, Virginia, on May 22, 2009, and heard the following presentations:

    • Review of Bills Affecting Small Businesses Considered During the 2009 Session of the General Assembly--Commission staff presented a review of some of the bills that were introduced during the 2009 Session of the General Assembly that would impact small businesses, including both bills that were and were not ultimately enacted into law. This review included House Bill 2024 (Marshall, D.W.) and Senate Bill 1411 (Watkins) which were enacted in 2009. These bills can be viewed as the successor to the legislative proposal endorsed by the Commission during the 2008 interim dealing with the sale of mandate-lite insurance. These bills allow insurers to offer group health insurance policies or contracts that do not have to include all or some of the state mandated health insurance benefits to employers with at least two but fewer than 50 employees.

    • Enhancing Services for Small Business--Lynda Sharp Anderson, Director of the Virginia Department of Business Assistance (VDBA), described the availability of services for small business in Virginia and her department's role in providing such services. Ms. Anderson stated that Virginia offers many programs and services to meet the needs of small businesses, but also noted that service delivery is somewhat fragmented program and that at least 26 different state governmental agencies or departments deal with small businesses in some fashion.

    The Commission asked Ms. Anderson to come up with specific recommendations regarding the role of the VPBA in the future. Also, copies of two bills that were referred to the Commission for study during the 2009 Session were distributed to the members: House Bill 2026 (Marshall, D.W.), dealing with the creation of the Employee Voluntary Accounts Program, and House Bill 2121 (Nichols), dealing with the Public Procurement Act and the federal Electronic Work Verification Program.

    August 3, 2009.

    The Small Business Commission ("Commission") met in Richmond, Virginia, on August 3, 2009, and heard the following presentations:

    • House Bill 2121. Public Procurement Act; Verification of Legal Presence--The bill would require all contractors with the Commonwealth and their subcontractors to register and participate in a federal Electronic Work Verification Program (E-Verify) to determine that their employees are legally eligible for employment in the United States. The Commission heard from witnesses who supported the bill and from witnesses who were opposed to the bill. The witnesses presented conflicting testimony to the Commission on the efficacy of the E-Verify Program.

    • House Bill 2026. Virginia Employee Voluntary Accounts Program--The bill would create the Virginia Employee Voluntary Accounts program (VEVA), a program in which small private employers would be able to enroll in and offer tax-deferred retirement plans to their employees using payroll deduction. The program would be administered by a new state agency created by the bill. Testimony was presented regarding the fact that Americans are generally not saving enough and are unprepared for retirement. There was also testimony that such a plan would require the private sector that currently sells such retirement plans to compete with the government for customers.

    • Update from the Virginia Department of Business Assistance--Lynda Sharp Anderson, Director of the VDBA gave an update on the activities of the VDBA since her presentation at the Commission's meeting on May 22, 2009. Ms. Anderson noted that the VDBA reviewed and analyzed its programs and convened a brainstorming session of 50 small business owners and identified three issues as the top issues for Virginia small businesses:

    * State credit/access to capital programs should be enhanced.
    * Business One Stop should be used for more efficient service delivery.
    * Awareness of existing business assistance programs should be expanded.

    Ms. Anderson suggested possible legislative proposals for the 2010 Session, including mandating that all state governmental agencies or departments that deal with small businesses be required to participate in Business One Stop.

    The members of the Commission discussed House Bill 2121 and the E-Verify program and decided to take up the bill again at the next meeting. The Commission also decided to form a working group to look at the VEVA program.

    The Commission does not intend to submit a further report for publication.