Small Business Commission: Executive Summary of 2022 Interim Activity

Summary

The Executive Summary of 2022 Interim Activity of the Virginia Small Business Commission. It states that under § 30-183 of the Code of Virginia the Commission convened for two meetings during the 2022 interim, on October 11, 2022 and November 28, 2022, with Co-Chairs Senator Bell and Delegate Head presiding. It states that, pursuant to HJR 687, enacted by the 2019 Session of the General Assembly, the Commission studied information and policy proposals related to matters affecting small businesses. The document lists the Commission members and summarizes the October 11, 2022 meeting, where members discussed workforce participation, unemployment, federal assistance programs for small businesses and the Virginia Department of Small Business and Supplier Diversity.

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Executive
Summary

Small Business Commission
Executive Summary of 2022 Interim Activity
http://dls.virginia.gov/commissions/sbc.htm

Pursuant to the powers and duties authorized under § 30-183 of the Code of Virginia, the
Virginia Small Business Commission (the Commission) held two meetings during the 2022
interim with Co-Chairs Senator John J. Bell and Delegate Christopher T. Head presiding.
Materials presented at the meetings are accessible through the Commission's meetings webpage.
The Commission's meetings occurred on October 11, 2022, and November 28, 2022. Pursuant to
HJR 687, which was enacted by the 2019 Session of the General Assembly, the Commission
studied information and policy proposals related to matters affecting small businesses.
Commission Members
Senator John J. Bell, Co-Chair Delegate Kim A. Taylor
Delegate Christopher T. Head, Co-Chair Delegate Thomas C. Wright, Jr.
Senator Lynwood W. Lewis, Jr. Jay M. Atkinson
Senator Jennifer L. McClellan Melissa A. Ball
Senator Frank M. Ruff, Jr. Jay Challa
Delegate Karen S. Greenhalgh Lee Vogler
Delegate Suhas Subramanyam Jorge Yinat

October 11, 2022, Meeting
The Small Business Commission (the Commission) met on October 11, 2022, in Richmond for
its first interim meeting of 2022. The meeting began with introductions and opening remarks,
followed by the election of Co-Chairs Senator John J. Bell and Delegate Christopher T. Head,
presiding.1 Materials presented at the meeting are accessible through the Commission's meetings
webpage.

 Discussion and Planning
Senator Bell introduced the Commission members and offered a focus on recalibrating the
Commission's work. The Senator noted that the previous year's interim work was targeted on
COVID-19 impacts on small businesses, particularly business closures, and he asked the
Commission to raise small business topics and priorities moving forward to the following: (i)
challenges facing small businesses today; (ii) how to increase the work pool, increase labor
participation, and ascertain why individuals are turning down jobs but continuing to collect
unemployment; (iii) in a post-COVID world, identification of those areas in which businesses

1
Members Present: Senator John J. Bell (co-chair), Delegate Christopher T. Head (co-chair), Senator Lynwood
W. Lewis, Jr., Senator Jennifer L. McClellan, Senator Frank M. Ruff, Jr., Delegate Karen S. Greenhalgh, Delegate
Suhas Subramanyam, Delegate Kim A. Taylor, Delegate Thomas C. Wright, Jr., Jay M. Atkinson, Melissa Ball,
Jay Challa, Lee Vogler, and Jorge Yinat.
Members Absent: Delegate Kelly K. Convirs-Fowler.
continue to struggle; and (iv) legislative ideas based on what businesses need now and will need
in the future.
Delegate Head discussed the still lagging recovery of the workforce in the home care industry
that is operating at about 50 percent below pre-pandemic levels. The Delegate mentioned the
disparity between the large availability of jobs and the low level of unemployed candidates
showing up for interviews. Noting these and other systemic issues, Delegate Head posed the
question of where the workforce went and the need to review which statistical metrics will give
the Commission a truer sense of the health of Virginia's workforce, unemployment levels, labor
participation, and the broader economy for small businesses. Additionally, Delegate Head noted
that many small businesses that applied for federal programs, such as the employee retention
credit, in a timely fashion are still waiting on that assistance and some have not even received an
update from the federal government on their application. He asked why the money is not flowing
to small businesses despite its prior, settled appropriation.
Delegate Thomas C. Wright, Jr., identified a large issue for prolonged, limited labor participation
as being the minimal obligations to provide ongoing evidence that one is looking for
employment. He expressed an interest in more tracking from businesses on the jobs for which
people are applying and interviewing, increasing training opportunities in specialized trades,
encouraging employment for teenagers and young people, and providing sufficient incentives to
rekindle pride in performing a job. Senator Bell noted that updated statistics and data from the
administration would be helpful in identifying the industries and demographics most in need of
aid and legislative action.
Senator Jennifer L. McClellan noted that the requirement to search for work while collecting
unemployment had been reinstated by operation of law. She agreed with the need for a way to
accurately track why people were not participating in the workforce and discussed the lack of
affordable childcare and lack of paid family medical leave (and caregiving obligations at home)
as key reasons for the current state of employment in Virginia, especially for women.
Jay Challa raised the impasse between a lack of skilled workers in emerging industries, such as
computer science and cybersecurity, and the huge demand for workers in those fields that usually
command high wages. He advised that bridging the gap should start with more partnerships at
community colleges and businesses to develop a more skilled workforce. Mr. Challa also
referred to last year's Joint Legislative Audit and Review Commission's (JLARC) report
regarding the performance of the Virginia Department of Small Business and Supplier Diversity
(DSBSD) not meeting its small business goals and the absence of set-aside mandates in Virginia
resulting in larger companies getting the majority of public contracts. He noted that the focus on
small business procurement should be one encompassing all geographic areas and markets in
Virginia.
On those points, Senator Bell suggested that Virginia reinstate its seminar series on "how to do
business with Virginia" and that the Commission concentrate on identifying the industries with
the greatest need for jobs and providing transitional tools for getting people qualified and into
such positions. Delegate Head added that there is a need to avoid having small businesses rely
solely on the Commonwealth for revenue and in that regard he noted the importance of
stimulating private sector success and finding ways to avoid "farming out" contracts to out-of-
state entities to the detriment of qualified Virginia businesses.
Delegate Kim A. Taylor spoke about the concerns with workforce development, the need for
increased funding into successful existing programs, and the need to establish new targeted

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programs, such as a partnership between advanced manufacturing companies and local schools.
She also noted that individuals are neglecting the development of "soft skills" and how important
they are to productivity and advancement in any industry. Senator McClellan agreed that soft
skills education is important, is generally no longer part of the kindergarten curriculum, and
usually only accessed at young ages by those families with the means to afford early learning and
pre-kindergarten programs.
Jay M. Atkinson noted that even prior to the pandemic Virginia was facing workforce
development issues, some cyclical and some structural in nature. The primary concerns he
identified include providing small businesses with opportunities to work with state government
and making incentives available once baselines for small, women-owned, and minority-owned
business (SWaM) goals are exceeded. He suggested a mentorship program run by large
contractors to build and support the smaller businesses such that they could "graduate" and
sustain growth sufficient to qualify for a small business designation. Senator Bell agreed and
hoped to have a company speak to the Commission about the implementation and benefits of
such a mentorship program.
Lee Vogler discussed the positive feedback from businesses on changes to the law that allowed
alcohol-to-go during the pandemic. HB 2266 and SB 1471 (2021, Sp. Sess. I) permitted localities
to designate "outdoor refreshment areas" (ORAs), but small businesses have had difficulty
working with the Virginia Alcoholic Beverage Control Authority and faced increased costs in
doing so when trying to implement the ORAs. He sees the main issue as one where the desire
(and presumed intent of the legislation) is to allow for the establishment of permanent ORAs, but
the current permitting process is far too restrictive and cumbersome.
Senator Frank M. Ruff, Jr., expressed concern with the motivations of people gaining an
education for fields and jobs that are not in high demand. He encouraged the Commission to find
more data and more programs that connect individuals with training and educational
opportunities directed more toward those industries most in need of workers.
Delegate Suhas Subramanyam raised the issue of prime contractors and large businesses utilizing
SWaM and small businesses generally to win a public contract bid but essentially dropping the
small businesses from the projects thereafter. He requested that the Commission revisit the
definition of a "small business" in the Code of Virginia with a goal of improving small business
opportunities in Virginia. Delegate Taylor agreed that the "small business" definition in the Code
should be revisited and noted the inconsistent SWaM requirements currently in place depending
on which agency or entity is contracting with them. Additionally, she noted that the SWaM
certification and renewal process is overly burdensome and requires a large amount of legwork
from small businesses that seems unnecessary.
Senator Bell addressed the qualification metrics for small businesses and noted that some
relatively large companies were still deemed small businesses under the law. He asked the
Commission to consider whether there should be a time limit for a small business to graduate
and, if a downturn arises, how a business could qualify again as a small business. Senator
McClellan said that the Commission should turn to the JLARC report on the small business
definition, and Mr. Challa asked the group to consider the workability of following the federal
Small Business Administration's policies.
Mr. Atkinson highlighted the issues with the unnecessarily burdensome requirement that the
owner of a small business be a natural person or individual. He explained that otherwise eligible
small businesses can be made ineligible solely due to ownership; for example, an LLC that has

Virginia Division of Legislative Services Page 3 of 10
huge legal costs and hurdles just to regain eligibility. He also addressed contract flow-down
requirements, such as requirements that small businesses with a small percentage of a large
contract must also carry disproportionately high liability insurance coverage, and expressed hope
for greater visibility into the operations of small businesses by increased tracking of small
business metrics on contracts.
Delegate Karen S. Greenhalgh felt that the inability to utilize available tax credits for childcare
and pre-kindergarten programs run by a church is a component of the problem with finding
workers. She noted the success of the Achievable Dream initiative in Virginia Beach where a
public-private partnership developed training of soft skills, set high expectations for students,
and provided strong training and apprenticeship opportunities as an alternative to traditional
undergraduate education. Senator Bell agreed that there is value in skill positions that do not
require a college degree and that Virginia should improve its marketing for skill-based jobs and
careers. Jorge Yinat also expressed that private industry should drive such skill-based training
programs because they know the needs of their sectors best and can see the value in recruiting,
training, and retaining prospective employees.
Delegate Head noted that the General Assembly used to have a business development caucus that
would travel around the Commonwealth for roundtables to provide information on and receive
feedback from small businesses on legislative proposals. He proposed that the Commission
consider adopting that approach to gain input, listen to small businesses, and rapidly implement
changes based on new information and perspectives gleaned from those discussions. Senator Bell
concurred and asked the members to bring one "pain point" for small businesses to the next
meeting, to consider having Commission meetings across Virginia, and to identify specific
legislative proposals for review. Delegate Wright noted that the Commission should better
understand what efforts the administration is taking to bring the workforce back, what policies
have been successful, and what additional steps legislators can do to help.

 Public Comment
Chris Stone from the Hampton Roads Chamber of Commerce asked the Commission to consider
changing the definition of a small business, noted the conflict between federal NAICS codes and
Virginia's system, and asked for a review of whether qualifying as a small business should also
require active licensure in Virginia.

 Next Meeting
Senator Bell proposed several action items for the next Commission meeting:
1. A presentation from the Virginia Employment Commission with updates on the
employment statistics generally, a discussion of how it tracks unemployment in the
Commonwealth, and how many Virginians are not participating in the workforce;
2. A conversation with the administration focusing on workforce participation numbers, the
utilization of the employee retention tax credit, and workforce training initiatives;
3. The feasibility and benefits of providing small business grants to those creating jobs;
4. What solutions might address the absence of soft skills in younger employees;
5. Reinstating "How to Do Business with Virginia" seminars;

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6. Reviewing SWaM percentages, whether Virginia's goals are being met, and how those
work performance percentages are addressed in the relevant contracts;
7. Considering easing ownership requirements that mandate a natural person be the owner of
a small business;
8. The issue of childcare and identifying existing deficits in the system, its costs, and what
ways people can access childcare aid programs;
9. How remote workers and expanding broadband access affect small businesses in Virginia;
and
10. The barriers to workforce participation and how people can afford to remain out of work
despite the expiration of enhanced unemployment benefits that were in place during the
pandemic.
The Commission decided to meet again at the end of November, but no date was set.

November 28, 2022, Meeting
The Small Business Commission (the Commission) met on November 28, 2022, in Richmond
for its second interim meeting of 2022. The meeting began with introductions and opening
remarks from the Co-Chairs Senator John J. Bell and Delegate Christopher T. Head, presiding.2
Materials presented at the meeting are accessible through the Commission's meetings webpage.

 Updates from the Virginia Employment Commission (VEC)
Carrie Roth, Commissioner of the Virginia Employment Commission and Advisor to the
Governor for Strategic Initiatives.
Commissioner Roth discussed the small business impacts of VEC's work focusing on
unemployment insurance, workforce services, and the state of the labor market.
Unemployment Insurance
Commissioner Roth reported that Virginia's Unemployment Insurance Trust Fund (the Trust
Fund) balance has returned to pre-pandemic levels in excess of $1.4 billion and weekly claims
likewise have fallen to pre-pandemic levels. Solvency has passed a key level and the reduction
for the Trust Fund builder tax will become effective in January 2023. Therefore, Virginia will
not have a Trust Fund builder component in unemployment taxes next year, which will help
Virginia small businesses.
The General Assembly froze the other two taxes that make up the Trust Fund for the next two
years to shield employers from the impact of pandemic-related claims. Delinquent employers
will remain subject to the maximum rate for taxes and the annual tax notices will be issued to
employers in December 2022. Commissioner Roth noted that 70 percent of employers in 2022
were paying the lowest level of tax rates and 16 percent of those paying in are new employers, a
significant increase over 2021 numbers.

2
Members Present: Senator John J. Bell (co-chair), Delegate Christopher T. Head (co-chair), Senator Lynwood
W. Lewis, Jr., Senator Jennifer L. McClellan, Senator Frank M. Ruff, Jr., Delegate Karen S. Greenhalgh, Delegate
Suhas Subramanyam (electronically), Delegate Kim A. Taylor, Delegate Thomas C. Wright, Jr., Jay M. Atkinson,
Melissa Ball, Jay Challa, Lee Vogler, and Jorge Yinat.
Members Absent: Delegate Kelly K. Convirs-Fowler.

Virginia Division of Legislative Services Page 5 of 10
The Unemployment Employer Self-Service Account (ESS account) is an online account portal
where employers are required to register with VEC for reporting wages and remitting
unemployment insurance taxes. Recent legislation passed during the 2022 Session required all
communications between employers and VEC related to unemployment insurance claims to be
electronic. Employers are notified about separation reports through their ESS account and are
provided 10 days to complete separation reports on any claim filed against their business. Failure
to complete the reports may result in payment of claims and liability assigned to the employer.
Employers are required by law to submit separation reports electronically unless granted an
exemption by VEC. The separation reports and active employer participation in their submission
are important in helping VEC to prevent unemployment insurance fraud.
Senator Bell asked the Commission members to communicate and provide outreach to their
communities emphasizing the process and importance of small businesses staying on top of
separation report submissions. Commissioner Roth explained that many small businesses use
third-party payroll providers and that constant communication is needed between employers and
these providers on tax rates to ensure they are properly paying taxes and do not fall behind in a
manner that would result in higher rates and detrimental impacts to the business. Delegate Head
found the fact that 70 percent of employers were paying the lowest tax rate to be an encouraging
sign of the quality of employment where individuals are not losing their jobs indiscriminately
and that employers are keeping up with their tax payments.
Workforce Services
Commissioner Roth noted that Virginia has 34 Career Works Centers that serve as one-stop
centers for job seekers to find training and education resources and is staffed by both VEC
employees and partner program employees from the Department for Aging and Rehabilitative
Services, the Virginia Community College System, and the Department of Education, among
others. Any individuals on unemployment are required to be in the Virginia Workforce
Connection that helps them build resumes and connects them to employers seeking certain skill
sets. VEC is also hosting job fairs locally and statewide trying to assist employers in finding new
hires and getting the unemployed back to work.
VEC also provides rapid response assistance for mass layoffs that includes assistance with
unemployment insurance and implementation of best practices that are enhanced by close
working relationships with those employers. In addition, the Virginia unemployment viewing
system allows employers to update their lists in anticipation of mass layoffs and in such a case
separation reports would not be necessary. VEC also provides reemployment services and job-
matching services to affected workers.
Senator Bell inquired about the sufficiency of VEC funding moving forward now that the
pandemic has passed. Commissioner Roth noted that the administration will have several
legislative and budgetary requests for the upcoming session that specifically focus on strategies
to (i) reduce the backlog, (ii) transform the agency, and (iii) create an agency that is resilient and
responsive to the economy of the future. The backlogs are eliminated or close to being
eliminated with the exception of appeals.
Commissioner Roth then detailed the Work Opportunity Federal Tax Credit that provides up to
$9,600 to employers for hiring workers from prioritized employment groups, including veterans,
long-term recipients of other public assistance, and previously incarcerated citizens. VEC has
been working with the Department of Corrections to get individuals re-entering their

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communities into the Virginia Workforce Connection, with $169.9 million in credits approved
this year.
Additionally, Commissioner Roth noted that refusing a suitable offer of work can serve as the
basis for ineligibility to claim unemployment insurance. The VEC website3 contains a link to a
form to report an employee or individual who refuses an offer of work that is used to adjudicate
such claims.
State of the Labor Market
Commissioner Roth informed the members of the very low unemployment rate in Virginia (2.7
percent compared to a national rate of 3.7 percent). Virginia's unemployment reached its peak of
11.6 percent in April of 2020 and Virginia has experienced steady employment growth over the
past year. The Commissioner also reported that in the first quarter of this year there were over
306,000 employer establishments in Virginia, 607 of which employed 500 or more employees,
and of that 607, 250 employed more than 1,000 employees. Gaps remain with the labor force in
Virginia currently standing at 4,348,072 compared with 4,476,110 in January of 2020 and the
labor force participation rate standing at 63.6 percent compared with 66.3 percent in January of
2020.4 Senator Jennifer L. McClellan asked about age breakdowns on these statistics and
Commissioner Roth noted that VEC could provide that information and that female labor
participation remained roughly the same pre- versus post-pandemic, while male labor
participation fell five percent. The administration remains committed to improving labor
participation and addressing labor shortfalls moving forward for employers and the unemployed.
Senator Bell proposed an action item on what the Commission and VEC could do collectively,
and legislatively, for those regions of Virginia requiring more focus and targeting given their
relatively weaker employment recoveries, in-demand employment opportunities, and concern
that not filling these labor gaps will lead businesses to seek employees outside of Virginia.
Commissioner Roth agreed and noted that the greatest disruption to employers seeking labor
revolved around people starting their own businesses and/or leaving large employers for their
own "gig" jobs.
Delegate Head inquired about (i) how these "gig" workers are counted as they are not direct
employees and (ii) of the population currently outside of the workforce and those not looking,
how are they paying the bills. Commissioner Roth discussed the role played by data received
from employers and household surveys, the latter of which captures those "gig" positions and
that the decisions made to leave employment or start a new business were dependent on the
means of respective households.
Senator Frank M. Ruff, Jr., asked for information on VEC statistics on the attendance and
success rates of VEC-sponsored job fairs, and Commissioner Roth detailed the reporting of those
job fair statistics that produce positive employment outcomes for job seekers and committed to
providing that data to the Commission.
Senator Bell noted that Virginia generally lags behind competitor states in employment statistics,
and Commissioner Roth agreed that although Virginia's labor participation rate is growing and at
a higher percentage than competitor states, we still face a larger gap compared to pre-pandemic
levels than our competitor states. Senator Bell also asked how small businesses can facilitate a
strong partnership with VEC. Commissioner Roth encouraged communication with small

3
https://www.vec.virginia.gov/employer-path
4
Labor market information and community profiles can be found at virginiaworks.com.

Virginia Division of Legislative Services Page 7 of 10
businesses that VEC Workforce Connection is a resource and tool for small businesses that is
generally free to fully utilize. She was unsure of the number of Virginia employers using the
Workforce Connection tool, but an issue is that employers are not fully aware of the tools
available and that marketing those positive aspects to promote employer engagement will yield
benefits throughout the employment system and broader Virginia economy.
Senator Ruff raised an issue with VEC filling a small percentage of open job positions and
whether there exists a more effective way to accomplish employment goals, possibly through
utilizing private sector recruiters but ultimately focusing on the goal of getting people to return to
work. Senator Bell reported that his personal experiences dealing with VEC were very positive
and he wants to encourage more businesses to use VEC as a resource to address outstanding
hiring gaps.
Delegate Head sought demographic data of those currently on unemployment and looking for
jobs and specific statistics on who is applying, the jobs to which they are applying, etc. He
additionally posited a potential recalibration of VEC to center its efforts around employers rather
than employees to achieve better results.
Lee Vogler asked whether we are tracking people leaving the workforce through a form of exit
interview to determine why people are ending job searches and turning down jobs because that
information would be particularly helpful in addressing trends and finding solutions to the
problem. Senator McClellan agreed that the Commission has been seeking those answers for
some time and proposed requiring that such data be collected. Commissioner Roth committed to
finding what the currently collected data shows and was open to considering revising what data
is collected so that more targeted and specific information could inform the Commission and
members of the public. Senator McClellan noted that comparing a wide swath of demographic
data over time would help the Commission understand whether trends are due to a natural flow
of demographic changes in age brackets or some other factors that need to be addressed.
Delegate Thomas C. Wright, Jr., asked whether VEC collected data on "walk-in" employment
inquiries or applications that could be especially important for assisting small businesses with
only a few employees who face severe strain and have to consider ending operations because of
losing a single employee. Commissioner Roth reiterated VEC's commitment to implementing
modern and novel strategies fit for the modern economy and transforming VEC to improve
Virginia employment outcomes through such creative measures. She also said her team would
explore the numbers and what is documented on walk-in applications and its effects on
unemployment statuses.
Jay Challa questioned whether, given the difference between job openings and job recovery,
Virginia has or is exploring a job matchmaking service that, especially after the pandemic and its
changes to various industries and work-from-home positions, would more effectively retrain and
get people back to work in the sectors most in need of employees. Commissioner Roth agreed on
the need to focus on the outcome issues and identified existing training programs that are
conducted within certain companies, but also in conjunction with partners at Virginia Workforce
Centers and local community colleges as the baseline. Mr. Challa felt that more focused training
opportunities is crucial moving forward and that encouraging people to relocate from dense
urban communities to less populated areas of the Commonwealth is something to explore given
the job demands in those areas.
Jay M. Atkinson asked for more details and expected outcomes from the proposed transformative
reforms at VEC and the Department of Labor. Commissioner Roth noted VEC's focus on

Page 8 of 10 Virginia Division of Legislative Services
reducing the number of unemployment insurance backlogs, implementing recommendations
from the Joint Legislative Audit and Review Commission and outside consultants, scaling up
successful ideas and programs, and empowering talent at VEC to propose creative solutions.
Delegate Kim A. Taylor wanted to know how VEC is holding job seekers accountable and how
government is ensuring that these individuals are actually following through on their job
searches. Commissioner Roth emphasized the importance of employers submitting reports on
offer refusals and VEC audits detailing specific data but that it remains a challenge.
Jorge Yinat wanted more information on how mass layoffs are defined and what the response to
them entails. Commissioner Roth noted that the response is dependent on the business and
industry involved but that there are triggers that require notice to VEC and they provide
assistance for both temporary and permanent layoffs. The best service is provided when there
exists open communication with VEC to address unemployment and reemployment issues.

 Legislative Priorities for the 2023 Session of the General Assembly
Penalties and Interest on License Taxes
Delegate Karen S. Greenhalgh expressed concern about a constituent who missed a BPOL tax
payment, thereby accumulating penalties and interest, but never received notice that the payment
was due. She noted that there exists no legal obligation for notice that penalty and interest is
accruing on a missed BPOL payment. Delegate Greenhalgh presented a bill draft to the
Commission that caps the maximum amount of penalties that may be assessed on unpaid license
taxes or tangible personal property taxes owed by a business at five percent of the amount due.
The bill provides the same cap for penalties assessed for failing to apply for a license or file a
return on time for such taxes. The bill requires the assessing official, upon assessing any such
penalty, to notify the affected taxpayer of the amount of such penalty, any interest assessed, and
the total amount of tax owed. The Commission adopted the proposal as its first recommendation.
Labor Force Workforce Development
Senator Bell raised a proposal outlined by the Secretary of Labor at the annual meeting of the
Senate Committee on Finance and Appropriations regarding reorganizing and streamlining work
force development and unemployment response efforts. Commissioner Roth said she
commended the effort because it would place all of the initiatives and efforts to address
unemployment in a single office that would centralize communication for Virginians and the
government agencies. The Commission adopted the proposal to streamline the actions
concerning the Department of Labor and employment seekers in concept as its second
recommendation.
Other Comments
Mr. Challa asked for an update from the administration regarding agencies failing to meet the 42
percent agency spending goal with respect to small businesses.
Mr. Atkinson highlighted the differences between responding to an RFP and when the award is
actually made with respect to small business spending goals. He found that there are no
enforcement mechanisms in place to ensure enough of the post-award contract goes to the small
business and also raised the possibility of increasing the small business set aside and amount
thresholds moving forward. He provided a document for the Commission's consideration
discussing structural impediments to small business success in Virginia.

Virginia Division of Legislative Services Page 9 of 10
Mr. Vogler noted the issues with establishing outdoor refreshment areas, and the Commission
members agreed that they expected some sort of legislation that would address those issues.
Senator Bell asked that the Commission members review and provide testimony on bills
affecting these matters when they come before committee.

 Public Comment
A citizen working with a moving company in Stafford found VEC's job-finding program and courses
to be very helpful. She noted that there are still issues with hiring employees and that many job
seekers are only looking for side gigs. She noted that Supplemental Nutrition Assistance Program
Education (SNAP-Ed) provides education and training opportunities that help people get into, stay,
and advance in the workforce.

 Next Meeting
The Commission agreed to hold its next meeting during the 2023 interim in Virginia Beach, but
no date was set.

Recommendations Adopted by the Commission
Recommendation 1: A bill to cap the maximum amount of penalties that may be assessed on
unpaid license taxes or tangible personal property taxes owed by a business at five percent of the
amount due. The bill provides the same cap for penalties assessed for failing to apply for a
license or file a return on time for such taxes. The bill requires the assessing official, upon
assessing any such penalty, to notify the affected taxpayer of the amount of such penalty, any
interest assessed, and the total amount of tax owed.
Recommendation 2 (adopted in concept): A bill to create and implement a Workforce
Development Optimization initiative proposed by the Secretary of Labor that would create a
single workforce ecosystem hub that streamlines and consolidates the capabilities of Virginia's
workforce development system through a workforce development and advancement department.

For more information, see the Commission's website or contact the Division of Legislative
Services:
Stephen Kindermann, Attorney, DLS Rebecca Schultz, Attorney, DLS
skindermann@dls.virginia.gov rschultz@dls.virginia.gov
804-698-1880 804-698-1863

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