Small Business Commission: Executive Summary of 2023 Interim Activity

Summary

Executive Summary of 2023 Interim Activity of the Virginia Small Business Commission, which states that the Commission met on November 14, 2023, with Delegate Christopher T. Head, co-chair, presiding. Carrie Roth, Director, Department of Workforce Development and Advancement, is reported as saying that small business applications have doubled in recent years as compared to corporate applications. The summary describes discussion of SB 1047 (McPike, 2023 Regular), a companion to HB 2363 (Maldonado, 2023 Regular), which seeks to include distributors in the Virginia Petroleum Products Franchise Act. It reports that Michael O'Connor of the Virginia Petroleum and Convenience Marketers Association spoke in opposition, and that Delegate Karen S. Greenhalgh suggested a study.

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Executive
Summary

Small Business Commission
Executive Summary of 2023 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 one meeting during the 2023
interim with Delegate Christopher T. Head, co-chair, presiding. Materials presented at the
meeting are accessible through the Commission's meetings webpage.
The Commission's meeting occurred on November 14, 2023. 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 T. Travis Hackworth Jay M. Atkinson
Senator Lynwood W. Lewis, Jr. Melissa A. Ball
Senator Frank M. Ruff, Jr. Harshad Barot
Delegate Kelly K. Convirs-Fowler Thomas Leonard
Delegate Karen S. Greenhalgh Giuseppe Lazone
Delegate Suhas Subramanyam Lee Vogler

November 14, 2023, Meeting
The Commission held its 2023 interim meeting in Richmond with Delegate Head presiding. The
meeting began with introductions and opening remarks followed by presentations and discussion.1

Updates from the Virginia Department of Workforce Development and Advancement
Carrie Roth, Director, Department of Workforce Development and Advancement
Director Roth gave a presentation on the economic landscape in Virginia and discussed the current
labor market and employment trends in the Commonwealth. She expressed that inflation remains
a problem for small businesses, resulting in owners having difficulty filling job openings. Director
Roth also stated that small business applications have doubled in recent years as compared to
corporate applications, which have remained largely the same. Director Roth briefly discussed
Virginia Works, the Commonwealth's workforce development agency, an organization that is
codified in the Code of Virginia but not yet funded in the budget.

1
Members Present: Delegate Christopher T. Head (co-chair), Senator T. Travis Hackworth, Delegate Karen S.
Greenhalgh, Delegate Thomas C. Wright, Jr., Jay M. Atkinson, Melissa A. Ball, Harshad Barot, Thomas Leonard,
Giuseppe Lazone, Lee Vogler.
Members Absent: Senator John J. Bell (co-chair), Senator Lynwood W. Lewis, Jr., Senator Frank M. Ruff, Jr.,
Delegate Kelly K. Convirs-Fowler, Delegate Suhas Subramanyam, Delegate Kim A. Taylor.
Delegate Head asked about the calculation of the labor force participation rate. Director Roth
explained that the unemployment rate is relative to those actively seeking a job, whereas the labor
force participation rate includes those not looking for a job.

SB 1047 (McPike, 2023 Regular)
Delegate Head presented background information on SB 1047 (McPike, 2023 Regular), which was
introduced during the 2023 Session and was a companion bill to HB 2363 (Maldonado, 2023
Regular). He requested that the Commission provide some comments on the bill without
submitting a formal recommendation. Delegate Head explained that originally the Virginia
Petroleum Products Franchise Act provided that oil refiners also owned gas stations and franchised
out to the individuals who ran the stores. If the refiner decided to sell out, the franchise owner
received a right of first refusal and such sale could not include a requirement that the franchise
owner continue to buy fuel from the refiner. Since that time, most refiners have left the business
and petroleum distributors have taken their place. This bill seeks to include distributors in the
Virginia Petroleum Products Franchise Act to the same degree as refiners.
Delegate Head stated that the bill met strong resistance from oil distributors. He expressed that
although the Commission is tasked with protecting and promoting small businesses such as the
franchisors, they also have a constitutional mandate to refrain from interfering with preexisting
contracts. The constitutional concerns arise as the bill would allow them to dispense with pre-
existing distribution agreements.
Michael O'Connor from the Virginia Petroleum and Convenience Marketers Association spoke in
opposition to the bill. He stated that if the bill passed in its present state, it would trigger a Code
provision that would nullify certain existing supply agreements, which would be a direct violation
of the Virginia Constitution, which forbids interference with contractual obligations.
Lee Vogler stated that he would not be in support of anything that would be detrimental to small
family-run businesses. Delegate Karen S. Greenhalgh suggested a study into this issue, as she
believes it is more complicated than can be addressed at a Commission meeting.

Elevating Virginia's Position as a Pioneering Hub for Small Business Development and
Innovation
Jay Atkinson discussed workforce development and how a lack of employees can encourage
innovation and automation. He asked what Virginia is doing to support small businesses that are
working in the space of innovation and automation. He expressed that he wants the next Amazon
not to only move to Virginia once it becomes established, but to start in Virginia.
Delegate Head asked what the Commonwealth is doing that gets in the way of workforce
development and what the Commonwealth can stop doing to help encourage workforce
development and innovation. Harshad Barot stated that it would be helpful to streamline the startup
process for businesses. Senator T. Travis Hackworth suggested traveling to other locations to learn
what others are doing and what can be applied in Virginia. Melissa Ball wanted to hear the thoughts
of the Department of Small Business and Supplier Diversity and the Virginia Small Business
Financing Authority on what methods and resources the Commonwealth already has and could
better utilize.

Page 2 of 3 Virginia Division of Legislative Services
For more information, see the Commission's website or contact the Division of Legislative
Services:
Ashley Binns, Senior Attorney, DLS Keelin Cronin, Attorney, DLS
abinns@dls.virginia.gov kcronin@dls.virginia.gov
804-698-1812 804-698-1832

Virginia Division of Legislative Services Page 3 of 3

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