COMMITTEE SUBSTITUTE
FOR
H. B. 4643
(By Delegates Webster, Spencer, Palumbo, Moore,
Marshall, Hatfield, Hutchins and Brown)
(Originating in the Committee on the Judiciary)
[February 25, 2008]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §5B-2-15, relating to
minority business development; requiring the West Virginia
Development Office to pursue the establishment of an office
within the West Virginia Development Office or the Department
of Commerce to promote and support the establishment and
growth of minority owned businesses in this state; setting
forth goals and objectives; and requiring a report to the West
Virginia Legislature.
Be it enacted by the Legislature of West Virginia:
That
the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §5B-2-15
, to read as
follows:
CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.
ARTICLE 2. WEST VIRGINIA DEVELOPMENT OFFICE.
§5B-2-15. Pursuing the establishment of the "West Virginia Minority
Business Office"; goals and objectives; and reporting requirement.
(a) The West Virginia Legislature finds:
(1) Small businesses are an essential part of West Virginia's
economy;
(2) Many barriers and obstacles exist to starting a small
business;
(3) Prospective small business owners often require access to
reliable and accurate information and advice pertaining to the
formation or expansion of a small business, to help them forecast
their business needs, develop sustainable business plans, seek and
obtain adequate financing, and mentor them as they face challenges
associated with a new or expanding business;
(4) The success of a small business is enhanced by the
improved access to reliable information and advice;
(5) In order to strengthen the economic growth of West
Virginia and to respond to changing jobs markets, West Virginia
seeks to attract new businesses and enterprises of all sizes into
this state, from a variety of fields;
(6) Several of the established and emerging businesses which
are currently located in this state or are interested in locating
to this state are seeking to partner or contract with businesses of
all types, including minority-owned and minority-operated
businesses;
(7) Minorities are presently underrepresented in the small
business community in West Virginia;
(8) There are extensive resources tailored to mentor and
support the development of minority-owned and -operated businesses
in other states which are not comparably available in West Virginia;
(9) While federal grant programs are presently available to
fund the establishment and maintenance of non-profit groups and
independent agencies focused on the offering of additional
training, mentoring, technical support and advice to businesses
owned by women, similar federal funding is not currently available
to support such entities for minority-owned businesses; and,
(10) The State of West Virginia as a whole would benefit from
the development of additional resources designed to promote the
establishment and support of a stronger and more successful
minority-owned business community.
(b) In light of the above, the West Virginia Legislature
hereby directs the West Virginia Development Office to study and
report on the need to establish a focused office, to be contained
within the West Virginia Development Office or the Division of
Commerce, for the primary purpose and objectives of promoting and
advancing the needs of minority businesses in this state.
(c) In conducting this preliminary study, the West Virginia
Development Office shall develop a program and recommendations as
to how the State of West Virginia can accomplish the following
goals and objectives:
(1) Promote, develop and advance the business prosperity and
economic welfare of the State of West Virginia and its citizens;
(2) Encourage and assist through loans, investments or other
business transactions in the locating of new minority-owned or
minority-operated business and industry within the State;
(3) Rehabilitate and assist existing minority-owned or
minority-operated business and industries;
(4)Stimulate and promote the expansion of all kinds of
minority-owned or minority-operated business and industrial
activity, which will in turn advance business and industrial
development and maintain the economic stability of the State;
(5) Identify businesses, resources and programs both inside
and outside of state government which are available to assist,
support and mentor the development and growth of minority-owned
businesses.
(6) Identify the sources of potential financing that are
available to support the establishment or expansion of minority-
owned businesses, both through traditional bank loans, mitigated
options through banks, federal or state guaranteed loan programs
through both in-state and out-of-state banking institutions, micro
loans programs offered through federal or state agencies, or other
available sources;
(7) Provide support and technical advice and assistance,
through the Department of Commerce's Small Business Division, to
existing and prospective small minority business owners, with
respect to the preparation and submission of applications for
financing by persons seeking to establish or expand a minority-
owned business in this state;
(8) Promote and seek the establishment of a minority business
council in this state, either as a stand-alone facility, or by
partnership with an existing minority business council located in a neighboring state, to help identify West Virginia minority-owned
businesses and to establish additional mentoring and support
opportunities for minority-owned business owners in this state;
and,
(9) Improve coordination between banks, agencies and existing
programs and resources that are available to prepare and process
loans for necessary infrastructure, equipment, working capital
requirements and other financial needs of new or expanding
minority-owned businesses.
(d) On or before the fifteenth day of January, two thousand
nine, the West Virginia Development Office shall submit a report to
the Legislature's Joint Committee on Government and Finance
regarding the progress which has been made to establish, promote or
expand minority-owned businesses in the state. As a part of that
report, the Development Office shall identify the resources that
presently exist in the West Virginia to promote and support the
growth and development of minority-owned business, and recommend
identify or propose additional programs or resources that are
needed to further their development. As a part of that report, the
West Virginia Development Office shall recommend how the goals and
objectives set forth above can best be satisfied, and make
recommendations as to how the efforts to provide minority business
support can be better coordinated and centralized. Finally, the
West Virginia Development Office shall identify the additional
resources that are required to fully develop a centralized office
and comprehensive program that is primarily or exclusively dedicated to the promotion and development of minority business
ownership in this state.