HB 2366

Bill Subjects

Administration Of Government Study Commissions, Committees And Reports Trade And Commerce

Abstract

Changes the definition of small business, beginning July 1, 2019, to mean a business that (i) is not dominant in its field of operation, as determined by the Department of Small Business and Supplier Diversity (the Department); (ii) is at least 51 percent independently owned and operated by one or more individuals who are U.S. citizens or legal resident aliens; and (iii) together with affiliates, has 250 or fewer employees and average annual gross receipts, excluding the cost of goods and equipment, of $10 million or less averaged over the previous three years. Under current law, a business must be independently owned and controlled by one or more individuals who are U.S. citizens or legal resident aliens and, together with affiliates, have 250 or fewer employees or annual gross receipts of $10 million or less averaged over the previous three years. The bill provides that any business entity that the Department has certified as a small business prior to July 1, 2019, shall have the expiration date of such certification extended for an additional one-year period, after such time the business shall be required to meet the requirements for certification in effect at that time. The bill also provides that the Director of the Department shall annually review forms and processes related to small business certification to reduce the administrative and paperwork burden on small businesses seeking certification and recertification. The bill (a) includes a definition of "field of operation"; (b) requires the Secretary of Commerce and Trade to evaluate the small business certification program at three-year intervals, reporting to the Governor and General Assembly by December 1, 2022, and December 1, 2025; and (c) directs the Department to establish an educational outreach initiative to inform and prepare businesses for the changes in the small business certification program.