SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

1995 SESSION

LD7748812
HOUSE JOINT RESOLUTION NO. 591
Offered January 23, 1995
Establishing a joint subcommittee to study capital access and business financing.
----------

Patrons--Cantor, Albo, Callahan, Forbes, Harris, Howell, Kilgore, May, Morgan, Nixon, Purkey, Reid and Sherwood; Senators: Calhoun and Robb
----------
Referred to Committee on Rules
----------

WHEREAS, the primary challenge encountered by many businesses, particularly small and minority-owned businesses, is the inability to secure sufficient financing for new or expanding operations; and

WHEREAS, the continued growth of jobs and incomes in Virginia will depend heavily on facilitating the creation and expansion of these businesses; and

WHEREAS, availability of capital at all stages of business development has been identified as one of the most pressing issues facing businesses in the Commonwealth; and

WHEREAS, state and local governments have created lending authorities and other organizations to address some business financing needs; and

WHEREAS, “Opportunity Virginia: A Strategic Plan for Jobs and Prosperity” and other studies addressing economic development have indicated that these programs are limited in scope and may not sufficiently meet the needs of the Commonwealth to spur the creation and growth of new enterprises; and

WHEREAS, governments cannot and should not replace the private sector as the primary source of financing for business; and

WHEREAS, Virginia lacks a coordinated strategy for attracting privately managed investment and working capital to the Commonwealth; and

WHEREAS, some states have implemented initiatives to increase the accessibility of business financing and to attract investment capital; and

WHEREAS, the availability of investment and working capital is essential to economic development and job creation efforts; now, therefore, be it

RESOLVED by the House of Delegates, the Senate concurring, That a joint subcommittee be established to study capital access and business financing issues. The joint subcommittee shall conduct a comprehensive study and examine the following: (i) various new initiatives and existing state programs which increase the accessibility of private financing for business development and attract investment and working capital to the Commonwealth in order to support economic development efforts; and (ii) the appropriate role of the state in facilitating business financing.

The joint subcommittee shall be composed of 13 members as follows: three members of the House of Delegates to be appointed by the Speaker of the House; two members of the Senate to be appointed by the Senate Committee on Privileges and Elections; the Secretary of Commerce and Trade; the Secretary of Finance; and six members appointed by the Governor representing private business and financial institutions in the Commonwealth.

The Department of Economic Development will provide staff support to the subcommittee. All agencies of the Commonwealth shall, upon request, assist the subcommittee in conducting this study.

The direct cost of this study shall not exceed $6,000.

The joint subcommittee shall complete its work in time to submit its findings and recommendations to the Governor and the 1996 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Services for the processing of legislative documents.

Implementation of this resolution is subject to subsequent approval and certification by the Joint Rules Committee. The Committee may withhold expenditures or delay the period for the conduct of the study.