Seal of the Governor
For Immediate Release: May 3, 2019
Contacts: Office of the Governor: Alena Yarmosky, Alena.Yarmosky@governor.virginia.gov

Governor Northam Vetoes Legislation Creating Extra Restrictions on Certain Small Businesses

RICHMOND—Governor Ralph Northam today vetoed House Bill 2328, which would create extra restrictions on certain small businesses that are not placed on any other group of small businesses, nor large businesses, and would negatively impact small businesses that compete for state contracts.

The Governor’s full veto statement is below.

May 3, 2019

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto House Bill 2328. House Bill 2328 would prohibit a small business from subcontracting with any other affiliated business if the small business was awarded a contract as part of the micro business program or remedial measure authorized by the Governor and if the award is conditioned on the small business’s qualification as part of a subcategory of small business.

This legislation creates extra restrictions on certain small businesses that are not placed on any other group of small businesses, nor large businesses, and would negatively impact small business that compete for state contracts. While there is a need to enable small businesses to fairly compete for state contracts, this legislation does not accomplish that objective. Therefore, I direct the Department of General Services and the Department of Small Business and Supplier Diversity to study and develop recommendations to address this issue to ensure that small businesses are able to fairly compete for government contracts.

Accordingly, I veto this bill.

Sincerely,

 

Ralph S. Northam

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