TITLE 7. ECONOMIC DEVELOPMENT

DEPARTMENT OF SMALL BUSINESS AND SUPPLIER DIVERSITY

Fast-Track Regulation

Title of Regulation: 7VAC10-10. Public Participation Guidelines (repealing 7VAC10-10-10 through 7VAC10-10-130).

Statutory Authority: § 2.2-1606 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: November 18, 2026.

Effective Date: December 3, 2026.

Agency Contact: Verniece Love, Deputy Director, Department of Small Business and Supplier Diversity, 600 East Broad Street, Suite 300, Richmond, VA 23219, telephone (804) 786-3100, or email verniece.love@sbsd.virginia.gov.

Basis: Chapter 482 of the 2013 Acts of Assembly deems the Department of Small Business and Supplier Diversity (DSBSD) the successor in interest to the Department of Minority Business Enterprise (DMBE), which was abolished by the act, and states that rules and regulations adopted by the DMBE or the Director of the DMBE shall remain in full force and effect until altered, amended, or rescinded by the Director of the DSBSD.

Purpose: This action benefits the public welfare by ensuring that the Virginia Administrative Code does not refer to a regulation that belongs to an abolished agency, and by updating the public participation guidelines, the department ensures that its rulemaking encourages robust public scrutiny to identify health, safety, or welfare risks early.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial and therefore appropriate for the fast-track rulemaking process because the DMBE was abolished on January 1, 2014, and DSBSD, which is the successor in interest of DMBE, is simultaneously promulgating its own public participation guidelines.

Substance: The action repeals Public Participation Guidelines (7VAC10-10).

Issues: The primary advantage of this action is to eliminate a regulation that appears in the Virginia Administrative Code under a now-abolished agency. This benefits the agency and the public by ensuring the Virginia Administrative Code is up to date. There are no disadvantages to the agency or the public.

Department of Planning and Budget Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Director of the Department of Small Business and Supplier Diversity (DSBSD) proposes to repeal the Public Participation Guidelines (PPG) regulation of the Department of Minority Business Enterprise (DMBE).

Background. Chapter 482 of the 2013 Acts of Assembly abolishes DMBE and consolidated its powers and duties into the newly-created DSBSD.² The third enactment clause provides that DSBSD shall be the successor in interest to DMBE. Additionally, the sixth enactment clause says all rules and regulations adopted by the Director of the DMBE that are in effect as of July 1, 2013, and that pertain to the subject of this act shall remain in full force and effect until altered, amended, or rescinded by the Director of DSBSD. Since DMBE no longer exists, the Director of DSBSD is proposing to repeal the sole remaining DMBE regulation, Public Participation Guidelines (7VAC10-10). In a separate action, the director is proposing to promulgate a PPG regulation for DSBSD.³

Estimated Benefits and Costs. Repealing 7VAC10-10 would have no impact on requirements, but may nevertheless be beneficial by ensuring that the Virginia Administrative Code does not include a regulation for an abolished agency.

Businesses and Other Entities Affected. The proposed repeal may affect readers of regulations. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁴ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁵ Repealing 7VAC10-10 would neither increase net costs nor reduce net benefits. Thus, no adverse impact is indicated.

Small Businesses⁶ Affected.⁷ The proposed repeal does not adversely affect small businesses.

Localities⁸ Affected.⁹ The proposed repeal neither disproportionately affects particular localities nor affects costs for local governments.

Projected Impact on Employment. The proposed repeal does not affect employment.

Effects on the Use and Value of Private Property. The proposed repeal affects neither the use and value of private property nor real estate development costs.

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¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² See https://legacylis.virginia.gov/cgi-bin/legp604.exe?131+ful+CHAP0482.

³ See https://townhall.virginia.gov/L/ViewAction.cfm?actionid=6920.

⁴ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁵ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁶ Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁷ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁸ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁹ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Department of Small Business and Supplier Diversity concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The action repeals Public Participation Guidelines (7VAC10-10) as the Department of Minority Business Enterprise was abolished January 1, 2014.