Lief's Law

Joshua N. Lief



A Change Long Overdue

 

It's time to end the throwback to the doctrine of "separate but equal," the perpetuation of one small-business program for women and minorities and one for everyone else.


 

The boundaries between state governmental agencies and secretariats seems to be a constant source of debate and controversy in the Virginia General Assembly. Each year we see various proposals to reorganize state government. Last year, it was a massive reorganization of the information technology functions into the new Virginia Information Technologies Agency (VITA). This year, there is a final push to create a new Secretary of Agriculture and Forestry out of agencies currently within the Secretariat of Commerce and Trade.

 

Also pending this year is language in the House and Senate budgets that would merge the Department of Minority Business Enterprise (DMBE) into the Department of Business Assistance (DBA). There is a cost saving associated with consolidation, which is important but not the real reason for making the move. At issue is whether we are going to have two different small-business agencies organized around what should be utterly irrelevant business criteria -- the ethnicity or skin color of the proprietor.

 

Since Brown v. Board of Education, the doctrine of “separate but equal” schools has correctly been discarded in favor of a legal premise of absolute equality. Since the Civil Rights laws were adopted in 1964, the principals in Brown have been expanded to guaranty inclusion to all Americans to all public activities (and by now hopefully most private activities) regardless of race, religion, gender or national origin. Certainly, those legal principles are still violated by ignorant, wrong-thinking individuals, and the goals of the civil rights movement have not yet been completely obtained. 

 

However, for the Commonwealth to maintain an agency solely devoted to minority business is wrong. The reason is not that minority businesses shouldn’t get assistance. I would argue that disadvantaged businesses – which would include businesses owned by certain minority, women or economically disadvantaged individuals -- should get extra government help. There is a positive return on the state’s investment when those businesses can create jobs, and there is a moral benefit in assisting people to reach their maximum economic potential. But sending those businesses to a different agency rather than the mainstream small business agency is at odds with the principals of integration and equality. In fact, because DMBE is resource-starved, it is not even akin to separate but equal but instead is separate and deficient.

 

This is not putting down what DMBE currently does either. As deputy and then secretary of Commerce and Trade, I oversaw DBA and DMBE for four years. The staff at DMBE does a good job with the resources it has. However, separating the agency from DBA, the mainstream small-business and financing agency, inevitably causes breakdowns in communication and duplication of effort. DBA has a much bigger staff, greater resources, a wider range of programs and greater expertise. DBA works much more closely with the Virginia Economic Development Partnership, another important agency for business growth. DBA also controls the important workforce training program that countless businesses use to train workers to grow their businesses.

 

DMBE certifies minority businesses and maintains a list of those businesses, manages an outreach program, assists those businesses with VDOT work and has an access to capital program. Each of these functions would be handled better in an integrated agency combining DMBE and DBA resources.

DBA is the Commonwealth’s small business agency. A minority- and women-owned business should not have to choose between the two when seeking business assistance. I recall seeing first-hand how businesses would be bounced back and forth between the two agencies with inevitable frustration and delay. By merging DMBE into DBA, the Commonwealth would have one agency strongly committed to assisting all businesses. The functions of DMBE would continue, but as an integral part of the Commonwealth’s overall economic development efforts. That would be a good thing.

 

-- March 1, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joshua N. Lief is an attorney at Sands Anderson Marks & Miller in Richmond who specializes in Business and Government Affairs. He is a former Deputy and Secretary of Commerce and Trade during the Gilmore Administration. He can be reached by e-mail at jlief@sandsanderson.com