Governor Considering Legislation Which Could Lead to Higher Prices and Job Losses

by Maria S. Salinas

With the California State Legislature ending its legislative session two weeks ago, many bills were sent to Governor Newsom’s desk where they await to either be turned into law or vetoed. Two of those bills, called AB 701 and SB 62 respectively, could unfortunately create more problems than they solve.

AB 701 will hurt warehouse distribution centers, impacting small businesses and consumers, and ultimately damaging supply chains that deliver our food and everyday household items. Central to our economic recovery are the thousands of warehouses in California that are essential to our supply chain and job market, and although unseen by most consumers, these warehouses and their employees are crucial to our lives. While well-intentioned, this bill could have far-reaching and unintended consequences on the livelihoods of the community at large.

SB 62 expands the definition of “brand guarantor” for businesses in the garment industry, which is a fancy way of saying that these businesses liability will be spread too far, too wide, and too thin. As we learned during the pandemic, it’s vital that we keep our businesses functioning and our communities working, and this bill could create higher prices and induce job losses in every business which interacts with the garment industry.

The pandemic affected the small business community the most — especially women and minority-owned businesses, of which the L.A. region is home to the highest concentration in the nation. They will find it more difficult to keep up with the rising costs, delays, and other obstacles that will be created if these bills become laws, and it could force them to make sacrifices or close completely.

Lend your voice to keeping California competitive, contact Governor Gavin Newsom and urge him to VETO AB 701 and SB 62.