L.A. AREA CHAMBER AND STATE LEGISLATORS SPONSOR AB 1864 AND BUDGET REQUEST

by L.A. Area Chamber

SACRAMENTO, CA – April 19, 2021 – The Los Angeles Area Chamber of Commerce announced its sponsorship of AB 1864 (Gipson) in a press conference today in California State Capitol in Sacramento. Chamber President and CEO Maria S. Salinas also announced the Chamber’s support for a one-time $10 million appropriation in the 2022-23 budget to ensure equitable contracting opportunities are available for the L.A. region ahead of the 2028 Olympic and Paralympic Games and World Cup.

“It was a pleasure to be joined by so many from the L.A. delegation of the State Assembly to sponsor AB 1864, to incentivize businesses to hire locally, and a $10 million budget request to help small, women owned, and minority owned businesses in the L.A. region,” said Chamber President and CEO Maria S. Salinas.

“Providing more local employment opportunities, assisting local governments in retaining critical revenue, and providing a solution to address issues related to high commuting is crucial as we grow a regional economy equitably. In the Los Angeles area, 93% of all businesses have fewer than 20 employees, making small business the backbone of our economy. This bill and the budget request to help small businesses take advantage of forthcoming contracting opportunities will further ensure that the L.A. community will thrive, especially as global events like the Olympic and Paralympic Games and the World Cup approach.” Salinas concluded.

“It’s widely known that low-income communities of color have been hit the hardest during the pandemic,” said Assemblymember Mike Gipson (D-Carson). “These are the same communities that, due to limited employment opportunities, have historically struggled with job scarcity. And, as a result, they are among commuter regions with high transportation costs and pollution issues, reducing their quality of life and furthering health and economic disparities. All the while, California hopes to accelerate its push toward meeting its zero-emissions goals to curb negative environmental impacts in a timely manner. Our communities need innovative ways to address these issues comprehensively.

“Simply stated, we need tangible solutions to provide job opportunities for residents in our most disadvantaged and under-resourced communities and, while doing so, incentivize and help the local business entities who may employ them. Small businesses are a critical part of the American fabric and provide an access point for many to learn and exercise entrepreneurship, with the onlook of building generational wealth. These are entities that make up nearly 95 percent of all businesses in California, contribute a great deal of tax dollars to local governments, provide long-term benefits for a variety of populations, and those of which employ approximately one-third of California’s workers. AB1864 seeks to seeks to incentivize small businesses to hire locally and help our communities heaviest hit by the pandemic with more near-region employment opportunities, assist local governments in retaining critical revenue, and provide a solution to address issues related to high commuting.”

“Our communities are struggling, and strengthening our local job market with good-paying jobs helps everyone. As a former council member, I know giving small businesses, especially minority and women-owned, contract expertise and encouraging local hires will lead to greater opportunities. This will allow our residents to work closer to home, ease childcare issues, and remove other obstacles to work. This is the right time to invest in the future of our communities.” – Senator Susan Rubio (D-Baldwin Park).

“Microenterprises, small, women and minority owned businesses are an important part of our economy in the Los Angeles region, an ultimately our state, through the jobs and economic activity they generate,” said Assemblymember Wendy Carrillo (D- Los Angeles). “As California makes investments and promotes strong COVID-19 economic recovery efforts, it is important to invest in microenterprises that reflect the diversity of our state by supporting efforts that prepare them for procurement and contracting opportunities when they arise.” – Assemblymember Wendy Carrillo (AD-51).

“The economic recovery from COVID-19 continues today. But just as the impacts of the pandemic have been felt across the State in different ways, so too the dynamic and accelerating recovery has proceeded at different rates for different groups of Californians. One group that has been particularly hard hit is transition age foster youth – young people between the ages of 14 and 26 who are in or leaving foster care,” said Assemblymember Isaac Bryan (AD-54).

“These young people faced a shocking and unprecedented drop in workforce participation – nearly 65% lost their jobs over the past two years, and of those who were able to apply for unemployment, more than half never received any benefits. As businesses recover and the labor market stabilizes, California is rightly focusing on policies that reduce barriers to economic participation, promote well-paying jobs, and eliminate the cycles of poverty uniquely affecting marginalized workers, particularly foster youth.

“Within four years of aging out of the system, 70% will be on some form of government assistance, 25% will not have a high school diploma, and less than 12% will ever earn a college degree. Within four years, only 50% have found work, and those who do make an average of $7,500 a year. This bill will create economic opportunities that prioritize foster youth – and help business es make the choice to hire these promising and capable young people. We can help California deliver a new social compact for foster youth based on a vision of economic equity that starts with a well-paying stable job,” Assemblymember Bryan concluded.

”As we put the worst of the pandemic behind us, ongoing support for small businesses means putting money in the pockets of hard working people," said Los Angeles City Councilmember Mitch O'Farrell. "I'm pleased to see our leaders in Sacramento answering this call and giving workers the boost they need while building an economy that prioritizes equity, local hiring and greater opportunity."

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