Government Building Columns

Equity in State Procurement
(AB 2019)

On February 14, 2022, Assemblymember Cottie Petrie-Norris and Assemblymember Chris Holden, reintroduced the bill Equity in State Procurement (AB 2019), formally known as Economic Equity First Act of 2021 (AB 915), which ended up in Senate Appropriations in 2021. The California Asian Pacific Chamber of Commerce is working closely with both Assemblymembers’ offices to develop this legislation, which increases access to procurement opportunities for small, minority and women-owned, and disabled veteran-owned businesses. The CalAsian Chamber is proud to be joined by the California Hispanic and African American Chambers of Commerce in co-sponsoring and supporting this landmark legislation.

BILL SUMMARY

AB 2019 will require all state agencies, departments, boards, and commissions to achieve a minimum goal of 25% for minority, small business, and disabled veteran business participation in state procurement and contracts. This is based on a recognition that small businesses make up 99.8% of all California businesses and contribute significantly to the economy, accounting for 7 million employees across the State. Of California’s 4.1 million small businesses, 1.2 million, or 29%, are minority owned.

Policy Alert: Onto the Senate!

  • As of July, we are excited to share that AB 2019 (Petrie-Norris) cleared its last policy hearing with a unanimous vote of 11-0.

  • AB 2019 is now headed to the State Senate Committee on Appropriations, which will most likely be held August 1, 2022.

  • Join the coalition to ensure AB 2019 makes it all the way to the Governor's Desk!

Why this is needed:

  • Of the state’s 231 agencies, only 12 have adopted a small business or disabled veterans business enterprise policy

  • California collectively purchases between $8 billion to $10 billion in goods and services annually. If 25% were set aside for small businesses, it would be a crucial revenue stream