Equity in State Procurement: AB 2019
Increase access to procurement opportunities for small, minority, women-owned, and disabled veteran-owned businesses.
About
On September 29, 2022, our co-sponsored bill, Equity in State Procurement (Assembly Bill 2019) was signed by Governor Gavin Newsom. The bill was co-authored by Assemblymember Cottie Petrie-Norris and Assemblymember Chris Holden, and co-sponsored by the California Asian Pacific, African American, and Hispanic Chambers of Commerce. Equity in State Procurement (AB 2019) was formally known as Economic Equity First Act of 2021 (AB 915), which ended up in Senate Appropriations in 2021. The signing of AB 2019 marks a huge success for California by increasing access to procurement opportunities for small, minority and women-owned, and disabled veteran-owned businesses.
The CalAsian Chamber celebrates this huge victory for small and minority-owned businesses; however, the work doesn’t stop here. The Chamber will continue to work with key policy players, such as Assemblymember Petrie-Norris, and other State agencies and small business advocates, to ensure their is accountability within the Legislature in meeting all the bill’s requirements and intentions.
Bill Summary
AB 2019 requires 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.
Stay in-the-know
Subscribe to our newsletter
Receive monthly updates about our bills and legislative priorities.
Resources
Read the Full Bill
View the full bill and status.
View the Announcement
Read the Governor’s announcement.
Learn More
Read more on our blog.
Assemblymember David Chiu announces the “Economic Equity First” Bill (AB 915)
“We’re trying to make California live up to its promise of supporting small and diverse businesses. The state has enormous purchasing power and we can use that to help small businesses.”
News
Related information and latest news regarding this initiative.
What AB 2019 Will Do
- Codify the goal of 25% of State procurement to be directed toward small business.
- Fast-track small business certification for covered communities.
- Create an education and outreach plan to keep small businesses updated and establish accountability with State agencies
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
Related Media
CalMatters
California lawmakers must commit to small, minority-owned business.
Press Release
Councilmember Raul A. Campillo Hosts Press Conference Alongside CalAsian Chamber of Commerce, Asian Business Association, Minority Owned Business Owners to Announce Support for AB 915 – The Economic Equality First Act
SF Chronicle
New bill would require California agencies to award 25% of state contracts to small business
MSN
Bill would require CA agencies award 25% of contracts to small businesses
SacObserver
California Bill Would Require State to Contract More With Black-Owned Businesses
Telemundo Area De La Bahia 48
Proyecto de ley brindaría alivio económico a pequeñas empresas en California
Be The First to Know
Stay up-to-date on California legislation, chamber advocacy efforts, and learn how to get engaged.
