California Governor signs AB 2019 on equity in contracting

CA News - Published Nov 09, 2022

Governor Gavin Newsom has signed AB 2019, a bill intended to provide small businesses in California with equity and opportunity in public contracting.

The bill's key components include: requiring the small business liasons at the state's various agencies to draft an "'economic equity first' action plan and policy" to strategize on maximizing small business utilization; requiring the Director of the Office of Small Business Advocate within the Governor's Office of Business and Economic Development to include descriptions of efforts made to support additional categories of small business in their annual report; requiring all applicable state agencies that enter into contracts to establish a participation goal of 25% for small businesses; requiring a new statewide disparity study to be published by January 1st, 2025; and simplifying the process by which a certified disadvantaged business enterprise (DBE) can be certified as a small business enterprise.

"These new laws build on our efforts to create a more inclusive economy with renewed opportunity for innovation and growth for the country's largest small business community," said Governor Newsom in a statement, referring to AB 2019 as well as a number of other business-related bills that were also signed.

Read the press release on the signing of AB 2019 and the other business-related bills from the Governor's office at https://www.gov.ca.gov/2022/09/29/new-support-for-small-businesses-and-entrepreneurs-coming-to-california/.

Find the text for AB 2019 at https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2019.