AB 366 Destroying Small Business Opportunities
Proposition 209 has had a devastating impact on minority communities across California. A new bill being led by recently elected Assemblymember Chris Holden AB 366, is on a path to destroy small business opportunities in California.
AB 366 modifies the definitions for minority owned business, women owned business, and disabled veteran owned business enterprise (DVBE) to encourage contracting with publicly held companies.
Simply stated, firms no longer have to be 51% minority, woman or service disabled veteran owned to qualify under G0-156 contracting goals. Large corporations who are publicly owned can appoint to their board of directors and hire minorities, women and service disabled veterans to qualify. Ownership is no longer a criteria for inclusion.
The unfortunate truth is that AB 366 is being covertly driven by a black man taking actions without regard to the long-term negative impacts to black businesses that will be displaced, which is abhorrent. As an elected leader we expect to see support of small business and not the decimation of service disabled veteran, minority and woman owned firms.
Southern California Edison continues to support small business inclusion and has opposed the bill based on the understanding that it supports the success of large firms rather than focusing on supporting small firms.
The Black Economic Council is working closely with the Greenlining Institute to oppose this bill as it will undermine General Order 156 by redefining minority, women and disabled veteran owned businesses enterprises to include publicly traded companies that are NOT owned 51% by these groups.
This bill directly impacts employment in our underserved communities as small businesses create the majority of jobs in our country. Small business firms will receive fewer opportunities once publicly traded companies, who are not truly majority owned by diverse members, are given status to compete against small businesses head to head.
We must not allow AB 366 to pass, please write and call your State Senator and contact Assemblymember Holden directly to make them all aware that the citizens of California do NOT support this bill.