Assembly Standing Committee on Jobs, Economic Development, and the Economy

Good morning, everyone. Welcome to this morning's Assembly JEDE Committee hearing. To ensure Members of the media and the public have access to our proceedings today.

This hearing will be streamed on the Assembly website and Members of the public can provide testimony in person in room 127. All witness testimonies will be in person. There will be no phone testimony option for this hearing. If any Members of the public in this room would like to testify on a Bill, I will ask you to approach the microphone at the appropriate time to preserve the safety of everyone here and ensure the public access to the discussions. Please follow the directions of our sergeants.

Before we begin, I would like to welcome. They're not here, but I still want to welcome the Assembly of Mercuria, their new Members and Stephanie Nguyen. We'll be happy that have just joined Jedi Committee. Today we have 14 bills, one resolution on the agenda. The following six bills and one resolutions are on consent. File item number nine. AB 2163 Gallagher. File item number 10. AB 2262 Reyes, file item number 11. AB 2559 petri Norris. File item number 12.

AB 2832 Ward, file item number 13. AB 2993 Alvarez 996. Sorry. And file item number 14. AB 3033 Gibson, and file item 15, SCR 96. We will allow two primary witness here in the room today to speak for two minutes per side. An additional witness will be limited to their name, organization they represent and position on the Bill. We're going to start beginning today as a as a Subcommitee and with that secretary.

[Roll Call]

Okay, moving on to agenda number one. We have AB 2030. Davies, Miss Davies, when you're ready.

Okay. Good morning. Thank you, Mister Chair Members. Today I'm here to present AB 2030. I first want to thank Committee Staff for working with my staff and stakeholders on this measure. Current law requires certain state agencies bids for contracts under 250,000 to outreach to certain types of businesses for bids.

However, current law does not specify what types of businesses they must outreach to AB 2030 is a common sense measure to ensure that when a state agency is procuring a bid for a contract, that they must outreach to women, LGBT, or minority owned enterprises. Members, I want to specify that this Bill does not in any way, shape or form require an agency to choose one of these businesses. All the measure does is authorize an agency to accept and procure bids from these types of businesses.

According to the United States Census, California's 149,000 women owned firms employed over 1.3 million workers, with 57.4 billion in annual payroll in 2018. Furthermore, of the over 4 million small businesses in California, the UCLA Latino Policy Institute estimates that 46% of these businesses are operated by ethnic minority owners. Members, If we want California to be the state where everyone has a chance to succeed, we need to ensure everyone has a seat at the table.

AB 2030 is sponsored by the Hispanic Chamber of Commerce and has support from the Asian Pacific Chamber, the African American Chamber, and the small business majority, as well as the National Association of Women's Business Owners. With me here today on behalf of the sponsor is Yolanda Benson and Lori Kammerer from the National Association of Women's Business Owners. I respectfully ask for an aye vote.

Good morning, Chair and Members Yolanda Benson, representing the California Hispanic Chambers of Commerce. We obviously represent the 800 plus thousand Latino owned businesses in California. Many of those are Latina owned, many of those are also Latino owned. But we are a growing sector of small business in California. Entrepreneurship is very strong in our community. We feel that this Bill just gives parity to the 25% of small businesses needing to participate in state government contracts.

So we feel like this is just a loophole, that when you're reaching out to contact small businesses, that you make it a priority to also reach out to minority-owned, minority-owned women business-owned enterprises. And we appreciate the author for bringing this Bill forward and we ask for your aye vote.

Good morning, Chair and Members Lori Kammerer with the National Association of Women Business Owners California Chapter, whose members are at least 1.4 million women small business owners who, as assemblymember Davies said, provides billions of dollars into our economy. This is a priority issue for Navajo California, enabling women business owners to secure these contracts. And so we respectfully urge your aye vote. Thank you.

Any others in support?

Good morning, Chair and Members, Maria Morales, on behalf of Hispanas Organized for Political Equality here with a supportive amended position. Looking forward to working with the author on the definition of diverse small businesses. Thank you.

Let's see none. Any opposition? I see none. So we'll bring it back. We don't have a quorum right now, Miss Davies, so we'll be bringing it back. But I just. I do want to say that I want to thank you for bringing up this Bill.

It increases public contacts and opportunities for small businesses. So we'll leave it open for now. Okay, thank you very much. Oh, I'm sorry. Any, any comments from my colleagues today? No. None. Say none. Thank you. Okay. Yeah, yeah. Okay. Moving on to agenda number two. AB 2448, Jackson Assembly Member, when you're ready.

Thank you very much, Mister chair. I would like to thank the Committee for the Great collaboration with my staff on this measure. Today I'm here to present AB 2448 a Bill to establish what we call an electric vehicle economic opportunity zone. The primary goal of this Bill is to create pro programs within these zones to enhance accessibility to electric vehicle manufacturing jobs and education, particularly focusing on lower income communities.

AB 2448 seeks to empower the California competes tax credit Committee to forge partnerships with educational institutions, electric vehicle manufacturing businesses, and financial institutions. We know that we are going to be investing millions and millions, even billions of dollars in EV infrastructure, EV manufacturing and other incentives, and we want to make sure that all communities can benefit from these investments and the economic engine that they will produce. I respectfully ask for an aye vote.

We'll start with the anyone in support?

David Quintana with Karma Automotive. We operate a manufacturing facility in Moreno Valley, an EV manufacturing facility, and we can't thank the author enough for bringing this Bill forward.

Any others? I see none. Any opposition? I see none. Let's bring this back to our Committee. Any questions here? I see none. Well, we'll have your Bill on call. Thank you. Moving to agenda item number three. AB 2543 Arambula, you can start.

Thank you, Mister chair.

All small business owners should have the same access and opportunity in California's economy when small business thrives in California California thrives Assembly Bill 2543 ensures that eligible small business owners, including DACA entrepreneurs, are able to register their businesses with a certified small business with the state, regardless of immigration status. In recognition of the importance of small businesses, California established the Small Business Certified Program.

A small business that is certified under this program is eligible for a number of benefits such as bidding preferences, prompt payment of state contracts, and as small business qualifiers for prime contractors are required to subcontract with specified percentage of small businesses. Despite their importance to the local communities and their economic contribution to the state, many small businesses are unable to access these benefits for the small business certification program. These businesses offer the same products and services as other certified businesses.

However, some small business owners may not have proof of lawful status in this country, even when the Federal Government has issued them an employer identification number. This prevents them from accessing the benefits of small business certification and restricts their ability to expand and to continue to help the state's economy grow. Assembly Bill 2543 simply states that eligible small businesses may be certified regardless of their citizenship or immigration status of its owner. Federal and state law already authorized these business owners to be in business.

It is time for us to ensure that these business owners can thrive in business. Testifying in support of Assembly Bill 2543 is Luis Perez with Immigrants Rising and Jeanette Esparza with Entrepreneur.

Good morning everyone. My name is Luis Perez. I'm here to express our wholehearted support for AB 2543 as a technology leader for immigrant trends. We've been working very closely, specifically with the entrepreneurship population that happens to be undocumented. We have since 2006, and we firmly believe that regardless of any immigration status, everyone has the potential to thrive through entrepreneurship, especially those high school, new college aged individuals that don't even have access to DACA.

Our research has underscored that it is one of the few options that a lot of these individuals will have, and we have worked tirelessly for the past few years on career creating education, creating curriculum so that these entrepreneurs are educated and are able to perform to what they need. So we do firmly believe that AB 2543 aligns with the missions and our values by expanding business opportunities for these individuals we support.

The Bill will not only foster economic growth, but also will promote inclusivity and equity within our state. So I look very much forward to seeing this pass and hopefully our communities and every community can be able to contribute to California.

Good morning. My name is Janet Esparza and I'm here today to advocate for the passing of AB 2543. I am the proud owner of residential cleaning business which I established two years ago. Through dedication, my business has flourished, now serving a total of 60 regular clients and accommodating up to 70 clients monthly. The success has empowered me to provide for my family and contribute to my community. During the pandemic, I found myself laid off from a stable job after dedicating 13 years of my life.

That didn't stop me, I seized the opportunity and started my business. The seed grant provided me by immigrants. Raising was an instrument in helping me with the necessary resources and knowledge to navigate to difficulties of starting a business. With new skills in business management, I transformed my business into thriving source of income for my family and myself. Today, I provide employment opportunities to others with my community. I also actively engage in expanding my business operation to include commercial cleaning services.

I'm excited to offer my services to government agencies. This helps create partnership that benefits everyone and make our society better. AB 2543 is not just a Bill, it's a pathway to inclusivity and economic empowerment for individuals like myself who may be undercommitted.

By granting this access to state certification for all deserving entrepreneurs, regardless of immigration status, this Bill levels the playing field and opens doors to the opportunity. In conclusion, I urge you to support AB 2543. It will help people like me to thrive and ensure we contribute to California prosperity. Thank you for your attention.

Consider thank you. Any others in the room in support? I see none. Any in opposition? None. I'll bring it back to the Members. Just want to thank you for bringing the Bill. I think it's. It makes a lot of sense and look forward to supporting you today. Thank you. With that, Assemblymember Arambula, would you like to close? Absolutely. I also want to thank Assemblymember Arambula for expanding this Bill to include supporters for undocumented persons who already contribute to California economy and tax base. Thank you.

Okay, we're gonna skip and move down to item number 8 AB 3236, Hoover. Mister Hoover, when you're ready.

The opportunity to present AB 3236. This Bill will expand the streamlined contracting process known as the small business and disabled veteran business enterprise option, or SBDVBE option by increasing the maximum contract amount from $250,000 to $500,000.

This streamlined procurement contracting process is an effective tool for increasing participation rates in state contracts, and increasing in the maximum contract amount would offer small businesses more opportunities to compete for and secure state contracts. This expansion could lead to increased revenue and business growth, in doing so, contributing to economic development and job creation within our communities.

The last maximum adjustment was in 2009, and with the rising cost of business in California over the past 15 years, the spill will ensure that small businesses can remain competitive and viable in the state procurement market. With me today is one of my constituents, Carl Neithart, founder and President of Carl and Tech LLC, a veteran and minority small business. Sorry.

Almost all of the work that we've done with state agencies has been under the SB DVB option, which allows my small company to compete with much larger firms. As noted, that $250,000 limit, though, was set in 2009, and 250k doesn't buy as much today today as it did 15 years ago. And I am seeing procurements that are getting outside of that range where it's much more difficult for me to compete.

I appreciate that California does a lot of things to support small business, and I understand we're in a budget crunch right now. And so rather than ask for a program that appropriates money, I simply ask that for money you're already going to spend anyway for procurements of 500k or less, try to do it with small business first, just as you do today with procurements of $250,000 or less. This would mean a lot to us small businesses. I appreciate the opportunity to speak today.

Thank you very much.

Any others in support? I see none. Any in the opposition?

Good morning, Members. My name is Phil Vermeulen. I represent the Coalition of Small and Disabled Veteran Businesses. I've been a Member of the Department of General Services Small Business Advisory task force for the last 12 years, intimately involved with this subject. We've killed this Bill practically at least four different times over the last decade. There's so many problems with it. If there was additional work that was going to be generated for my Members, we'd be here singing the highest praise for the Bill.

There's a problem with it. We're going to raise the limit per this Bill from $250 to $500,000. I want you to understand a bureaucrat over in the Department of General Services makes two phone calls. That's all he's going to do is make two phone calls to his brother in law, his next door neighbor, his best friend, whomever, and say, by the way, we've got this $500,000, half $1.0 million contract with no oversight whatsoever.

Furthermore, all of a sudden now you're going to have bureaucrats putting together contracts. They're going to be $500,000 or more. Another very important point I want you to remember, when they make that two calls, that vendor has to have that product available. My Members serve the prisons of California extensively with all the foods from box lunches, you name it. That means then that they would have to have a half $1.0 million worth of whatever that product is that they're looking for in stock.

How many small businesses have a half $1.0 million worth of a product on hand? Well, all you're doing is creating more problems. That's why we've killed this Bill so many times in the past, and I urge you today to kill this Bill. If it was a good Bill, we'd be here in support again. All of my Members are all small businesses and disabled veterans. Thank you very much.

Any others in opposition? I see none. Assemblymember Hoover. Would you like to close?

Certainly appreciate the concerns raised by the opposition. We are more than willing to continue working on this Bill with them to help remove that. I would say that given the fact that this has not been adjusted since 2009, there have been significant cost increases and these procurement contracts have gone up, and so certainly do believe that there is an adjustment needed. But we'll continue to work with their concerns as well. Would respectfully ask for an vote.

With that I bring it back to Committee.

Just comments from the comments of opposition. You're willing to continue to work with them?

Absolutely.

Before this Bill gets to its next Committee or to the floor?

Sure. Yeah, absolutely. Yeah. We'll definitely continue to see if there's maybe a level that is comfortable with the opposition. I do think an adjustment is needed. So I think the question is, what's the right amount?

Any others? I see none. Do we have a motion? I'm sorry. Excuse me, Assemblymembers. Let's take a quick pause to establish quorum. Secretary, please call roll.

[Roll Call]. We have quorum.

Do we have a motion? There's a motion by Assemblymember Nguyen. Second by Ramos. We have. What is it?

Okay, now that we have quorum, we'll go ahead and take a vote count. We'll do the consent calendar first. File, item number nine. AB 2163. File item Gallagher. File item number 10. AB 2262. Reyes file, item number 11. AB 559. Petrie-Norris. File item number 12. AB 2832. Ward. File item number 13. AB 2996. Alvarez. File item number 14. AB 3033. Gipson. File item number 15. SCR. Dodd.

Motion and a second. Motion passed. Due pass to appropriations. The second was, second by Ramos. Thank you. Due pass appropriations. Thank you.

[Roll Call]

Thank you, sundial Member Grayson. You may start.

Good morning, Mister Chair and Members. AB 2774 establishes the child care for working families task force. It requires the task force to submit a report that recommends future comprehensive strategies aimed at addressing challenges that are faced by working families in accessing flexible, affordable, and quality childcare options. Affordable childcare is unfortunately out of reach for many Californians.

In fact, California was ranked the least affordable state for center based infant care in the nation, and just 14% of the state's eligible infants and toddlers have access to subsidized child care. The lack of affordable child care has also become a barrier to work, especially for mothers who disproportionately take on caregiving responsibilities when their family cannot find or afford childcare.

California's children need a safe place to learn and to grow while parents are at work, and childcare is an essential component for the livelihood of workers and our communities. I want to acknowledge the incredible and thorough work that our state has already done and continues to do, namely by the Blue Ribbon Commission and the governor's master plan on early child care and education.

I believe we must build upon this work and continue to prioritize investments in order to build a comprehensive, high quality system that is accessible and that is affordable to all. Further, there is a great need for a new task force to take a comprehensive assessment of current economic realities of California families, especially in the post COVID era. Through the Task Force AB 2774 we'll seek to address the challenges that working families face in accessing flexible, affordable and quality childcare options.

And I thank you for the time and consideration. Respectfully ask for an aye vote at the appropriate.

Thank you. Any in support? I see none. Any opposition in the room? I see none. Let's bring it back to Committee Members. Any questions? There's a motion and a second with that. Mister Grayson, would you like to close?

Okay. Thank you, Assembly Member Grayson, for championing this Bill. We need support and resources for working families and access to affordable childcare. There's a motion and a second. Call roll, secretary.

Respectfully ask for your aye vote.

Okay, we have file item number five, AB 2774. Grayson. Due pass as amended to appropriations. [Roll Call]

Your Bill is out. Thank you, sir. Moving on to item six, AB 2794. I don't see Brian here. Okay, so we'll wait. Do we need to establish? Secretary, roll call.

[Roll Call]

Okay, we're waiting on Brian and Garcia. Secretary, can we add on roll call? Not roll call, but our votes.

Okay, so we will start off with the consent calendar. We have file item number nine, AB 2163. Gallagher. Due pass as amended to appropriations. File item number 10, AB 2262. Reyes. Due pass to appropriations. File item number 11, AB 2559. Petrie-Norris. Due pass to appropriations. File item number 12, AB 2832. Ward. Due pass to appropriations. File item number 13, AB 2996. Alvarez. Due pass to insurance. File item number 14, AB 3033.

Gibson. Due pass to appropriations. And file item number 15, SCR. Dodd. To be adopted.

Do we need a motion?

No, you just need, Ms. Norris. Call the names.

That's right. [Roll Call]

We're just waiting.

Okay, so we're waiting on assemblymember Brian and Garcia. There he is. Okay, moving on. Assemblymember Garcia? Wait a minute, is that right? He has two items.

So he's gonna do both together. Okay, so final item four. Yeah, and then come back to this.

Yeah. So we're going to start off with file item AB 2757. Mister Garcia, when you're ready.

I will be very brief. Lithium Valley Commission put together a report in 2022 proposing that the region come together and develop a economic development zone made up of the Imperial County, the Eastern Coachella Valley, and the Palo Verde communities to try to maximize economic development, investment, and opportunities for these economically underserved and underinvested regions of the state. With me today we have Christian Torres from Comite Civico Del Valle and Silvia Paz from Alianza Coachella Valley to testify on behalf of the bill.

Good morning, Committee Members. My name is Christian Torres, Director of Climate, Equity and Resilience at Comite Civico Del Valle and Environmental Justice Organization in Brawley, California. Comite Civico Del Valle is sponsoring AB 2757 by Assemblymember Eduardo Garcia and Senator C. Padilla, a district measure that would designate the Southeast California Economic region for aligning state and federal programs to benefit communities impacted by lithium and other mineral extraction and clean energy development.

This measure also allows for regional collaboration to create a strategic plan for economic development for the benefit of the Salton Sea region. As recommended by the Blue Ribbon Commission on Lithium Extraction in California, Comite stands firm in its mission to amplify the voices of underserved communities residing in Imperial County, Lithium Valley, and the Salton Sea region. We strive to represent environmental justice, civic engagement along with grassroots movement building for the communities we serve.

We are a key environmental justice organization in Imperial County, working tirelessly to ensure community engagement is at the forefront in the development of lithium valleys, renewable geothermal energy and lithium recovery industry. AB 2757 is a direct result of the Lithium Valley Commission's report recommendations for the creation of a new Southeastern California Economic Development zone for the benefit of the Salton Sea region.

In 2022, the Commission called for the recognition of a Salton Sea region that includes all of the County of Imperial and Eastern Coachella Valley and Palo Verde valleys of the County of Riverside, extending from the City of Coachella to the unincorporated communities near the Salton Sea and then farther east to the California Arizona border to include Imperial county, the eastern Coachella Valley, and Palo Verde.

The purpose of AB 2757 is to cultivate, stimulate, and aggregate targeted investments by the public and private sectors in California's southeastern desert region, which has historically been overlooked and left behind by the state's existing economic planning and funding activities. Currently, our desert regions have been attached to regional planning and program areas that lie beyond significant geographic and socioeconomic barriers. For example, the County of Imperial has been grouped with the primarily urban County of San Diego and the Coachella Valley with the Inland Empire.

However, our southeastern communities have vastly different needs, resources, and demographic profiles from other areas within our homes. This short sighted state government administrative practice dilutes the interests, voices, and opportunities of our people and businesses that comprise the Imperial and Coachella valleys.

Last year's AB 1562 could have moved in January with overwhelming support by Imperial County stakeholders, but has now been reintroduced as AB 2757 to provide the best path forward by engaging all stakeholders and gathering as much input on the measure and achieving the best possible outcomes for our region. The boundaries and purpose of AB 2757's designation align with the recommendations of the Blue Ribbon Commission's report. This Bill also facilitates further regional collaboration on a strategic plan for economic development in the region.

AB 2757 is intended to enhance the county's economic development toolbox by authorizing the Salton Sea region to more authentically align communities of interest and attract public and private capital more effectively.

Good morning, Silvia Paz. I am the Executive Director of Alianza Coachella Valley and I served as the Chair of the Lithium Valley Commission. Alianza is an organization that is based in the Coachella Valley and our vision is to transform the socioeconomic conditions of a region that faces a lot of obstacles. Highest unemployment rates and Low quality of life.

During the deliberations of the Lithium Valley Commission, it was important for us that if we were to realize the true promise or potential of a lithium industry, we needed to have tools at our disposal that would incentivize and invest in the supply chain or the other related components beyond looking at an Extraction. AB 2757 is a tool that would allow us to do that.

And that is why it was a recommendation of the Lithium Valley Commission, and it is something that Alianza Coachella Valley supports as well.

There's a motion and a second. Is there any others in the room in support?

Good morning. Jeff Neil, representing Imperial County, also in support of the bill.

Alejandro Solis, on behalf of Los Amigos De La Comidad, in support and as a proxy for Salton Sea Authority and City of Coachella, also in support. Thank you.

Now we're moved to opposition. I see none. Let's bring it back to Committee. Any questions for Committee Members? I see none.

Just thank you for your attention on the matter. Respectfully ask for your support in the Bill.

There was a motion in a second by Petrie-Norris and Miss Nguyen. Secretary, can you please call roll?

File item number four, AB 2757 Garcia. Due pass to appropriations. [Roll Call]

Yeah. Due pass your Bill. Now the bill's out, so let's move on to. Right, I got it, I got it. File item number seven, AB 28783.

Thank you, Mister chair. And thank you to the Committee staff for the analysis. This opportunity to allows us to take a Bill from 2017 AB 1111, referred to as breaking barriers program to make some changes that would strive to make the program a better program. There are.

The Bill also grants flexibility in setting program goals considering the specific challenges of groups like undocumented and formerly incarcerated individuals. The unique thing about us bringing this bill forward is that we've watched the implementation since 2017, and we've identified areas where the bill could be a much more stronger and intentional with its outcomes. So this bill is before you to try to strengthen the work that's being done by our workforce development boards across the State of California.

I can attest that in our region, the organizations working closely with the workforce board have done an excellent job and have been able not only to obtain some of these resources, but to really transform and change the opportunities for folks who met the requirements within the breaking barriers community. So I will pass this on to two individuals who will be testifying, Isis Orellana, policy analyst for California Workforce Association, and Jennifer Kerr, an English language instructor at Goodwill of San Francisco Bay.

Thank you, chair and Members of the Committee, thank you so much for giving me the opportunity to speak about this important measure today. My name is Isis Medina Orellana, and I'm with the California Workforce Association, and I'm here to discuss AB 2873 by Assemblymember Garcia. AB 2873 seeks to make small but impactful changes to enhance the effectiveness of the breaking barriers to employment initiative at a very high level.

Breaking Barriers establishes a grant program that partners local community based organizations with their local workforce development board to provide services to targeted populations who have historically have difficulties in obtaining and retaining employment. In the seven years since the program's inception, breaking barriers has been instrumental in connecting thousands of California's most vulnerable populations to meaningful employment, education and training for self sufficiency and economic mobility. The Breaking Barriers to employment program has demonstrated significant success and demand.

Program enrollment is soon to exceed 8000 individuals served through 68 grants. The program has overwhelming interest, evidenced by 193 prospective grantees seeking a total of $97 million of funding, a staggering $58.8 million more than what was made available. The high level of interest in the program has had the unintended consequences of creating a burden on both local workforce boards and small CBOs.

While these partnerships with local workforce boards and CBOs remain a critical piece to the breaking barriers to employment program, we must acknowledge that in some instances, the popularity paired with timelines created by the grant have created bottlenecks, especially for smaller CBOs attempting to formalize these partnerships. The amendments to the breaking barriers to employment initiative make the program more flexible, accessible, and equitable, all while maintaining the program's intended goals. We appreciate the opportunity to contribute to this important discussion and respectfully request your

aye vote on AB 2873 available to answer any of your questions. Thank you.

There's a motion. A second by. Who was? Ramos? Okay. And Peter North. Any others in? We do. Okay. Sorry.

Good afternoon. I'm Jennifer Kerr. I represent Goodwill of the SFB, where I work as an English language instructor, and I'm here to share an example of the success of the program. Goodwill of the SF Bay is a mission driven, community based organization that helps the those with barriers to employment to secure meaningful work.

Our organization applied for and received funding from the breaking barriers to employment initiative to create a program that increases language proficiency and improve job opportunities for those within our immigrant communities who have been historically excluded from quality jobs. Last year, we enrolled a woman named Annie, who was referred to us by another CBO after arriving to the USA from China.

It took her many years for her right to work documents to arrive, and while waiting, she became an important part of her new community through volunteer work at the YMCA, her church, and the Chinese for affirmative action group. In 2023, her work authorization arrived, but she worried that her level of English language competency could be a barrier.

She was extremely nervous to do job interviews in English, so she enrolled at Goodwill into my job coaching for English language learners course, where I taught her how to create a strong resume, search for jobs, and succeed in an interview. And in just a couple of weeks, Annie secured a position as a childcare assistant with Chi Ming, a nonprofit, community based agency.

Her story exemplifies the way in which the Breaking Barriers initiative allows us to empower learners to break down the barriers that have barred them from economic prosperity. The program is not solely about employment, but also about restoring dignity and providing opportunities to build stronger communities. Annie is just one of the stories I could have shared with you today. To date, we have enrolled 270 people like Annie into our program. Thank you for the opportunity to speak.

Thank you. Any others in support? See none. Any opposition? I see none. I'll bring it back to the Committee. Any questions here? None. Assemblymember, would you like to close?

Thank you. And respectfully ask for your aye vote

Thank you, Assembly Member Garcia, for this Bill of sustained funding and breaking barriers to employment initiative, addressed labor issues and prioritize demographics and language data for California Workforce development. I fully support this Bill and will love to be added as a co author. Thank you. With that, there was a motion by Petrie-Norris and Assemblymember Soria.

The motion was by Ramos, and the second was by Petrie Norris.

Okay, let's go ahead and take a count. So I have file item number seven, AB 2873. Garcia, do pass to appropriations. [Roll Call]

Bill's out. Okay, moving on to Item number 6, AB 2794 by Assemblymember Bryan. When you're ready, sir.

Good morning, Mr. Chair and colleagues. This is my first time ever presenting before this Committee. Today I'm here to present AB 2794, a Bill that would create the Anti-Displacement Commercial Property Acquisition Program. When we think of gentrification and displacement, we often think of residential tenants. But we forget that our mom and pop businesses, our local vegan coffee shops, our local barber shops, our dry cleaner who cleans our suits every day, they're all vulnerable to being priced out or evicted as well.

These businesses have been a part of our communities for years, sometimes even decades. Not only do they contribute to the culture and vibrancy of the neighborhoods they serve, they also contribute significantly to our state's economy. According to a 2023 report from the California Office of Small Business Advocate, minority-owned small businesses contribute 192.8 billion in economic output, more than the annual GDP of 18 US states, generates 28.7 million in tax revenue, and supply nearly 2.5 million jobs across California.

Despite their economic contributions to our state, small businesses, and particularly minority-owned businesses, are struggling in a post-pandemic world. More than 40% of pandemic-induced business closures were that of Black owners. In recognition of these hardships, the City of San Jose, where small businesses struggled with displacement since before the pandemic, established the Community Stabilization and Opportunity Pathways Fund to stabilize local small businesses. According to a study by UC Berkeley, businesses that own the property where they operate their businesses are less vulnerable to displacement.

However, the study showed only one third of businesses are owner-occupied, and within that one third, many are owner-occupied because they are childcare providers or art teachers operating out of their homes. AB 2794 directs GO-Biz to establish the Anti-Displacement Commercial Property Program, which would provide low-interest loans to nonprofits or land trusts to purchase commercial property in areas that are vulnerable to displacement. It builds off the Residential Community Land Trust Model, a proven method for reducing displacement and preserving affordability.

Here to testify in support of this Bill is Robbie Lee, the CEO for Black Owned and Operated Community Land Trust and Prophet Walker, founder and CEO of Treehouse Co-Living.

Committee Chair, Committee Members, thank you for your time this morning. My name is Robbie Lee and I'm the CEO of Black Owned and Operated Community Land Trust in Leimert Park, where we work tirelessly to support and uplift local communities, concentrating our efforts on those most vulnerable to economic disparities and gentrification. Many of our communities in Los Angeles County and so many others throughout our state are experiencing a crisis.

The COVID-19 pandemic exasperated an already dire situation for our small business owners, resulting in unpaid commercial rents estimating between $993 million and $2.3 billion. These businesses, many led by women and and BIPOC individuals, are not just commercial entities, but cultural institutions that hold our communities together. They provide essential jobs, services, and serve as a foundation for the cultural identity of our neighborhoods. AB 2794 proposes a visionary solution through low-interest loans to community-based acquisition partners.

This will enable the purchase of commercial property in areas at risk of gentrification, thereby ensuring that these businesses can continue to operate. By focusing on preserving businesses owned by Black, Indigenous people of color and women, this Bill not only addresses economic inequalities, but also serves as a model for sustainable and equitable community development. As California prepares to host major international events, including the upcoming Los Angeles Olympic Games in 2028, the economic spotlight will inevitably shine on our Golden State.

While such events promise sustainable economic benefits estimated at over $11 billion and bringing close to 79,000 jobs, they also accelerate urban development pressures that can lead to displacement within cultural communities. AB 2794 is crucial in this context, as it aims to fortify our communities against the pressures, ensuring that benefits of hosting global events will be equitably shared. I'd like to introduce our Board Chair and Co-founder of our organization, Prophet Walker.

Honorable Members, Chair of the California State Assembly, thank you for having us to hear about this. My name is Prophet Walker. I'm the Board Chair of the Black Owned and Operated Community Land Trust, founded in Leimert Park. Our work is dedicated to preserving the cultural integrity and economic vitality of our communities through strategic land use and development.

Today, I stand before you as an advocate on a vital piece of legislation, AB 2794, which offers a lifeline to the heart and soul of our neighborhoods, our small business owners and cultural institutions. These pillars of the community, often stewarded, as Robbie said, by women in BIPOC community, are more than economic drivers. They are guardians of our heritage and our collective identity. They're the first place that the American Dream has actually began to be experienced.

In collaboration with the County of Los Angeles, we piloted an initiative that began with the acquisition of a single block in Leimert Park to preserve the heritage. This pilot not only proved successful in returning power to the local business owners. But it also laid the groundwork for a more extensive effort, leading to a $10 million fund to uplift, empower other communities to follow this model throughout Los Angeles. The outcomes have been inspiring.

There's been investments in local businesses that have spurred the success for their families and others. Passionate merchants have dived into their own community to begin to uplift it and care for it. Today, just today, while I was on the plane, I saw that a CDFI followed suit and put another $10 million behind this effort in Los Angeles to help people acquire.

As we look to the World Cup, as we look to the Olympics in Los Angeles, but as we look at California more broadly, we see the impacts of COVID and we also are thinking about how do we step forward into a new future where businesses can continue to thrive and uplift our families. Thank you.

Thank you, sir. Is there any others in the room in support?

Natalia with Cruz Strategies on behalf of California Business Properties Association in support.

Now we'll move on to opposition. Anyone in opposition in the room? I see none. I'll bring it back to questions and comments from Members. There's a motion, a second by Ms. Nguyen and Petrie-Norris, a second. All right. Oh, you do? I'm sorry.

Thank you. Well, and thank you, Assemblymember Bryan, for bringing this measure forward. As your witness said, I agree that California small businesses aren't just the heart and soul of our economy. They are the heart and soul of so many of our communities, and I really appreciate this creative approach to investing in small businesses and helping them thrive and helping our communities thrive. So just a couple of questions. So what are the parameters around, like, what is a community based acquisition partner?

And then, how do we ensure that there's guardrails so that the state support in the form of these low-interest loans actually is going into the community, is going to actually support the community, and as the example that you shared, actually deliver on the promise of the program?

Yeah. The Community Land Trust framework has been explored all across California and across the country. And it's really a collection of small business owners and commercial tenants coming together as a collective group to then apply, often representing the same region or cultural area that's in danger of displacement and gentrification. The state's investment through the providing of low-interest loans, I think, has the guardrails that first extend to the fact that they're not interest-free loans, which I think could even be better policy.

But the state should make money off of these businesses thriving. It's actually the situation where you can support businesses working together, small businesses, and creating strengths, co-collaborating in a formalized community land trust model, applying for resources from the state, and the state making money. So not only can you preserve the cultural integrity of these places, you can encourage business-to-business collaboration, you can codify that in a community land trust model, and the state can make money. I'm actually very excited about this effort.

And bringing this before for the Committee today, I think is something that not only Leimert Park in Los Angeles is looking forward to, but vulnerable communities across the state.

Thank you.

Any other questions from Members? No, see none. Mr. Bryan, would you like to close?

Yes, I was, Leimert Park Village, if you're not familiar, in Los Angeles, it's the soul of Los Angeles. It's where the largest Juneteenth festival west of the Mississippi takes place. It is a spot of great cultural pride and it is a beacon of opportunity in my district. I was walking through one day and talking with business owners and found out that an overwhelming majority of them were on month-to-month leases, some who were doing $1.5, $2 million in sales. And it terrified me.

How are you on a month to month lease, doing that kind of community-based business? And then I thought about the investments that we were making publicly in the area. We put up a new rail line, the K Line, right on Crenshaw Boulevard. We are building $100.0 million public art display right outside the village. That's gonna raise the property values.

And all of a sudden I could see a future where Hot and Cool Cafe, where I was sworn in to this body, could become Coffee Bean. Right? And we lose that cultural identity because these businesses don't own the commercial property that they're generating significant revenues for. In looking across the state, we realize this isn't just a local Leimert Park problem, this is a problem for many cultural districts all across California.

And the only way we can step into it is if local governments and the State Government play their role in Los Angeles County. The County of Los Angeles played their role in establishing one block of Leimert Park as a community land trust that was funded by the county. And we've seen that success. That's what these two witnesses were testifying to. But we know that this can be expanded, this can grow, this can help districts from Northern California to Southern California to Central California.

And I respectfully ask your aye vote.

With that, Mr. Bryan, I wanted to say thank you so much for looking out for local businesses and retaining local business. So much needed here, so with that, there is a, I saw a motion and a second. Secretary?

File Item number 6, AB 2794 Bryan, do pass to Judiciary. [Roll Call].

Bill is out. Thank you, sir. With that, now we'll just add. We'll just be adding, right? Okay, so we're going to be adding Mr. Wallis and Mr. Hoover.

[Roll Call]

Thank you, Members, this meeting is adjourned.