Bills focus on private investment in emerging domestic markets and the state’s changing demographics.
SACRAMENTO, CA –This week, economic competitiveness bills by Assemblymembers Steven Bradford (D-Gardena) and V. Manuel Pérez (D-Coachella) took steps forward in policy committees.
California faces massive demographic shifts in its working age population as unprecedented numbers of baby boomers retire. At the same time, its consumer base is changing, becoming younger and more ethnically diverse. In light of these changes, the state must be working actively to ensure a positive business climate in which businesses remain competitive and the state is able to attract private investment.
AB 1379 (Bradford) seeks to encourage private investment in California, particularly in the state’s emerging markets within historically underserved communities. AB 1379 would authorize a state or local pension system with assets of over $4 billion to annually report to the State Controller on its investments and job creation in California, including in emerging domestic markets. Tracking the investments of fully diversified public pension funds in lesser known, emerging markets is one way to highlight their growth potential for other private sector investors. The bill passed in the Assembly Committee on Public Employees Retirement and Social Security on a vote of 4-1 and heads next to Assembly Appropriations.
“A growing number of minority- and women-owned businesses are expanding,” said Bradford. “However, access to capital for these emerging businesses has remained limited. AB 1379 seeks to improve communication between the State and public pension funds to better understand investments made in minority- and women-owned businesses and within historically disadvantaged communities. This information is vital for the success of these emerging domestic markets and for the future economic health of this state and the business community.”
AB 1255 (V. M. Pérez) focuses on corporate board composition. As baby boomers retire from board positions, it’s important that qualified individuals are identified to fill those seats and that those individuals reflect the changing demographics of the state. The bill requires the Secretary of State’s web site to include links to corporate board candidate registries. This simple change will both facilitate opportunities for individuals to be included in registries, while also promoting access to this information among corporations seeking a wider set of candidate choices. The bill passed the Assembly Jobs, Economic Development, and the Economy (JEDE) Committee on a 5-0 vote and next moves to Assembly Appropriations.
“Strong, diverse boards will help California businesses to remain competitive and chart a course for the future,” said Pérez, chair of the Assembly JEDE Committee. “This in turn benefits our state through greater job retention and creation and higher tax revenues.”
The California Budget Project estimates that by 2020, nearly 60% of the working age population in California will be comprised of Latinos, African Americans, and Asian-Americans. Also, minority purchasing power in the U.S. is expected to triple from $1.3 trillion in 2000 to over $4 trillion by 2045. This represents over a 70% growth of total U.S. purchasing power during the same time period. Latino and African American purchasing power is already so significant in the U.S. that if it were compared to national GDPs, it would be greater than all but nine economies in the world.
Both bills are sponsored by the Assembly Committee on Jobs, Economic Development, and the Economy. To read the full text of the bills, go to www.leginfo.ca.gov.
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Assemblymember Steven C. Bradford represents the 51st Assembly District, comprised of the communities of Athens, Hawthorne, Lawndale, Inglewood, Lennox, South Central LA, Westchester, Gardena, Willowbrook, Playa Vista, and parts of Ladera Heights and West Compton.
Contact: Crystal Quezada (916) 319-2051
