Assembly health committee passes bill to boost diverse small businesses

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SACRAMENTO – Recently the Assembly Health Committee approved AB 962, introduced by Assemblymember Autumn Burke (D-Inglewood) and coauthored by Assemblymember Rob Bonta (D-Oakland). The bill uses reporting and transparency to encourage California’s $230 billion hospital industry to boost its contracting with businesses owned by people of color, women, veterans and LGBT people.

“I am very excited that AB 962 passed out of health committee today,” Asm.

Burke said. “It is crucial that we continue to encourage increased diversity in our state across all levels. Promoting economic opportunity for our diverse businesses has benefits that extend well past the hospital-supplier relationship because when our diverse businesses benefit, we all benefit.”

“Hospitals are uniquely positioned to build relationships with the communities they serve by partnering and contracting with diverse businesses,” said Greenlining Institute Health Equity Director Anthony Galace. “The data provided by AB 962 will enable California to leverage the expansion of the state’s health sector to benefit small businesses that employ people of color, women, LGBT people and veterans.”

The measure, sponsored by The Greenlining Institute, is modeled on a successful program overseen by the California Public Utilities Commission, which over three decades has sparked massive increases in contracting with Minority Business Enterprises by California’s regulated utilities, as well as a similarly successful program that was administered by the Department of Insurance.

AB 962 now moves to the Assembly Appropriations Committee. For further background on the bill, see Anthony Galace’s recent blog post.

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