Press Releases

SACRAMENTO — State Controller Malia M. Cohen today released the following statement: 
 
“Effective immediately, I am requiring a 25 percent goal on all procurements made by or on behalf of my office for small businesses, including, but not limited to, microbusinesses, small businesses owned by black, indigenous, and other people of color, and those businesses currently certified by the federal government as a disadvantaged business enterprise that meet the requirements of California.”
 
The Controller’s actions are necessary in order for her office to meet the objectives of Assembly Bill 2019, which was signed into law by the Governor on September 29, 2022, effective January 2023.
 
Under the law, agencies are required to develop an “economic equity first” action plan and policy for the agency to provide, among other things, direction, recommendations, and strategies to ensure that small businesses, as specified, are effectively involved and benefiting from the agency’s procurement process. The law also required agencies to adopt an action plan and policy by January 1, 2024.
 
“January 1 is now behind us and there still appears to be some uncertainty as to which agencies and or procurements are covered by AB 2019,” stated Controller Cohen. “One of my statutory duties is to recommend to the legislature ways to improve the public revenues. I plan to ask the legislature to remove any ambiguities in the law and to make it applicable to all agencies,” Cohen added.
 
Small businesses not only contribute significantly to the tax base of the State of California but also account for approximately seven million employees, or 48.8 percent, of all employment in the state. “This is a win-win for all involved. Making an equitable distribution of dollars to small and minority-owned businesses and allowing this sector to grow will expand state revenues without increasing taxes,” stated Cohen.
 
The State of California is the fifth-largest economy in the world. According to information from the Department of General Services, the state has procured goods and services in fiscal year 2022-23 in an amount exceeding $57.5 billion. 
 
“Technology projects in particular will now benefit from a unique bundling of services between large and small businesses, bringing together a diverse approach to solving operational problems faced by the state. At the same time, it will allow small businesses to expand its knowledge base and hire more employees,” Cohen indicated.  
 
To get the process started, the Controller has targeted both technology and non-technology projects in her own agency to meet the 25 percent participation goals.

As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state’s financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation’s two largest public pension funds. Follow the Controller on X at @CAController and on Facebook at California State Controller’s Office.

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