SACRAMENTO – Assembly Majority Leader Karen Bass’ (D-Los Angeles) legislation to help small and minority businesses obtain Bond Surety Policies will establish $40 million to help bridge the current access gap. Assembly Bill 1695, which passed out of the Assembly Transportation Committee, will provide incentives to companies that issue state-backed insurance bonds to small businesses, including disadvantage business enterprises for construction projects for the California Department of Transportation (CalTrans).

“This measure will help by eliminating an obstacle that has historically kept small and minority businesses at a competitive disadvantage due to lack of business history, collateral, or credit needed to obtain these large bonds,” states Majority Leader Bass. “Its important that we ensure that all business entities have access to contract opportunities that are managed by the state to affectively create a diverse procurement base for our contracts.”

With input from small and minority business associations including the California Small Business Association, the California Black Chamber of Commerce and Greater Los Angeles African American Chamber of Commerce this measure ensures that business entities in need of assistance to secure bond surety will benefit the most from it. AB 1695 will create an opportunity to access the $19.9 billion Transportation Bond funds, which will be used for CalTrans state highway projects.

 “The African American Chamber is supportive of this legislation that can help these businesses move to the next level,” adds Gene Hale, chairman of the board for Greater Los Angeles African American Chamber of Commerce. “The Majority Leader’s bill provides a bridge of opportunity for our members to excel, which is our number one goal.”

Karen Bass has been a State Assembly Member representing Los Angeles’ 47th District since 2005. Speaker Fabian Núñez selected Bass as the Majority Leader for the California State Assembly during the 2007-2008 legislative session, making her the first African American and the first woman to hold this leadership position. As the Assemblymember for the 47th District, Karen Bass serves the cities and communities of Culver City, West Los Angeles, Westwood, Cheviot Hills, Leimert Park, Baldwin Hills, Windsor Hills, Ladera Heights, the Crenshaw District, Little Ethiopia and portions of Korea Town and South Los Angeles.