Protecting California's Construction Industry

On July 28, 2009, California Governor Arnold Schwarzenegger signed into law AB/SB 21 as part of the package of bills revising the 2009-2010 budget. The law abolishes the good faith effort and requires all firms doing business with the state to subcontract work to disabled veteran, minority, and women owned businesses. This legislation will disrupt the construction industry because it places often unattainable demands on prime contractors and encourages the inequitable distribution of subcontracting opportunities to disabled veteran, minority, and women owned businesses. As a result, many prime contractors and disabled veteran, minority, and women owned firms will be forced out of business. The governor justifies this ill-conceived law because it allegedly eliminate(s) the need for state departments to review large volumes of paperwork. Yet, when examining the potential ramifications of the new legislation, even this claim rests on shaky foundations. Thus, we call on you to: SAVE JOBS, NOT PAPER and exempt the construction industry from AB/SB 21, if not reconsider the law altogether.