CalChamber Small Business Policy Council Meeting Provides Updates on CalOSBA Programs, State Races and Key Legislative Wins

The California Chamber of Commerce Small Business Policy Council recently hosted Tara Lynn Gray, director of the California Office of the Small Business Advocate (CalOSBA), for a meeting that featured a recap of the business legislative wins this year, as well as an update on key state races this election cycle.

The meeting was led by Small Business Policy Council Inaugural Chair and CalChamber Board Member Sandra Floyd, president and CEO of OUTSOURCE Consulting Services Inc. (OCSI.co), Vice Chair Judy Lloyd, CEO, Danville Chamber, and was attended by business and local chambers of commerce leaders throughout the state.

CalChamber Executive Vice President of Public Affairs Martin Wilson provided an update on the results of key Assembly and Senate races this election, and CalChamber Senior Policy Advocate Ashley Hoffman reviewed legislation from this year’s session that affects the business community.

Director Tara Lynn Gray

Under Gray’s leadership, the CalOSBA focuses on helping to bring about Governor Gavin Newsom’s “California for All” vision through further development of the state’s small business ecosystem and by ensuring that questions about equity and inclusion are the starting point for all of the state’s small business programs.

Immediately prior to her appointment by Governor Newsom, Gray led the Fresno Metro Black Chamber of Commerce (FMBCC) and Chamber Foundation (FMBCF) as CEO.

At the CalChamber Small Business Policy Council meeting, Gray discussed several key initiatives at CalOSBA aimed at strengthening the state’s small business community and improving equity, inclusion, and access to resources for small businesses.

Gray also provided an update on the implementation of AB 2019 (Petrie-Norris; D-Irvine), a CalChamber-supported law passed in 2022 which promotes equity and inclusion in the state’s public contracting process by ensuring consideration for disadvantaged business enterprises. CalOSBA is tasked with monitoring and supporting the effort. A significant part of this work, Gray said, includes gathering data from small business liaisons and preparing an annual report, with the first due in January 2025.

The office is also working on creating a “source of truth” document to clarify the key aspects of AB 2019, which will help small businesses better navigate the procurement process.

When Gray called for feedback from meeting attendees, Floyd suggested that the community would benefit from hearing more success stories from small businesses participating in state programs, not just raw numbers.

Gray agreed and highlighted the effectiveness of CalOSBA’s Technical Assistance Expansion Program. She explained that for every $1 million invested, the state saw the creation of 66 new businesses, and for every $1,000 invested, California yielded five new jobs. Furthermore, each dollar invested resulted in $18 in loan capital, $20 in equity capital, and $25 in gross revenue.

“That’s the power of a single dollar invested in this network, and thanks to champions like…CalChamber, we were able to preserve last year that very critical funding to these small businesses,” Gray said. “We need to be ringing the bell and telling these success stories, because the return on investment is just so obvious and so significant to our abilities economically in the state.”

Gray also shared the agency’s goals for 2025, centered around three key areas:

• Democratizing access to capital: Ensuring small businesses have the financial resources to grow and scale. This includes expanding technical assistance programs and securing additional funding.
• Diversifying the innovation economy: Gray emphasized that innovation should not be limited to tech sectors but should also include industries like agri-tech and food manufacturing. The state is supporting 13 inclusive innovation hubs, each receiving up to $1 million in funding annually.
• Driving economic mobility: By supporting entrepreneurship, particularly in underserved regions, Gray aims to ensure that all Californians have access to the same economic opportunities, regardless of their zip code.

General Election Summary

Despite some close races still pending, the overall impact of the business community’s strategic engagement was a positive one, helping to influence outcomes and ensure the election of candidates aligned with pro-business policies, Wilson told meeting attendees.

The state’s top-two primary system, where the top two vote-getters advance to the general election regardless of party, meant that both the primary and general elections were crucial. The business community strategically backed candidates across party lines, particularly in Democratic-held districts, to maintain moderate representation. Notably, candidates like Esmeralda Soria, a pro-business Democrat in Fresno, received support, while other races saw mixed outcomes, such as the defeat of business-backed Adam Perez by Robert Garcia in San Bernardino County.

In the State Senate, several races were closely contested, with the business community investing heavily in key seats. For instance, Wilson said, Republican Suzette Valladares in Senate District 23 is winning by a fairly substantial margin.

2024 Legislative Update

A notable achievement for the business community this year was securing critical reforms to the California Private Attorneys General Act (PAGA), Hoffman said. The CalChamber also had a positive year in terms of labor and employment policy, with only one job killer bill—SB 399 (Wahab; D-Hayward)—being signed into law.

Key victories included the veto of SB 1047 (Wiener; D-San Francisco) on artificial intelligence (AI) regulation, the defeat of AB 2930 (Bauer-Kahan; D-Orinda) on algorithmic decision making, and halting SB 1446 (Smallwood-Cuevas; D-Los Angeles), a bill aiming to regulate self-checkout stations.

In environmental and housing policy, the CalChamber participated in negotiations to address warehousing regulations, with successful outcomes such as the passage of AB 98 (Juan Carrillo; D-Palmdale), which was signed by the Governor. On labor issues, Hoffman said the CalChamber successfully stopped various proposals, including bills that would have restricted background checks and increased employer taxes by changing the state’s unemployment insurance program. The CalChamber also engaged in the ongoing debate over health care, successfully halting attempts for a single-payer system and other health care regulations, while also leading coalitions against digital ad taxes, which could have introduced billions in new taxes.

Looking ahead, Hoffman anticipates AI regulation to remain a key issue, with proposals in areas such as algorithmic decision-making and automated decision tools. The CalChamber is also preparing for potential changes in antitrust law, which could affect sectors like health care, agriculture, and technology. In the energy sector, there may be renewed discussions around the cap-and- trade program, Hoffman said.

2025 Call to Action