L.A. City Council unanimously adopted an ordinance that helps local businesses

Los Angeles City Council unanimously adopted an ordinance that helps local businesses be more competitive for contracts with the City of LA. Stemming from a motion by Councilmembers Bob Blumenfield, Marqueece Harris-Dawson and Paul Koretz (retired), this ordinance will specifically provide a bid preference of up to 12% for City contracts to businesses that are located within the City limits. This measure will strengthen the local economy and is aimed at encouraging local companies to do business with the City.

“It’s a fact that running a business in Los Angeles is more expensive than in many cities throughout the southland- we need to take steps to help ensure that our city encourages contracts with companies in LA,” said Councilmember Blumenfield. “While our public dollars are precious, there are things more important than ensuring that every contract the city secures is the lowest it can possibly be.”

Council President Pro Tempore Marqueece Harris-Dawson stated, “Our legacy small businesses and entrepreneurs must have robust opportunities to partake in the city’s economic development, especially as we approach the 2028 Olympics.” He continued “This ordinance encourages local businesses to bid on city contracting opportunities, hoping they do not relocate to other regions but help strengthen LA’s economy.”

This ordinance implements Measure BB, which was approved by Los Angeles voters in June 2022. For many years, the City has given a bid preference to businesses located within Los Angeles County. Measure BB authorized the Council and Mayor to provide an additional preference to businesses located in the City.

“This action will help create a level playing field for local businesses which already shoulder the brunt of higher taxes and operational costs,” said Councilmember and Chair of the Trade, Travel, and Tourism Committee, Traci Park. “As Los Angeles prepares to host global events like the World Cup and Olympics, which will result in unprecedented procurement opportunities, we must use every tool at our disposal to keep these dollars in Los Angeles.”

Los Angeles businesses support the City through payment of our gross receipts tax, and support local workers by complying with the City’s minimum wage, fair scheduling, sick leave and other requirements. Our local regulations sometimes impose additional costs on businesses, potentially leaving them at a competitive disadvantage when competing for City contracts solely on price. This ordinance seeks to remove that disadvantage and support the businesses that are supporting our City and its workers.