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City of LA Becomes LGBTQ-inclusive in Contracting Process

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LA becomes largest city in US to formally include LGBTQ businesses in contract process worth billions

LOS ANGELES (CNBC) — Cities are beginning to see the effects of allowing diverse business owners to come in and be a part of their communities.

The city of Los Angeles will be the largest municipality, by both population and economy, to formally include LGBTQ-owned businesses in the city’s billions of dollars in contract procurement. Reports show that similar contracts in LA amount to as much as $8 billion over roughly 40 departments.

Federal and local governments have long built into contract procurement opportunities for minority-owned and women-owned businesses. Nationally, certified LGBT businesses contribute $1.7 trillion to the U.S. economy and create more than 33,000 jobs, according to the National LGBT Chamber of Commerce (NGLCC). Certified LGBT-owned businesses generate an average revenue of $2,475,642, according to the NGLCC.

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“The important point is that we get to open doors and increased opportunity,” said Justin Nelson, co-founder and president of the NGLCC.

Nearby Long Beach, California, was the first city in California to enact a similar LGBTQ-inclusive contract process, and California was the first state to establish a legal precedent. In 2014 an amended version of Assembly Bill No. 1678 was passed in the California legislature adding LGBTQ-owned businesses to existing legislation covering contracts awarded by the regulated utility industry in the state. The original legislation mandated the utilities to “encourage, recruit, and utilize” businesses owned by minorities, women and disabled veterans. The legislative change to include LGBTQ businesses has led to moves in cities and states around the country in the years since.

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Author: Staff

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