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FOR IMMEDIATE RELEASE CONTACT: Brooke Armour [mailto:[email protected]]

August 29, 2024 (916) 553-4093

In Case You Missed It: Assembly Bill 98 is a last-minute attack on the Inland Empire’s economy. Sacramento must reject it.

Paul Granillo, CEO of the Inland Empire Economic Partnership argued in an op-ed in the Los Angeles Daily News, OC Register, Riverside Press-Enterprise, San Bernardino Sun and others that AB 98 will drive up the price of consumer goods and destroy well-paying middle class jobs.

AB 98 is a last-minute proposal, put together in secret, that seeks to impose new restrictions on warehouse development, potentially jeopardizing the region's logistics sector—a cornerstone of our economy that supports thousands of well-paying middle-class jobs and keeps California’s supply chain moving. If passed, this legislation could drive up consumer prices, hinder job growth, and cause long-term damage to both the Inland Empire and the state as a whole.

This California Center for Jobs and the Economy special report [[link removed]] provides more data on how this bill will negatively impact the entire country.

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Proposed legislation seeking to impose stringent restrictions on warehouse development could jeopardize the economic vitality of the Inland Empire and beyond. Assembly Bill 98, which introduces mandatory buffer zones between warehouses and sensitive sites like homes, schools, and hospitals, would severely impact the national supply chain, driving up consumer prices and eliminating well-paying, middle-class jobs essential to this region.

One of the most significant economic engines in the Inland Empire is its logistics and warehousing sector. As the gateway through which 40% of the nation’s goods pass, Southern California’s ports and the Inland Empire’s warehouses are indispensable. This proposal, created in secret at the very end of the legislative session with no input from the public, limited input from stakeholders and pushed through without a public process, will reduce the state’s capacity to handle goods. In a time when inflation and the cost of living are already high, the last thing California’s families need is legislation that makes everyday goods more expensive.

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Introducing such sweeping changes in the final days of the legislative session, without adequate consultation with local governments, business leaders, or community stakeholders, is not good governance. Instead of jamming this proposal through in the final days of session, the Legislature should wait and work through the legislative process properly.

This bill is a threat to California and the Inland Empire’s economic future. The logistics sector is a cornerstone of our regional economy, providing well-paying jobs and ensuring the smooth flow of goods across the country. Imposing new regulations without fully considering the economic impact on this critical sector will hurt not only the Inland Empire, but all of California.

We urge lawmakers to reconsider this proposal and work with stakeholders to find a solution that protects both the environment and the economy.

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California Business Roundtable

1301 I Street, Sacramento, CA 95814

916.553.4093

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