In a move intended to juice the economy, the Los Angeles City Council unanimously approved a new law that will give preferential treatment to local companies seeking city contracts.
The ordinance, which was spearheaded by Mayor Antonio Villaraigosa’s office, is intended to keep the city’s money close to home, strengthen local businesses and create jobs.
“We’re purchasing pencils and stationery from companies that are outside the state of California. That is ludicrous and that needs to change,” said Councilman Paul Krekorian, who introduced the measure almost a year ago with Councilman Bernard C. Parks.
Under the ordinance, companies with at least 50 full-time employees or half their total employees or their headquarters in Los Angeles County would get preference on contracts worth more than $150,000.
Villaraigosa said in a statement after the vote that the program “helps level the playing field, making it possible for local businesses to compete more effectively for city government contracts.” The cost of doing business in Los Angeles is about 10% higher than in other cities, according to his office.
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