Policy makes the possible plausible
To create systemic change, REDF and its community of entrepreneurs informs and influences policymakers on the federal, state, and local levels to invest in employment social enterprise as key to building a more inclusive economy. We do so through national and California-based coalitions called Resourcing Employment Social Enterprises Together (or RESET), unlocking the wisdom of our collective (with a national membership at 70+ strong) to expand our reach to folks hit hardest by systemic and structural barriers to employment.
Policy Highlights
Policy Advancements
ESE Codified Into Law
- Ensures the workforce system is more inclusive and equitable, and names ESEs to the Breaking Barriers to Employment Initiative – AB-628 (September 28, 2021)
- Defines and names ESEs and worker cooperatives among the recognized “earn and learn” programs under the Workforce Innovation Opportunity Act – SB-799 (September 24, 2021)
- LA County Certification
- Expands contracting preferences to include Social Enterprises and Disabled Veterans Businesses – AB-2762 (September 28, 2018)
- Expands use of CalFresh for education and training to contract directly with ESEs – AB-415 (September 28, 2017)
State Impact
- Nation’s first statewide investment of $25M to scale ESEs – CA RISE (2023)
- Creates an estimated 15,000 jobs including for ESEs – Clean California Initiative (2021-2022)
Local Impact
- Procurement Policies and Contract Preferences to Include ESEs (2018)
- Connects employment social enterprises to the workforce system, supportive services, and employers in Los Angeles – LA:RISE (2016)
Tax Credits
- Allows a tax credit for qualified taxpayers that employ an eligible individual during the taxable year – AB-150 (July 16, 2021)
- Expanded the EITC to include free tax preparation services – CalEITC Expansion (2021-2022)
- Expands CalEITC to young adults and seniors – CalEITC (2017-2018)
- Establishes a tax credit between $2,500 and $10,000 per qualified homeless individual hired – CalEITC Expansion (2019-2020)
Equity
- Increases awareness of the employee-ownership business model – SB-1407 (October 3, 2022)
- Removes barriers for individuals on parole or probation to access job training – SB-990 (October 3, 2022)
- Ensures survivors of domestic violence and women experiencing homelessness have access to services – SB-914 (September 29, 2022)
- Removes licensing barriers for individuals with a criminal record to operate or manage facilities – AB-1720 (September 28, 2022)
- Addresses issues related to the participation of homeless and foster youth in apprenticeships and pre-apprenticeships – AB-565 (September 22, 2021)
- Encourages the US Department of Transportation to lean into their racial equity and workforce goals – 3684 (September 15, 2021)
- Automates arrest and conviction relief by dismissing eligible convictions for individuals who have completed their probation – AB-1076 (October 9, 2019)
- Improves equity and access to workforce development and quality jobs for all Californians – ACR-50 (September 9, 2019)
- Reduces barriers to occupational licensing for people with a prior conviction – AB-2138 (October 1, 2018)
- Supports partnerships to prepare people with barriers to enter and complete postsecondary credential attainment programs – AB-1111 (October 16, 2017)
More Policy Highlights
Defines ESEs with having 51% or more of its enterprise revenue from the production of goods or services and that demonstrates employment with job training to a labor force that is comprised of 80% or more of people that have faced barriers to employment
While SB- 1219 did not get signed into law, it was REDF’s first ever bill. The bill would have defined an employment social enterprise as a California-based social purpose corporation, a benefit corporation, or a nonprofit corporation that earns 51% or more of its enterprise revenue from the production or assembly of goods or the …
Included in the 2017-18 budget. The Social Innovation Fund was a federal program that empowered organizations to identify and support sustainable solutions that are already making a significant impact in transforming communities. Being a part of the Social Innovation Fund grantee network, REDF advocated for continued program funding with key Congressmembers. Unfortunately, in May 2017, …
Expands CalEITC to young adults and seniors
Included in the 2017-18 budget. Allows previously ineligible self-employed workers to qualify for the CalEITC and raises the credit’s income eligibility limits so that workers higher up the income scale can qualify for it.
LA:RISE connects employment social enterprises to the workforce system, supportive services, and employers
Included in the 2019-20 budget. Beginning in 2016, REDF has advocated for local funding for the LA:RISE program. For the 2016-2017 budget, the Los Angeles City General Fund allocated the program $2M. In the 2017-2018 budget, Los Angeles City General Fund re-allocated the program $2M. Additionally, in the 2017-2018 budget, Los Angeles County, through the …
Establishes a tax credit between $2,500 and $10,000 per qualified homeless individual hired
Included in the 2019-20 budget. Expands CalEITC by increasing the income limit to qualify for the CalEITC to $30,000; increasing the size of the CalEITC for tax filers with annual earnings toward the higher end of what is needed to qualify for the credit currently, creating a “young child tax credit” that provides an additional …
Three ESE supportive priorities
The final appropriations package included REDF priorities: Reentry Employment Opportunities (REO) — The agreement provides $102M for the REO program at the Department of Labor. Of this amount, $25M is set aside for competitive grants to national and regional intermediaries for activities that prepare for employment young adults with criminal legal histories, young adults who …
Establishes a tax credit between $2,500 and $10,000 per qualified homeless individual hired
Included in the 2021-22 budget. The Homeless Hiring Tax Credit establishes a tax credit between $2,500 and $10,000 per qualified homeless individual hired. This helps create access to meaningful employment and pathways to careers for up to 3,000 individuals currently experiencing homelessness in California. The Homeless Hiring Tax Credit assists individuals experiencing homelessness, as well …
Creates an estimated 15,000 jobs including for ESEs
Included in the 2021-22 budget. In the Clean California Initiative, there is a $150 million investment that will primarily flow into ESEs. The Governor called for a $1.5 billion investment to transform public spaces and clean public spaces near highways. This initiative includes the creation of an estimated 15,000 jobs, including for ESE employees – …
Provides funding for CBOs to expand reentry services capacity
Included in the 2021-22 budget. A $50M one-time investment will go towards a Statewide Reentry Employment Grant Program, which will provide dedicated, multi-year, state funding to community-based organizations to expand reentry services capacity. This investment will transform the employment landscape for justice-involved individuals by providing transitional employment, vocational programming, paid training, direct cash assistance, and …
Senator Josh BeckerD-Peninsula
Supervisor Hilda SolisLA County Board of Supervisors, First District
Mayor Karen BassCity of Los Angeles
