Background: In late 2010, the Speaker of the California State Assembly introduced a bill intended to disincorporate the City of Vernon. If this bill had passed, it would have led to thousands of job losses in Vernon and across California as increased taxes and a created an unhealthy business environment. Through the effort of the Vernon Chamber of Commerce and countless volunteer hours from Vernon business owners, employees and supporters, we were able to defeat this bill in an effort that defied the odds.
What was AB 46?
California Assembly Bill 46 (AB 46) is a one-sentence bill that, if passed, would have disincorporated the City of Vernon. The City, and every business in it, would have been forced to become part of unincorporated Los Angeles County, or more likely, would have been annexed by a nearby city such as Los Angeles or Maywood.
What Was Wrong with AB 46?
Direct Economic Consequences
- Utility Rates for local businesses would increase by at least 20-40%.
- Insurance Rates would increase approximately 13% based on the loss of Class-1 Fire Service rating.
- Business Taxes would rise significantly, possibly by over 2000%.
- Over 11,000 jobs would be eliminated almost immediately.
- The excellent services that Vernon businesses enjoy—including under 3-minute response times for Police & Fire, along with the State-Approved, Environmental Health Department — would be eliminated.
- The State of California would lose $420 Million a year in wages and $42 Million in revenue.
What was the Chamber’s role in the fight to Defeat AB 46?
The Vernon Chamber initiated an independent campaign separate from the City that organizes businesses and Vernon stakeholders to defeat AB 46, the proposed state legislation that would disincorporate the City of Vernon.
In September 2011, the Vernon Chamber of Commerce was successful in defeating AB 46.