Valladares announces legislative package focused on economic opportunities

Sen. Suzette Martinez Valladares, R-Acton, announced a legislative package aimed at expanding economic opportunities for Californians.  

The package features Senate Bill 1174 to create new pathways for workers to build long-term financial security and SB 1113 to strengthen California’s role in global trade, according to a news release from the senator’s office. 

“California has the highest cost of living in the nation, and we must do more to foster economic growth for hard working Californians,” Valladares said in the release. “California should be a place where businesses can grow, workers can build wealth, and our economy can compete on the global stage. This package is about removing barriers, modernizing outdated policies, and creating real opportunities for Californians to thrive.” 

Senate Bill 1174 expands opportunities for workers to build wealth by encouraging employee ownership in the construction industry, according to the release. The bill establishes a bid preference for companies competing on California Department of Transportation projects if they operate an Employee Stock Ownership Plan. 

ESOPs are federally regulated programs that allow employees to earn ownership stakes in the companies they work for, without requiring personal financial investment. These shares can generate substantial retirement income for workers. 

“SB 1174 is about putting workers first, not just in wages, but in ownership,” Valladares added. “Employee ownership gives workers a real stake in success and creates a pathway to financial security that too many Californians are missing.” 

According to the release, research shows employee-owners experience significantly stronger financial outcomes, including 92% higher median household wealth, 33% higher median wages and 52% longer job tenure. 

During economic downturns, ESOP companies also demonstrate stronger resilience, retaining jobs at significantly higher rates and maintaining more stable wages, the release said. 

SB 1113 updates California’s tax code to align with the federal tonnage tax system governing international shipping. California currently taxes income that is already exempt under federal maritime policy, placing U.S.-flag shipping companies at a disadvantage, even when vessels never enter California ports, the release said.  

This lack of conformity increases costs, discourages investment in American vessels, and undermines national efforts to rebuild the U.S. maritime fleet, according to the release.  

SB 1113 conforms state law to longstanding federal policy, ensuring consistent treatment for qualifying international shipping companies, the release said.  

“California is home to the largest ports in the nation, yet our tax policy puts California out of step with the rest of the nation,” Valladares added. “SB 1113 is a targeted, technical fix that supports supply chain resilience, strengthens our maritime workforce, and helps to ensure that the U.S. maintains a strong commercial fleet.” 

“This is about growing the pie, to benefit everyone, not redistributing it,” Valladares concluded. “When we strengthen our supply chains and give workers a stake in success, we create a more resilient, more inclusive, and more prosperous California.” 

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