BILL NUMBER: AB 1918 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 19, 2010
AMENDED IN SENATE JUNE 29, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Davis
FEBRUARY 16, 2010
An act to amend Sections 8281, 8283, 8284, and 8285 of the Public
Utilities Code, relating to telecommunications
public utilities .
LEGISLATIVE COUNSEL'S DIGEST
AB 1918, as amended, Davis. Public utilities: procurement:
minority-, women-, disabled veteran-owned business enterprises.
(1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical,
gas, water, and telephone corporations. Existing law authorizes the
commission to establish rules for all public utilities, subject to
control by the Legislature.
Existing law directs the commission to require every electrical,
gas, water, and telephone corporation with annual gross revenues
exceeding $25,000,000, and their regulated subsidiaries and
affiliates, to implement a program developed by the commission to
encourage, recruit, and utilize minority-, women-, and disabled
veteran-owned business enterprises, as defined, in the procurement of
contracts from those corporations or from their regulated
subsidiaries and affiliates, and to require the reporting of certain
information. The commission, by rulemaking, has adopted General Order
156, applicable to certain electrical, gas, and telephone
corporations, to effectuate these requirements.
This bill would extend the minority-, women-, and disabled
veteran-owned business enterprises procurement requirements to
wireless telecommunications service providers with gross annual
revenues of more than $25,000,000 and would encourage each
electrical, gas, water, wireless telecommunications service provider,
and telephone corporation that is not required to submit a plan to
voluntarily adopt a plan for increasing women, minority, and disabled
veteran business enterprise procurement in all categories.
(2) Existing law requires the commission to recommend a program
and legislation for carrying out the policy of aiding the interests
of women, minority, and disabled veteran business enterprises in
order to preserve specified objectives.
This bill would require the commission, in regards to disabled
veteran business enterprises, to ensure that those recommended
programs and legislation are consistent with the disabled veteran
business enterprise certification eligibility requirements imposed by
the Department of General Services and that the recommendations
include only those disabled veteran business enterprises certified by
the Department of General Services.
(3) Existing law requires the commission, by rule or order, to
adopt criteria for verifying and determining eligibility of women,
minority, and disabled veteran business enterprises for procurement
contracts.
This bill would instead require the commission to adopt the
Department of General Services' disabled veteran business enterprise
certification eligibility requirements for verifying and determining
eligibility of disabled veteran business enterprises for procurement
contracts and would prohibit the commission from deeming eligible
those disabled veteran business enterprises that are not certified by
the Department of General Services.
(4) Existing law requires any person or corporation that falsely
represents a business as a women, minority, or disabled veteran
business enterprise in the procurement of, or the attempt to procure,
contracts from certain electrical, gas, water, or telephone
corporations to receive a prescribed punishment.
This bill would add wireless telecommunications service providers
to that list of corporations and would instead require the punishment
for falsely representing a business as a disabled veteran enterprise
to conform to penalties imposed pursuant to specified law.
(5) This bill would incorporate additional changes in Sections
8281 and 8283 of the Public Utilities Code proposed by AB 2758 of the
2009-10 Regular Session that would become operative only if AB 2758
and this bill are both enacted and become effective before January 1,
2011, and this bill is enacted after AB 2758.
(5)
(6) Under existing law, a violation of any rules or
orders of the commission is a crime. In addition, any person or
corporation who falsely represents a business as a woman, minority,
or disabled veteran business enterprise for the purposes of the
programs discussed above is subject to criminal penalties.
Because a violation of the requirements of the bill would be a
crime under those provisions, this bill would impose a state-mandated
local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8281 of the Public Utilities Code is amended to
read:
8281. (a) The Legislature hereby finds and declares that the
essence of the American economic system of private enterprise is free
competition. Only through full and free competition can free
markets, reasonable and just prices, free entry into business, and
opportunities for the expression and growth of personal initiative
and individual judgment be ensured. The preservation and expansion of
that competition are basic to the economic well-being of this state
and that well-being cannot be realized unless the actual and
potential capacity of women, minority, and disabled veteran business
enterprises is encouraged and developed. Therefore, it is the
declared policy of the state to aid the interests of women, minority,
and disabled veteran business enterprises in order to preserve
reasonable and just prices and a free competitive enterprise, to
ensure that a fair proportion of the total purchases and contracts or
subcontracts for commodities, supplies, technology, property, and
services for regulated public utilities are awarded to women,
minority, and disabled veteran business enterprises, and to maintain
and strengthen the overall economy of the state.
(b) (1) The Legislature finds all of the following:
(A) The opportunity for full participation in our free enterprise
system by women, minority, and disabled veteran business enterprises
is essential if this state is to attain social and economic equality
for those businesses and improve the functioning of the state
economy.
(B) Public agencies which have established short- and long-range
women, minority, and disabled veteran business enterprise goals are
awarding 30 percent or more of their contracts to these business
enterprises.
(C) Women, minority, and disabled veteran business enterprises
have traditionally received less than a proportionate share of
regulated public utility procurement contracts.
(D) It is in the state's interest to expeditiously improve the
economically disadvantaged position of women, minority, and disabled
veteran business enterprises.
(E) The position of these businesses can be improved by providing
long-range substantial goals for procurement by regulated public
utilities of technology, equipment, supplies, services, materials,
and construction work from women, minority, and disabled veteran
businesses.
(F) That procurement also benefits the regulated public utilities
and consumers of the state by encouraging the expansion of the number
of suppliers for procurements, thereby encouraging competition among
the suppliers and promoting economic efficiency in the process.
(2) It is the purpose of this article to do all of the following:
(A) Encourage greater economic opportunity for women, minority,
and disabled veteran business enterprises.
(B) Promote competition among regulated public utility suppliers
in order to enhance economic efficiency in the procurement of
electrical, gas, water, wireless telecommunications service provider,
and telephone corporation contracts and contracts of their
commission-regulated subsidiaries and affiliates.
(C) Clarify and expand the program for the procurement by
regulated public utilities of technology, equipment, supplies,
services, materials, and construction work from women, minority, and
disabled veteran business enterprises.
SEC. 1.5. Section 8281 of the Public
Utilities Code is amended to read:
8281. (a) The Legislature hereby finds and declares that the
essence of the American economic system of private enterprise is free
, open, and transparent competition. Only through
full and free , open, and transparent
competition can free markets, reasonable and just prices, free entry
into business, and opportunities for the expression and growth of
personal initiative and individual judgment be assured
ensured . The preservation and expansion of that
competition is are basic to the
economic well-being of this state and that well-being cannot be
realized unless the actual and potential capacity of women, minority,
and disabled veteran business enterprises is encouraged and
developed. Therefore, it is the declared policy of the state to aid
the interests of women, minority, and disabled veteran business
enterprises in order to preserve reasonable and just prices and a
free competitive enterprise, to ensure that a fair proportion of the
total purchases and contracts or subcontracts for commodities,
supplies, technology, property, and services for regulated public
utilities , including, but not limited to, renewable
energy, wireless telecommunications, broadband, smart grid, and rail
projects, are awarded to women, minority, and disabled veteran
business enterprises, and to maintain and strengthen the overall
economy of the state.
(b) (1) The Legislature finds all of the following:
(A) The opportunity for full participation in our free enterprise
system by women, minority, and disabled veteran business enterprises
is essential if this state is to attain social and economic equality
for those businesses and improve the functioning of the state
economy.
(B) Public agencies which and some
regulated utilities that have established short- and long-range
women, minority, and disabled veteran business enterprise goals are
awarding 30 percent or more of their contracts to these business
enterprises.
(C) Women, minority, and disabled veteran business enterprises
have traditionally received less than a proportionate share of
regulated public utility procurement contracts , especially in
renewable energy, wireless telecommunications, broadband, smart grid,
and rail projects .
(D) It is in the state's interest to expeditiously improve the
economically disadvantaged position of women, minority, and disabled
veteran business enterprises.
(E) The position of these businesses can be substantially
improved by providing long-range substantial goals for
procurement by regulated public utilities of technology, equipment,
supplies, services, materials, and construction work ,
especially in renewable energy, wireless telecommunications, b
roadband, smart grid, and rail projects, from women,
minority, and disabled veteran businesses.
(F) That procurement also benefits the regulated public utilities
and consumers of the state by encouraging the expansion of the number
of suppliers for procurements, thereby encouraging competition among
the suppliers and promoting economic efficiency in the process.
(G) That the long-term economic viability of this state depends
substantially upon the ability of renewable energy, wireless
telecommunications, broadband, smart grid, and rail projects to
incorporate women, minority, and disabled veteran businesses into
those projects.
(2) It is the purpose of this article to do all of the following:
(A) Encourage greater economic opportunity for women, minority,
and disabled veteran business enterprises.
(B) Promote competition among regulated public utility suppliers
in order to enhance economic efficiency in the procurement of
electrical, gas, water, wireless telecommunications service
provider, and telephone corporation contracts and contracts of
their commission-regulated subsidiaries and affiliates.
(C) Clarify and expand the program for the procurement by
regulated public utilities of technology, equipment, supplies,
services, materials, and construction work from women, minority, and
disabled veteran business enterprises.
SEC. 2. Section 8283 of the Public Utilities Code is amended to
read:
8283. (a) The commission shall require each electrical, gas,
water, wireless telecommunications service provider, and telephone
corporation with gross annual revenues exceeding twenty-five million
dollars ($25,000,000) and their commission-regulated subsidiaries and
affiliates, to submit annually, a detailed and verifiable plan for
increasing women, minority, and disabled veteran business enterprise
procurement in all categories.
(b) These annual plans shall include short- and long-term goals
and timetables, but not quotas, and shall include methods for
encouraging both prime contractors and grantees to engage women,
minority, and disabled veteran business enterprises in subcontracts
in all categories which that provide
subcontracting opportunities.
(c) The commission shall establish guidelines for all electrical,
gas, water, wireless telecommunications service provider, and
telephone corporations with gross annual revenues exceeding
twenty-five million dollars ($25,000,000) and their
commission-regulated subsidiaries and affiliates, to be utilized in
establishing programs pursuant to this article.
(d) Every electrical, gas, water, wireless telecommunications
service provider, and telephone corporation with gross annual
revenues exceeding twenty-five million dollars ($25,000,000) shall
furnish an annual report to the commission regarding the
implementation of programs established pursuant to this article in a
form that the commission shall require, and at the time that the
commission shall annually designate.
(e) (1) The commission shall provide a report to the Legislature
on September 1 of each year, on the progress of activities undertaken
by each electrical, gas, water, wireless telecommunications service
provider, and telephone corporation with gross annual revenues
exceeding twenty-five million dollars ($25,000,000) pursuant to this
article in the implementation of women, minority, and disabled
veterans business enterprise development programs. The commission
shall recommend a program for carrying out the policy declared in
this article, together with recommendations for legislation that it
deems necessary or desirable to further that policy.
(2) In regards regard to disabled
veteran business enterprises, the commission shall ensure that the
programs and legislation recommended pursuant to paragraph (1) are
consistent with the disabled veteran business enterprise
certification eligibility requirements imposed by the Department of
General Services and that the recommendations include only those
disabled veteran business enterprises certified by the Department of
General Services.
(f) The Legislature declares that each electrical, gas, water,
wireless telecommunications service provider, and telephone
corporation that is not required to submit a plan pursuant to
subdivision (a) is encouraged to voluntarily adopt a plan for
increasing women, minority, and disabled veteran business enterprise
procurement in all categories.
SEC. 2.5. Section 8283 of the Public
Utilities Code is amended to read:
8283. (a) The commission shall require each electrical, gas,
water, wireless telecommunications service provider, and
telephone corporation with gross annual revenues exceeding
twenty-five million dollars ($25,000,000) and their
commission-regulated subsidiaries and affiliates, to submit annually,
a detailed and verifiable plan for increasing procurement from
women, minority, and disabled veteran business
enterprise procurement enterprises in all
categories , including, but not limited to, renewable energy,
wireless telecommunications, broadband, smart grid, and rail projects
.
(b) These annual plans shall include short- and long-term goals
and timetables, but not quotas, and shall include methods for
encouraging both prime contractors and grantees to engage women,
minority, and disabled veteran business enterprises in subcontracts
in all categories which that provide
subcontracting opportunities , including, but not limited to,
renewable energy, wireless telecommunications, broadband, smart grid,
and rail projects .
(c) The commission shall establish guidelines for all electrical,
gas, water, wireless telecommunications service
provider, and telephone corporations with gross annual revenues
exceeding twenty-five million dollars ($25,000,000) and their
commission-regulated subsidiaries and affiliates, to be utilized in
establishing programs pursuant to this article.
(d) Every electrical, gas, water, wireless telecommunications
service provider, and telephone corporation with gross annual
revenues exceeding twenty-five million dollars ($25,000,000) shall
furnish an annual report to the commission regarding the
implementation of programs established pursuant to this article in a
form that the commission shall require, and at the time that the
commission shall annually designate.
(e) (1) The commission shall provide a
report to the Legislature on September 1 of each year, on the
progress of activities undertaken by each electrical, gas, water,
wireless telecommunications service provider, and
telephone corporation with gross annual revenues exceeding
twenty-five million dollars ($25,000,000) pursuant to this article in
the implementation of women, minority, and disabled veterans
business enterprise development programs. The report shall
include information about which procurements are made with women,
minority, and disabled veteran business enterprises with at least a
majority of the enterprise's workforce in California, to the extent
that information is readily accessible. The commission shall
recommend a program for carrying out the policy declared in this
article, together with recommendations for legislation that it deems
necessary or desirable to further that policy.
(2) In regard to disabled veteran business enterprises, the
commission shall ensure that the programs and legislation recommended
pursuant to paragraph (1) are consistent with the disabled veteran
business enterprise certification eligibility requirements imposed by
the Department of General Services and that the recommendations
include only those disabled veteran business enterprises certified by
the Department of General Services.
(f) The Legislature declares that each electrical, gas, water,
wireless telecommunications service provider, and
telephone corporation that is not required to submit a plan pursuant
to subdivision (a) is encouraged to voluntarily adopt a plan for
increasing women, minority, and disabled veteran business enterprise
procurement in all categories.
SEC. 3. Section 8284 of the Public Utilities Code is amended to
read:
8284. (a) (1) The commission shall, by rule or order, adopt
criteria for verifying and determining the eligibility of women and
minority business enterprises for procurement contracts.
(2) The commission shall adopt the Department of General Services'
disabled veteran business enterprise certification eligibility
requirements for verifying and determining the eligibility of
disabled veteran business enterprises for procurement contracts, and
shall not deem eligible those disabled veteran business enterprises
that are not certified by the Department of General Services.
(b) The commission shall develop, and require every electrical,
gas, water, wireless telecommunications service provider, and
telephone corporation with gross annual revenues exceeding
twenty-five million dollars ($25,000,000) and their
commission-regulated subsidiaries and affiliates to implement, an
outreach program to inform and recruit women, minority, and disabled
veteran business enterprises to apply for procurement contracts under
this article.
SEC. 4. Section 8285 of the Public Utilities Code is amended to
read:
8285. (a) Any person or corporation, through its directors,
officers, or agents, which falsely represents a business as a women
or minority business enterprise in the procurement of, or the attempt
to procure, contracts from an electrical, gas, water, wireless
telecommunications service provider, or telephone corporation with
gross annual revenues exceeding twenty-five million dollars
($25,000,000), or a commission-regulated subsidiary or affiliate
subject to this article, shall be punished by a fine of not more than
five thousand dollars ($5,000), by imprisonment in a county jail for
not more than one year or in the state prison, or by both that fine
and imprisonment. In the case of a corporation, the fine or
imprisonment, or both, shall be imposed on every director, officer,
or agent responsible for the false statements.
(b) Any person or corporation, through its directors, officers, or
agents, which falsely represents a business as a disabled veteran
business enterprise in the procurement of, or the attempt
to procure, contracts from an electrical, gas, water, wireless
telecommunications service provider, or telephone corporation with
gross annual revenues exceeding twenty-five million dollars
($25,000,000), or a commission-regulated subsidiary or affiliate
subject to this article, shall be punished according to the penalties
established pursuant to subdivision (b) of Section 999.9 of the
Military and Veterans Code. In the case of a corporation, the fine or
imprisonment, or both, shall be imposed on every director, officer,
or agent responsible for the false statements.
SEC. 5. (a) Section 1.5 of this bill incorporates
amendments to Section 8281 of the Public Utilities Code proposed by
both this bill and AB 2758 of the 2009-2010 Regular Session. It shall
only become operative if (1) both bills are enacted and become
effective on or before January 1, 2011, (2) each bill amends Section
8281 of the Public Utilities Code, and (3) this bill is enacted after
AB 2758, in which case Section 1 of this bill shall not become
operative.
(b) Section 2.5 of this bill incorporates amendments to Section
8283 of the Public Utilities Code proposed by both this bill and AB
2758 of the 2009-10 Regular Session. It shall only become operative
if (1) both bills are enacted and become effective on or before
January 1, 2011, (2) each bill amends Section 8283 of the Public
Utilities Code, and (3) this bill is enacted after AB 2758, in which
case Section 2 of this bill shall not become operative.
SEC. 5. SEC. 6. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.