BILL ANALYSIS AB 1918 Page 1 Date of Hearing: May 12, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1918 (Davis) - As Amended: April 5, 2010 Policy Committee: Jobs Vote:4-2 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill requires each wireless telecommunications service provider with annual revenues exceeding $25 million to submit annually to the PUC a plan-consistent with those already submitted by electrical, gas, water, and telephone corporations-to increase procurement from women, minority, and disabled veteran business enterprises (W/M/DVBEs). FISCAL EFFECT Minor absorbable costs to the PUC. COMMENTS 1)Background . In 1986, the PUC adopted General Order 156 (GO 156), which created the Women-Owned and Minority-Owned Business Enterprise (W/MBE) program to increase diversity in various utility operations and procurement processes. GO 156 requires PUC-regulated electrical, gas, and telephone corporations with gross annual revenues exceeding $25 million to submit annual detailed and verifiable plans that includes short- and long-term goals and timetables for increasing W/MBE procurement in all procurement categories. GO 156 was subsequently codified, and the statutory requirements were expanded to require reporting by water corporations and require reporting on procurement with DVBEs. 2)Purpose . Currently, wireless telecommunications service providers are not among the utility companies required to comply with General Order 156. According to the author, AB 1918 is necessary in order to increase diversity participation in wireless telecommunications service providers as is AB 1918 Page 2 required of other major utilities. 3)Related Legislation . AB 2758 (Bradford), also on today's committee agenda, requires each cable television corporation with annual revenues exceeding $25 million to submit annually to the PUC a plan to increase procurement from W/M/DVBEs. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081