BILL ANALYSIS AB 2758 Page 1 Date of Hearing: May 19, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2758 (Bradford) - As Amended: April 27, 2010 Policy Committee: UtilitiesVote:9-2 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill expands the reporting, by utilities regulated by the Public Utilities Commission (PUC), of information on utility procurement with women, minority, and disabled veteran business enterprises (W/M/DVBEs). Specifically, this bill: 1)Requires each cable television corporation 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 with W/M/DVBEs. 2)Requires the plans to be submitted by cable television corporations, as well as plans currently required to be submitted by electrical, gas, water, and telephone corporations, to indicate which procurements are made with W/M/DVBE enterprises with a majority of the enterprise's workforce in California. 3)Specifies renewable energy, wireless telecommunications, broadband, smart grid and rail projects as categories for which utilities should increase procurement from women, minority and disabled veteran business enterprises. 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 AB 2758 Page 2 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 . According to the author, this bill is intended to capture information about the procurement practices of cable corporations, who to date, have not chosen to voluntarily submit information about their plans to increase procurement with M/W/DVBEs. The author indicates that these companies maintain a substantial presence in California and like other utilities should be encouraged to share and improve their efforts in this area. 3)Opposition . The California Cable & Telecommunications Association (CCTA) argues that cable and broadband companies are not public utilities and that state legislation that gave the PUC authority to issue state franchises to cable video providers also stipulates that the commission cannot impose further requirements on franchise holders. 4)Related Legislation . AB 1918 (Davis), which passed this committee last week, expands the PUC reporting requirements to include wireless communications service providers. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081