BILL ANALYSIS
AB 2758
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Date of Hearing: May 28, 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
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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