BILL ANALYSIS Ó
AB 1678
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Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1678 (Gordon) - As Introduced: February 12, 2014
Policy Committee: Utilities and
Commerce Vote: 10-3
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill extends provisions of the Supplier Diversity Program
at the Public Utilities Commission (PUC) to include Lesbian,
Gay, Bisexual or Transgender (LGBT) business enterprises.
Currently, the Supplier Diversity Program applies to women,
minority, and disabled veteran business enterprises.
Specifically, this bill:
1)Defines LGBT business enterprise as one that is at least 51%
owned by a lesbian, gay, bisexual, or transgender person or
persons. For publicly owned business, defines LGBT business
enterprise as one with at least 51% of the stock owned and
managed by one or more lesbian, gay, bisexual, or transgender
persons,
2)Requires the PUC to apply the following provisions of the
Supplier Diversity Program to LGBT business enterprises as
follows:
a) The requirement for the PUC to adopt criteria, by rule
or order, for verifying and determining the eligibility of
LGBT business enterprises.
b) The requirement for each electrical, gas, water,
wireless telecommunications service provider and telephone
corporation with gross annual revenues exceeding $25
million and their commission regulated subsidiaries and
affiliates to implement a program developed by the PUC to
encourage, recruit, and utilize LGBT business enterprises
in the procurement of contracts. The plan submitted to the
PUC must be detailed and verifiable.
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c) The requirement for the PUC to issue a progress report
to the Legislature by September 1 of each year.
FISCAL EFFECT
Minor, absorbable costs for the Public Utilities Commission to
expand the Supplier Diversity Program to include LGBT business
enterprises.
COMMENTS
1)Rationale. According to the author, LGBT-owned businesses
still report discrimination and loss of business as a result
of sexual orientation. This bill emphasizes the state's role
in supporting LGBT entrepreneurs and their contributions to
our state's economy.
The Supplier Diversity Program promotes utility procurement in
renewable energy, wireless communication, broadband, smart
grid, rail projects and other categories.
According to the National Gay & Lesbian Chamber of Commerce
(NGLCC), there are an estimated 1.4 million LGBT-owned
businesses in the United States. The NGLCC reports less than
10% of LGBT-owned businesses contract with state or local
governments currently, although a vast majority of LGBT-owned
businesses would like the opportunity. According to NGLCC,
there are currently 96 certified LGBT Business Enterprises and
approximately 60 in the process to be certified.
This bill will require all major utilities and telephone
providers to develop and annually report on the progress of
plans to increase procurement by LGBT business enterprises.
2)Pacific Gas & Electricity. The Pacific Gas & Electric Company
(PG&E) leadership decided to include LGBT-owned business
enterprises certified by the NGLCC to its Supplier Diversity
Program at the end of 2012. Last October, PG&E hosted the
first Supplier Diversity business development workshop for
LGBT business owners in collaboration with the Golden Gate
Business Association and the NGLCC.
3)Amendments. The author is proposing amendments to add an
implementation date and clarify the types of organizations
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that will advise the PUC on the implementation of the LGBT
business enterprise certification process.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081