BILL ANALYSIS Ó
AB 1678
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ASSEMBLY THIRD READING
AB 1678 (Gordon)
As Amended May 1, 2014
Majority vote
UTILITIES & COMMERCE 10-3
APPROPRIATIONS 12-5
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|Ayes:|Bradford, Bonilla, |Ayes:|Gatto, Bocanegra, |
| |Buchanan, Fong, Garcia, | |Bradford, |
| |Roger Hernández, Mullin | |Ian Calderon, Campos, |
| |Quirk, Rendon, Skinner | |Eggman, Gomez, Holden, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Dahle, Beth Gaines, Jones |Nays:|Bigelow, Donnelly, Jones, |
| | | |Linder, Wagner |
| | | | |
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SUMMARY : Extends provisions of the utilities' Supplier
Diversity Program to Lesbian, Gay, Bisexual and/or Transgender
(LGBT) business enterprises.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor, absorbable costs for the California Public
Utilities Commission (PUC) to expand the Supplier Diversity
Program to include LGBT business enterprises.
COMMENTS : According to the author, "The LGBT movement has made
remarkable progress in securing rights enjoyed by their
heterosexual counterparts. Still, LGBT-owned businesses report
discrimination and loss of business as a result of their sexual
orientation.
"While we have much more to do in working towards full equality
for all, immediate action can be taken to ensure LGBT
entrepreneurs are afforded the same economic opportunities made
available to other minority-owned business enterprises. This
bill emphasizes the state's role in supporting LGBT
entrepreneurs and their invaluable contributions to our state's
economy."
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1)Background: In response to legislation authored by former
Assembly Member Gwen Moore, the PUC adopted General Order 156
(GO 156) in 1988 which created Women 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 includes rules and regulations for the utilities'
compliance with the W/MBE program, and requires participating
utilities to inform, recruit, and obtain at least 20% of their
products and services purchased within a five-year period from
W/MBEs (15% from minority-owned businesses and 5% from
women-owned businesses).
2)Inclusion of LGBT business enterprises: This bill would
extend provisions of the utilities'
Supplier Diversity Program that is administered by the PUC to
LGBT business enterprises with gross annual revenues exceeding
$25 million. According to the National Gay & Lesbian Chamber
of Commerce (NGLCC), there is 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.
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.
Panel experts shared details regarding the certification
process for LGBT firms.
3)How to certify LGBT-owned businesses: This bill would require
the PUC to, by rule or order, adopt criteria for verifying and
determining the eligibility of LGBT business enterprises for
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procurement contracts. The NGLCC created an independent third
party certification process which has a similar rigor as the
third party certifications for women and minority owned
businesses. To obtain "LGBT status," certain qualifiers
include but are not limited to:
a) Certified copy of domestic partnership registration,
civil union certification, or marriage certification.
b) Proof of domestic partnership health insurance
utilization.
c) Evidence of completed or attempted parenting and family
building efforts made by LGBT applicant and same sex
partner.
d) Apartment lease, automobile title, financing agreement,
or utility bills with name of applicant and partner listed.
e) Proof of joint property ownership.
f) Physician or attorney letter on official letterhead
attesting to the LGBT status of the applicant.
g) Legal petition for name change (for transgender
applicants).
4)Related legislation: AB 2593 (Bradford) of the current
legislative session, requires large businesses participating
in programs funded through the state's Cap-and-Trade Program
to report on efforts to increase procurement from women,
minority, and disabled veteran enterprises. This bill is
pending in the Assembly Appropriations Committee.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN: 0003258
AB 1678
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