BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1678| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1678 Author: Gordon (D), et al. Amended: 8/20/14 in Senate Vote: 21 SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE : 9-1, 6/17/14 AYES: Padilla, Block, Cannella, Corbett, De León, DeSaulnier, Hill, Pavley, Wolk NOES: Fuller NO VOTE RECORDED: Knight SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 54-20, 5/15/14 - See last page for vote SUBJECT : Women, minority, disabled veteran, and LGBT business enterprise procurement SOURCE : National Gay and Lesbian Chamber of Commerce DIGEST : 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. Senate Floor Amendments of 8/20/14 clarify a reference to the standards for certifying LGBT eligibility and add double-jointing language with AB 2760 (Assembly Utilities and Commerce Committee). CONTINUED AB 1678 Page 2 ANALYSIS : Existing law: 1. Directs the PUC to require each electrical, gas, water, and telephone corporation, and each wireless telecommunications service provider, with gross annual revenues exceeding $25 million, to submit annually a plan for increasing procurement with women, minority, and disabled veteran business enterprises, generally known as the Supplier Diversity program. 2. Requires each utility to submit an annual report to the PUC regarding implementation of its Supplier Diversity program and requires the PUC to annually report to the Legislature on the progress of utilities in implementing these programs. 3. Requires the PUC to adopt criteria for verifying eligibility of women and minority enterprises and the Department of General Services to verify disabled veteran enterprises. 4. Makes a person or corporation subject to a fine of up to $5,000 and jail for up to one year for falsely representing a business as eligible for the Supplier Diversity program. This bill: 1. Extends provisions of the Supplier Diversity Program at the PUC to include LGBT business enterprises. 2. Defines "LGBT business enterprise" as a business enterprise that is at least 51 percent owned by a LGBT person or persons; or, in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more LGBT persons; and whose management and daily business operations are controlled by one or more of those individuals. 3. Beginning September 1, 2016, requires the PUC's annual report to the Legislature to include information about LGBT business enterprises. 4. Requires the PUC to adopt criteria for verifying eligibility of LGBT enterprises by adopting LGBT status qualifiers CONTINUED AB 1678 Page 3 created by the National Gay and Lesbian Chamber of Commerce, as specified. 5. Includes an LGBT corporation to the list of persons or corporations subject to a fine of up to $5,000 and jail for up to one year for falsely representing a business as eligible for the Supplier Diversity program. 6. Contains double-jointing language with AB 2760 (Assembly Utilities and Commerce Committee). FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/21/14) National Gay and Lesbian Chamber of Commerce (source) A Womyn's Touch, LLC Ace Mailing Corporation AFSCME AT&T Aviva Spectrum California Communities United Institute California Small Business Association Desert Business Association DesignWorkPlace Inc. eBlue Wave Solutions, Inc. Envirolution Equality California Golden Gate Business Association Green Viking Consulting, LLC InSight Consulting Partners, Inc. Landis Communications Inc. Latino Journal London Guest Suites Long Beach Gay & Lesbian Chamber of Commerce Los Angeles Gay & Lesbian Chamber of Commerce OutSmart Office Solutions OutThink Partners Pendergast Consulting Group Premium Resource Riviera Advisors Sacramento Rainbow Chamber of Commerce San Francisco Small Business Network CONTINUED AB 1678 Page 4 Silicon Valley Rainbow Chamber of Commerce Small Business California Southern California Edison The Honorable Betty Yee, Board of Equalization Vaughan Benz WBB+McCormack WriteAway Communications Corporation ARGUMENTS IN SUPPORT : According to the author's office, the PUC's Supplier Diversity program has been effective in encouraging utilities to contract with diverse suppliers that may not have the knowledge or expertise to initiate such a partnership. The estimated 1.4 million LGBT-owned businesses in the United States have a low rate of contracting with state or local governments currently, although 80% of LGBT businesses responded to a survey that they would like that opportunity. It is important to recognize the contributions LGBT businesses, large and small, have had and continue to have on California's economy and ensures that these businesses also have the opportunity to participate in the state's success. ASSEMBLY FLOOR : 54-20, 5/15/14 AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger Hernández, Holden, Jones-Sawyer, Levine, Lowenthal, Medina, Mullin, Muratsuchi, Nazarian, Pan, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams, Yamada, Atkins NOES: Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Fox, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones, Linder, Logue, Melendez, Olsen, Patterson, Wagner, Wilk NO VOTE RECORDED: Achadjian, Maienschein, Mansoor, Nestande, Waldron, Vacancy JG:d 8/21/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE CONTINUED AB 1678 Page 5 **** END **** CONTINUED