Amended in Assembly May 6, 2015

Amended in Assembly April 16, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 865

Introduced by Assembly Member Alejo

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(Coauthor: Assembly Member Jones-Sawyer)

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February 26, 2015

An act to add Section 25230 to the Public Resources Code, relating to the State Energy Resources Conservation and Development Commission.

LEGISLATIVE COUNSEL’S DIGEST

AB 865, as amended, Alejo. State Energy Resources Conservation and Development Commission: begin insert contracts, end insert grants begin insert , end insert and loans: diversity.

The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission. Existing law requires the State Energy Resources Conservation and Development Commission to administer various grant and loan programs.

This bill would require the State Energy Resources Conservation and Development Commission to begin delete require that each recipient of a grant or loan, where the recipient has gross annual revenues exceeding $25,000,000, or a different threshold determined by the commission, as a condition for the receipt of that grant or loan, annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises, as defined, in all categories, including, but not limited to, renewable energy, advanced technologies, and demonstration projects, and furnish an annual report regarding the implementation of programs established pursuant to this requirement. The bill would require the State Energy Resources Conservation and Development Commission to establish guidelines for those grant or loan recipients to utilize in establishing programs pursuant to these requirements. The bill would require the State Energy Resources Conservation and Development Commission to develop, and would require those grant or loan recipients to implement, an outreach program to inform and recruit women, minority, disabled veteran, and LGBT business enterprises to apply for procurement contracts. end delete begin insert develop an outreach program to inform and recruit the most qualified loan and grant applicants, and contractors, including, but not limited to, women, minority, disabled veteran, and LGBT business enterprises, as defined. The bill would require that one component of the outreach program be a process for tracking the diversity of contractors, loan recipients, and grant recipients. The bill would require the commission to include certified women, minority, disabled veteran, and LGBT business enterprises in announcements about workshops, trainings, and funding opportunities, as appropriate, and consider including them in capacity building activities. The bill would require the commission to require that each contractor, recipient of a grant awarded, or loan approved by the commission on or after October 1, 2016, for an amount of $1,000,000 or more, including amended contracts, loans, and grant agreements that bring the total value of the loan or grant to $1,000,000 or more (1) report on the demographic makeup of the management of the firm or organization, (2) submit a detailed and verifiable outreach plan for increasing subcontractor opportunities by certified women, minority, disabled veteran, and LGBT business enterprises, (3) implement the outreach plan to the best of the contractor’s or recipient’s financial and administrative capacity, and (4) furnish a report to the commission regarding the activities and outcomes achieved in implementing the outreach plan. The bill would require the commission to establish guidelines for all contractors, grant recipients, and loan recipients to utilize in preparing, implementing, and reporting on the outreach plans. The bill would require each contractor and recipient of a grant or loan that is subject to the bill’s requirements to submit data on a form provided by the commission of the activities and outcomes of its outreach plan on October 1 of the following fiscal year in which the contract was awarded, the loan was approved, or the grant was received. end insert The bill would require the State Energy Resources Conservation and Development Commission to consider establishing a Diversity Task Force to consider and make recommendations about diversity in the energy industry, including diversity of corporate governing boards and procurement from diverse businesses.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 25230 is added to the Public Resources
Code, to read:

25230.  

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Control” means exercising the power to make policy
decisions.

(2) “Disabled veteran business enterprise” has the same meaning
as defined in Section 999 of the Military and Veterans Code.

(3) “LGBT business enterprise” means a business enterprise
that is at least 51 percent owned by a lesbian, gay, bisexual, or
transgender person or persons, or, in the case of any publicly owned
business, at least 51 percent of the stock of which is owned by one
or more lesbian, gay, bisexual, or transgender persons, and whose
management and daily business operations are controlled by one
or more of those individuals.

(4) “Minority business enterprise” means a business enterprise
that is at least 51 percent owned by a minority group or groups,
or, in the case of any publicly owned business, at least 51 percent
of the stock of which is owned by one or more minority groups,
and whose management and daily business operations are
controlled by one or more of those individuals. The contracting
utility shall presume that minority includes African Americans,
Hispanic Americans, Native Americans, and Asian Pacific
Americans.

(5) To “operate” means to be actively involved in the day-to-day
management. It is not enough to merely be an officer or director.

(6) “Renewable energy project” means a project for the
development and operation of an eligible renewable energy
resource meeting the requirements of the California Renewables
Portfolio Standard Program (Article 16 (commencing with Section
399.11) of Chapter 2.3 of Part 1 of Division 1).

(7) “Women business enterprise” means a business enterprise
that is at least 51 percent owned by a woman or women, or, in the
case of any publicly owned business, at least 51 percent of the
stock of which is owned by one or more women, and whose
management and daily business operations are controlled by one
or more of those individuals.

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(b) (1) The commission shall develop an outreach program to
inform and recruit the most qualified loan and grant applicants,
and contractors, including, but not limited to, women, minority,
disabled veteran, and LGBT business enterprises. The purpose of
the program is to ensure that the commission recognizes the
demographic shifts of the California marketplace and is nurturing
the new and next generation of energy technology leaders.

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(2) One component of the outreach program shall be a process
for tracking the diversity of contractors, loan recipients, and grant
recipients. Among other activities, the commission shall identify
existing sources for locating information on certified women,
minority, disabled veteran, and LGBT business, which may include,
but is not limited to, the clearinghouse database maintained by
the Public Utilities Commission, the list of Disabled Veteran
Business Enterprises certified by the Procurement Division of the
Department of General Services, as well as information on other
nonprofit organizations that verify or certify women, minority, and
LGBT business enterprises.

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(3) The commission shall include certified women, minority,
disabled veteran, and LGBT business enterprises in announcements
about workshops, trainings, and funding opportunities, as
appropriate, and shall consider including them in capacity building
activities.

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(b)

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begin insert (c) end insert  The commission shall require that each begin insert contractor, end insert recipient
of a grant begin insert awarded, end insert or loan begin delete administered end delete begin insert approved end insert by the begin delete commission, where the recipient has annual revenues exceeding
twenty-five million dollars ($25,000,000), or a different threshold
determined to be appropriate by the commission, do both end delete
begin insert commission on or after October 1, 2016, for an amount of one
million dollars ($1,000,000) or more, including amended contracts,
loans, and grant agreements that bring the total value of the
contract, loan, or grant to one million dollars ($1,000,000) or
more, do all end insert of the following as a condition for the receipt of that
grant or loan:

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(1) Report on the demographic makeup of the management of
the firm or organization awarded the contract or receiving the
grant or loan.

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(1) Annually submit

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begin insert (2) end insert begin insert   end insert begin insert Submit end insert a detailed and verifiable begin insert outreach end insert plan for increasing
begin delete procurement from end delete begin insert subcontractor opportunities with the prime
contractor, grantee, or borrower by certified end insert women, minority,
disabled veteran, and LGBT business enterprises begin delete in all categories,
including, but not limited to, renewable energy, advanced
technologies, and demonstration projects. These annual plans shall
include short- and long-term goals and timetables, but not quotas,
and shall include methods for encouraging both prime contractors
and grantees to engage women, minority, disabled veteran, and
LGBT business enterprises in subcontracts in all categories that
provide subcontracting opportunities, including, but not limited
to, renewable energy, advanced technologies, and demonstration
projects. end delete begin insert pursuant to the requirements of this section. end insert

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(3) Implement the outreach plan submitted to the commission
to the best of the contractor’s or recipient’s financial and
administrative capacity.

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(2) Furnish an annual

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begin insert (4) end insert begin insert   end insert begin insert Furnish a end insert report to the commission regarding the
begin delete implementation of programs established pursuant to this section
in a form that the commission shall require, and at the time that
the commission shall annually designate. Each end delete begin insert activities and
outcomes achieved in implementing the outreach plan, pursuant
to the requirements of this section. end insert

begin insert (d) end insert begin insert   end insert begin insert Each end insert report begin insert required by this section end insert shall be a public
document and shall be made readily available on an Internet Web
site begin delete either maintained by the grant or loan recipient or end delete begin insert maintained end insert
by the commission.

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(c)

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begin insert (e) end insert begin insert   end insert begin insert (1) end insert  The commission shall establish guidelines for all begin delete grant
or end delete begin insert contractors, grant recipients, and end insert loan recipients, subject to
subdivision begin delete (b), end delete begin insert (c), end insert to utilize in begin delete establishing programs end delete begin insert preparing,
implementing, and reporting on the outreach plans end insert pursuant to
this section.

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(d) The commission shall develop, and require every grant or
loan recipient, subject to subdivision (b), to implement, an outreach
program to inform and recruit women, minority, disabled veteran,
and LGBT business enterprises to apply for procurement contracts
under this section.

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(2) The guidelines shall include methods for encouraging
contractors, grant recipients, and loan recipients to engage
certified women, minority, disabled veteran, and LGBT business
enterprises in subcontracts in all categories that provide
subcontracting opportunities, including, but not limited to,
renewable energy projects, advanced technologies, and
demonstration projects.

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(3) The commission shall consider specifying consequences for
not meeting the requirements of subdivision (c).

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(4) The guidelines shall integrate the existing reporting
requirements for state contractors, as relevant, and shall not
require duplicate reporting of data that is otherwise required by
state law. The contractor or loan or grant recipient may submit
reports of another state entity to provide the same information.

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(f) (1) Each recipient of a loan or grant, or contract, subject
to this section, shall submit the outreach plan described in
subdivision (c) within 60 days of the award or approval of the
loan, grant, or contract.

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(2) The outreach plan shall include short- and long-term goals
and timetables, but not quotas, and shall include methods the
contractor, grant recipient, or loan recipient intends to use to
increase the number of certified women, minority, disabled veteran,
and LGBT business enterprises that participate in all categories
of subcontracting opportunities, including, but not limited to,
renewable energy projects, advanced technologies, and
demonstration projects.

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(3) The outreach plan may be updated, as necessary, to reflect
changes in the marketplace, local conditions, changes in the
structure of the firm or organization, and other issues impacting
the effectiveness of the plan.

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(g) Each contractor and recipient of a grant or loan subject to
this section shall submit data on a form provided by the commission
of the activities and outcomes of its outreach plan on October 1
of the following fiscal year in which the contract was awarded,
the loan was approved, or the grant was received.

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(e)

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begin insert (h) end insert  After receipt of the begin delete detailed end delete begin insert initial end insert plans and begin delete annual end delete reports,
the commission shall consider establishing a Diversity Task Force
to consider and make recommendations about diversity in the
energy industry, including diversity of corporate governing boards
and procurement from diverse businesses. If the commission
establishes a Diversity Task Force, the commission shall consider
how it can address and promote local and targeted hiring.