Amended in Senate September 1, 2015

Amended in Senate July 6, 2015

Amended in Assembly May 6, 2015

Amended in Assembly April 16, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 865


Introduced by Assembly Member Alejo

(Coauthor: Assembly Member Jones-Sawyer)

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: contracts, grants, 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 developbegin insert and implementend insert an outreach program to inform the most qualified loan and grant applicants, and contractors, including, but not limited to, women, minority, disabled veteran, and LGBT business enterprises, asbegin delete defined.end deletebegin insert defined, about workshops, trainings, and funding opportunities.end insert 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 outreach program to include a strategy tobegin delete informend deletebegin insert encourage the participation ofend insert certified women, minority, disabled veteran, and LGBT business enterprisesbegin delete about workshops, trainings, and funding opportunities, as appropriate,end deletebegin insert in the commission’s relevant programsend insert and consider including them in capacity building activities.begin delete 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 July 1, 2017, 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, or a different threshold or criteria determined to be appropriate by the commission, to (1) submit a report to the commission on the demographic makeup of the management of the firm or organization, (2) submit a detailed outreach plan to the commission 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 in a format to be specified by the commission of the activities and outcomes of its outreach plan on October 1 of the following fiscal year in which the contract, grant, or loan was awarded.end delete The bill wouldbegin delete requireend deletebegin insert authorizeend insert the 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, and addressing and promoting local and targeted hiring.

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

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

P2    1

SECTION 1.  

Section 25230 is added to the Public Resources
2Code
, to read:

P3    1

25230.  

(a) For purposes of this section, the following terms
2have the following meanings:

3(1) “Certified” means a business enterprise that is certified by
4the Public Utilities Commission, the Department of General
5Services, or other nonprofit organizations that verify or certify
6women, minority, disabled veteran, and LGBT business enterprises.

7(2) “Control” means exercising the power to make policy
8decisions.

9(3) “Disabled veteran business enterprise” has the same meaning
10as defined in Section 999 of the Military and Veterans Code.

11(4) “LGBT business enterprise” means a business enterprise
12that is at least 51 percent owned by a lesbian, gay, bisexual, or
13transgender person or persons, or, in the case of any publicly owned
14business, at least 51 percent of the stock of which is owned by one
15or more lesbian, gay, bisexual, or transgender persons, and whose
16management and daily business operations are controlled by one
17or more of those individuals.

18(5) “Minority business enterprise” means a business enterprise
19that is at least 51 percent owned by a minority group or groups,
20or, in the case of any publicly owned business, at least 51 percent
21of the stock of which is owned by one or more minority groups,
22and whose management and daily business operations are
23controlled by one or more of those individuals. The contracting
24utility shall presume that minority includes African Americans,
25Hispanic Americans, Native Americans, and Asian Pacific
26Americans.

27(6) To “operate” means to be actively involved in the day-to-day
28management. It is not enough to merely be an officer or director.

begin delete

29(7) “Renewable energy project” means a project for the
30development and operation of an eligible renewable energy
31resource meeting the requirements of the California Renewables
32Portfolio Standard Program (Article 16 (commencing with Section
33399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities
34Code).

end delete
begin delete

35(8)

end delete

36begin insert(7)end insert “Women business enterprise” means a business enterprise
37that is at least 51 percent owned by a woman or women, or, in the
38case of any publicly owned business, at least 51 percent of the
39stock of which is owned by one or more women, and whose
P4    1management and daily business operations are controlled by one
2or more of those individuals.

3(b) (1) The commission shall developbegin insert and implementend insert an
4outreach program to inform the most qualified loan and grant
5applicants, and contractors, including, but not limited to, women,
6minority, disabled veteran, and LGBT businessbegin delete enterprises.end delete
7begin insert enterprises, about workshops, trainings, and funding opportunities.end insert
8 The purpose of the program is to ensure that the commission
9recognizes the demographic shifts of the California marketplace
10and is nurturing the new and next generation of energy technology
11leaders.

12(2) One component of the outreach program shall be a process
13for tracking the diversity of contractors, loan recipients, and grant
14recipients. The commission may rely on existing sources for
15locating information on certified women, minority, disabled
16veteran, and LGBT business, which may include, but is not limited
17to, the clearinghouse database maintained by the Public Utilities
18Commission, the list of Disabled Veteran Business Enterprises
19certified by the Procurement Division of the Department of General
20Services, as well as information on other nonprofit organizations
21that verify or certify women, minority, and LGBT business
22enterprises.

23(3) The outreach program shall include a strategy tobegin delete informend delete
24begin insert encourage the participation ofend insert certified women, minority, disabled
25veteran, and LGBT business enterprisesbegin delete about workshops, trainings,
26and funding opportunities, as appropriate,end delete
begin insert in the commission’s
27relevant programsend insert
and shall consider including them in capacity
28building activities.

begin delete

29(c) The commission shall require that each contractor, recipient
30of a grant awarded, or loan approved by the commission on or
31after July 1, 2017, for an amount of one million dollars
32($1,000,000) or more, or a different threshold or criteria determined
33to be appropriate by the commission, including amended contracts,
34loans, and grant agreements that bring the total value of the
35contract, loan, or grant to one million dollars ($1,000,000) or more,
36or the alternative threshold amount set by the commission, do all
37of the following as a condition for the receipt of that grant or loan:

38(1) Submit a report to the commission on the demographic
39makeup of the management of the firm or organization awarded
40the contract or receiving the grant or loan.

P5    1(2) Submit a detailed outreach plan to the commission for
2increasing subcontractor opportunities with the prime contractor,
3grantee, or borrower by certified women, minority, disabled
4veteran, and LGBT business enterprises in California pursuant to
5the requirements of this section.

6(3) Implement the outreach plan submitted to the commission
7 to the best of the contractor’s or recipient’s financial and
8administrative capacity.

9(4) Furnish a report to the commission regarding the activities
10and outcomes achieved in implementing the outreach plan, pursuant
11to the requirements of this section.

12(d) Each report required by this section shall be a public
13document and shall be made readily available on an Internet Web
14site maintained by the commission.

15(e) (1) The commission shall establish guidelines for all
16contractors, grant recipients, and loan recipients, subject to
17subdivision (c), to utilize in preparing, implementing, and reporting
18on the outreach plans pursuant to this section.

19(2) The guidelines shall include methods for contractors, grant
20recipients, and loan recipients to use to engage certified women,
21minority, disabled veteran, and LGBT business enterprises in
22subcontracts in all categories that provide subcontracting
23opportunities, including, but not limited to, renewable energy
24projects, advanced technologies, and demonstration projects.

25(3) The guidelines shall integrate the existing reporting
26requirements for state contractors, as relevant, and shall not require
27duplicate reporting of data that is otherwise required by state law.
28The contractor or loan or grant recipient may submit reports of
29another state entity to provide the same information.

30(4) The commission shall adopt the guidelines at a publicly
31noticed meeting and shall provide an opportunity for public
32comment. The commission shall provide written public notice of
33a meeting not less than 30 days prior to the meeting. For
34substantive revisions of the guidelines, the commission shall
35provide written notice of a meeting not less than 10 days prior to
36the meeting at which the revision is to be considered or adopted.
37The adoption or revision of guidelines pursuant to this subdivision
38is exempt from Chapter 3.5 (commencing with Section 11340) of
39Part 1 of Division 3 of Title 2 of the Government Code.

P6    1(f) (1) Each recipient of a loan or grant, or contract, subject to
2this section, shall submit the outreach plan described in subdivision
3(c) within 60 days of the approval of the loan, grant, or contract.

4(2) The outreach plan shall include short- and long-term goals
5and timetables, but not quotas, and shall include methods the
6contractor, grant recipient, or loan recipient intends to use to
7increase the number of certified women, minority, disabled veteran,
8and LGBT business enterprises that participate in all categories of
9subcontracting opportunities, including, but not limited to,
10renewable energy projects, advanced technologies, and
11demonstration projects.

12(3) The outreach plan may be updated, as necessary, to reflect
13changes in the marketplace, local conditions, changes in the
14structure of the firm or organization, and other issues impacting
15the effectiveness of the plan.

16(g) Each contractor and recipient of a grant or loan subject to
17this section shall submit data in a format to be specified by the
18commission of the activities and outcomes of its outreach plan on
19October 1 of the following fiscal year in which the contract, grant,
20or loan was awarded.

21(h) After receipt of the initial plans and reports, the commission
22shall

end delete

23begin insert(c)end insertbegin insertend insertbegin insertThe commission mayend insert consider establishing a Diversity Task
24Force to consider and make recommendations about diversity in
25the energy industry, including diversity of corporate governing
26boards and procurement from diverse businesses, and addressing
27and promoting local and targeted hiring.



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