BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1918
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1918 (Davis) - As Amended:  April 5, 2010 

          Policy Committee:                              Jobs Vote:4-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:  No

           SUMMARY  

          This bill requires each wireless telecommunications service  
          provider with annual revenues exceeding $25 million to submit  
          annually to the PUC a plan-consistent with those already  
          submitted by electrical, gas, water, and telephone  
          corporations-to increase procurement from women, minority, and  
          disabled veteran business enterprises (W/M/DVBEs).

           FISCAL EFFECT  

          Minor absorbable costs to the PUC.

           COMMENTS  

           1)Background . In 1986, the PUC adopted General Order 156 (GO  
            156), which created the Women-Owned 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 was  
            subsequently codified, and the statutory requirements were  
            expanded to require reporting by water corporations and  
            require reporting on procurement with DVBEs.

           2)Purpose  .  Currently, wireless telecommunications service  
            providers are not among the utility companies required to  
            comply with General Order 156.  According to the author, AB  
            1918 is necessary in order to increase diversity participation  
            in wireless telecommunications service providers as is  








                                                                  AB 1918
                                                                  Page  2

            required of other major utilities.

           3)Related Legislation .  AB 2758 (Bradford), also on today's  
            committee agenda, requires each cable television corporation  
            with annual revenues exceeding $25 million to submit annually  
            to the PUC a plan to increase procurement from W/M/DVBEs.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081