BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1918|
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THIRD READING
Bill No: AB 1918
Author: Davis (D)
Amended: 6/29/10 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-2, 6/15/10
AYES: Padilla, Corbett, Florez, Kehoe, Lowenthal,
Simitian, Wright
NOES: Dutton, Strickland
NO VOTE RECORDED: Cox, Oropeza
SENATE VETERANS AFFAIRS COMMITTEE : 3-0, 6/22/10
AYES: Correa, Negrete McLeod, Cedillo
NO VOTE RECORDED: Denham, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 45-26, 5/20/10 - See last page for vote
SUBJECT : Telecommunications
SOURCE : Author
DIGEST : This bill requires each wireless
telecommunications service provider with annual revenues
exceeding $25 million to submit annually to the California
Public Utilities Commission 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.
CONTINUED
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ANALYSIS : Current law requires the California Public
Utilities Commission (CPUC) to require each electrical,
gas, water, and telephone corporation with gross annual
revenues exceeding $25 million, and their
commission-regulated subsidiaries and affiliates, to submit
annually a detailed and verifiable plan for increasing
women, minority, and disabled veteran business enterprise
(WMDVBE) procurement.
This bill adds wireless telecommunications service
providers to the list of entities subject to these
requirements.
Background
Beginning in 1986, the Legislature enacted a series of
statutes, and the CPUC adopted General Order (GO) 156, to
encourage the award of a fair proportion of all utility
contracts for products and services to WMDVBEs.
Commission-regulated water utilities originally were not
required to participate in the program but were added in
2009. These entities are required to annually submit a
detailed and verifiable plan, with goals and timetables,
for increasing WMDVBE procurement in all categories of
procurement, including technology, equipment, supplies,
services, materials, and construction. A separate annual
report on progress made in meeting those goals also is
required. There is no penalty for failure of a utility to
meet its goals. The CPUC is required to make an annual
report to the Legislature on utility progress in meeting
WMDVBE goals.
GO 156 specifies guidelines for the utilities to follow in
meeting WMDVBE requirements, including the following
procurement goals: five percent of all procurement from
woman-owned business enterprises; 15 percent from
minority-owned business enterprises, and one-and-a-half
percent for disabled veteran-owned businesses enterprises.
To count toward these goals, woman- and minority-owned
business enterprises must be certified by the CPUC's
Utility Diversity Supplier Program, and disabled
veteran-owned businesses enterprises must be certified by
the Department of General Services.
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The CPUC currently has an open rulemaking to review the
impact of GO 156 and its success in encouraging regulated
utilities to seek the full and fair participation of
WMDVBEs in their procurement programs (R.09-07-027).
The California Constitution prohibits the State from
discriminating against, or granting preferential treatment
to any individual or group on the basis of race, sex,
color, ethnicity, or national origin in the operation of
public employment, public education, or public contracting.
According to the CPUC, nothing in GO 156 authorizes or
permits a utility to use set-asides, preferences, or quotas
in administration of its WMDVBE program and utilities
retain the authority to use legitimate business judgment to
select a supplier for a particular contract.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
ARGUMENTS IN SUPPORT : According to the author's office
this bill ensures that wireless telecommunications service
providers are required to comply with WMDVBE requirements
specified in statute and in General Order 156. This
purpose recognizes the dramatic growth of wireless service
in the telecommunications marketplace and the shift away
from traditional landline voice service. The CPUC reports
that the total number of landline access lines in
California has decreased from 24.77 million in 2001 to
20.25 million in 2008. The number of wireless subscribers
in California has grown from 14.8 million in 2001 to 31.7
million in 2008.
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Bass, Beall, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Davis, De Leon, Eng, Feuer,
Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jones, Lieu, Bonnie
Lowenthal, Ma, Mendoza, Monning, V. Manuel Perez,
Portantino, Ruskin, Salas, Saldana, Skinner, Solorio,
Swanson, Torlakson, Torres, Torrico, Yamada
NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill,
Blakeslee, Conway, Cook, DeVore, Emmerson, Fuller,
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Gaines, Garrick, Gilmore, Hagman, Jeffries, Knight,
Logue, Miller, Nestande, Niello, Nielsen, Norby, Silva,
Smyth, Audra Strickland, Tran
NO VOTE RECORDED: Coto, De La Torre, Evans, Fletcher,
Harkey, Nava, Villines, John A. Perez, Vacancy
DLW:do 8/3/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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