BILL ANALYSIS
AB 1918
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1918 (Davis)
As Amended August 19, 2010
Majority vote
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|ASSEMBLY: |45-26|(May 20, 2010) |SENATE: |22-11|(August 23, |
| | | | | |2010) |
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Original Committee Reference: J., E.D. & E.
SUMMARY : Requires the California Public Utilities Commission
(PUC) to require specified wireless telecommunications service
providers to annually report on their progress in increasing
contracting with women- and minority-owned businesses and
disabled veteran business enterprises (DVBEs). Specifically,
this bill :
The Senate amendments :
1)Require the definitions for women-, minority-owned business,
and DVBEs to conform to those of the Department of General
Services (DGS).
2)Clarify that the PUC can only use DVBE's that are certified
and in good standing with DGS.
3)Add telecommunications service providers to the already
existing penalties for providing false statements during the
procurement of a contract.
4)Add double-jointing language to avoid the chaptering-out of
language in AB 2758.
EXISTING LAW :
1)Requires the PUC to require each electrical, gas, water, and
telephone corporation with revenues over $25 million and their
commission-regulated subsidiaries and affiliates to submit
annually a detailed and verifiable plan for increasing women-
and minority-owned business and DVBE procurement in all
categories; establishes guidelines for the annual report.
2)Encourages each electrical, gas, water, and telephone
AB 1918
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corporation that is not required to submit a plan under
current law to voluntarily adopt a plan for increasing women-
and minority-owned business and DVBE procurement in all
categories.
3)Establishes as a crime for false representation of a women,
minority, or DVBE in the procurement of a contract, punishable
by a fine of $5,000, or by imprisonment in the county jail or
state prison, not to exceed one year, or by both fine and
imprisonment. In the case of a corporation, the fine or
imprisonment shall be imposed on every director, officer, or
agent for the false statements.
AS PASSED BY THE ASSEMBLY , this bill required the PUC to
obligate specified wireless telecommunications service providers
to annually report on their progress in increasing contracting
with women- and minority-owned businesses and DVBEs.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, implementation of the bill would cause the state to
incur minor and absorbable costs.
COMMENTS : In 1986, the PUC adopted General Order 156 (GO 156),
which created the Women-owned and Minority-owned Business
Enterprise Program to increase diversity in various utility
operations and procurement processes. GO 156 requires the
PUC-regulated electrical, gas, and telephone corporations with
gross annual revenues exceeding $25 million to submit annual
reports on their progress in meeting the short- and long-term
goals and timelines set in their diversity plan for increasing
the participation of women- and minority-owned businesses in all
procurement categories.
GO 156 includes rules and regulations for the utilities'
compliance with the women- and minority-owned business program,
and it requires participating utilities to inform, recruit, and
obtain at least 20% of their products and services purchased
within a five-year period from women- and minority-owned
businesses. The targets are 15% for minority-owned businesses
and 5% for women-owned businesses.
In 1990, DVBEs were included in GO 156 in SB 2398 (Dills)
Chapter 516, Statutes of 1990. In implementing the bill the PUC
adopted (D. 95-12-045) which set a 1.5% goal for DVBEs.
AB 1918
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Analysis Prepared by : Mercedes Flores / J., E.D. & E. / (916)
319-2090
FN: 0006592