BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2758
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2758 (Bradford)
          As Amended  June 1, 2010
          Majority vote 

           UTILITIES & COMMERCE             9-2                 
          APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Carter, Fong, Fuentes,    |Ayes:|Fuentes, Ammiano,         |
          |     |Furutani, Huffman, Ma,    |     |Bradford,                 |
          |     |Skinner, Villines,        |     |Charles Calderon, Coto,   |
          |     |Bradford                  |     |Davis,                    |
          |     |                          |     |Monning, Ruskin, Skinner, |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Buchanan          |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Specifies that reporting by utilities regulated by the  
          California Public Utilities Commission (PUC), include renewable  
          energy, wireless telecommunications, broadband, smart grid and  
          rail projects as categories for which utilities should increase  
          procurement from women, minority and disabled veteran business  
          enterprises (W/M/DVBE). 

          FISCAL EFFECT  :  Minor absorbable costs to PUC.
           
          COMMENTS  :   The author's intent is to capture information about  
          the procurement practices of PUC-regulated electrical, gas, and  
          telephone corporations, for specified industries that were not  
          envisioned in 1986, when PUC adopted General Order 156 (GO 156).  
           GO 156 created W/MBE program to increase diversity in various  
          utility operations and procurement processes.  

          SB 2398 (Dills) Chapter 516, Statutes of 1990, later included  
          disabled veteran business enterprises in the classes of entities  
          eligible under W/MBE programs. A subsequent PUC decision  
          includes disabled veteran-owned business enterprises (D.  
          95-12-045) and establishes a 1.5% goal for disabled  
          veteran-owned businesses.








                                                                  AB 2758
                                                                  Page  2



          AB 2758 specifies that renewable energy, wireless  
          telecommunications, broadband, smart grid and rail projects  
          should be projects of focus for utility procurement with  
          M/W/DVBE.  However, it can be deduced that because GO 156  
          applies directly to utility activities and encourages compliance  
          through prime contractors and subcontracts, diversity compliance  
          should be reflected in annual procurement reports as utilities  
          begin to authorize and contract for these projects.  
           

          Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 


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