BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2758
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2758 (Bradford)
          As Amended  August 18, 2010
          Majority vote
           
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          |ASSEMBLY:  |53-21|(June 3, 2010)  |SENATE: |22-13|(August 24,    |
          |           |     |                |        |     |2010)          |
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           Original Committee Reference:    U. & C.  

           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/DVBEs). 

           The Senate amendments  :
           
           1)Delete the reporting requirements for cable television  
            corporations.  

           2)Require that DVBEs be certified by the Department of General  
            Services (DGS) for utility procurement.   

           3)Require PUC to adopt DGS's DVBE certification eligibility  
            requirements for verifying and determining the eligibility of  
            DVBEs for procurement contracts.  

           4)Require PUC to include information about which procurements  
            are made with W/M/DVBE with at least a majority of the  
            enterprise's workforce in California, to the extent the  
            information is readily accessible.  

           5)Provide a corporation with the ability to require a  
            performance bond from a W/M/DVBE.  

           6)Make relating technical amendments. 

          AS PASSED BY THE ASSEMBLY,  this bill included cable television  
          corporations in W/M/DVBE reporting requirements.  

           FISCAL EFFECT  :  According to Assembly Appropriations Committee,  







                                                                  AB 2758
                                                                  Page  2

          minor absorbable costs to PUC.
           
          COMMENTS  :   PUC's General Order (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 DVBEs 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 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  :    DaVina Flemings / U. & C. / (916)  
          319-2083 



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