BILL ANALYSIS �
AB 1386
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ASSEMBLY THIRD READING
AB 1386 (Bradford)
As Amended March 31, 2011
Majority vote
UTILITIES & COMMERCE 11-0
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|Ayes:|Bradford, Fletcher, | | |
| |Buchanan, Fong, Fuentes, | | |
| |Furutani, Roger | | |
| |Hern�ndez, Huffman, Ma, | | |
| |Skinner, Swanson | | |
| | | | |
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SUMMARY : This bill encourages cable television corporations and
direct broadcast satellite providers to voluntarily adopt a plan
for increasing women, minority, and disabled veteran business
enterprise procurement and to voluntarily report activity in
this area to the Legislature on an annual basis.
FISCAL EFFECT : None
COMMENTS : According to the author, women and minority-owned
business participation in the broadband industry will be
critical to job recovery in California. Small businesses are
critical sources of new employment.
This bill will encourage cable television corporations and
direct broadcast satellite providers to voluntarily adopt a plan
for increasing women, minority, and disabled veteran business
enterprise procurement and to voluntarily report activity in
this area to the Legislature on an annual basis.
In the most recent California Public Utilities Commission (CPUC)
report to the Legislature, utility spending on diverse
procurement increased from $3.47 billion in 2008 to $4.27
billion in 2009, an increase of 23.05%. There was also an
increase as a percentage of total utility procurement; amounts
from diverse firms increased from 13.19% in 2008 to 16.72% in
2009. The same potential for reporting and achievement may
exist with cable television corporations and direct broadcast
satellite providers.
AB 1386
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In California, women and minority-owned businesses represent the
bulk of small businesses. Since diverse business owners are much
more likely to hire diverse workers, the success of women and
minority-owned businesses translates into jobs for women and
minorities.
More than twenty years ago, CPUC created Government Order 156
(GO156) to encourage a fair proportion of total utility
contracts and subcontracts for products and services to be
awarded to women, minority, and disabled veteran business
enterprises. GO156 currently requires general reporting of
diverse business procurement statistics in the utility and
telecom sectors. This reporting has encouraged major companies
to work with California's diverse business owners to achieve
greater profits. As a result of this information, California's
largest utility and telecommunications companies have increased
their diverse procurement by more than 300% for women, minority
and disabled veteran-owned businesses.
Cable television corporations and direct broadcast satellite
providers are not under the jurisdiction of CPUC and are not
required to report on their procurement with diverse businesses.
The extent to which women and minority-owned businesses are
being included in certain emerging sectors is largely unknown.
The state, as well as the federal government, has placed
priority on the expansion of broadband particularly in rural and
underserved communities. The state and the federal government
have made nearly a billion dollars available in grants and loans
to help expand broadband service across the country. Cable
companies have and continue to make significant infrastructure
investments in this area. Direct broadcast satellite providers
also support broadband applications and have begun to petition
the government for the opportunity to compete for these public
broadband funds.
Historically, minority and women-owned businesses have not been
at the contracting table within emerging technology industries.
Diversity in growing businesses is vital to California's
success. In a majority-minority state, where women represent
over 50% of California's population and people of color
represent 60%, economic recovery cannot happen without
diversity.
AB 1386
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Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN: 0000610