BILL ANALYSIS � 1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 1386 - Bradford Hearing Date:
July 5, 2011 A
As Amended: June 13, 2011 FISCAL B
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DESCRIPTION
Current law requires the California Public Utilities Commission
(CPUC) to require each electrical, gas, water, and telephone
corporation, and each wireless telecommunications service
provider, with gross annual revenues exceeding $25 million, and
their CPUC-regulated subsidiaries and affiliates, to submit
annually a detailed and verifiable plan for increasing
procurement with women, minority, and disabled veteran business
enterprises (WMDVBEs).
Current law requires each electrical, gas, water, and telephone
corporation, and each wireless telecommunications service
provider, with gross annual revenues exceeding $25 million, to
submit an annual report to the CPUC regarding implementation of
its WMDVBE program.
This bill states the declaration of the Legislature that each
cable television corporation and direct broadcast satellite
provider is encouraged to voluntarily adopt a plan for
increasing WMDVBE procurement and to voluntarily report activity
in this area to the Legislature on an annual basis.
Current law requires the CPUC to annually report to the
Legislature on the progress of utilities in implementing their
WMDVBE programs.
This bill requires the CPUC to make this annual report available
on its Internet Web site.
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. AB 1918 (Davis, 2010) expressly added
wireless telecommunications service providers, although, as
telephone corporations, they already were required to
participate. 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. GO 156 specifies
guidelines for the utilities to follow in meeting WMDVBE
requirements, including the following procurement goals: 5% of
all procurement from woman-owned business
enterprises; 15% from minority-owned business enterprises, and
1.5% for disabled veteran-owned businesses enterprises. 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.
Cable television corporations and direct broadcast satellite
providers are not utilities generally subject to the CPUC's
jurisdiction and, therefore, are not subject to WMDVBE
requirements.
On May 6, 2011, the CPUC issued a decision (D.11-05-019)
reaffirming its support of the policy goals of GO 156,
particularly the economic benefits to ratepayers and
communities, and amended GO 156 to enhance transparency and
accountability of the program. The transparency changes include
requiring utilities to file GO 156 annual reports electronically
and requiring the CPUC to post those reports on its website.
COMMENTS
1. Author's Purpose . According to the author, minority and
women-owned businesses historically have not been at the
contracting table within emerging technology industries.
The state and federal government have made broadband
deployment a priority and have made nearly a billion
dollars available in grants and loans to expand broadband
nationwide. Participation of minority and women-owned
businesses in the broadband industry will be critical to
job recovery because these businesses are more likely to
hire diverse workers, which represent more than half of
California's population.
2. Transparency . The requirement in this bill that the
CPUC make its annual report to the Legislature available on
its web site is consistent with the transparency
requirements the CPUC adopted in May 2011.
3. Broadband Deployment . Deployment of broadband
infrastructure in California's unserved areas will require
a variety of technologies, including satellite service in
areas with rough and remote terrain. To the extent that
cable television corporations and direct broadcast
satellite providers voluntarily adopts a WMDVBE plan and
reports to the CPUC its progress on implementing its plan,
the CPUC will be able to track the degree to which these
entities contract with WMDVBEs in their deployment of
broadband and in provision of other services.
ASSEMBLY VOTES
Assembly Floor (53-21)
Assembly Utilities and Commerce Committee
(11-0)
POSITIONS
Sponsor:
Author
Support:
Santa Maria League of United Latin American Citizens, Council
#3187
The Greenlining Institute
Oppose:
None on file
Jacqueline Kinney
AB 1386 Analysis
Hearing Date: July 5, 2011