BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1678
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1678 (Gordon)
          As Amended  August 20, 2014
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |54-20|(May 15, 2014)  |SENATE: |22-9 |(August 25,    |
          |           |     |                |        |     |2014)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    U. & C.  

           SUMMARY  :  Extends provisions of the utilities' Supplier  
          Diversity Program to Lesbian, Gay, Bisexual and/or Transgender  
          (LGBT) business enterprises.  

           The Senate amendments  :

          1)Requires the California Public Utilities Commission (PUC) to  
            adopt the certification standards created by the National Gay  
            & Lesbian Chamber of Commerce (NGLCC). 

          2)Authorizes the PUC to update the certification standards as  
            appropriate.

          3)Provides for chaptering out language in the event that both  
            this bill and AB 2760 (Utilities and Commerce Committee) of  
            the current legislative session, are enacted.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :

          1)Inclusion of LGBT business enterprises:  This bill would  
            extend provisions of the utilities' Supplier Diversity Program  
            that is administered by the PUC to LGBT business enterprises  
            with gross annual revenues exceeding $25 million.  According  
            to NGLCC, there is an estimated 1.4 million LGBT-owned  
            businesses in the United States.  The NGLCC reports less than  
            10% of LGBT-owned businesses contract with state or local  
            governments currently, although a vast majority of LGBT-owned  
            businesses would like the opportunity. 

            Pacific Gas & Electric Company (PG&E) leadership decided to  








                                                                  AB 1678
                                                                  Page  2

            include LGBT-owned business enterprises certified by the NGLCC  
            to its Supplier Diversity Program at the end of 2012.  Last  
            October, PG&E hosted the first Supplier Diversity business  
            development workshop for LGBT business owners in collaboration  
            with the Golden Gate Business Association and the NGLCC.  

          2)Definition of an LGBT-owned business:  This bill directs the  
            PUC to adopt the LGBT status qualifiers created by NGLCC.

          3)Related Legislation:  AB 2760 clarifies applicability of the  
            minority, women, and disabled veteran business enterprises  
            procurement for renewable energy providers by adding a  
            definition that references the existing definition of  
            renewable energy in the Renewable Energy Portfolio statute.

            AB 2593 (Bradford) of the current legislative session,  
            requires large businesses participating in programs funded  
            through the State's Cap-and-Trade Program to report on efforts  
            to increase procurement from women, minority, and disabled  
            veteran enterprises.


           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083 


                                                               FN: 0005241