SB 1177: Public utilities: women, minority, disabled veteran, and LGBT business enterprises.

(1)Existing law requires the Public Utilities Commission to require every electrical corporation, gas corporation, water corporation, wireless telecommunications service provider, electric service provider, and telephone corporation with annual gross California revenues exceeding $25,000,000 to annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises (WMDVLGBT business enterprises) and an annual report to the commission regarding the implementation of programs related to procurement from WMDVLGBT business enterprises, as specified. Existing law requires the commission to require each of the above-described entities with gross annual California revenues exceeding $15,000,000, but not more than $25,000,000, to annually submit data in a simplified form to the commission on its procurement from WMDVLGBT business enterprises, as specified. Existing law requires the commission, by rule or order, to adopt criteria for verifying and determining the eligibility of women, minority, and LGBT business enterprises for procurement contracts, and to adopt the Department of General Services disabled veteran business enterprise certification eligibility requirements.

This bill would require the above-described entities with annual gross California revenues exceeding $25,000,000, and would require the above-described entities with annual gross California revenues exceeding $15,000,000, but not more than $25,000,000, to include certain information in the aggregate as part of each annual report or data submission described above, including, among other information, data regarding the diversity of contractor or subcontractor workforces and the total dollar amounts expended with in-state subcontractors, as provided.

This bill would require the above-described entities with annual gross California revenues exceeding $25,000,000, and their commission-regulated subsidiaries and affiliates, to submit annually to the commission a report describing the employment of women, minority, disabled veteran, and LGBT individuals at all levels of employment within their organizations and describing the diversity, equity, and inclusion policies or activities that promote equitable recruitment and hiring, and would require those entities to furnish an annual report to the commission regarding the implementation of related programs.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.

(2)Existing law requires the commission to require each community choice aggregator with gross annual revenues exceeding $15,000,000 to annually submit a report to the commission regarding its procurement from WMDVLGBT business enterprises in all categories, including, but not limited to, renewable energy, energy storage system, and smart grid projects.

This bill would require community choice aggregators to provide certain information in the aggregate as part of the above-described annual report, including, among other information, data regarding the diversity of contractor or subcontractor workforces and the total dollar amounts expended with in-state subcontractors, as provided. The bill would also require the commission to direct each community choice aggregator with gross annual revenues exceeding $15,000,000 to annually submit to the commission a report describing the employment of women, minority, disabled veteran, and LGBT individuals at all levels of employment within its organization and the diversity, equity, and inclusion policies or activities that promote equitable recruitment and hiring, and would require those entities to furnish an annual report regarding the implementation of related programs. By imposing additional duties on community choice aggregators, the bill would impose a state-mandated local program.

(3)Existing law requires the commission to annually report to the Legislature, by September 1 of each year, on the progress of activities undertaken in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs by electrical corporations, gas corporations, water corporations, wireless telecommunications service providers, electric service providers, telephone corporations, and community choice aggregators with gross annual California revenues exceeding $15,000,000.

This bill would authorize the commission to include, as part of that report, certain information related to attracting business for contractors and subcontractors operating in California, among other information.

(4)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.