California Assembly Bill AB865 Amended / Bill

 BILL NUMBER: AB 865AMENDED BILL TEXT AMENDED IN SENATE SEPTEMBER 1, 2015 AMENDED IN SENATE JULY 6, 2015 AMENDED IN ASSEMBLY MAY 6, 2015 AMENDED IN ASSEMBLY APRIL 16, 2015 INTRODUCED BY Assembly Member Alejo (Coauthor: Assembly Member Jones-Sawyer) FEBRUARY 26, 2015 An act to add Section 25230 to the Public Resources Code, relating to the State Energy Resources Conservation and Development Commission. LEGISLATIVE COUNSEL'S DIGEST AB 865, as amended, Alejo. State Energy Resources Conservation and Development Commission: contracts, grants, and loans: diversity. The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission. Existing law requires the State Energy Resources Conservation and Development Commission to administer various grant and loan programs. This bill would require the State Energy Resources Conservation and Development Commission to develop  and implement  an outreach program to inform the most qualified loan and grant applicants, and contractors, including, but not limited to, women, minority, disabled veteran, and LGBT business enterprises, as  defined.   defined, about workshops, trainings, and funding opportunities.  The bill would require that one component of the outreach program be a process for tracking the diversity of contractors, loan recipients, and grant recipients. The bill would require the outreach program to include a strategy to  inform   encourage the participation of  certified women, minority, disabled veteran, and LGBT business enterprises  about workshops, trainings, and funding opportunities, as appropriate,   in the commission's relevant programs  and consider including them in capacity building activities.  The bill would require the commission to require that each contractor, recipient of a grant awarded, or loan approved by the commission on or after July 1, 2017, for an amount of $1,000,000 or more, including amended contracts, loans, and grant agreements that bring the total value of the loan or grant to $1,000,000 or more, or a different threshold or criteria determined to be appropriate by the commission, to (1) submit a report to the commission on the demographic makeup of the management of the firm or organization, (2) submit a detailed outreach plan to the commission for increasing subcontractor opportunities by certified women, minority, disabled veteran, and LGBT business enterprises, (3) implement the outreach plan to the best of the contractor's or recipient's financial and administrative capacity, and (4) furnish a report to the commission regarding the activities and outcomes achieved in implementing the outreach plan. The bill would require the commission to establish guidelines for all contractors, grant recipients, and loan recipients to utilize in preparing, implementing, and reporting on the outreach plans. The bill would require each contractor and recipient of a grant or loan that is subject to the bill's requirements to submit data in a format to be specified by the commission of the activities and outcomes of its outreach plan on October 1 of the following fiscal year in which the contract, grant, or loan was awarded.  The bill would  require   authorize  the commission to consider establishing a Diversity Task Force to consider and make recommendations about diversity in the energy industry, including diversity of corporate governing boards and procurement from diverse businesses, and addressing and promoting local and targeted hiring. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 25230 is added to the Public Resources Code, to read: 25230. (a) For purposes of this section, the following terms have the following meanings: (1) "Certified" means a business enterprise that is certified by the Public Utilities Commission, the Department of General Services, or other nonprofit organizations that verify or certify women, minority, disabled veteran, and LGBT business enterprises. (2) "Control" means exercising the power to make policy decisions. (3) "Disabled veteran business enterprise" has the same meaning as defined in Section 999 of the Military and Veterans Code. (4) "LGBT business enterprise" means a business enterprise that is at least 51 percent owned by a lesbian, gay, bisexual, or transgender person or persons, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more lesbian, gay, bisexual, or transgender persons, and whose management and daily business operations are controlled by one or more of those individuals. (5) "Minority business enterprise" means a business enterprise that is at least 51 percent owned by a minority group or groups, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more minority groups, and whose management and daily business operations are controlled by one or more of those individuals. The contracting utility shall presume that minority includes African Americans, Hispanic Americans, Native Americans, and Asian Pacific Americans. (6) To "operate" means to be actively involved in the day-to-day management. It is not enough to merely be an officer or director.  (7) "Renewable energy project" means a project for the development and operation of an eligible renewable energy resource meeting the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).   (8)   (7)  "Women business enterprise" means a business enterprise that is at least 51 percent owned by a woman or women, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women, and whose management and daily business operations are controlled by one or more of those individuals. (b) (1) The commission shall develop  and implement  an outreach program to inform the most qualified loan and grant applicants, and contractors, including, but not limited to, women, minority, disabled veteran, and LGBT business  enterprises.   enterprises, about workshops, trainings, and funding opportunities.  The purpose of the program is to ensure that the commission recognizes the demographic shifts of the California marketplace and is nurturing the new and next generation of energy technology leaders. (2) One component of the outreach program shall be a process for tracking the diversity of contractors, loan recipients, and grant recipients. The commission may rely on existing sources for locating information on certified women, minority, disabled veteran, and LGBT business, which may include, but is not limited to, the clearinghouse database maintained by the Public Utilities Commission, the list of Disabled Veteran Business Enterprises certified by the Procurement Division of the Department of General Services, as well as information on other nonprofit organizations that verify or certify women, minority, and LGBT business enterprises. (3) The outreach program shall include a strategy to  inform   encourage the p   articipation of  certified women, minority, disabled veteran, and LGBT business enterprises  about workshops, trainings, and funding opportunities, as appropriate,   in the commission's relevant programs  and shall consider including them in capacity building activities.  (c) The commission shall require that each contractor, recipient of a grant awarded, or loan approved by the commission on or after July 1, 2017, for an amount of one million dollars ($1,000,000) or more, or a different threshold or criteria determined to be appropriate by the commission, including amended contracts, loans, and grant agreements that bring the total value of the contract, loan, or grant to one million dollars ($1,000,000) or more, or the alternative threshold amount set by the commission, do all of the following as a condition for the receipt of that grant or loan:   (1) Submit a report to the commission on the demographic makeup of the management of the firm or organization awarded the contract or receiving the grant or loan.   (2) Submit a detailed outreach plan to the commission for increasing subcontractor opportunities with the prime contractor, grantee, or borrower by certified women, minority, disabled veteran, and LGBT business enterprises in California pursuant to the requirements of this section.   (3) Implement the outreach plan submitted to the commission to the best of the contractor's or recipient's financial and administrative capacity.   (4) Furnish a report to the commission regarding the activities and outcomes achieved in implementing the outreach plan, pursuant to the requirements of this section.   (d) Each report required by this section shall be a public document and shall be made readily available on an Internet Web site maintained by the commission.   (e) (1) The commission shall establish guidelines for all contractors, grant recipients, and loan recipients, subject to subdivision (c), to utilize in preparing, implementing, and reporting on the outreach plans pursuant to this section.   (2) The guidelines shall include methods for contractors, grant recipients, and loan recipients to use to engage certified women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy projects, advanced technologies, and demonstration projects.   (3) The guidelines shall integrate the existing reporting requirements for state contractors, as relevant, and shall not require duplicate reporting of data that is otherwise required by state law. The contractor or loan or grant recipient may submit reports of another state entity to provide the same information.   (4) The commission shall adopt the guidelines at a publicly noticed meeting and shall provide an opportunity for public comment. The commission shall provide written public notice of a meeting not less than 30 days prior to the meeting. For substantive revisions of the guidelines, the commission shall provide written notice of a meeting not less than 10 days prior to the meeting at which the revision is to be considered or adopted. The adoption or revision of guidelines pursuant to this subdivision is exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.   (f) (1) Each recipient of a loan or grant, or contract, subject to this section, shall submit the outreach plan described in subdivision (c) within 60 days of the approval of the loan, grant, or contract.   (2) The outreach plan shall include short- and long-term goals and timetables, but not quotas, and shall include methods the contractor, grant recipient, or loan recipient intends to use to increase the number of certified women, minority, disabled veteran, and LGBT business enterprises that participate in all categories of subcontracting opportunities, including, but not limited to, renewable energy projects, advanced technologies, and demonstration projects.   (3) The outreach plan may be updated, as necessary, to reflect changes in the marketplace, local conditions, changes in the structure of the firm or organization, and other issues impacting the effectiveness of the plan.   (g) Each contractor and recipient of a grant or loan subject to this section shall submit data in a format to be specified by the commission of the activities and outcomes of its outreach plan on October 1 of the following fiscal year in which the contract, grant, or loan was awarded.   (h) After receipt of the initial plans and reports, the commission shall   (c)     The commission may  consider establishing a Diversity Task Force to consider and make recommendations about diversity in the energy industry, including diversity of corporate governing boards and procurement from diverse businesses, and addressing and promoting local and targeted hiring.