California 2017 2017-2018 Regular Session

California Assembly Bill AB1552 Amended / Bill

Filed 01/22/2018

                    Amended IN  Assembly  January 22, 2018 Amended IN  Assembly  January 04, 2018 Amended IN  Assembly  September 12, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1552Introduced by Assembly Member Quirk-SilvaFebruary 17, 2017 An act to amend Section 8281 of, and to add Section 8287 to, the Public Utilities Code, relating to public utilities.LEGISLATIVE COUNSEL'S DIGESTAB 1552, as amended, Quirk-Silva. Women, minority, disabled veteran, and LGBT business enterprise procurement: late payment penalties.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical, gas, water, and telephone corporations. Existing law requires each electrical, gas, water, wireless telecommunications service provider, or telephone corporation with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises, as defined, and to implement an outreach program to inform and recruit those business enterprises to apply for procurement contracts, as specified. Existing law includes a declaration by the Legislature that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan, and each cable television corporation and direct broadcast satellite provider, is encouraged to voluntarily adopt a plan for increasing procurement from those business enterprises. Existing law requires the commission, by rule or order, to adopt criteria for verifying and determining eligibility of women, minority, and LGBT business enterprises for procurement contracts.This bill would require each electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to pay an undisputed invoice by its required payment approval date, as defined. If the payment is not made by that date, the bill would require the utility to pay a late payment penalty to a certified small business, as defined, that is a disabled veteran, minority, women, or LGBT business enterprise claimant, or to a nonsmall business nonsmall-business claimant that has committed to having at least 25% of the contracted work undertaken by a certified small business, at a rate of 10% above the United States Prime Rate, and to all other claimants in accord with the contractual agreement. Rate. The bill would require each of the specified utilities to annually provide the commission with information concerning its late payment penalties. The bill would require the commission to encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those that are small businesses.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of an order or decision of the commission implementing the requirements of the bill would be a crime, the bill would impose a state-mandated local program by creating a new crime.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 no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares both all of the following:(1) The most vulnerable businesses, including women, minority, disabled veteran, and LGBT business enterprises, often disproportionately suffer when they do not receive the payments owed to them on time.(2) Research shows that small businesses face unique challenges in accessing capital.(3) Ensuring these businesses receive timely payment so they can meet their business obligations is a matter of statewide concern.(b) It is the intent of the Legislature to do both of the following:(1) To ensure that those businesses receive their payments on time, and that, when those payments are received late, those businesses are adequately compensated for the harm that they suffer. so that they can meet their business obligations.(2) To enable those businesses to participate equally in their pursuits of the American Dream.SEC. 2. Section 8281 of the Public Utilities Code is amended to read:8281. (a) The Legislature hereby finds and declares that the essence of the American economic system of private enterprise is free, open, and transparent competition. Only through free, open, and transparent competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be ensured. The preservation and expansion of that competition are basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women, minority, disabled veteran, and LGBT business enterprises is are encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women, minority, disabled veteran, and LGBT business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated public utilities, including, but not limited to, renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, are awarded to women, minority, disabled veteran, and LGBT business enterprises, and to maintain and strengthen the overall economy of the state.(b) (1) The Legislature finds and declares all of the following:(A) The opportunity for full participation in our free enterprise system by women, minority, disabled veteran, and LGBT business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.(B) Public agencies and some regulated public utilities that have established short- and long-range women, minority, disabled veteran, and LGBT business enterprise goals that have resulted in their awarding 30 percent or more of their contracts to these business enterprises.(C) Women, minority, disabled veteran, and LGBT business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects. Supplier diversity activities have benefited public utilities and their customers by increasing the potential pool of bidders and allowing public utilities to enter into best value contracts.(D) It is in the states interest to expeditiously improve the economically disadvantaged position of women, minority, disabled veteran, and LGBT business enterprises. As California becomes an increasingly diverse state, exclusionary procurement policies impair the ability of public utilities to meet their primary mission.(E) The position of these women, minority, disabled veteran, and LGBT business enterprises can be substantially improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, from women, minority, disabled veteran, and LGBT businesses.(F) That procurement also benefits the regulated public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.(G) That the long-term economic viability of this state depends substantially upon the ability of renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects to incorporate women, minority, disabled veteran, and LGBT businesses into those projects.(2) It is the purpose of this article to do all of the following:(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.(B) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electrical, gas, water, mobile telephony service provider, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates.(C) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from certified women, minority, disabled veteran, and LGBT business enterprises.(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.SEC. 3. Section 8287 is added to the Public Utilities Code, to read:8287. (a) The following definitions apply to this section:(1) Certified small business means a business certified by the State of California as meeting the requirements of subdivision (d) of Section 14837 of the Government Code.(2) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in paragraph (1) of subdivision (b), agrees to purchase a good or service. If the contractual agreement specifies a specific form or format for invoicing, the invoice shall meet the terms of the contractual agreement.(3) Reasonable cause means a determination by a public utility described in paragraph (1) of subdivision (b) that any of the following conditions is present:(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.(B) There is a discrepancy between the invoice or claimed amount and either the goods or services delivered by the claimant certified small business to the public utility or the goods or services accepted by the public utility.(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.(D) The claimant certified small business has improperly executed or needs to correct the invoice.(E) There is a discrepancy between the refund or other payment due as calculated by the party to whom the money is owed and by the public utility.(4) The date an invoice is received by the public utility means the date an invoice is delivered to and received by the public utility described in paragraph (1) of subdivision (b) or party specified in the contract.(5) Required payment date means the date on which payment is due as specified in a contractual agreement. If a date is not specified in the contractual agreement, the required payment date is 30 calendar days following the date upon which an undisputed invoice is received by the public utility described in paragraph (1) of subdivision (b).(b) (1) The late payment penalty requirements in this section shall apply only to an electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.(c) (1)A public utility described in paragraph (1) of subdivision (b) shall pay an undisputed invoice by a certified small business, or a nonsmall business that has committed to having at least 25 percent of the contractual work undertaken by a certified small business, by the required payment date. date, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or nonsmall business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the public utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(2)A utility described in paragraph (1) of subdivision (b) may dispute an invoice submitted by a claimant for reasonable cause if the utility notifies the claimant within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(d) (1) If a public utility described in paragraph (1) of subdivision (b) fails to comply with the requirement of paragraph (1) of subdivision (c), it shall pay a late payment penalty, as described in this subdivision, without requiring the claimant certified small business to submit an additional invoice for that amount. The penalty shall cease to accrue on the date the public utility issues the payment.(2) If the claimant is a certified small business or a nonsmall business that committed to having at least 25 percent of the contracted work undertaken by a certified small business, a utility described in paragraph (1) of subdivision (b) shall pay to the claimant a The late payment penalty required to be paid pursuant to this subdivision shall be at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year of the amount of the late undisputed invoice. The late payment penalty shall cease to accrue on the date full payment or full refund is made. If the amount of the late payment penalty is ten dollars ($10) or less, it shall be waived and not paid by the public utility.For any other business claimant, the utility shall adhere to the payment policies set by the terms of the contractual agreement with that claimant.(e) Any late payment penalty that accrues as a result of a failure of a public utility described in paragraph (1) of subdivision (b) to make a timely payment, as required by this section, shall be considered by the commission in any ratemaking or other appropriate proceeding involving the public utilitys recovery of expenses.(f) (1) On an annual basis, within 90 calendar days following the end of each fiscal year, a public utility described in paragraph (1) of subdivision (b) shall provide the commission with information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with this section during the preceding fiscal year.(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:(A) The total number and dollar amount of late payment penalties paid to certified disabled veteran, minority, women, or LGBT small business enterprises, disaggregated, at a minimum, by the categories of business enterprises specified in paragraph (1) of subdivision (d) for which each late payment penalty was made.(B) The total number and dollar amount of contractual agreements entered into with a certified disabled veteran, minority, women, and LGBT business enterprise which include a 30-day, a 45-day, and a 60-or-more-day payment provision following the submittal of an undisputed invoice.(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.(g) The commission shall encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those claimants subcontractors and suppliers that are small businesses. The policies and practices may include, but are not limited to, expedited payment processes and transparent payment practices that allow a contractor certified small business to track when the claimant a subcontractor or supplier has been paid.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

 Amended IN  Assembly  January 22, 2018 Amended IN  Assembly  January 04, 2018 Amended IN  Assembly  September 12, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1552Introduced by Assembly Member Quirk-SilvaFebruary 17, 2017 An act to amend Section 8281 of, and to add Section 8287 to, the Public Utilities Code, relating to public utilities.LEGISLATIVE COUNSEL'S DIGESTAB 1552, as amended, Quirk-Silva. Women, minority, disabled veteran, and LGBT business enterprise procurement: late payment penalties.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical, gas, water, and telephone corporations. Existing law requires each electrical, gas, water, wireless telecommunications service provider, or telephone corporation with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises, as defined, and to implement an outreach program to inform and recruit those business enterprises to apply for procurement contracts, as specified. Existing law includes a declaration by the Legislature that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan, and each cable television corporation and direct broadcast satellite provider, is encouraged to voluntarily adopt a plan for increasing procurement from those business enterprises. Existing law requires the commission, by rule or order, to adopt criteria for verifying and determining eligibility of women, minority, and LGBT business enterprises for procurement contracts.This bill would require each electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to pay an undisputed invoice by its required payment approval date, as defined. If the payment is not made by that date, the bill would require the utility to pay a late payment penalty to a certified small business, as defined, that is a disabled veteran, minority, women, or LGBT business enterprise claimant, or to a nonsmall business nonsmall-business claimant that has committed to having at least 25% of the contracted work undertaken by a certified small business, at a rate of 10% above the United States Prime Rate, and to all other claimants in accord with the contractual agreement. Rate. The bill would require each of the specified utilities to annually provide the commission with information concerning its late payment penalties. The bill would require the commission to encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those that are small businesses.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of an order or decision of the commission implementing the requirements of the bill would be a crime, the bill would impose a state-mandated local program by creating a new crime.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 no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 

 Amended IN  Assembly  January 22, 2018 Amended IN  Assembly  January 04, 2018 Amended IN  Assembly  September 12, 2017

Amended IN  Assembly  January 22, 2018
Amended IN  Assembly  January 04, 2018
Amended IN  Assembly  September 12, 2017

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 1552

Introduced by Assembly Member Quirk-SilvaFebruary 17, 2017

Introduced by Assembly Member Quirk-Silva
February 17, 2017

 An act to amend Section 8281 of, and to add Section 8287 to, the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1552, as amended, Quirk-Silva. Women, minority, disabled veteran, and LGBT business enterprise procurement: late payment penalties.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical, gas, water, and telephone corporations. Existing law requires each electrical, gas, water, wireless telecommunications service provider, or telephone corporation with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises, as defined, and to implement an outreach program to inform and recruit those business enterprises to apply for procurement contracts, as specified. Existing law includes a declaration by the Legislature that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan, and each cable television corporation and direct broadcast satellite provider, is encouraged to voluntarily adopt a plan for increasing procurement from those business enterprises. Existing law requires the commission, by rule or order, to adopt criteria for verifying and determining eligibility of women, minority, and LGBT business enterprises for procurement contracts.This bill would require each electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to pay an undisputed invoice by its required payment approval date, as defined. If the payment is not made by that date, the bill would require the utility to pay a late payment penalty to a certified small business, as defined, that is a disabled veteran, minority, women, or LGBT business enterprise claimant, or to a nonsmall business nonsmall-business claimant that has committed to having at least 25% of the contracted work undertaken by a certified small business, at a rate of 10% above the United States Prime Rate, and to all other claimants in accord with the contractual agreement. Rate. The bill would require each of the specified utilities to annually provide the commission with information concerning its late payment penalties. The bill would require the commission to encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those that are small businesses.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of an order or decision of the commission implementing the requirements of the bill would be a crime, the bill would impose a state-mandated local program by creating a new crime.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 no reimbursement is required by this act for a specified reason.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical, gas, water, and telephone corporations. Existing law requires each electrical, gas, water, wireless telecommunications service provider, or telephone corporation with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises, as defined, and to implement an outreach program to inform and recruit those business enterprises to apply for procurement contracts, as specified. Existing law includes a declaration by the Legislature that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan, and each cable television corporation and direct broadcast satellite provider, is encouraged to voluntarily adopt a plan for increasing procurement from those business enterprises. Existing law requires the commission, by rule or order, to adopt criteria for verifying and determining eligibility of women, minority, and LGBT business enterprises for procurement contracts.

This bill would require each electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to pay an undisputed invoice by its required payment approval date, as defined. If the payment is not made by that date, the bill would require the utility to pay a late payment penalty to a certified small business, as defined, that is a disabled veteran, minority, women, or LGBT business enterprise claimant, or to a nonsmall business nonsmall-business claimant that has committed to having at least 25% of the contracted work undertaken by a certified small business, at a rate of 10% above the United States Prime Rate, and to all other claimants in accord with the contractual agreement. Rate. The bill would require each of the specified utilities to annually provide the commission with information concerning its late payment penalties. The bill would require the commission to encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those that are small businesses.

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

Because a violation of an order or decision of the commission implementing the requirements of the bill would be a crime, the bill would impose a state-mandated local program by creating a new crime.

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 no reimbursement is required by this act for a specified reason.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares both all of the following:(1) The most vulnerable businesses, including women, minority, disabled veteran, and LGBT business enterprises, often disproportionately suffer when they do not receive the payments owed to them on time.(2) Research shows that small businesses face unique challenges in accessing capital.(3) Ensuring these businesses receive timely payment so they can meet their business obligations is a matter of statewide concern.(b) It is the intent of the Legislature to do both of the following:(1) To ensure that those businesses receive their payments on time, and that, when those payments are received late, those businesses are adequately compensated for the harm that they suffer. so that they can meet their business obligations.(2) To enable those businesses to participate equally in their pursuits of the American Dream.SEC. 2. Section 8281 of the Public Utilities Code is amended to read:8281. (a) The Legislature hereby finds and declares that the essence of the American economic system of private enterprise is free, open, and transparent competition. Only through free, open, and transparent competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be ensured. The preservation and expansion of that competition are basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women, minority, disabled veteran, and LGBT business enterprises is are encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women, minority, disabled veteran, and LGBT business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated public utilities, including, but not limited to, renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, are awarded to women, minority, disabled veteran, and LGBT business enterprises, and to maintain and strengthen the overall economy of the state.(b) (1) The Legislature finds and declares all of the following:(A) The opportunity for full participation in our free enterprise system by women, minority, disabled veteran, and LGBT business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.(B) Public agencies and some regulated public utilities that have established short- and long-range women, minority, disabled veteran, and LGBT business enterprise goals that have resulted in their awarding 30 percent or more of their contracts to these business enterprises.(C) Women, minority, disabled veteran, and LGBT business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects. Supplier diversity activities have benefited public utilities and their customers by increasing the potential pool of bidders and allowing public utilities to enter into best value contracts.(D) It is in the states interest to expeditiously improve the economically disadvantaged position of women, minority, disabled veteran, and LGBT business enterprises. As California becomes an increasingly diverse state, exclusionary procurement policies impair the ability of public utilities to meet their primary mission.(E) The position of these women, minority, disabled veteran, and LGBT business enterprises can be substantially improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, from women, minority, disabled veteran, and LGBT businesses.(F) That procurement also benefits the regulated public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.(G) That the long-term economic viability of this state depends substantially upon the ability of renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects to incorporate women, minority, disabled veteran, and LGBT businesses into those projects.(2) It is the purpose of this article to do all of the following:(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.(B) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electrical, gas, water, mobile telephony service provider, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates.(C) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from certified women, minority, disabled veteran, and LGBT business enterprises.(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.SEC. 3. Section 8287 is added to the Public Utilities Code, to read:8287. (a) The following definitions apply to this section:(1) Certified small business means a business certified by the State of California as meeting the requirements of subdivision (d) of Section 14837 of the Government Code.(2) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in paragraph (1) of subdivision (b), agrees to purchase a good or service. If the contractual agreement specifies a specific form or format for invoicing, the invoice shall meet the terms of the contractual agreement.(3) Reasonable cause means a determination by a public utility described in paragraph (1) of subdivision (b) that any of the following conditions is present:(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.(B) There is a discrepancy between the invoice or claimed amount and either the goods or services delivered by the claimant certified small business to the public utility or the goods or services accepted by the public utility.(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.(D) The claimant certified small business has improperly executed or needs to correct the invoice.(E) There is a discrepancy between the refund or other payment due as calculated by the party to whom the money is owed and by the public utility.(4) The date an invoice is received by the public utility means the date an invoice is delivered to and received by the public utility described in paragraph (1) of subdivision (b) or party specified in the contract.(5) Required payment date means the date on which payment is due as specified in a contractual agreement. If a date is not specified in the contractual agreement, the required payment date is 30 calendar days following the date upon which an undisputed invoice is received by the public utility described in paragraph (1) of subdivision (b).(b) (1) The late payment penalty requirements in this section shall apply only to an electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.(c) (1)A public utility described in paragraph (1) of subdivision (b) shall pay an undisputed invoice by a certified small business, or a nonsmall business that has committed to having at least 25 percent of the contractual work undertaken by a certified small business, by the required payment date. date, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or nonsmall business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the public utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(2)A utility described in paragraph (1) of subdivision (b) may dispute an invoice submitted by a claimant for reasonable cause if the utility notifies the claimant within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(d) (1) If a public utility described in paragraph (1) of subdivision (b) fails to comply with the requirement of paragraph (1) of subdivision (c), it shall pay a late payment penalty, as described in this subdivision, without requiring the claimant certified small business to submit an additional invoice for that amount. The penalty shall cease to accrue on the date the public utility issues the payment.(2) If the claimant is a certified small business or a nonsmall business that committed to having at least 25 percent of the contracted work undertaken by a certified small business, a utility described in paragraph (1) of subdivision (b) shall pay to the claimant a The late payment penalty required to be paid pursuant to this subdivision shall be at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year of the amount of the late undisputed invoice. The late payment penalty shall cease to accrue on the date full payment or full refund is made. If the amount of the late payment penalty is ten dollars ($10) or less, it shall be waived and not paid by the public utility.For any other business claimant, the utility shall adhere to the payment policies set by the terms of the contractual agreement with that claimant.(e) Any late payment penalty that accrues as a result of a failure of a public utility described in paragraph (1) of subdivision (b) to make a timely payment, as required by this section, shall be considered by the commission in any ratemaking or other appropriate proceeding involving the public utilitys recovery of expenses.(f) (1) On an annual basis, within 90 calendar days following the end of each fiscal year, a public utility described in paragraph (1) of subdivision (b) shall provide the commission with information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with this section during the preceding fiscal year.(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:(A) The total number and dollar amount of late payment penalties paid to certified disabled veteran, minority, women, or LGBT small business enterprises, disaggregated, at a minimum, by the categories of business enterprises specified in paragraph (1) of subdivision (d) for which each late payment penalty was made.(B) The total number and dollar amount of contractual agreements entered into with a certified disabled veteran, minority, women, and LGBT business enterprise which include a 30-day, a 45-day, and a 60-or-more-day payment provision following the submittal of an undisputed invoice.(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.(g) The commission shall encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those claimants subcontractors and suppliers that are small businesses. The policies and practices may include, but are not limited to, expedited payment processes and transparent payment practices that allow a contractor certified small business to track when the claimant a subcontractor or supplier has been paid.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. (a) The Legislature finds and declares both all of the following:(1) The most vulnerable businesses, including women, minority, disabled veteran, and LGBT business enterprises, often disproportionately suffer when they do not receive the payments owed to them on time.(2) Research shows that small businesses face unique challenges in accessing capital.(3) Ensuring these businesses receive timely payment so they can meet their business obligations is a matter of statewide concern.(b) It is the intent of the Legislature to do both of the following:(1) To ensure that those businesses receive their payments on time, and that, when those payments are received late, those businesses are adequately compensated for the harm that they suffer. so that they can meet their business obligations.(2) To enable those businesses to participate equally in their pursuits of the American Dream.

SECTION 1. (a) The Legislature finds and declares both all of the following:(1) The most vulnerable businesses, including women, minority, disabled veteran, and LGBT business enterprises, often disproportionately suffer when they do not receive the payments owed to them on time.(2) Research shows that small businesses face unique challenges in accessing capital.(3) Ensuring these businesses receive timely payment so they can meet their business obligations is a matter of statewide concern.(b) It is the intent of the Legislature to do both of the following:(1) To ensure that those businesses receive their payments on time, and that, when those payments are received late, those businesses are adequately compensated for the harm that they suffer. so that they can meet their business obligations.(2) To enable those businesses to participate equally in their pursuits of the American Dream.

SECTION 1. (a) The Legislature finds and declares both all of the following:

### SECTION 1.

(1) The most vulnerable businesses, including women, minority, disabled veteran, and LGBT business enterprises, often disproportionately suffer when they do not receive the payments owed to them on time.

(2) Research shows that small businesses face unique challenges in accessing capital.

(3) Ensuring these businesses receive timely payment so they can meet their business obligations is a matter of statewide concern.

(b) It is the intent of the Legislature to do both of the following:

(1) To ensure that those businesses receive their payments on time, and that, when those payments are received late, those businesses are adequately compensated for the harm that they suffer. so that they can meet their business obligations.

(2) To enable those businesses to participate equally in their pursuits of the American Dream.

SEC. 2. Section 8281 of the Public Utilities Code is amended to read:8281. (a) The Legislature hereby finds and declares that the essence of the American economic system of private enterprise is free, open, and transparent competition. Only through free, open, and transparent competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be ensured. The preservation and expansion of that competition are basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women, minority, disabled veteran, and LGBT business enterprises is are encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women, minority, disabled veteran, and LGBT business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated public utilities, including, but not limited to, renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, are awarded to women, minority, disabled veteran, and LGBT business enterprises, and to maintain and strengthen the overall economy of the state.(b) (1) The Legislature finds and declares all of the following:(A) The opportunity for full participation in our free enterprise system by women, minority, disabled veteran, and LGBT business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.(B) Public agencies and some regulated public utilities that have established short- and long-range women, minority, disabled veteran, and LGBT business enterprise goals that have resulted in their awarding 30 percent or more of their contracts to these business enterprises.(C) Women, minority, disabled veteran, and LGBT business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects. Supplier diversity activities have benefited public utilities and their customers by increasing the potential pool of bidders and allowing public utilities to enter into best value contracts.(D) It is in the states interest to expeditiously improve the economically disadvantaged position of women, minority, disabled veteran, and LGBT business enterprises. As California becomes an increasingly diverse state, exclusionary procurement policies impair the ability of public utilities to meet their primary mission.(E) The position of these women, minority, disabled veteran, and LGBT business enterprises can be substantially improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, from women, minority, disabled veteran, and LGBT businesses.(F) That procurement also benefits the regulated public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.(G) That the long-term economic viability of this state depends substantially upon the ability of renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects to incorporate women, minority, disabled veteran, and LGBT businesses into those projects.(2) It is the purpose of this article to do all of the following:(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.(B) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electrical, gas, water, mobile telephony service provider, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates.(C) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from certified women, minority, disabled veteran, and LGBT business enterprises.(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.

SEC. 2. Section 8281 of the Public Utilities Code is amended to read:

### SEC. 2.

8281. (a) The Legislature hereby finds and declares that the essence of the American economic system of private enterprise is free, open, and transparent competition. Only through free, open, and transparent competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be ensured. The preservation and expansion of that competition are basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women, minority, disabled veteran, and LGBT business enterprises is are encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women, minority, disabled veteran, and LGBT business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated public utilities, including, but not limited to, renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, are awarded to women, minority, disabled veteran, and LGBT business enterprises, and to maintain and strengthen the overall economy of the state.(b) (1) The Legislature finds and declares all of the following:(A) The opportunity for full participation in our free enterprise system by women, minority, disabled veteran, and LGBT business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.(B) Public agencies and some regulated public utilities that have established short- and long-range women, minority, disabled veteran, and LGBT business enterprise goals that have resulted in their awarding 30 percent or more of their contracts to these business enterprises.(C) Women, minority, disabled veteran, and LGBT business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects. Supplier diversity activities have benefited public utilities and their customers by increasing the potential pool of bidders and allowing public utilities to enter into best value contracts.(D) It is in the states interest to expeditiously improve the economically disadvantaged position of women, minority, disabled veteran, and LGBT business enterprises. As California becomes an increasingly diverse state, exclusionary procurement policies impair the ability of public utilities to meet their primary mission.(E) The position of these women, minority, disabled veteran, and LGBT business enterprises can be substantially improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, from women, minority, disabled veteran, and LGBT businesses.(F) That procurement also benefits the regulated public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.(G) That the long-term economic viability of this state depends substantially upon the ability of renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects to incorporate women, minority, disabled veteran, and LGBT businesses into those projects.(2) It is the purpose of this article to do all of the following:(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.(B) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electrical, gas, water, mobile telephony service provider, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates.(C) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from certified women, minority, disabled veteran, and LGBT business enterprises.(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.

8281. (a) The Legislature hereby finds and declares that the essence of the American economic system of private enterprise is free, open, and transparent competition. Only through free, open, and transparent competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be ensured. The preservation and expansion of that competition are basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women, minority, disabled veteran, and LGBT business enterprises is are encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women, minority, disabled veteran, and LGBT business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated public utilities, including, but not limited to, renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, are awarded to women, minority, disabled veteran, and LGBT business enterprises, and to maintain and strengthen the overall economy of the state.(b) (1) The Legislature finds and declares all of the following:(A) The opportunity for full participation in our free enterprise system by women, minority, disabled veteran, and LGBT business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.(B) Public agencies and some regulated public utilities that have established short- and long-range women, minority, disabled veteran, and LGBT business enterprise goals that have resulted in their awarding 30 percent or more of their contracts to these business enterprises.(C) Women, minority, disabled veteran, and LGBT business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects. Supplier diversity activities have benefited public utilities and their customers by increasing the potential pool of bidders and allowing public utilities to enter into best value contracts.(D) It is in the states interest to expeditiously improve the economically disadvantaged position of women, minority, disabled veteran, and LGBT business enterprises. As California becomes an increasingly diverse state, exclusionary procurement policies impair the ability of public utilities to meet their primary mission.(E) The position of these women, minority, disabled veteran, and LGBT business enterprises can be substantially improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, from women, minority, disabled veteran, and LGBT businesses.(F) That procurement also benefits the regulated public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.(G) That the long-term economic viability of this state depends substantially upon the ability of renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects to incorporate women, minority, disabled veteran, and LGBT businesses into those projects.(2) It is the purpose of this article to do all of the following:(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.(B) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electrical, gas, water, mobile telephony service provider, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates.(C) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from certified women, minority, disabled veteran, and LGBT business enterprises.(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.

8281. (a) The Legislature hereby finds and declares that the essence of the American economic system of private enterprise is free, open, and transparent competition. Only through free, open, and transparent competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be ensured. The preservation and expansion of that competition are basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women, minority, disabled veteran, and LGBT business enterprises is are encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women, minority, disabled veteran, and LGBT business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated public utilities, including, but not limited to, renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, are awarded to women, minority, disabled veteran, and LGBT business enterprises, and to maintain and strengthen the overall economy of the state.(b) (1) The Legislature finds and declares all of the following:(A) The opportunity for full participation in our free enterprise system by women, minority, disabled veteran, and LGBT business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.(B) Public agencies and some regulated public utilities that have established short- and long-range women, minority, disabled veteran, and LGBT business enterprise goals that have resulted in their awarding 30 percent or more of their contracts to these business enterprises.(C) Women, minority, disabled veteran, and LGBT business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects. Supplier diversity activities have benefited public utilities and their customers by increasing the potential pool of bidders and allowing public utilities to enter into best value contracts.(D) It is in the states interest to expeditiously improve the economically disadvantaged position of women, minority, disabled veteran, and LGBT business enterprises. As California becomes an increasingly diverse state, exclusionary procurement policies impair the ability of public utilities to meet their primary mission.(E) The position of these women, minority, disabled veteran, and LGBT business enterprises can be substantially improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, from women, minority, disabled veteran, and LGBT businesses.(F) That procurement also benefits the regulated public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.(G) That the long-term economic viability of this state depends substantially upon the ability of renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects to incorporate women, minority, disabled veteran, and LGBT businesses into those projects.(2) It is the purpose of this article to do all of the following:(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.(B) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electrical, gas, water, mobile telephony service provider, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates.(C) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from certified women, minority, disabled veteran, and LGBT business enterprises.(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.



8281. (a) The Legislature hereby finds and declares that the essence of the American economic system of private enterprise is free, open, and transparent competition. Only through free, open, and transparent competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be ensured. The preservation and expansion of that competition are basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women, minority, disabled veteran, and LGBT business enterprises is are encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women, minority, disabled veteran, and LGBT business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated public utilities, including, but not limited to, renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, are awarded to women, minority, disabled veteran, and LGBT business enterprises, and to maintain and strengthen the overall economy of the state.

(b) (1) The Legislature finds and declares all of the following:

(A) The opportunity for full participation in our free enterprise system by women, minority, disabled veteran, and LGBT business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.

(B) Public agencies and some regulated public utilities that have established short- and long-range women, minority, disabled veteran, and LGBT business enterprise goals that have resulted in their awarding 30 percent or more of their contracts to these business enterprises.

(C) Women, minority, disabled veteran, and LGBT business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects. Supplier diversity activities have benefited public utilities and their customers by increasing the potential pool of bidders and allowing public utilities to enter into best value contracts.

(D) It is in the states interest to expeditiously improve the economically disadvantaged position of women, minority, disabled veteran, and LGBT business enterprises. As California becomes an increasingly diverse state, exclusionary procurement policies impair the ability of public utilities to meet their primary mission.

(E) The position of these women, minority, disabled veteran, and LGBT business enterprises can be substantially improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work, especially in renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects, from women, minority, disabled veteran, and LGBT businesses.

(F) That procurement also benefits the regulated public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.

(G) That the long-term economic viability of this state depends substantially upon the ability of renewable energy resources, mobile telecommunications, broadband, smart grid, and rail projects to incorporate women, minority, disabled veteran, and LGBT businesses into those projects.

(2) It is the purpose of this article to do all of the following:

(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.

(B) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electrical, gas, water, mobile telephony service provider, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates.

(C) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from certified women, minority, disabled veteran, and LGBT business enterprises.

(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.

SEC. 3. Section 8287 is added to the Public Utilities Code, to read:8287. (a) The following definitions apply to this section:(1) Certified small business means a business certified by the State of California as meeting the requirements of subdivision (d) of Section 14837 of the Government Code.(2) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in paragraph (1) of subdivision (b), agrees to purchase a good or service. If the contractual agreement specifies a specific form or format for invoicing, the invoice shall meet the terms of the contractual agreement.(3) Reasonable cause means a determination by a public utility described in paragraph (1) of subdivision (b) that any of the following conditions is present:(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.(B) There is a discrepancy between the invoice or claimed amount and either the goods or services delivered by the claimant certified small business to the public utility or the goods or services accepted by the public utility.(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.(D) The claimant certified small business has improperly executed or needs to correct the invoice.(E) There is a discrepancy between the refund or other payment due as calculated by the party to whom the money is owed and by the public utility.(4) The date an invoice is received by the public utility means the date an invoice is delivered to and received by the public utility described in paragraph (1) of subdivision (b) or party specified in the contract.(5) Required payment date means the date on which payment is due as specified in a contractual agreement. If a date is not specified in the contractual agreement, the required payment date is 30 calendar days following the date upon which an undisputed invoice is received by the public utility described in paragraph (1) of subdivision (b).(b) (1) The late payment penalty requirements in this section shall apply only to an electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.(c) (1)A public utility described in paragraph (1) of subdivision (b) shall pay an undisputed invoice by a certified small business, or a nonsmall business that has committed to having at least 25 percent of the contractual work undertaken by a certified small business, by the required payment date. date, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or nonsmall business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the public utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(2)A utility described in paragraph (1) of subdivision (b) may dispute an invoice submitted by a claimant for reasonable cause if the utility notifies the claimant within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(d) (1) If a public utility described in paragraph (1) of subdivision (b) fails to comply with the requirement of paragraph (1) of subdivision (c), it shall pay a late payment penalty, as described in this subdivision, without requiring the claimant certified small business to submit an additional invoice for that amount. The penalty shall cease to accrue on the date the public utility issues the payment.(2) If the claimant is a certified small business or a nonsmall business that committed to having at least 25 percent of the contracted work undertaken by a certified small business, a utility described in paragraph (1) of subdivision (b) shall pay to the claimant a The late payment penalty required to be paid pursuant to this subdivision shall be at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year of the amount of the late undisputed invoice. The late payment penalty shall cease to accrue on the date full payment or full refund is made. If the amount of the late payment penalty is ten dollars ($10) or less, it shall be waived and not paid by the public utility.For any other business claimant, the utility shall adhere to the payment policies set by the terms of the contractual agreement with that claimant.(e) Any late payment penalty that accrues as a result of a failure of a public utility described in paragraph (1) of subdivision (b) to make a timely payment, as required by this section, shall be considered by the commission in any ratemaking or other appropriate proceeding involving the public utilitys recovery of expenses.(f) (1) On an annual basis, within 90 calendar days following the end of each fiscal year, a public utility described in paragraph (1) of subdivision (b) shall provide the commission with information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with this section during the preceding fiscal year.(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:(A) The total number and dollar amount of late payment penalties paid to certified disabled veteran, minority, women, or LGBT small business enterprises, disaggregated, at a minimum, by the categories of business enterprises specified in paragraph (1) of subdivision (d) for which each late payment penalty was made.(B) The total number and dollar amount of contractual agreements entered into with a certified disabled veteran, minority, women, and LGBT business enterprise which include a 30-day, a 45-day, and a 60-or-more-day payment provision following the submittal of an undisputed invoice.(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.(g) The commission shall encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those claimants subcontractors and suppliers that are small businesses. The policies and practices may include, but are not limited to, expedited payment processes and transparent payment practices that allow a contractor certified small business to track when the claimant a subcontractor or supplier has been paid.

SEC. 3. Section 8287 is added to the Public Utilities Code, to read:

### SEC. 3.

8287. (a) The following definitions apply to this section:(1) Certified small business means a business certified by the State of California as meeting the requirements of subdivision (d) of Section 14837 of the Government Code.(2) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in paragraph (1) of subdivision (b), agrees to purchase a good or service. If the contractual agreement specifies a specific form or format for invoicing, the invoice shall meet the terms of the contractual agreement.(3) Reasonable cause means a determination by a public utility described in paragraph (1) of subdivision (b) that any of the following conditions is present:(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.(B) There is a discrepancy between the invoice or claimed amount and either the goods or services delivered by the claimant certified small business to the public utility or the goods or services accepted by the public utility.(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.(D) The claimant certified small business has improperly executed or needs to correct the invoice.(E) There is a discrepancy between the refund or other payment due as calculated by the party to whom the money is owed and by the public utility.(4) The date an invoice is received by the public utility means the date an invoice is delivered to and received by the public utility described in paragraph (1) of subdivision (b) or party specified in the contract.(5) Required payment date means the date on which payment is due as specified in a contractual agreement. If a date is not specified in the contractual agreement, the required payment date is 30 calendar days following the date upon which an undisputed invoice is received by the public utility described in paragraph (1) of subdivision (b).(b) (1) The late payment penalty requirements in this section shall apply only to an electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.(c) (1)A public utility described in paragraph (1) of subdivision (b) shall pay an undisputed invoice by a certified small business, or a nonsmall business that has committed to having at least 25 percent of the contractual work undertaken by a certified small business, by the required payment date. date, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or nonsmall business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the public utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(2)A utility described in paragraph (1) of subdivision (b) may dispute an invoice submitted by a claimant for reasonable cause if the utility notifies the claimant within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(d) (1) If a public utility described in paragraph (1) of subdivision (b) fails to comply with the requirement of paragraph (1) of subdivision (c), it shall pay a late payment penalty, as described in this subdivision, without requiring the claimant certified small business to submit an additional invoice for that amount. The penalty shall cease to accrue on the date the public utility issues the payment.(2) If the claimant is a certified small business or a nonsmall business that committed to having at least 25 percent of the contracted work undertaken by a certified small business, a utility described in paragraph (1) of subdivision (b) shall pay to the claimant a The late payment penalty required to be paid pursuant to this subdivision shall be at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year of the amount of the late undisputed invoice. The late payment penalty shall cease to accrue on the date full payment or full refund is made. If the amount of the late payment penalty is ten dollars ($10) or less, it shall be waived and not paid by the public utility.For any other business claimant, the utility shall adhere to the payment policies set by the terms of the contractual agreement with that claimant.(e) Any late payment penalty that accrues as a result of a failure of a public utility described in paragraph (1) of subdivision (b) to make a timely payment, as required by this section, shall be considered by the commission in any ratemaking or other appropriate proceeding involving the public utilitys recovery of expenses.(f) (1) On an annual basis, within 90 calendar days following the end of each fiscal year, a public utility described in paragraph (1) of subdivision (b) shall provide the commission with information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with this section during the preceding fiscal year.(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:(A) The total number and dollar amount of late payment penalties paid to certified disabled veteran, minority, women, or LGBT small business enterprises, disaggregated, at a minimum, by the categories of business enterprises specified in paragraph (1) of subdivision (d) for which each late payment penalty was made.(B) The total number and dollar amount of contractual agreements entered into with a certified disabled veteran, minority, women, and LGBT business enterprise which include a 30-day, a 45-day, and a 60-or-more-day payment provision following the submittal of an undisputed invoice.(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.(g) The commission shall encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those claimants subcontractors and suppliers that are small businesses. The policies and practices may include, but are not limited to, expedited payment processes and transparent payment practices that allow a contractor certified small business to track when the claimant a subcontractor or supplier has been paid.

8287. (a) The following definitions apply to this section:(1) Certified small business means a business certified by the State of California as meeting the requirements of subdivision (d) of Section 14837 of the Government Code.(2) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in paragraph (1) of subdivision (b), agrees to purchase a good or service. If the contractual agreement specifies a specific form or format for invoicing, the invoice shall meet the terms of the contractual agreement.(3) Reasonable cause means a determination by a public utility described in paragraph (1) of subdivision (b) that any of the following conditions is present:(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.(B) There is a discrepancy between the invoice or claimed amount and either the goods or services delivered by the claimant certified small business to the public utility or the goods or services accepted by the public utility.(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.(D) The claimant certified small business has improperly executed or needs to correct the invoice.(E) There is a discrepancy between the refund or other payment due as calculated by the party to whom the money is owed and by the public utility.(4) The date an invoice is received by the public utility means the date an invoice is delivered to and received by the public utility described in paragraph (1) of subdivision (b) or party specified in the contract.(5) Required payment date means the date on which payment is due as specified in a contractual agreement. If a date is not specified in the contractual agreement, the required payment date is 30 calendar days following the date upon which an undisputed invoice is received by the public utility described in paragraph (1) of subdivision (b).(b) (1) The late payment penalty requirements in this section shall apply only to an electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.(c) (1)A public utility described in paragraph (1) of subdivision (b) shall pay an undisputed invoice by a certified small business, or a nonsmall business that has committed to having at least 25 percent of the contractual work undertaken by a certified small business, by the required payment date. date, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or nonsmall business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the public utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(2)A utility described in paragraph (1) of subdivision (b) may dispute an invoice submitted by a claimant for reasonable cause if the utility notifies the claimant within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(d) (1) If a public utility described in paragraph (1) of subdivision (b) fails to comply with the requirement of paragraph (1) of subdivision (c), it shall pay a late payment penalty, as described in this subdivision, without requiring the claimant certified small business to submit an additional invoice for that amount. The penalty shall cease to accrue on the date the public utility issues the payment.(2) If the claimant is a certified small business or a nonsmall business that committed to having at least 25 percent of the contracted work undertaken by a certified small business, a utility described in paragraph (1) of subdivision (b) shall pay to the claimant a The late payment penalty required to be paid pursuant to this subdivision shall be at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year of the amount of the late undisputed invoice. The late payment penalty shall cease to accrue on the date full payment or full refund is made. If the amount of the late payment penalty is ten dollars ($10) or less, it shall be waived and not paid by the public utility.For any other business claimant, the utility shall adhere to the payment policies set by the terms of the contractual agreement with that claimant.(e) Any late payment penalty that accrues as a result of a failure of a public utility described in paragraph (1) of subdivision (b) to make a timely payment, as required by this section, shall be considered by the commission in any ratemaking or other appropriate proceeding involving the public utilitys recovery of expenses.(f) (1) On an annual basis, within 90 calendar days following the end of each fiscal year, a public utility described in paragraph (1) of subdivision (b) shall provide the commission with information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with this section during the preceding fiscal year.(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:(A) The total number and dollar amount of late payment penalties paid to certified disabled veteran, minority, women, or LGBT small business enterprises, disaggregated, at a minimum, by the categories of business enterprises specified in paragraph (1) of subdivision (d) for which each late payment penalty was made.(B) The total number and dollar amount of contractual agreements entered into with a certified disabled veteran, minority, women, and LGBT business enterprise which include a 30-day, a 45-day, and a 60-or-more-day payment provision following the submittal of an undisputed invoice.(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.(g) The commission shall encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those claimants subcontractors and suppliers that are small businesses. The policies and practices may include, but are not limited to, expedited payment processes and transparent payment practices that allow a contractor certified small business to track when the claimant a subcontractor or supplier has been paid.

8287. (a) The following definitions apply to this section:(1) Certified small business means a business certified by the State of California as meeting the requirements of subdivision (d) of Section 14837 of the Government Code.(2) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in paragraph (1) of subdivision (b), agrees to purchase a good or service. If the contractual agreement specifies a specific form or format for invoicing, the invoice shall meet the terms of the contractual agreement.(3) Reasonable cause means a determination by a public utility described in paragraph (1) of subdivision (b) that any of the following conditions is present:(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.(B) There is a discrepancy between the invoice or claimed amount and either the goods or services delivered by the claimant certified small business to the public utility or the goods or services accepted by the public utility.(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.(D) The claimant certified small business has improperly executed or needs to correct the invoice.(E) There is a discrepancy between the refund or other payment due as calculated by the party to whom the money is owed and by the public utility.(4) The date an invoice is received by the public utility means the date an invoice is delivered to and received by the public utility described in paragraph (1) of subdivision (b) or party specified in the contract.(5) Required payment date means the date on which payment is due as specified in a contractual agreement. If a date is not specified in the contractual agreement, the required payment date is 30 calendar days following the date upon which an undisputed invoice is received by the public utility described in paragraph (1) of subdivision (b).(b) (1) The late payment penalty requirements in this section shall apply only to an electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.(c) (1)A public utility described in paragraph (1) of subdivision (b) shall pay an undisputed invoice by a certified small business, or a nonsmall business that has committed to having at least 25 percent of the contractual work undertaken by a certified small business, by the required payment date. date, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or nonsmall business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the public utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(2)A utility described in paragraph (1) of subdivision (b) may dispute an invoice submitted by a claimant for reasonable cause if the utility notifies the claimant within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.(d) (1) If a public utility described in paragraph (1) of subdivision (b) fails to comply with the requirement of paragraph (1) of subdivision (c), it shall pay a late payment penalty, as described in this subdivision, without requiring the claimant certified small business to submit an additional invoice for that amount. The penalty shall cease to accrue on the date the public utility issues the payment.(2) If the claimant is a certified small business or a nonsmall business that committed to having at least 25 percent of the contracted work undertaken by a certified small business, a utility described in paragraph (1) of subdivision (b) shall pay to the claimant a The late payment penalty required to be paid pursuant to this subdivision shall be at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year of the amount of the late undisputed invoice. The late payment penalty shall cease to accrue on the date full payment or full refund is made. If the amount of the late payment penalty is ten dollars ($10) or less, it shall be waived and not paid by the public utility.For any other business claimant, the utility shall adhere to the payment policies set by the terms of the contractual agreement with that claimant.(e) Any late payment penalty that accrues as a result of a failure of a public utility described in paragraph (1) of subdivision (b) to make a timely payment, as required by this section, shall be considered by the commission in any ratemaking or other appropriate proceeding involving the public utilitys recovery of expenses.(f) (1) On an annual basis, within 90 calendar days following the end of each fiscal year, a public utility described in paragraph (1) of subdivision (b) shall provide the commission with information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with this section during the preceding fiscal year.(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:(A) The total number and dollar amount of late payment penalties paid to certified disabled veteran, minority, women, or LGBT small business enterprises, disaggregated, at a minimum, by the categories of business enterprises specified in paragraph (1) of subdivision (d) for which each late payment penalty was made.(B) The total number and dollar amount of contractual agreements entered into with a certified disabled veteran, minority, women, and LGBT business enterprise which include a 30-day, a 45-day, and a 60-or-more-day payment provision following the submittal of an undisputed invoice.(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.(g) The commission shall encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those claimants subcontractors and suppliers that are small businesses. The policies and practices may include, but are not limited to, expedited payment processes and transparent payment practices that allow a contractor certified small business to track when the claimant a subcontractor or supplier has been paid.



8287. (a) The following definitions apply to this section:

(1) Certified small business means a business certified by the State of California as meeting the requirements of subdivision (d) of Section 14837 of the Government Code.

(2) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in paragraph (1) of subdivision (b), agrees to purchase a good or service. If the contractual agreement specifies a specific form or format for invoicing, the invoice shall meet the terms of the contractual agreement.

(3) Reasonable cause means a determination by a public utility described in paragraph (1) of subdivision (b) that any of the following conditions is present:

(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.

(B) There is a discrepancy between the invoice or claimed amount and either the goods or services delivered by the claimant certified small business to the public utility or the goods or services accepted by the public utility.

(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.

(D) The claimant certified small business has improperly executed or needs to correct the invoice.

(E) There is a discrepancy between the refund or other payment due as calculated by the party to whom the money is owed and by the public utility.

(4) The date an invoice is received by the public utility means the date an invoice is delivered to and received by the public utility described in paragraph (1) of subdivision (b) or party specified in the contract.

(5) Required payment date means the date on which payment is due as specified in a contractual agreement. If a date is not specified in the contractual agreement, the required payment date is 30 calendar days following the date upon which an undisputed invoice is received by the public utility described in paragraph (1) of subdivision (b).

(b) (1) The late payment penalty requirements in this section shall apply only to an electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.

(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.

(c) (1)A public utility described in paragraph (1) of subdivision (b) shall pay an undisputed invoice by a certified small business, or a nonsmall business that has committed to having at least 25 percent of the contractual work undertaken by a certified small business, by the required payment date. date, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or nonsmall business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the public utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.

(2)A utility described in paragraph (1) of subdivision (b) may dispute an invoice submitted by a claimant for reasonable cause if the utility notifies the claimant within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. No employee of the utility shall dispute an invoice on the basis of minor or technical defects to circumvent or avoid the general intent, or any of the specific provisions, of this section.



(d) (1) If a public utility described in paragraph (1) of subdivision (b) fails to comply with the requirement of paragraph (1) of subdivision (c), it shall pay a late payment penalty, as described in this subdivision, without requiring the claimant certified small business to submit an additional invoice for that amount. The penalty shall cease to accrue on the date the public utility issues the payment.

(2) If the claimant is a certified small business or a nonsmall business that committed to having at least 25 percent of the contracted work undertaken by a certified small business, a utility described in paragraph (1) of subdivision (b) shall pay to the claimant a The late payment penalty required to be paid pursuant to this subdivision shall be at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year of the amount of the late undisputed invoice. The late payment penalty shall cease to accrue on the date full payment or full refund is made. If the amount of the late payment penalty is ten dollars ($10) or less, it shall be waived and not paid by the public utility.For any other business claimant, the utility shall adhere to the payment policies set by the terms of the contractual agreement with that claimant.

(e) Any late payment penalty that accrues as a result of a failure of a public utility described in paragraph (1) of subdivision (b) to make a timely payment, as required by this section, shall be considered by the commission in any ratemaking or other appropriate proceeding involving the public utilitys recovery of expenses.

(f) (1) On an annual basis, within 90 calendar days following the end of each fiscal year, a public utility described in paragraph (1) of subdivision (b) shall provide the commission with information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with this section during the preceding fiscal year.

(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:

(A) The total number and dollar amount of late payment penalties paid to certified disabled veteran, minority, women, or LGBT small business enterprises, disaggregated, at a minimum, by the categories of business enterprises specified in paragraph (1) of subdivision (d) for which each late payment penalty was made.

(B) The total number and dollar amount of contractual agreements entered into with a certified disabled veteran, minority, women, and LGBT business enterprise which include a 30-day, a 45-day, and a 60-or-more-day payment provision following the submittal of an undisputed invoice.

(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.

(g) The commission shall encourage all public utilities to adopt policies and practices that encourage claimants certified small businesses to promptly pay their contractors subcontractors and suppliers, especially those claimants subcontractors and suppliers that are small businesses. The policies and practices may include, but are not limited to, expedited payment processes and transparent payment practices that allow a contractor certified small business to track when the claimant a subcontractor or supplier has been paid.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

### SEC. 4.