California 2017-2018 Regular Session

California Assembly Bill AB1552 Compare Versions

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1-Amended IN Senate May 23, 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 Sections 910.3 and 8283 of, and to add Section 8287 to, Article 4.5 (commencing with Section 800) to Chapter 4 of Part 1 of Division 1 of, the Public Utilities Code, relating to public utilities.LEGISLATIVE COUNSEL'S DIGESTAB 1552, as amended, Quirk-Silva. Women, Large public utilities: timely payment of subcontractors: 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. defined. Existing law requires the commission to report certain information relative to the activities undertaken by those public utilities by September 1 of each year.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 claimant another business 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. 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 certified small businesses to promptly pay their subcontractors and suppliers, especially those that are small businesses. the payment terms of its contracts with certified disabled veteran, minority, women, or LGBT small business enterprises and late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises. The bill would revise the commissions reporting requirements to the Legislature to require the report to include information on contracts entered into and payments made during the report period to certified disabled veteran, minority, women, or LGBT small business enterprises.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 that it is in the best interests of the state and its citizens to ensure that all materials, equipment, technology, and construction and other services provided to a public utility be paid for in full and in a timely manner.(b) It is the intent of the Legislature that the authority granted to the Public Utilities Commission pursuant to Section 792 of the Public Utilities Code and other related sections in the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1 of the Public Utilities Code) includes the authority to establish and prescribe the forms, accounts, records, and memorandum to be kept by public utilities, including those concerning the expenditures of moneys to pay contractors.(c) It is the Legislature's intent that the Public Utilities Commission use its authority to adopt rules, policies, and practices that encourage both of the following:(1) That public utilities promptly review and pay invoices, refunds, and payments in a timely fashion. The rules, policies, and practices may include, but are not limited to, transparent payment processes that allow prime contractors to track receipt, approval, and payment for invoices and refunds.(2) That prime contractors promptly pay their subcontractors and suppliers, especially those 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 subcontracting business to track when a subcontractor or supplier has been paid.SEC. 2. Article 4.5 (commencing with Section 800) is added to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, to read: Article 4.5. Prompt Payment of Small Business Contractors800. The Legislature finds and declares that a public utility with gross annual revenues exceeding twenty-five million dollars ($25,000,000) is of a reasonable size for the commission to responsibly expect that the utility and its commission-regulated subsidiaries and affiliates have the administrative capacity to pay the amounts of properly submitted, undisputed invoices, refunds, or other undisputed payments that are owed to certified small businesses.801. For purposes of this article, the following terms have the following meanings:(a) 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.(b) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in subdivision (a) of Section 803 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.(c) Reasonable cause means a determination by a public utility described in subdivision (a) of Section 803 that any of the following conditions is present:(1) There is a discrepancy between the invoiced or claimed amount and the provisions of the contractual agreement for the goods or services.(2) There is a discrepancy between the invoiced or claimed amount and either the goods or services delivered by the certified small business to the public utility or the goods or services accepted by the public utility.(3) The public utility requires the certified small business to provide additional evidence supporting the validity of the invoiced or claimed amount.(4) The certified small business has improperly executed or needs to correct the invoice.(5) 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.(d) The date an invoice is received by the public utility means the date an invoice is delivered and received by the public utility described in subdivision (a) of Section 803 or by a party specified in the contract to receive the invoice.(e) 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 subdivision (a) of Section 803 or a party specified in the contract to receive the invoice, or, if 30 days falls on a weekend or holiday, the following business day.803. (a) The late payment penalty requirements in this article shall apply only to an electrical, gas, water, or telephone corporation, including a mobile telephony service provider, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(b) A public utility described in subdivision (a) shall pay an undisputed invoice issued by a certified small business, or another 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, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or other business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. An employee of the public utility shall not 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.(c) (1) If a public utility described in subdivision (a) fails to comply with the requirement of subdivision (b), it shall pay a late payment penalty, as described in this subdivision, without requiring the certified small business or other business to submit an additional invoice for that amount. The penalty shall begin to accrue 15 days following the required due date and cease to accrue on the date the public utility issues the payment.(2) 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.SEC. 3. Section 910.3 of the Public Utilities Code is amended to read:910.3. (a) The commission shall provide a report to the Legislature on September 1 of each year, on the progress of activities undertaken by each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000), in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs pursuant to Article 5 (commencing with Section 8281) of Chapter 7 of Division 4. The report shall include information about which procurements are made procurement activities with women, minority, disabled veteran, and LGBT business enterprises with at least a majority of the enterprises workforce in California, to the extent that information is readily accessible. The report shall include information on contracts entered into and payments made during the report period. The commission shall recommend a program for carrying out the policy declared in Article 5 (commencing with Section 8281) of Chapter 7 of Division 4, together with recommendations for legislation that it deems necessary or desirable to further that policy. The commission shall make the report available on its Internet Web site.(b) In regard to disabled veteran business enterprises, the commission shall ensure that the programs and legislation recommended pursuant to subdivision (a) are consistent with the disabled veteran business enterprise certification eligibility requirements imposed by the Department of General Services and that the recommendations include only those disabled veteran business enterprises certified by the Department of General Services.(c) The commission shall include the information about LGBT business enterprises required by subdivision (a) beginning with the report due on September 1, 2016.SEC. 4. Section 8283 of the Public Utilities Code is amended to read:8283. (a) The commission shall require each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to submit annually, a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(b) These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(c) The commission shall establish guidelines for all electrical, gas, water, wireless telecommunications service providers, and telephone corporations with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this article.(d) (1) Every electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) shall furnish an annual report to the commission regarding the all of the following:(A) The implementation of programs established pursuant to this article article.(B) Information on the payment terms of contracts with certified disabled veteran, minority, women, or LGBT small business enterprises, including the number and aggregate dollar amount of contracts with 30-day or less payment periods, 31- to 45-day payment periods, 46- to 60-day payment periods, and more than 60-day payment periods following the submittal of an undisputed invoice.(C) Information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with Article 4.5 (commencing with section 800).(2) The report shall be in a form that the commission shall require, and at the time that the commission shall annually designate. The report shall include the information about LGBT business enterprises beginning with the 2016 report.(e) (1) The Legislature declares that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan pursuant to subdivision (a) is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement in all categories.(2) The Legislature declares that each cable television corporation and direct broadcast satellite provider is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement and to voluntarily report activity in this area to the Legislature on an annual basis.SEC. 5. 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.
1+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.
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3- Amended IN Senate May 23, 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 Sections 910.3 and 8283 of, and to add Section 8287 to, Article 4.5 (commencing with Section 800) to Chapter 4 of Part 1 of Division 1 of, the Public Utilities Code, relating to public utilities.LEGISLATIVE COUNSEL'S DIGESTAB 1552, as amended, Quirk-Silva. Women, Large public utilities: timely payment of subcontractors: 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. defined. Existing law requires the commission to report certain information relative to the activities undertaken by those public utilities by September 1 of each year.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 claimant another business 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. 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 certified small businesses to promptly pay their subcontractors and suppliers, especially those that are small businesses. the payment terms of its contracts with certified disabled veteran, minority, women, or LGBT small business enterprises and late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises. The bill would revise the commissions reporting requirements to the Legislature to require the report to include information on contracts entered into and payments made during the report period to certified disabled veteran, minority, women, or LGBT small business enterprises.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
3+ 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
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5- Amended IN Senate May 23, 2018 Amended IN Assembly January 22, 2018 Amended IN Assembly January 04, 2018 Amended IN Assembly September 12, 2017
5+ Amended IN Assembly January 22, 2018 Amended IN Assembly January 04, 2018 Amended IN Assembly September 12, 2017
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7-Amended IN Senate May 23, 2018
87 Amended IN Assembly January 22, 2018
98 Amended IN Assembly January 04, 2018
109 Amended IN Assembly September 12, 2017
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1211 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
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1413 Assembly Bill No. 1552
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1615 Introduced by Assembly Member Quirk-SilvaFebruary 17, 2017
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1817 Introduced by Assembly Member Quirk-Silva
1918 February 17, 2017
2019
21- An act to amend Section 8281 Sections 910.3 and 8283 of, and to add Section 8287 to, Article 4.5 (commencing with Section 800) to Chapter 4 of Part 1 of Division 1 of, the Public Utilities Code, relating to public utilities.
20+ An act to amend Section 8281 of, and to add Section 8287 to, the Public Utilities Code, relating to public utilities.
2221
2322 LEGISLATIVE COUNSEL'S DIGEST
2423
2524 ## LEGISLATIVE COUNSEL'S DIGEST
2625
27-AB 1552, as amended, Quirk-Silva. Women, Large public utilities: timely payment of subcontractors: women, minority, disabled veteran, and LGBT business enterprise procurement: late payment penalties.
26+AB 1552, as amended, Quirk-Silva. Women, minority, disabled veteran, and LGBT business enterprise procurement: late payment penalties.
2827
29-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. defined. Existing law requires the commission to report certain information relative to the activities undertaken by those public utilities by September 1 of each year.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 claimant another business 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. 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 certified small businesses to promptly pay their subcontractors and suppliers, especially those that are small businesses. the payment terms of its contracts with certified disabled veteran, minority, women, or LGBT small business enterprises and late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises. The bill would revise the commissions reporting requirements to the Legislature to require the report to include information on contracts entered into and payments made during the report period to certified disabled veteran, minority, women, or LGBT small business enterprises.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.
28+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.
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31-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. defined. Existing law requires the commission to report certain information relative to the activities undertaken by those public utilities by September 1 of each year.
30+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.
3231
33-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 claimant another business 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. 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 certified small businesses to promptly pay their subcontractors and suppliers, especially those that are small businesses. the payment terms of its contracts with certified disabled veteran, minority, women, or LGBT small business enterprises and late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises. The bill would revise the commissions reporting requirements to the Legislature to require the report to include information on contracts entered into and payments made during the report period to certified disabled veteran, minority, women, or LGBT small business enterprises.
32+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.
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3534 Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
3635
3736 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.
3837
3938 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.
4039
4140 This bill would provide that no reimbursement is required by this act for a specified reason.
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4342 ## Digest Key
4443
4544 ## Bill Text
4645
47-The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all materials, equipment, technology, and construction and other services provided to a public utility be paid for in full and in a timely manner.(b) It is the intent of the Legislature that the authority granted to the Public Utilities Commission pursuant to Section 792 of the Public Utilities Code and other related sections in the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1 of the Public Utilities Code) includes the authority to establish and prescribe the forms, accounts, records, and memorandum to be kept by public utilities, including those concerning the expenditures of moneys to pay contractors.(c) It is the Legislature's intent that the Public Utilities Commission use its authority to adopt rules, policies, and practices that encourage both of the following:(1) That public utilities promptly review and pay invoices, refunds, and payments in a timely fashion. The rules, policies, and practices may include, but are not limited to, transparent payment processes that allow prime contractors to track receipt, approval, and payment for invoices and refunds.(2) That prime contractors promptly pay their subcontractors and suppliers, especially those 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 subcontracting business to track when a subcontractor or supplier has been paid.SEC. 2. Article 4.5 (commencing with Section 800) is added to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, to read: Article 4.5. Prompt Payment of Small Business Contractors800. The Legislature finds and declares that a public utility with gross annual revenues exceeding twenty-five million dollars ($25,000,000) is of a reasonable size for the commission to responsibly expect that the utility and its commission-regulated subsidiaries and affiliates have the administrative capacity to pay the amounts of properly submitted, undisputed invoices, refunds, or other undisputed payments that are owed to certified small businesses.801. For purposes of this article, the following terms have the following meanings:(a) 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.(b) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in subdivision (a) of Section 803 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.(c) Reasonable cause means a determination by a public utility described in subdivision (a) of Section 803 that any of the following conditions is present:(1) There is a discrepancy between the invoiced or claimed amount and the provisions of the contractual agreement for the goods or services.(2) There is a discrepancy between the invoiced or claimed amount and either the goods or services delivered by the certified small business to the public utility or the goods or services accepted by the public utility.(3) The public utility requires the certified small business to provide additional evidence supporting the validity of the invoiced or claimed amount.(4) The certified small business has improperly executed or needs to correct the invoice.(5) 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.(d) The date an invoice is received by the public utility means the date an invoice is delivered and received by the public utility described in subdivision (a) of Section 803 or by a party specified in the contract to receive the invoice.(e) 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 subdivision (a) of Section 803 or a party specified in the contract to receive the invoice, or, if 30 days falls on a weekend or holiday, the following business day.803. (a) The late payment penalty requirements in this article shall apply only to an electrical, gas, water, or telephone corporation, including a mobile telephony service provider, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(b) A public utility described in subdivision (a) shall pay an undisputed invoice issued by a certified small business, or another 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, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or other business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. An employee of the public utility shall not 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.(c) (1) If a public utility described in subdivision (a) fails to comply with the requirement of subdivision (b), it shall pay a late payment penalty, as described in this subdivision, without requiring the certified small business or other business to submit an additional invoice for that amount. The penalty shall begin to accrue 15 days following the required due date and cease to accrue on the date the public utility issues the payment.(2) 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.SEC. 3. Section 910.3 of the Public Utilities Code is amended to read:910.3. (a) The commission shall provide a report to the Legislature on September 1 of each year, on the progress of activities undertaken by each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000), in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs pursuant to Article 5 (commencing with Section 8281) of Chapter 7 of Division 4. The report shall include information about which procurements are made procurement activities with women, minority, disabled veteran, and LGBT business enterprises with at least a majority of the enterprises workforce in California, to the extent that information is readily accessible. The report shall include information on contracts entered into and payments made during the report period. The commission shall recommend a program for carrying out the policy declared in Article 5 (commencing with Section 8281) of Chapter 7 of Division 4, together with recommendations for legislation that it deems necessary or desirable to further that policy. The commission shall make the report available on its Internet Web site.(b) In regard to disabled veteran business enterprises, the commission shall ensure that the programs and legislation recommended pursuant to subdivision (a) are consistent with the disabled veteran business enterprise certification eligibility requirements imposed by the Department of General Services and that the recommendations include only those disabled veteran business enterprises certified by the Department of General Services.(c) The commission shall include the information about LGBT business enterprises required by subdivision (a) beginning with the report due on September 1, 2016.SEC. 4. Section 8283 of the Public Utilities Code is amended to read:8283. (a) The commission shall require each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to submit annually, a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(b) These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(c) The commission shall establish guidelines for all electrical, gas, water, wireless telecommunications service providers, and telephone corporations with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this article.(d) (1) Every electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) shall furnish an annual report to the commission regarding the all of the following:(A) The implementation of programs established pursuant to this article article.(B) Information on the payment terms of contracts with certified disabled veteran, minority, women, or LGBT small business enterprises, including the number and aggregate dollar amount of contracts with 30-day or less payment periods, 31- to 45-day payment periods, 46- to 60-day payment periods, and more than 60-day payment periods following the submittal of an undisputed invoice.(C) Information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with Article 4.5 (commencing with section 800).(2) The report shall be in a form that the commission shall require, and at the time that the commission shall annually designate. The report shall include the information about LGBT business enterprises beginning with the 2016 report.(e) (1) The Legislature declares that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan pursuant to subdivision (a) is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement in all categories.(2) The Legislature declares that each cable television corporation and direct broadcast satellite provider is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement and to voluntarily report activity in this area to the Legislature on an annual basis.SEC. 5. 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.
46+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.
4847
4948 The people of the State of California do enact as follows:
5049
5150 ## The people of the State of California do enact as follows:
5251
53-SECTION 1. (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all materials, equipment, technology, and construction and other services provided to a public utility be paid for in full and in a timely manner.(b) It is the intent of the Legislature that the authority granted to the Public Utilities Commission pursuant to Section 792 of the Public Utilities Code and other related sections in the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1 of the Public Utilities Code) includes the authority to establish and prescribe the forms, accounts, records, and memorandum to be kept by public utilities, including those concerning the expenditures of moneys to pay contractors.(c) It is the Legislature's intent that the Public Utilities Commission use its authority to adopt rules, policies, and practices that encourage both of the following:(1) That public utilities promptly review and pay invoices, refunds, and payments in a timely fashion. The rules, policies, and practices may include, but are not limited to, transparent payment processes that allow prime contractors to track receipt, approval, and payment for invoices and refunds.(2) That prime contractors promptly pay their subcontractors and suppliers, especially those 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 subcontracting business to track when a subcontractor or supplier has been paid.
52+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.
5453
55-SECTION 1. (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all materials, equipment, technology, and construction and other services provided to a public utility be paid for in full and in a timely manner.(b) It is the intent of the Legislature that the authority granted to the Public Utilities Commission pursuant to Section 792 of the Public Utilities Code and other related sections in the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1 of the Public Utilities Code) includes the authority to establish and prescribe the forms, accounts, records, and memorandum to be kept by public utilities, including those concerning the expenditures of moneys to pay contractors.(c) It is the Legislature's intent that the Public Utilities Commission use its authority to adopt rules, policies, and practices that encourage both of the following:(1) That public utilities promptly review and pay invoices, refunds, and payments in a timely fashion. The rules, policies, and practices may include, but are not limited to, transparent payment processes that allow prime contractors to track receipt, approval, and payment for invoices and refunds.(2) That prime contractors promptly pay their subcontractors and suppliers, especially those 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 subcontracting business to track when a subcontractor or supplier has been paid.
54+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.
5655
57-SECTION 1. (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all materials, equipment, technology, and construction and other services provided to a public utility be paid for in full and in a timely manner.
56+SECTION 1. (a) The Legislature finds and declares both all of the following:
5857
5958 ### SECTION 1.
6059
61-(b) It is the intent of the Legislature that the authority granted to the Public Utilities Commission pursuant to Section 792 of the Public Utilities Code and other related sections in the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1 of the Public Utilities Code) includes the authority to establish and prescribe the forms, accounts, records, and memorandum to be kept by public utilities, including those concerning the expenditures of moneys to pay contractors.
60+(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.
6261
63-(c) It is the Legislature's intent that the Public Utilities Commission use its authority to adopt rules, policies, and practices that encourage both of the following:
62+(2) Research shows that small businesses face unique challenges in accessing capital.
6463
65-(1) That public utilities promptly review and pay invoices, refunds, and payments in a timely fashion. The rules, policies, and practices may include, but are not limited to, transparent payment processes that allow prime contractors to track receipt, approval, and payment for invoices and refunds.
64+(3) Ensuring these businesses receive timely payment so they can meet their business obligations is a matter of statewide concern.
6665
67-(2) That prime contractors promptly pay their subcontractors and suppliers, especially those 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 subcontracting business to track when a subcontractor or supplier has been paid.
66+(b) It is the intent of the Legislature to do both of the following:
6867
69-SEC. 2. Article 4.5 (commencing with Section 800) is added to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, to read: Article 4.5. Prompt Payment of Small Business Contractors800. The Legislature finds and declares that a public utility with gross annual revenues exceeding twenty-five million dollars ($25,000,000) is of a reasonable size for the commission to responsibly expect that the utility and its commission-regulated subsidiaries and affiliates have the administrative capacity to pay the amounts of properly submitted, undisputed invoices, refunds, or other undisputed payments that are owed to certified small businesses.801. For purposes of this article, the following terms have the following meanings:(a) 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.(b) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in subdivision (a) of Section 803 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.(c) Reasonable cause means a determination by a public utility described in subdivision (a) of Section 803 that any of the following conditions is present:(1) There is a discrepancy between the invoiced or claimed amount and the provisions of the contractual agreement for the goods or services.(2) There is a discrepancy between the invoiced or claimed amount and either the goods or services delivered by the certified small business to the public utility or the goods or services accepted by the public utility.(3) The public utility requires the certified small business to provide additional evidence supporting the validity of the invoiced or claimed amount.(4) The certified small business has improperly executed or needs to correct the invoice.(5) 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.(d) The date an invoice is received by the public utility means the date an invoice is delivered and received by the public utility described in subdivision (a) of Section 803 or by a party specified in the contract to receive the invoice.(e) 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 subdivision (a) of Section 803 or a party specified in the contract to receive the invoice, or, if 30 days falls on a weekend or holiday, the following business day.803. (a) The late payment penalty requirements in this article shall apply only to an electrical, gas, water, or telephone corporation, including a mobile telephony service provider, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(b) A public utility described in subdivision (a) shall pay an undisputed invoice issued by a certified small business, or another 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, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or other business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. An employee of the public utility shall not 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.(c) (1) If a public utility described in subdivision (a) fails to comply with the requirement of subdivision (b), it shall pay a late payment penalty, as described in this subdivision, without requiring the certified small business or other business to submit an additional invoice for that amount. The penalty shall begin to accrue 15 days following the required due date and cease to accrue on the date the public utility issues the payment.(2) 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.
68+(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.
7069
71-SEC. 2. Article 4.5 (commencing with Section 800) is added to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, to read:
70+(2) To enable those businesses to participate equally in their pursuits of the American Dream.
71+
72+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.
73+
74+SEC. 2. Section 8281 of the Public Utilities Code is amended to read:
7275
7376 ### SEC. 2.
7477
75- Article 4.5. Prompt Payment of Small Business Contractors800. The Legislature finds and declares that a public utility with gross annual revenues exceeding twenty-five million dollars ($25,000,000) is of a reasonable size for the commission to responsibly expect that the utility and its commission-regulated subsidiaries and affiliates have the administrative capacity to pay the amounts of properly submitted, undisputed invoices, refunds, or other undisputed payments that are owed to certified small businesses.801. For purposes of this article, the following terms have the following meanings:(a) 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.(b) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in subdivision (a) of Section 803 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.(c) Reasonable cause means a determination by a public utility described in subdivision (a) of Section 803 that any of the following conditions is present:(1) There is a discrepancy between the invoiced or claimed amount and the provisions of the contractual agreement for the goods or services.(2) There is a discrepancy between the invoiced or claimed amount and either the goods or services delivered by the certified small business to the public utility or the goods or services accepted by the public utility.(3) The public utility requires the certified small business to provide additional evidence supporting the validity of the invoiced or claimed amount.(4) The certified small business has improperly executed or needs to correct the invoice.(5) 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.(d) The date an invoice is received by the public utility means the date an invoice is delivered and received by the public utility described in subdivision (a) of Section 803 or by a party specified in the contract to receive the invoice.(e) 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 subdivision (a) of Section 803 or a party specified in the contract to receive the invoice, or, if 30 days falls on a weekend or holiday, the following business day.803. (a) The late payment penalty requirements in this article shall apply only to an electrical, gas, water, or telephone corporation, including a mobile telephony service provider, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(b) A public utility described in subdivision (a) shall pay an undisputed invoice issued by a certified small business, or another 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, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or other business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. An employee of the public utility shall not 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.(c) (1) If a public utility described in subdivision (a) fails to comply with the requirement of subdivision (b), it shall pay a late payment penalty, as described in this subdivision, without requiring the certified small business or other business to submit an additional invoice for that amount. The penalty shall begin to accrue 15 days following the required due date and cease to accrue on the date the public utility issues the payment.(2) 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.
78+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.
7679
77- Article 4.5. Prompt Payment of Small Business Contractors800. The Legislature finds and declares that a public utility with gross annual revenues exceeding twenty-five million dollars ($25,000,000) is of a reasonable size for the commission to responsibly expect that the utility and its commission-regulated subsidiaries and affiliates have the administrative capacity to pay the amounts of properly submitted, undisputed invoices, refunds, or other undisputed payments that are owed to certified small businesses.801. For purposes of this article, the following terms have the following meanings:(a) 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.(b) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in subdivision (a) of Section 803 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.(c) Reasonable cause means a determination by a public utility described in subdivision (a) of Section 803 that any of the following conditions is present:(1) There is a discrepancy between the invoiced or claimed amount and the provisions of the contractual agreement for the goods or services.(2) There is a discrepancy between the invoiced or claimed amount and either the goods or services delivered by the certified small business to the public utility or the goods or services accepted by the public utility.(3) The public utility requires the certified small business to provide additional evidence supporting the validity of the invoiced or claimed amount.(4) The certified small business has improperly executed or needs to correct the invoice.(5) 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.(d) The date an invoice is received by the public utility means the date an invoice is delivered and received by the public utility described in subdivision (a) of Section 803 or by a party specified in the contract to receive the invoice.(e) 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 subdivision (a) of Section 803 or a party specified in the contract to receive the invoice, or, if 30 days falls on a weekend or holiday, the following business day.803. (a) The late payment penalty requirements in this article shall apply only to an electrical, gas, water, or telephone corporation, including a mobile telephony service provider, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(b) A public utility described in subdivision (a) shall pay an undisputed invoice issued by a certified small business, or another 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, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or other business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. An employee of the public utility shall not 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.(c) (1) If a public utility described in subdivision (a) fails to comply with the requirement of subdivision (b), it shall pay a late payment penalty, as described in this subdivision, without requiring the certified small business or other business to submit an additional invoice for that amount. The penalty shall begin to accrue 15 days following the required due date and cease to accrue on the date the public utility issues the payment.(2) 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.
80+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.
7881
79- Article 4.5. Prompt Payment of Small Business Contractors
80-
81- Article 4.5. Prompt Payment of Small Business Contractors
82-
83-800. The Legislature finds and declares that a public utility with gross annual revenues exceeding twenty-five million dollars ($25,000,000) is of a reasonable size for the commission to responsibly expect that the utility and its commission-regulated subsidiaries and affiliates have the administrative capacity to pay the amounts of properly submitted, undisputed invoices, refunds, or other undisputed payments that are owed to certified small businesses.
82+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.
8483
8584
8685
87-800. The Legislature finds and declares that a public utility with gross annual revenues exceeding twenty-five million dollars ($25,000,000) is of a reasonable size for the commission to responsibly expect that the utility and its commission-regulated subsidiaries and affiliates have the administrative capacity to pay the amounts of properly submitted, undisputed invoices, refunds, or other undisputed payments that are owed to certified small businesses.
86+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.
8887
89-801. For purposes of this article, the following terms have the following meanings:(a) 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.(b) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in subdivision (a) of Section 803 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.(c) Reasonable cause means a determination by a public utility described in subdivision (a) of Section 803 that any of the following conditions is present:(1) There is a discrepancy between the invoiced or claimed amount and the provisions of the contractual agreement for the goods or services.(2) There is a discrepancy between the invoiced or claimed amount and either the goods or services delivered by the certified small business to the public utility or the goods or services accepted by the public utility.(3) The public utility requires the certified small business to provide additional evidence supporting the validity of the invoiced or claimed amount.(4) The certified small business has improperly executed or needs to correct the invoice.(5) 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.(d) The date an invoice is received by the public utility means the date an invoice is delivered and received by the public utility described in subdivision (a) of Section 803 or by a party specified in the contract to receive the invoice.(e) 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 subdivision (a) of Section 803 or a party specified in the contract to receive the invoice, or, if 30 days falls on a weekend or holiday, the following business day.
88+(b) (1) The Legislature finds and declares all of the following:
89+
90+(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.
91+
92+(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.
93+
94+(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.
95+
96+(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.
97+
98+(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.
99+
100+(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.
101+
102+(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.
103+
104+(2) It is the purpose of this article to do all of the following:
105+
106+(A) Encourage greater economic opportunity for women, minority, disabled veteran, and LGBT business enterprises.
107+
108+(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.
109+
110+(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.
111+
112+(D) Ensure that certified women, minority, disabled veteran, and LGBT businesses are treated respectfully, including by providing for the prompt payment of valid invoices.
113+
114+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.
115+
116+SEC. 3. Section 8287 is added to the Public Utilities Code, to read:
117+
118+### SEC. 3.
119+
120+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.
121+
122+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.
123+
124+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.
90125
91126
92127
93-801. For purposes of this article, the following terms have the following meanings:
128+8287. (a) The following definitions apply to this section:
94129
95-(a) 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.
130+(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.
96131
97-(b) Invoice means a bill, claim, or other document that requests payment on a contractual agreement under which a public utility described in subdivision (a) of Section 803 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.
132+(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.
98133
99-(c) Reasonable cause means a determination by a public utility described in subdivision (a) of Section 803 that any of the following conditions is present:
134+(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:
100135
101-(1) There is a discrepancy between the invoiced or claimed amount and the provisions of the contractual agreement for the goods or services.
136+(A) There is a discrepancy between the invoice or claimed amount and the provisions of the contractual agreement for the goods or services.
102137
103-(2) There is a discrepancy between the invoiced or claimed amount and either the goods or services delivered by the certified small business to the public utility or the goods or services accepted by the public utility.
138+(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.
104139
105-(3) The public utility requires the certified small business to provide additional evidence supporting the validity of the invoiced or claimed amount.
140+(C) The public utility requires the claimant certified small business to provide additional evidence supporting the validity of the invoice or claimed amount.
106141
107-(4) The certified small business has improperly executed or needs to correct the invoice.
142+(D) The claimant certified small business has improperly executed or needs to correct the invoice.
108143
109-(5) 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.
144+(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.
110145
111-(d) The date an invoice is received by the public utility means the date an invoice is delivered and received by the public utility described in subdivision (a) of Section 803 or by a party specified in the contract to receive the invoice.
146+(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.
112147
113-(e) 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 subdivision (a) of Section 803 or a party specified in the contract to receive the invoice, or, if 30 days falls on a weekend or holiday, the following business day.
148+(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).
114149
115-803. (a) The late payment penalty requirements in this article shall apply only to an electrical, gas, water, or telephone corporation, including a mobile telephony service provider, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.(b) A public utility described in subdivision (a) shall pay an undisputed invoice issued by a certified small business, or another 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, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or other business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. An employee of the public utility shall not 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.(c) (1) If a public utility described in subdivision (a) fails to comply with the requirement of subdivision (b), it shall pay a late payment penalty, as described in this subdivision, without requiring the certified small business or other business to submit an additional invoice for that amount. The penalty shall begin to accrue 15 days following the required due date and cease to accrue on the date the public utility issues the payment.(2) 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.
150+(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.
151+
152+(2) Other utilities are encouraged to implement policies that support the prompt payment of contractors.
153+
154+(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.
155+
156+(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.
116157
117158
118159
119-803. (a) The late payment penalty requirements in this article shall apply only to an electrical, gas, water, or telephone corporation, including a mobile telephony service provider, with gross annual revenues exceeding twenty-five million dollars ($25,000,000), and its commission-regulated subsidiaries and affiliates.
160+(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.
120161
121-(b) A public utility described in subdivision (a) shall pay an undisputed invoice issued by a certified small business, or another 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, but may dispute an invoice for reasonable cause if the public utility notifies the certified small business or other business within 15 working days from receipt of the invoice, or delivery of goods or services, whichever is later. An employee of the public utility shall not 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.
162+(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.
122163
123-(c) (1) If a public utility described in subdivision (a) fails to comply with the requirement of subdivision (b), it shall pay a late payment penalty, as described in this subdivision, without requiring the certified small business or other business to submit an additional invoice for that amount. The penalty shall begin to accrue 15 days following the required due date and cease to accrue on the date the public utility issues the payment.
164+(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.
124165
125-(2) 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.
166+(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.
126167
127-SEC. 3. Section 910.3 of the Public Utilities Code is amended to read:910.3. (a) The commission shall provide a report to the Legislature on September 1 of each year, on the progress of activities undertaken by each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000), in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs pursuant to Article 5 (commencing with Section 8281) of Chapter 7 of Division 4. The report shall include information about which procurements are made procurement activities with women, minority, disabled veteran, and LGBT business enterprises with at least a majority of the enterprises workforce in California, to the extent that information is readily accessible. The report shall include information on contracts entered into and payments made during the report period. The commission shall recommend a program for carrying out the policy declared in Article 5 (commencing with Section 8281) of Chapter 7 of Division 4, together with recommendations for legislation that it deems necessary or desirable to further that policy. The commission shall make the report available on its Internet Web site.(b) In regard to disabled veteran business enterprises, the commission shall ensure that the programs and legislation recommended pursuant to subdivision (a) are consistent with the disabled veteran business enterprise certification eligibility requirements imposed by the Department of General Services and that the recommendations include only those disabled veteran business enterprises certified by the Department of General Services.(c) The commission shall include the information about LGBT business enterprises required by subdivision (a) beginning with the report due on September 1, 2016.
168+(2) The information shall include the total dollar amount of contracts paid during the fiscal year and separately identify both of the following:
128169
129-SEC. 3. Section 910.3 of the Public Utilities Code is amended to read:
170+(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.
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131-### SEC. 3.
172+(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.
132173
133-910.3. (a) The commission shall provide a report to the Legislature on September 1 of each year, on the progress of activities undertaken by each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000), in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs pursuant to Article 5 (commencing with Section 8281) of Chapter 7 of Division 4. The report shall include information about which procurements are made procurement activities with women, minority, disabled veteran, and LGBT business enterprises with at least a majority of the enterprises workforce in California, to the extent that information is readily accessible. The report shall include information on contracts entered into and payments made during the report period. The commission shall recommend a program for carrying out the policy declared in Article 5 (commencing with Section 8281) of Chapter 7 of Division 4, together with recommendations for legislation that it deems necessary or desirable to further that policy. The commission shall make the report available on its Internet Web site.(b) In regard to disabled veteran business enterprises, the commission shall ensure that the programs and legislation recommended pursuant to subdivision (a) are consistent with the disabled veteran business enterprise certification eligibility requirements imposed by the Department of General Services and that the recommendations include only those disabled veteran business enterprises certified by the Department of General Services.(c) The commission shall include the information about LGBT business enterprises required by subdivision (a) beginning with the report due on September 1, 2016.
174+(3) This information shall be included in the report prepared by the public utility pursuant to subdivision (d) of Section 8283.
134175
135-910.3. (a) The commission shall provide a report to the Legislature on September 1 of each year, on the progress of activities undertaken by each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000), in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs pursuant to Article 5 (commencing with Section 8281) of Chapter 7 of Division 4. The report shall include information about which procurements are made procurement activities with women, minority, disabled veteran, and LGBT business enterprises with at least a majority of the enterprises workforce in California, to the extent that information is readily accessible. The report shall include information on contracts entered into and payments made during the report period. The commission shall recommend a program for carrying out the policy declared in Article 5 (commencing with Section 8281) of Chapter 7 of Division 4, together with recommendations for legislation that it deems necessary or desirable to further that policy. The commission shall make the report available on its Internet Web site.(b) In regard to disabled veteran business enterprises, the commission shall ensure that the programs and legislation recommended pursuant to subdivision (a) are consistent with the disabled veteran business enterprise certification eligibility requirements imposed by the Department of General Services and that the recommendations include only those disabled veteran business enterprises certified by the Department of General Services.(c) The commission shall include the information about LGBT business enterprises required by subdivision (a) beginning with the report due on September 1, 2016.
176+(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.
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137-910.3. (a) The commission shall provide a report to the Legislature on September 1 of each year, on the progress of activities undertaken by each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000), in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs pursuant to Article 5 (commencing with Section 8281) of Chapter 7 of Division 4. The report shall include information about which procurements are made procurement activities with women, minority, disabled veteran, and LGBT business enterprises with at least a majority of the enterprises workforce in California, to the extent that information is readily accessible. The report shall include information on contracts entered into and payments made during the report period. The commission shall recommend a program for carrying out the policy declared in Article 5 (commencing with Section 8281) of Chapter 7 of Division 4, together with recommendations for legislation that it deems necessary or desirable to further that policy. The commission shall make the report available on its Internet Web site.(b) In regard to disabled veteran business enterprises, the commission shall ensure that the programs and legislation recommended pursuant to subdivision (a) are consistent with the disabled veteran business enterprise certification eligibility requirements imposed by the Department of General Services and that the recommendations include only those disabled veteran business enterprises certified by the Department of General Services.(c) The commission shall include the information about LGBT business enterprises required by subdivision (a) beginning with the report due on September 1, 2016.
178+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.
138179
180+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.
139181
140-
141-910.3. (a) The commission shall provide a report to the Legislature on September 1 of each year, on the progress of activities undertaken by each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000), in the implementation of women, minority, disabled veteran, and LGBT business enterprise development programs pursuant to Article 5 (commencing with Section 8281) of Chapter 7 of Division 4. The report shall include information about which procurements are made procurement activities with women, minority, disabled veteran, and LGBT business enterprises with at least a majority of the enterprises workforce in California, to the extent that information is readily accessible. The report shall include information on contracts entered into and payments made during the report period. The commission shall recommend a program for carrying out the policy declared in Article 5 (commencing with Section 8281) of Chapter 7 of Division 4, together with recommendations for legislation that it deems necessary or desirable to further that policy. The commission shall make the report available on its Internet Web site.
142-
143-(b) In regard to disabled veteran business enterprises, the commission shall ensure that the programs and legislation recommended pursuant to subdivision (a) are consistent with the disabled veteran business enterprise certification eligibility requirements imposed by the Department of General Services and that the recommendations include only those disabled veteran business enterprises certified by the Department of General Services.
144-
145-(c) The commission shall include the information about LGBT business enterprises required by subdivision (a) beginning with the report due on September 1, 2016.
146-
147-SEC. 4. Section 8283 of the Public Utilities Code is amended to read:8283. (a) The commission shall require each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to submit annually, a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(b) These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(c) The commission shall establish guidelines for all electrical, gas, water, wireless telecommunications service providers, and telephone corporations with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this article.(d) (1) Every electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) shall furnish an annual report to the commission regarding the all of the following:(A) The implementation of programs established pursuant to this article article.(B) Information on the payment terms of contracts with certified disabled veteran, minority, women, or LGBT small business enterprises, including the number and aggregate dollar amount of contracts with 30-day or less payment periods, 31- to 45-day payment periods, 46- to 60-day payment periods, and more than 60-day payment periods following the submittal of an undisputed invoice.(C) Information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with Article 4.5 (commencing with section 800).(2) The report shall be in a form that the commission shall require, and at the time that the commission shall annually designate. The report shall include the information about LGBT business enterprises beginning with the 2016 report.(e) (1) The Legislature declares that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan pursuant to subdivision (a) is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement in all categories.(2) The Legislature declares that each cable television corporation and direct broadcast satellite provider is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement and to voluntarily report activity in this area to the Legislature on an annual basis.
148-
149-SEC. 4. Section 8283 of the Public Utilities Code is amended to read:
182+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.
150183
151184 ### SEC. 4.
152-
153-8283. (a) The commission shall require each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to submit annually, a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(b) These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(c) The commission shall establish guidelines for all electrical, gas, water, wireless telecommunications service providers, and telephone corporations with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this article.(d) (1) Every electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) shall furnish an annual report to the commission regarding the all of the following:(A) The implementation of programs established pursuant to this article article.(B) Information on the payment terms of contracts with certified disabled veteran, minority, women, or LGBT small business enterprises, including the number and aggregate dollar amount of contracts with 30-day or less payment periods, 31- to 45-day payment periods, 46- to 60-day payment periods, and more than 60-day payment periods following the submittal of an undisputed invoice.(C) Information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with Article 4.5 (commencing with section 800).(2) The report shall be in a form that the commission shall require, and at the time that the commission shall annually designate. The report shall include the information about LGBT business enterprises beginning with the 2016 report.(e) (1) The Legislature declares that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan pursuant to subdivision (a) is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement in all categories.(2) The Legislature declares that each cable television corporation and direct broadcast satellite provider is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement and to voluntarily report activity in this area to the Legislature on an annual basis.
154-
155-8283. (a) The commission shall require each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to submit annually, a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(b) These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(c) The commission shall establish guidelines for all electrical, gas, water, wireless telecommunications service providers, and telephone corporations with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this article.(d) (1) Every electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) shall furnish an annual report to the commission regarding the all of the following:(A) The implementation of programs established pursuant to this article article.(B) Information on the payment terms of contracts with certified disabled veteran, minority, women, or LGBT small business enterprises, including the number and aggregate dollar amount of contracts with 30-day or less payment periods, 31- to 45-day payment periods, 46- to 60-day payment periods, and more than 60-day payment periods following the submittal of an undisputed invoice.(C) Information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with Article 4.5 (commencing with section 800).(2) The report shall be in a form that the commission shall require, and at the time that the commission shall annually designate. The report shall include the information about LGBT business enterprises beginning with the 2016 report.(e) (1) The Legislature declares that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan pursuant to subdivision (a) is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement in all categories.(2) The Legislature declares that each cable television corporation and direct broadcast satellite provider is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement and to voluntarily report activity in this area to the Legislature on an annual basis.
156-
157-8283. (a) The commission shall require each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to submit annually, a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(b) These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.(c) The commission shall establish guidelines for all electrical, gas, water, wireless telecommunications service providers, and telephone corporations with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this article.(d) (1) Every electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) shall furnish an annual report to the commission regarding the all of the following:(A) The implementation of programs established pursuant to this article article.(B) Information on the payment terms of contracts with certified disabled veteran, minority, women, or LGBT small business enterprises, including the number and aggregate dollar amount of contracts with 30-day or less payment periods, 31- to 45-day payment periods, 46- to 60-day payment periods, and more than 60-day payment periods following the submittal of an undisputed invoice.(C) Information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with Article 4.5 (commencing with section 800).(2) The report shall be in a form that the commission shall require, and at the time that the commission shall annually designate. The report shall include the information about LGBT business enterprises beginning with the 2016 report.(e) (1) The Legislature declares that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan pursuant to subdivision (a) is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement in all categories.(2) The Legislature declares that each cable television corporation and direct broadcast satellite provider is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement and to voluntarily report activity in this area to the Legislature on an annual basis.
158-
159-
160-
161-8283. (a) The commission shall require each electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to submit annually, a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.
162-
163-(b) These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.
164-
165-(c) The commission shall establish guidelines for all electrical, gas, water, wireless telecommunications service providers, and telephone corporations with gross annual revenues exceeding twenty-five million dollars ($25,000,000) and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this article.
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167-(d) (1) Every electrical, gas, water, wireless telecommunications service provider, and telephone corporation with gross annual revenues exceeding twenty-five million dollars ($25,000,000) shall furnish an annual report to the commission regarding the all of the following:
168-
169-(A) The implementation of programs established pursuant to this article article.
170-
171-(B) Information on the payment terms of contracts with certified disabled veteran, minority, women, or LGBT small business enterprises, including the number and aggregate dollar amount of contracts with 30-day or less payment periods, 31- to 45-day payment periods, 46- to 60-day payment periods, and more than 60-day payment periods following the submittal of an undisputed invoice.
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173-(C) Information concerning late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises, in accordance with Article 4.5 (commencing with section 800).
174-
175-(2) The report shall be in a form that the commission shall require, and at the time that the commission shall annually designate. The report shall include the information about LGBT business enterprises beginning with the 2016 report.
176-
177-(e) (1) The Legislature declares that each electrical, gas, water, mobile telephony service provider, and telephone corporation that is not required to submit a plan pursuant to subdivision (a) is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement in all categories.
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179-(2) The Legislature declares that each cable television corporation and direct broadcast satellite provider is encouraged to voluntarily adopt a plan for increasing women, minority, disabled veteran, and LGBT business enterprise procurement and to voluntarily report activity in this area to the Legislature on an annual basis.
180-
181-SEC. 5. 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.
182-
183-SEC. 5. 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.
184-
185-SEC. 5. 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.
186-
187-### SEC. 5.