California Assembly Bill AB1693

California 2019-2020 Regular Session

• Introduced: 2/22/19
• Refer: 3/18/19
• Report Pass: 4/9/19
• Refer: 4/10/19
• Failed: 2/3/20

Caption

Public utilities: contracting.

Impact

The legislation seeks to revise the definitions associated with women business enterprises, minority business enterprises, and LGBT business enterprises to ensure that qualifying entities are predominantly owned and operated by individuals from these groups and are based in California. Such changes are designed to direct more utility contracts towards local businesses, thereby supporting the California economy while potentially decreasing reliance on out-of-state business entities. Additionally, the bill asserts that no reimbursements will be required for costs incurred by local agencies as a result of this act, promoting a cost-neutral approach to its implementation.

Summary

Assembly Bill No. 1693, introduced by Assembly Member Cervantes, aims to amend the Public Utilities Code to enhance contracting opportunities for women-owned, minority-owned, disabled veteran-owned, and LGBT-owned businesses. The bill specifies that public utilities with annual gross revenues exceeding $25 million must submit annual plans detailing how they will increase procurement from these diverse business enterprises. This initiative seeks to foster economic equality and competition by ensuring that a fair proportion of contracts awarded by utilities are directed to these groups.

Sentiment

Overall, the sentiment surrounding AB 1693 is supportive among advocates of diversity and economic inclusivity. Proponents argue that the bill will help rectify past disparities faced by minority business owners in accessing public utility contracts, ultimately contributing to a fairer economic landscape. Conversely, there may be concerns regarding the compliance burden for larger utilities and the potential for oversight issues in meeting the new requirements. Nonetheless, the bill's emphasis on local and diverse businesses is widely lauded as a step towards greater economic justice in California.

Contention

Notably, the bill is poised to impact the existing regulatory framework by requiring utilities to actively engage and report on their contracting activities with minority, women, and LGBT businesses. This could lead to debates around the effectiveness and enforcement of the newly defined measures and their actual results compared to the intended outcomes. Some skeptics may argue that while legislation can encourage participation, it does not guarantee equal opportunity if systemic barriers persist.