8281-8286

PUBLIC UTILITIES CODE
SECTION 8281-8286




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, and disabled veteran business enterprises is encouraged
and developed. Therefore, it is the declared policy of the state to
aid the interests of women, minority, and disabled veteran 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, wireless
telecommunications, broadband, smart grid, and rail projects, are
awarded to women, minority, and disabled veteran business
enterprises, and to maintain and strengthen the overall economy of
the state.
   (b) (1) The Legislature finds all of the following:
   (A) The opportunity for full participation in our free enterprise
system by women, minority, and disabled veteran 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 utilities that have
established short- and long-range women, minority, and disabled
veteran business enterprise goals are awarding 30 percent or more of
their contracts to these business enterprises.
   (C) Women, minority, and disabled veteran business enterprises
have traditionally received less than a proportionate share of
regulated public utility procurement contracts, especially in
renewable energy, wireless telecommunications, broadband, smart grid,
and rail projects.
   (D) It is in the state's interest to expeditiously improve the
economically disadvantaged position of women, minority, and disabled
veteran business enterprises.
   (E) The position of these businesses 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, wireless telecommunications, broadband, smart grid, and rail
projects, from women, minority, and disabled veteran 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, wireless
telecommunications, broadband, smart grid, and rail projects to
incorporate women, minority, and disabled veteran 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,
and disabled veteran business enterprises.
   (B) Promote competition among regulated public utility suppliers
in order to enhance economic efficiency in the procurement of
electrical, gas, water, wireless telecommunications 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 women, minority, and
disabled veteran business enterprises.



8282.  For the purposes of this article, the following definitions
apply:
   (a) "Women business enterprise" means a business enterprise that
is at least 51 percent owned by a woman or women; or, in the case of
any publicly owned business, at least 51 percent of the stock of
which is owned by one or more women; and whose management and daily
business operations are controlled by one or more of those
individuals.
   (b) "Minority business enterprise" means a business enterprise
that is at least 51 percent owned by a minority group or groups; or,
in the case of any publicly owned business, at least 51 percent of
the stock of which is owned by one or more minority groups, and whose
management and daily business operations are controlled by one or
more of those individuals. The contracting utility shall presume that
minority includes Black Americans, Hispanic Americans, Native
Americans, and Asian Pacific Americans.
   (c) "Disabled veteran business enterprise" has the same meaning as
defined in subdivision (g) of Section 999 of the Military and
Veterans Code.
   (d) "Control" means exercising the power to make policy decisions.
   (e) "Operate" means being actively involved in the day-to-day
management and not merely officers or directors.



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, and disabled veteran
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, and disabled veteran 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 provider, 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) 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
implementation of programs established pursuant to this article in a
form that the commission shall require, and at the time that the
commission shall annually designate.
   (e) (1) 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) pursuant to this
article in the implementation of women, minority, and disabled
veterans business enterprise development programs. The report shall
include information about which procurements are made with women,
minority, and disabled veteran business enterprises with at least a
majority of the enterprise's workforce in California, to the extent
that information is readily accessible. The commission shall
recommend a program for carrying out the policy declared in this
article, together with recommendations for legislation that it deems
necessary or desirable to further that policy.
   (2) In regard to disabled veteran business enterprises, the
commission shall ensure that the programs and legislation recommended
pursuant to paragraph (1) 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.
   (f) The Legislature declares that each electrical, gas, water,
wireless telecommunications 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, and disabled veteran business enterprise
procurement in all categories.



8284.  (a) (1) The commission shall, by rule or order, adopt
criteria for verifying and determining the eligibility of women and
minority business enterprises for procurement contracts.
   (2) The commission shall adopt the Department of General Services'
disabled veteran business enterprise certification eligibility
requirements for verifying and determining the eligibility of
disabled veteran business enterprises for procurement contracts, and
shall not deem eligible those disabled veteran business enterprises
that are not certified by the Department of General Services.
   (b) The commission shall develop, and require every 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 implement, an
outreach program to inform and recruit women, minority, and disabled
veteran business enterprises to apply for procurement contracts under
this article.


8285.  (a) Any person or corporation, through its directors,
officers, or agents, which falsely represents a business as a women
or minority business enterprise in the procurement of, or the attempt
to procure, contracts from an electrical, gas, water, wireless
telecommunications service provider, or telephone corporation with
gross annual revenues exceeding twenty-five million dollars
($25,000,000), or a commission-regulated subsidiary or affiliate
subject to this article, shall be punished by a fine of not more than
five thousand dollars ($5,000), by imprisonment in a county jail for
not more than one year or in the state prison, or by both that fine
and imprisonment. In the case of a corporation, the fine or
imprisonment, or both, shall be imposed on every director, officer,
or agent responsible for the false statements.
   (b) Any person or corporation, through its directors, officers, or
agents, which falsely represents a business as a disabled veteran
business enterprise in the procurement of, or the attempt to procure,
contracts from an electrical, gas, water, wireless
telecommunications service provider, or telephone corporation with
gross annual revenues exceeding twenty-five million dollars
($25,000,000), or a commission-regulated subsidiary or affiliate
subject to this article, shall be punished according to the penalties
established pursuant to subdivision (b) of Section 999.9 of the
Military and Veterans Code. In the case of a corporation, the fine or
imprisonment, or both, shall be imposed on every director, officer,
or agent responsible for the false statements.




8286.  (a) In order to facilitate the participation of women-owned
businesses, minority-owned businesses, disabled veteran-owned
businesses, and small businesses in contract procurement, any
corporation subject to this article may consider the following
measures to include those businesses in all phases of their
contracting:
   (1) Timely or progressive payments to those businesses.
   (2) An amendment of the performance bond requirements so that bond
requirements of electrical, gas, and telephone corporations do not
prohibitively burden those businesses from procuring the corporation'
s business.
   (3) The provision of assistance to those businesses by securing
contract payments to those businesses with letters of credit,
negotiable securities, or other financing arrangements or measures.
   (b) This section does not restrict a corporation's ability to
require a bond.