Bill Text: CA AB865 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Energy Resources Conservation and Development

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2015-10-08 - Chaptered by Secretary of State - Chapter 583, Statutes of 2015. [AB865 Detail]

Download: California-2015-AB865-Amended.html

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BILL NUMBER: AB 865	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 6, 2015
	AMENDED IN ASSEMBLY  MAY 6, 2015
	AMENDED IN ASSEMBLY  APRIL 16, 2015

INTRODUCED BY   Assembly Member Alejo
   (Coauthor: Assembly Member Jones-Sawyer)

                        FEBRUARY 26, 2015

   An act to add Section 25230 to the Public Resources Code, relating
to the State Energy Resources Conservation and Development
Commission.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 865, as amended, Alejo. State Energy Resources Conservation and
Development Commission: contracts, grants, and loans: diversity.
   The Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission. Existing law requires the State Energy
Resources Conservation and Development Commission to administer
various grant and loan programs.
   This bill would require the State Energy Resources Conservation
and Development Commission to develop an outreach program to inform
 and recruit  the most qualified loan and grant
applicants, and contractors, including, but not limited to, women,
minority, disabled veteran, and LGBT business enterprises, as
defined. The bill would require that one component of the outreach
program be a process for tracking the diversity of contractors, loan
recipients, and grant recipients. The bill would require  the
commission to include certified   the outreach program
to include a strategy to inform certified  women, minority,
disabled veteran, and LGBT business enterprises  in
announcements  about workshops, trainings, and funding
opportunities, as appropriate, and consider including them in
capacity building activities. The bill would require the commission
to require that each contractor, recipient of a grant awarded, or
loan approved by the commission on or after  October 1, 2016,
  July 1, 2017,  for an amount of $1,000,000 or
more, including amended contracts, loans, and grant agreements that
bring the total value of the loan or grant to $1,000,000 or 
more (1) report   more, or a different threshold or
criteria determined to be appropriate by the commission, to (1)
submit a report to the commission  on the demographic makeup of
the management of the firm or organization, (2) submit a detailed
 and verifiable  outreach plan  to the
commission  for increasing subcontractor opportunities by
certified women, minority, disabled veteran, and LGBT business
enterprises, (3) implement the outreach plan to the best of the
contractor's or recipient's financial and administrative capacity,
and (4) furnish a report to the commission regarding the activities
and outcomes achieved in implementing the outreach plan. The bill
would require the commission to establish guidelines for all
contractors, grant recipients, and loan recipients to utilize in
preparing, implementing, and reporting on the outreach plans. The
bill would require each contractor and recipient of a grant or loan
that is subject to the bill's requirements to submit data  on
a form provided   in a format to be specified  by
the commission of the activities and outcomes of its outreach plan on
October 1 of the following fiscal year in which the 
contract was awarded, the loan was approved, or the grant was
received.   contract, grant, or loan was awarded. 
The bill would require the  State Energy Resources
Conservation and Development Commission   commission
 to consider establishing a Diversity Task Force to consider and
make recommendations about diversity in the energy industry,
including diversity of corporate governing boards and procurement
from diverse  businesses.   businesses, and
addressing and promoting local and targeted hiring. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 25230 is added to the Public Resources Code, to
read:
   25230.  (a) For purposes of this section, the following terms have
the following meanings: 
   (1) "Certified" means a business enterprise that is certified by
the Public Utilities Commission, the Department of General Services,
or other nonprofit organizations that verify or certify women,
minority, disabled veteran, and LGBT business enterprises. 

   (1) 
    (2)  "Control" means exercising the power to make policy
decisions. 
   (2) 
    (3)  "Disabled veteran business enterprise" has the same
meaning as defined in Section 999 of the Military and Veterans Code.

   (3) 
    (4)  "LGBT business enterprise" means a business
enterprise that is at least 51 percent owned by a lesbian, gay,
bisexual, or transgender person or persons, or, in the case of any
publicly owned business, at least 51 percent of the stock of which is
owned by one or more lesbian, gay, bisexual, or transgender persons,
and whose management and daily business operations are controlled by
one or more of those individuals. 
   (4) 
    (5)  "Minority business enterprise" means a business
enterprise that is at least 51 percent owned by a minority group or
groups, or, in the case of any publicly owned business, at least 51
percent of the stock of which is owned by one or more minority
groups, and whose management and daily business operations are
controlled by one or more of those individuals. The contracting
utility shall presume that minority includes African Americans,
Hispanic Americans, Native Americans, and Asian Pacific Americans.

   (5) 
    (6)  To "operate" means to be actively involved in the
day-to-day management. It is not enough to merely be an officer or
director. 
   (6) 
    (7)  "Renewable energy project" means a project for the
development and operation of an eligible renewable energy resource
meeting the requirements of the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11) of
Chapter 2.3 of Part 1 of Division  1).   1 of
the Public Utilities Code).  
   (7) 
    (8)  "Women business enterprise" means a business
enterprise that is at least 51 percent owned by a woman or women, or,
in the case of any publicly owned business, at least 51 percent of
the stock of which is owned by one or more women, and whose
management and daily business operations are controlled by one or
more of those individuals.
   (b) (1) The commission shall develop an outreach program to inform
 and recruit  the most qualified loan and grant
applicants, and contractors, including, but not limited to, women,
minority, disabled veteran, and LGBT business enterprises. The
purpose of the program is to ensure that the commission recognizes
the demographic shifts of the California marketplace and is nurturing
the new and next generation of energy technology leaders.
   (2) One component of the outreach program shall be a process for
tracking the diversity of contractors, loan recipients, and grant
recipients.  Among other activities, the commission shall
identify   The commission may rely on  existing
sources for locating information on certified women, minority,
disabled veteran, and LGBT business, which may include, but is not
limited to, the clearinghouse database maintained by the Public
Utilities Commission, the list of Disabled Veteran Business
Enterprises certified by the Procurement Division of the Department
of General Services, as well as information on other nonprofit
organizations that verify or certify women, minority, and LGBT
business enterprises.
   (3) The  commission shall include   outreach
program shall include a strategy to inform  certified women,
minority, disabled veteran, and LGBT business enterprises  in
announcements  about workshops, trainings, and funding
opportunities, as appropriate, and shall consider including them in
capacity building activities.
   (c) The commission shall require that each contractor, recipient
of a grant awarded, or loan approved by the commission on or after
 October 1, 2016,   July 1, 2017,  for an
amount of one million dollars ($1,000,000) or more,  or a
different threshold or criteria determined to be appropriate by the
commission,  including amended contracts, loans, and grant
agreements that bring the total value of the contract, loan, or grant
to one million dollars ($1,000,000) or more  , or the
alternative thresh   old amount set by the commission 
, do all of the following as a condition for the receipt of that
grant or loan:
   (1)  Report   Submit   a report to
the commission  on the demographic makeup of the management of
the firm or organization awarded the contract or receiving the grant
or loan.
   (2) Submit a detailed  and verifiable  outreach
plan  to the commission  for increasing subcontractor
opportunities with the prime contractor, grantee, or borrower by
certified women, minority, disabled veteran, and LGBT business
enterprises  in California  pursuant to the requirements of
this section.
   (3) Implement the outreach plan submitted to the commission to the
best of the contractor's or recipient's financial and administrative
capacity.
   (4) Furnish a report to the commission regarding the activities
and outcomes achieved in implementing the outreach plan, pursuant to
the requirements of this section.
   (d) Each report required by this section shall be a public
document and shall be made readily available on an Internet Web site
maintained by the commission.
   (e) (1) The commission shall establish guidelines for all
contractors, grant recipients, and loan recipients, subject to
subdivision (c), to utilize in preparing, implementing, and reporting
on the outreach plans pursuant to this section.
   (2) The guidelines shall include methods for  encouraging
 contractors, grant recipients, and loan recipients  to
use  to engage certified women, minority, disabled veteran, and
LGBT business enterprises in subcontracts in all categories that
provide subcontracting opportunities, including, but not limited to,
renewable energy projects, advanced technologies, and demonstration
projects. 
   (3) The commission shall consider specifying consequences for not
meeting the requirements of subdivision (c).  
   (4) 
    (3)  The guidelines shall integrate the existing
reporting requirements for state contractors, as relevant, and shall
not require duplicate reporting of data that is otherwise required by
state law. The contractor or loan or grant recipient may submit
reports of another state entity to provide the same information. 

   (4) The commission shall adopt the guidelines at a publicly
noticed meeting and shall provide an opportunity for public comment.
The commission shall provide written public notice of a meeting not
less than 30 days prior to the meeting. For substantive revisions of
the guidelines, the commission shall provide written notice of a
meeting not less than 10 days prior to the meeting at which the
revision is to be considered or adopted. The adoption or revision of
guidelines pursuant to this subdivision is exempt from Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. 
   (f) (1) Each recipient of a loan or grant, or contract, subject to
this section, shall submit the outreach plan described in
subdivision (c) within 60 days of the  award or 
approval of the loan, grant, or contract.
   (2) The outreach plan shall include short- and long-term goals and
timetables, but not quotas, and shall include methods the
contractor, grant recipient, or loan recipient intends to use to
increase the number of certified women, minority, disabled veteran,
and LGBT business enterprises that participate in all categories of
subcontracting opportunities, including, but not limited to,
renewable energy projects, advanced technologies, and demonstration
projects.
   (3) The outreach plan may be updated, as necessary, to reflect
changes in the marketplace, local conditions, changes in the
structure of the firm or organization, and other issues impacting the
effectiveness of the plan.
   (g) Each contractor and recipient of a grant or loan subject to
this section shall submit data  on a form provided 
 in a format to be specified  by the commission of the
activities and outcomes of its outreach plan on October 1 of the
following fiscal year in which the  contract was awarded, the
loan was approved, or the grant was received.  
contract, grant, or loan was awarded. 
   (h) After receipt of the initial plans and reports, the commission
shall consider establishing a Diversity Task Force to consider and
make recommendations about diversity in the energy industry,
including diversity of corporate governing boards and procurement
from diverse  businesses. If the commission establishes a
Diversity Task Force, the commission shall consider how it can
address and promote local and targeted hiring.  
businesses, and addressing and promoting local and targeted hiring.