BILL NUMBER: AB 865	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 1, 2015
	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  and implement  an
outreach program to inform the most qualified loan and grant
applicants, and contractors, including, but not limited to, women,
minority, disabled veteran, and LGBT business enterprises, as
 defined.   defined, about workshops, trainings,
and funding opportunities.  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 outreach program to include a strategy to
 inform   encourage the participation of 
certified women, minority, disabled veteran, and LGBT business
enterprises  about workshops, trainings, and funding
opportunities, as appropriate,   in the commission's
relevant programs  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 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, 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 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 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, grant, or loan was awarded.  The bill would
 require   authorize  the 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, 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.
   (2) "Control" means exercising the power to make policy decisions.

   (3) "Disabled veteran business enterprise" has the same meaning as
defined in Section 999 of the Military and Veterans Code.
   (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.
   (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.
   (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.

   (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 of the Public Utilities Code).  
   (8) 
    (7)  "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  and implement  an
outreach program to inform the most qualified loan and grant
applicants, and contractors, including, but not limited to, women,
minority, disabled veteran, and LGBT business  enterprises.
  enterprises, about workshops, trainings, and funding
opportunities.  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. 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 outreach program shall include a strategy to 
inform   encourage the p   articipation of
 certified women, minority, disabled veteran, and LGBT business
enterprises  about workshops, trainings, and funding
opportunities, as appropriate,   in the commission's
relevant programs  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
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 threshold amount set by the commission, do all of the
following as a condition for the receipt of that grant or loan:
 
   (1) 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 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 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 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 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 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, grant,
or loan was awarded.  
   (h) After receipt of the initial plans and reports, the commission
shall 
    (c)     The commission may  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, and addressing and promoting local and targeted hiring.