It's Small Business Week and therefore great timing for state legislators to consider a bill that could help more small businesses secure contracts that are issued by utility companies overseen by the California Public Utilities Commission. Assemblyman Rich Gordon's AB 1678 would do just that and it's expected to be voted on in the Assembly Thursday (May 15).
Current law directs the CPUC to require utility companies under its oversight with annual gross revenues exceeding $25 million – and their regulated subsidiaries and affiliates – to implement a program developed to encourage, recruit, and utilize minority-, women-, and disabled veteran-owned business enterprises as adopted in General Order 156. AB 1678 would extend these provisions to LGBT business enterprises, thereby opening the door to potential contracts for LGBT-owned businesses.
LGBT business enterprises are certified by a strict process adopted by the National Gay and Lesbian Chamber of Commerce (the Bay Area Reporter qualified last year). Now this legislation could help generate revenue for eligible small businesses in California. Locally, the Golden Gate Business Association helps LGBT businesses qualify. Gordon noted that GGBA and the Sacramento Rainbow Chamber of Commerce's support for the bill have been "outstanding."
Gordon, who is openly gay and represents several Peninsula cities, has long championed LGBT businesses. He told us this week that he expects his bill to pass, but doesn't take anything for granted. (And who can blame him after the recent fiasco that state Senator Mark Leno experienced over the cellphone kill switch legislation?) The bill, Gordon explained, is a great opportunity for qualified LGBT businesses and gives them an opportunity to get a foot in the door to bid for utility contracts. So far, Gordon added, many of the utility companies are on board. AT&T has testified before Assembly committees and PG&E had its own effort, he said.
"There is great support and strong industry support," Gordon said.
Opening up the contracting process to LGBT-owned business enterprises is good for the long-term economic viability of the state. AB 1678 gives another minority group – LGBTs – the same opportunity afforded to other minority groups under existing law. At a time when the state is in the midst of recovering from the recession of several years ago, it makes sense to open up the contracting process. AB 1678 does not cost the state any money, Gordon, noted. At some point, we hope these contracting provisions can be extended to other state agencies. But you have to start somewhere, and utility companies have a range of contracting needs that minority-owned firms can provide.
We urge the Assembly to pass AB 1678 so that it can move forward to the state Senate.