Large public utilities: timely payment of subcontractors: women, minority, disabled veteran, and LGBT business enterprise procurement: late payment penalties.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical, gas, water, and telephone corporations. Existing law requires each electrical, gas, water, wireless telecommunications service provider, or telephone corporation with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises, as defined. Existing law requires the commission to report certain information relative to the activities undertaken by those public utilities by September 1 of each year. This bill would require each electrical, gas, water, mobile telephony service provider, or telephone corporation, with gross annual revenues exceeding $25,000,000, and its commission-regulated subsidiaries and affiliates, to pay an undisputed invoice by its required payment date, as defined. If the payment is not made by that date, the bill would require the utility to pay a late payment penalty to a certified small business, as defined, or to another business that has committed to having at least 25% of the contracted work undertaken by a certified small business, at a rate of 10% above the United States Prime Rate. The bill would require each of the specified utilities to annually provide the commission with information concerning the payment terms of its contracts with certified disabled veteran, minority, women, or LGBT small business enterprises and late payment penalties that it paid to certified disabled veteran, minority, women, or LGBT small business enterprises. The bill would revise the commission's reporting requirements to the Legislature to require the report to include information on contracts entered into and payments made during the report period to certified disabled veteran, minority, women, or LGBT small business enterprises. Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of an order or decision of the commission implementing the requirements of the bill would be a crime, the bill would impose a state-mandated local program by creating a new crime. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.