California’s utility regulator uses procurement goals, certification programs, and reporting requirements to steer contracts toward LGBT-owned businesses, raising questions about whether the program conflicts with California constitutional protections against preferential treatment and recent court rulings against identity-based quotas. The California Public Utilities Commission (CPUC) runs a procurement preference program for businesses owned by lesbian, gay, bisexual, or transgender individuals, operating under General Order 156. A business qualifies as an LGBT Business Enterprise if it is at least 51 percent owned and controlled by LGBT individuals. In California, “utilities” are privately owned companies that hold near-monopolies delivering essential services such as electricity, natural gas, water, or internet and phone service, and are therefore regulated by the state through the CPUC. To operate, utilities purchase goods…
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