California Dems Give Preferential Treatment to ‘LGBTQ’ Businesses for Contracts.

WHAT HAPPENED: California’s Supplier Diversity Program has been giving preferential treatment to LGBTQ-owned businesses in utility contracts.

DETAIL: California’s Supplier Diversity Program, which is managed by the California Public Utilities Commission (CPUC), began in 1988 to promote minority- and women-owned businesses. The program was expanded in 2014 by then-Governor Jerry Brown (D) to include “LGBTQ” firms. Under incumbent Governor Gavin Newsom (D), additional energy sector companies were encouraged to participate. In 2022, CPUC announced a target of allocating 1.5 percent (approximately $633 million) “for the inclusion of Lesbian, Gay, Bisexual, and Transgender (LGBT) certified businesses in competitive contracting process with California-based utilities,” starting with a 0.5 percent procurement goal in 2022. However, critics argue this may violate the spirit of Proposition 209. The Proposition, which was passed in 1996, bans preferential treatment based on racial, sexual, and ethnic characteristics, among other traits, in both contracting and public employment. These findings were published by City Journal on Tuesday.

KEY QUOTE: “If I was a straight, white male, I might be concerned I don’t have the same opportunity. It worked out great for me.” – Mary Ann Horton, a transgender cybersecurity business owner and recipient of utility contracts under the program

IMPACT: The findings and the program’s expansion raise concerns about fairness and legality, particularly as California voters upheld Proposition 209 in 2020. The decision by the Democrat-run state of California to grant preferential treatment is likely to spark backlash from businesses, especially smaller providers, that might otherwise benefit from contracting but have been effectively prevented from doing so. The decision to spend billions in this way is likely to raise concerns among those who see it as contrary to the Proposition’s intent.

FLASHBACK: This is far from the only set of questionable targets pursued by California Democrats. In 2023, Governor Newsom signed a bill into law requiring all K-12 schools in the state to have gender-neutral bathrooms by July 2026.