(Luis Cornelio, Headline USA) A California state agency is pushing back after a report spotlighted a government-run “gay certification” program tied to millions of dollars in utility contracting opportunities for businesses owned by LGBT members.
The California Public Utilities Commission, a state agency that oversees privately owned utility companies, defended its controversial “Supplier Diversity Program” in exclusive comments shared with Headline USA through agency spokesperson Terrie Prosper.
The agency confirmed that it has a certification process, but rejected the accusations that utilities are being required to award contracts based on identity.
The program has drawn fiery backlash after the City Journal reported on June 16 that the agency extends preferential contracting opportunities to LGBT-owned businesses, while excluding non-certified firms.
Some critics on the left argue that the program is overly intrusive, as the owners of the participating businesses must prove their same-sex preference to the government.
CPUC claimed that the so-called Supplier Diversity Program was mandated by state law in 1986 and that it is “voluntary” and does not include quotas. The agency said other states have similar programs.
“Certification programs are not unique to California, nor are they unique to LGBT-owned businesses,” CPUC stated. “The purpose of certification is to ensure that companies claiming eligibility meet established standards and that procurement reporting remains accurate and transparent.”
The agency added that participation in the certification program does not guarantee contracts and does not pose a threat to non-LGBT-certified businesses.
“Some critics frame supplier diversity as a system that disadvantages other businesses. This characterization misunderstands the program’s design,” the government agency said. “The Supplier Diversity Program does not prohibit utilities from contracting with non-certified businesses. Nor does it allow utilities to advantage certified businesses.”
