The program, highlighted by City Journal’s Christopher Rufo on June 16, operates from the California Public Utilities Commission. The agency oversees private utility companies and urges them to increase diversity.
According to Rufo, the diversity program dates back to several previous governors, but Newsom expanded its scope in 2019.
The CPUC, on the orders of California Gov. Gavin Newsom, effectively directed companies to allocate 1.5% of procurement to LGBT-owned firms in 2024. In practice, the companies spent $633 million on LGBT firms that year alone.
To qualify, business owners must submit evidence intended to prove they qualify for the LGBT program. Among the required materials are letters from friends, on company letterhead, who can “vouch/attest to LGBT status.”
Paperwork states that individuals who misrepresent or falsify information in documentation could face penalties, including up to one year in state prison and a $5,000 fine.
