California to Impose ‘LGBT Certification’ Tests for $633 Million in Government Contracts California regulators are directing utility companies to allocate approximately $633 million in contracts to businesses certified as LGBT-owned, as part of the state’s Supplier Diversity Program. This initiative, expanded from earlier focuses on women and minority-owned businesses, requires specific certification and documentation to qualify. The program operates under the California Public Utilities Commission (CPUC) and mandates that utilities track and report their diversity spending, even as it faces scrutiny regarding its compliance with Proposition 209, which prohibits preferential treatment based on certain characteristics.

• California regulators are encouraging utilities to direct $633 million in contracts to LGBT-certified businesses.
• The initiative is part of the state’s Supplier Diversity Program, now including sexual orientation and gender identity.
• To qualify, businesses must undergo an official state LGBT-certification process.
• Utilities regulated by the CPUC spent over $43 billion on contractors in 2024.
• Certification requires documentation such as letters from LGBT organizations or media reports.
• The program continues despite California voters approving Proposition 209, which bars preferential treatment in public contracting.
• Approximately 451 LGBT-certified businesses are already part of the program.