Preferences for gay-, lesbian-, bisexual- and transgender-owned subcontractors in California?

|The Volokh Conspiracy |

The recently enacted Cal. Pub. Res. Code § 25230 mandates that State Energy Resources Conservation and Development Commission loan and grant recipients provide "outreach" to "LGBT business enterprises" alongside enterprises owned by women, "African Americans, Hispanic Americans, Native Americans, and Asian Pacific Americans," and "disabled veteran[s]":

"LGBT business enterprise" means a business enterprise that is at least 51 percent owned by a lesbian, gay, bisexual, or transgender person or persons, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more lesbian, gay, bisexual, or transgender persons, and whose management and daily business operations are controlled by one or more of those individuals.

The initial version called not just for special outreach, but also for "goals and timetables" for offering more contracts to such firms—the common label these days for preference programs (emphasis added):

The commission shall require that each recipient of a grant or loan administered by the commission do both of the following as a condition for the receipt of that grant or loan:

(1) Annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises in all categories, including, but not limited to, renewable energy, advanced technologies, and demonstration projects. These annual plans shall include short- and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women, minority, disabled veteran, and LGBT business enterprises in subcontracts in all categories that provide subcontracting opportunities, including, but not limited to, renewable energy, advanced technologies, and demonstration projects.

Presumably this isn't the last we'll hear of this, and calls for such "goals and timetables" for "increasing procurement" from such businesses will continue.

My question: How will anyone know whether a business owner is bisexual? Presumably bisexuality doesn't require even a statement that one has recently (or ever) had sex with members of both sexes; a mere statement that one is attracted to both sexes would suffice. Or is it just that the assumption is that non-bisexuals would be reluctant to label themselves bisexual, even when that helps them get lucrative financial deals, for fear that the label will come out to their friends (or to other prospective business partners who discriminate against bisexuals rather than in favor of them)?