BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2031
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2031 (Evans) - As Amended:  March 24, 2010

          Policy Committee:                              Business and  
          Professions  Vote:                            11-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill prohibits state agencies from purchasing new vehicles  
          without (1) the approval of secretary or director of the agency  
          requesting the vehicles and (2) the Department of Finance.

           FISCAL EFFECT  

          Minor absorbable cost for agencies to first obtain the required  
          approvals prior to proceeding with an acquisition of vehicles.

           COMMENTS  

           1)Background and Purpose  .  The Department of General Services  
            (DGS) serves as the state's fleet manager.  Except for those  
            state departments with delegated vehicle purchase authority,  
            departments must request purchases through DGS.  In October  
            2009, the DGS deputy director overseeing the state fleet  
            resigned over the controversy that DGS and Caltrans spent $5.5  
            million on new vehicles left idle during a time of severe  
            state budget deficits.  In response, the Assembly Committee on  
            Accountability and Administrative Review held an oversight  
            hearing in February 2010 on state expenditures for vehicle  
            purchases.  AB 2031 is the result of that hearing.

          2)A July 2009 Executive Order prohibited all state agencies and  
            departments from ordering or purchasing new vehicles for  
            non-emergency use.  The Administration recently reported that  
            vehicle purchases have been reduced by 67% over the previous  
            year, and that the state's vehicle fleet has been cut by more  
            than 18%.









                                                                  AB 2031
                                                                  Page  2

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081