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