BILL ANALYSIS Ó AB 633 Page 1 Date of Hearing: April 6, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 633 (Olsen) - As Introduced: February 16, 2011 Policy Committee: Business and Professions Vote: 9-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill deletes the January 1, 2012 sunset on provisions of law that allow the California State University (CSU) to purchase fleet vehicles without approval by the Department of General Services (DGS), thereby allowing CSU to continue independently purchasing its own vehicles. FISCAL EFFECT Minor ongoing savings to the CSU. Based on its most recent, statutorily-required report on fleet purchases, for 2008-09 the system saved about $28,000-an average of $532 per vehicle for 53 vehicles purchased. These savings represent foregone DGS administrative charges and reduced CSU staff resources for this activity. COMMENTS Background and Purpose . AB 1191 (Aguiar)/Chapter 1097 of 1993, authorized CSU to independently purchase goods and services without going through a DGS approval process. SB 1757 (Denham)/Chapter 926 of 2004, required CSU to obtain DGS approval for motor vehicle purchases. AB 262 (Coto)/Chapter 679 of 2007allowed CSU to again purchase vehicles on its own until January 1, 2012, with a specified annual reporting requirement. CSU maintains this sunset date was negotiated to allow time for CSU to demonstrate their vehicle procurement was more cost effective than vehicle procurement through DGS. In addition to the estimated savings discussed above, CSU reports its own procurement cycle is, on average, about 51 days AB 633 Page 2 shorter than when the system required DGS approval. In sponsoring AB 633, CSU contends it has been fiscally responsible in managing its fleet and that this bill will eliminate duplicative administrative processes by making permanent the system's ability to purchase vehicles for academic programs and personnel. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081