BILL ANALYSIS �
AB 650
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 650 (Nazarian)
As Amended August 26, 2013
2/3 vote
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|ASSEMBLY: |72-0 |(May 16, 2013) |SENATE: |37-0 |(September 3, |
| | | | | |2013) |
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Original Committee Reference: A. & A.R.
SUMMARY : Sets parameters for the Department of General
Services' (DGS) Natural Gas Services (NGS) program.
The Senate amendments :
1)Exempt the Department of Water Resources (DWR) from purchasing
noncore gas from the NGS program.
2)Remove the section exempting the NGS program from the Disabled
Veteran Business Enterprises (DVBEs) contracting requirements.
3)Specify that DGS' costs to administer the program shall be
provided in the annual Budget Act.
4)Remove language which would allow DWR to appoint employees as
required for the NGS program.
5)Make non-substantive changes.
EXISTING LAW authorizes DGS to contract with suppliers for the
purchase of goods and services. This is the general authority
under which the NGS program has been operating.
FISCAL EFFECT : According to the Senate Appropriations
Committee, no new costs or savings are expected, as this bill
codifies an existing procurement program operated by DGS. DGS
indicates that this bill ensures continued annual savings of
approximately $7.5 million for numerous state and local entities
that participate in the program (General Fund, various special
funds, local funds). These savings are primarily derived from
bulk purchase opportunities as well as consolidated bidding and
contract administration through DGS.
AB 650
Page 2
COMMENTS : The Senate made two amendments related to NGS program
participants and suppliers. One amendment exempts DWR from the
requirement that it purchase noncore gas from the NGS program.
The author explains that since DWR currently has its own gas
program, the department asked to be removed from the
requirement.
According to DGS, all but one executive branch agency (DWR) that
are noncore gas purchasers currently buy through the NGS
program. Prior to the amendment, the Director of DGS would have
the authority under this bill to exempt executive branch
agencies from the requirement. However, the amendment
explicitly removed DWR from the requirement.
The other amendment involves the NGS program's contracting
requirements. Prior to the Senate amendment, this bill would
have allowed the NGS program to not follow DVBE contracting
requirements when purchasing gas and related services. Under
the DVBE Participation Program, there is a goal to use DVBEs in
at least 3% of the state's overall annual contract dollars.
The Senate amendment removes the section exempting the NGS
program from the DVBE contracting requirements. According to
the author, this section was removed in order to give DVBEs the
opportunity to compete for NGS contracts.
Additionally, two other amendments were made. One specified
that DGS's administrative costs would be provided for in the
annual Budget Act. This amendment was made for clarification
and does not impact the program's funding source. The other
amendment removes language related to hiring staff to be in line
with the state's hiring process.
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600
FN: 0001954