BILL ANALYSIS Ó AB 362 Page 1 Date of Hearing: March 25, 2015 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Rudy Salas, Chair AB 362 Waldron - As Amended March 16, 2015 SUBJECT: State printing: demonstration project: process free printing SUMMARY: Allows the Department of General Services (DGS) to engage in a pilot printing program that would be paid for by a participating vendor. Specifically, this bill: 1)Authorizes DGS to engage in a "process free printing plates" pilot project to demonstrate the possible environmental and economic benefits of this technology. 2)Requires that if DGS conducts such a pilot, the participating private vendor will pay for the project's cost. EXISTING LAW: requires that the Office of State Printing (OSP), under DGS, shall conduct all state printing and generally provides OSP with discretion to determine appropriate printing methods. FISCAL EFFECT: Unknown AB 362 Page 2 COMMENTS: This bill authorizes, but does not require, DGS to conduct a "process free printing plates" pilot program. Traditional printing requires the development of plates that are created with chemical developers. The process-free approach, proposed in this bill, eliminates chemical processing. The sponsor of this bill, Kodak, states that besides eliminating chemicals, the use of process free printing plates reduces water and energy uses. While the OSP has not used process free printing plates for its printing, it has been moving towards digital printing. This method also does not require the chemical development of plates. This bill leaves the decision to participate in a pilot program to DGS, but requires that a vendor participating in the pilot will cover its costs. While such an approach could reduce state expenses, it is potentially inconsistent with procurement guidance to state agencies, as specified in the State Contracting Manual (SCM). Specifically, the SCM "recommends that departments do not accept suppliers' offers of goods or services without cost or obligation to the State. If a department's decision is contrary to this recommendation, the department must execute a purchase document to document the agreement." According to DGS, this direction is to prevent a vendor from receiving preferential treatment or the perception of preferential treatment. The SCM further advises that, "Before accepting any suppliers' goods and services offered at no cost or obligation to the department, the department must consider the perception of the acceptance to other suppliers." Additionally, DGS is authorized under current law to decide the manner of printing it uses and does not appear to need AB 362 Page 3 additional authority to try different printing methods. REGISTERED SUPPORT / OPPOSITION: Support Kodak (sponsor) Opposition None on file Analysis Prepared by:Scott Herbstman / A. & A.R. / (916) 319-3600 AB 362 Page 4