BILL ANALYSIS Ó
AB 362
Page 1
Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
362 (Waldron) - As Amended March 16, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill 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:
AB 362
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1)Authorizes DGS to engage in a demonstration project using
"process free printing plates," as defined, to show the
possible environmental and economic benefits of this
technology.
2)Specifies best practices the department must strive to adhere
to, including reducing overall chemical usage, maximizing the
use of less hazardous chemicals, minimizing water usage,
reducing electricity usage, maximizing recycling of materials
used, and reducing the carbon footprint.
3)Requires that if DGS conducts such a pilot, the participating
private vendor will pay for the project's cost.
FISCAL EFFECT:
1)Negligible state cost. The bill requires a private vendor
engaging in a demonstration project with DGS to cover the
costs of the project.
2)Staff notes that the details of the pilot project, such as the
scope and location, are not included in the bill. Depending on
the details, there could be indirect cost implications for the
Office of State Publishing (OSP) that go beyond the plates and
are more difficult to identify. For example, if the pilot is
held in-house, existing equipment may need to be moved or
existing production schedules may be disrupted or delayed. It
is not clear whether or how those costs would be covered by
the vendor. In contrast, if the pilot were held off site, OSP
costs would be primarily limited to staff travel time.
COMMENTS:
AB 362
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1)Purpose. According to the author, traditional printing
requires the development of plates that are run through a bath
of chemical developer and water. This process is not the most
efficient method available and requires more water, energy,
and produces more waste than other available methods. This
bill would authorize a pilot project for a "process-free"
approach, designed to demonstrate any economic or
environmental advantages of this process.
2)Background. Established in 1965, the OSP, under DGS, provides
a variety of programs, services, and support to all state,
federal, county and city agencies. Among its key services are
project planning and initiation, creative print and web
design, mass mailing and interagency mail, state records
center, and digital and offset print production. OSP is
committed to energy and cost efficient production. Regarding
printing, OSP has not used process free printing plates for
its printing, but has moved towards digital printing, a method
which also does not require the development of plates.
3)State Contracting Considerations. 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 this 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
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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."
4)Need for the Bill. DGS is authorized under current law to
decide the manner of printing it uses. It does not appear to
need additional authority to observe or engage in alternative
printing methods.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081