BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2031
                                                                  Page  1

          Date of Hearing:   April 13, 2010

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                                 Mary Hayashi, Chair
            AB 2031 (Evans and De La Torre) - As Amended:  March 24, 2010
           
          SUBJECT  :   Public contracts: state acquisition of new vehicles.

           SUMMARY  :   Prohibits a state agency or department, including the  
          Department of General Services (DGS) from purchasing new  
          vehicles without the approval of the Department of Finance and  
          the secretary or director of the agency or department requesting  
          the purchase.

           EXISTING LAW  provides that no surplus mobile equipment may be  
          acquired from any source by any state agency for program support  
          until DGS has investigated and established its need. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, this  
          bill seeks "to reduce state expenditures and make state agencies  
          and departments accountable when purchasing automobiles."

           Background  .  DGS serves as the state's fleet manager.  While  
          some state departments have delegated vehicle purchasing  
          authority, others must request purchases through DGS. 

          In July 2009, Executive Order S-14-09 was signed, prohibiting  
          all state agencies and departments from ordering or purchasing  
          new vehicles for non-emergency use.  Exemptions could still be  
          approved by the Director of DGS, subject to review by the  
          Consumer Services Agency Secretary, and only when the purchase  
          is necessary to protect public health and safety, provide  
          critical services and functions, utilize federal stimulus  
          funding, or achieve cost savings. 

          In October 2009, the DGS deputy director overseeing the state  
          fleet resigned over the controversy that DGS and the Department  
          of Transportation spent $5.5 million on new vehicles left idle  
          during a budget deficit.  In response, the Assembly Committee on  
          Accountability and Administrative Review held an oversight  








                                                                  AB 2031
                                                                  Page  2

          hearing in February 2010 on state expenditures for vehicle  
          purchases and this bill is the result of that hearing. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
          
          None on file. 

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916)  
          319-3301