BILL ANALYSIS
Bill No: AB
2031
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2031 Author: Evans
As Amended: June 22, 2010
Hearing Date: June 29, 2010
Consultant: Art Terzakis
SUBJECT
Public Contracts: acquisition of new vehicles
DESCRIPTION
AB 2031 prohibits the Department of General Services (DGS)
from approving a contract for the purchase of new vehicles
that would result in the expenditure of funds unless the
secretary or director of an agency or department that has
requested the acquisition certifies that the purchase of
new vehicles is vital and mission critical for the agency
or department.
EXISTING LAW
Existing law (Government Code 13332.09) provides that no
purchase order or other form of documentation for the
acquisition or replacement of motor vehicles shall be
issued against any appropriation; and, no State agency may
acquire surplus mobile equipment from any source for
program support until DGS has investigated and established
the need.
On January 1, 2005, new legislation [SB 1757 (Denham)
Chapter 926, 2004] became effective that requires that all
State agencies within the Executive Branch of government,
including each campus of the California State University,
adhere to this rule. The only exemption from this rule,
the University of California, is requested and encouraged
to have DGS perform this task with respect to their fleet
AB 2031 (Evans) continued
Page 2
acquisitions as well.
BACKGROUND
DGS serves as the state's fleet manager. Except for those
state departments with delegated vehicle purchase
authority, departments must request purchases through DGS.
In October 2009, the DGS deputy director overseeing the
state fleet resigned over the controversy that DGS and
Caltrans spent $5.5 million on new vehicles left idle
during a time of severe state budget deficits. In
response, the Assembly Committee on Accountability and
Administrative Review held an oversight hearing in February
2010 on state expenditures for vehicle purchases. AB 2031
is the result of that hearing as well as a "broadcast" from
DGS, dated February 18, 2010, to agency secretaries,
department directors, procurement and contracting officers
and purchasing authority contacts pertaining to
"certification requirement." That certification
requirement (dated February 18, 2010) states:
This is to inform agencies and departments that effective
February 11, 2010, no work will be initiated, no document
will be reviewed, and no contracts will be approved by the
Department of General Services (DGS) that would result in
the expenditure of funds unless the following certification
is received in writing and signed by the Agency's Secretary
or Department's Director, or their designees.
"I certify that this purchase is vital and mission critical
for this agency or department."
The author's office emphasizes that this measure would
simply codify the certification requirement referenced
above.
Governor's Executive Order S-14-09: Prohibits all state
agencies and departments from ordering or purchasing new
vehicles for non-emergency use. Exemptions could still be
approved by 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.
Fleet Administration: Generally, DGS maintains state fleet
AB 2031 (Evans) continued
Page 3
vehicles which are then allocated to departments. DGS has
established a rule that fleet vehicles need to be replaced
once they have turned 125,000 miles (or 100,000 for CHP).
Agencies are required to report under-utilized vehicles to
DGS every six months.
Historically, DGS orders between 4,000 and 5,000
replacement vehicles every year. Though in the last couple
of years they have ordered fewer, in 2008 they ordered
3,500 and in 2009 they ordered 1,300. (Corrections and
Parole are two of the departments that pull from DGS fleet
and maintain operating expenses on their budget, so
purchase shows-up at DGS but maintenance costs are
reflected in department budgets.)
Staff Comments: Caltrans, DGS, and the Department of
Finance (DOF) opposed the March 24th version of this
measure on the basis that AB 2031 required additional
review and approval of vehicle purchases which would lead
to additional costs at a time of significant budget and
staffing reductions. The June 22nd amendments delete any
necessary approval on the part of DOF and simply require,
prior to approval, that state entities submit certification
to DGS that any acquisition of new vehicles is vital and
mission critical. The Administration recently reported
that vehicle purchases have been reduced by 67% over the
previous year, and that the state's vehicle fleet has been
cut by more than 18%.
SUPPORT: None on file as of June 25, 2010.
OPPOSE: None on file as of June 25, 2010.
FISCAL COMMITTEE: Senate Appropriations Committee
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