BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 2031
          Author:   Evans (D) and De La Torre (D)
          Amended:  8/17/10 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  8-0, 6/29/10
          AYES:  Wright, Harman, Calderon, Florez, Negrete McLeod,  
            Padilla, Price, Yee
          NO VOTE RECORDED:  Denham, Oropeza, Wyland
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  74-0, 5/6/10 - See last page for vote


           SUBJECT  :    Public contracts:  state acquisition of new  
          vehicles

           SOURCE  :     Author


           DIGEST  :    This bill prohibits the Department of General  
          Services from approving any vehicle acquisition, vehicle  
          purchase order, or new contract for the purchase of new  
          vehicles that 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.

           Senate Floor Amendments  of 8/17/10 make a clarifying change  
          that conforms to the state's standard process and  
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          procedures for vehicle acquisition.

           ANALYSIS  :    

          Existing law (Government Code Section 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 the Department of General Services  
          (DGS) has investigated and established the need.

          On January 1, 2005, new legislation (SB 1757 [Denham],  
          Chapter 926, Statutes of 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 for their fleet acquisitions as well.

           Comments

           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.  This  
          bill is the result of that hearing.

          A July 2009 Executive Order prohibited all state agencies  
          and departments from ordering or purchasing new vehicles  
          for non-emergency use.  The Administration recently  
          reported that vehicle purchases have been reduced by 67  
          percent over the previous year, and that the state's  
          vehicle fleet has been cut by more than 18 percent.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

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           SUPPORT  :   (Verified  8/2/10)

          ---

           OPPOSITION  :    (Verified  8/18/10)

          Department of General Services

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

           ARGUMENTS IN OPPOSITION :    DGS contends that this bill is  
          redundant to the current DGS process and procedures, and  
          therefore will not produce the enhanced oversight that the  
          author's office is intending to achieve.  DGS already has  
          the authority to conduct oversight of the State's vehicle  
          purchases through Government Code Section 13332.09.   
          Further, DGS states that it already has mandated a  
          certification requirement from the Agency Secretary level  
          that the purchase is vital and mission critical for the  
          agency or department. 

           ASSEMBLY FLOOR  :  
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De  
            Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, Norby, V. Manuel Perez, Portantino,  
            Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,  
            Audra Strickland, Swanson, Torlakson, Torres, Torrico,  
            Tran, Villines, Yamada, John A. Perez
          NO VOTE RECORDED:  Bass, Block, De La Torre, Gilmore,  
            Mendoza, Vacancy


          TSM:do  8/18/10   Senate Floor Analyses 

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                         SUPPORT/OPPOSITION:  SEE ABOVE

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