BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 633
                                                                  Page  1

          Date of Hearing:   April 6, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 633 (Olsen) - As Introduced:  February 16, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill deletes the January 1, 2012 sunset on provisions of 
          law that allow the California State University (CSU) to purchase 
          fleet vehicles without approval by the Department of General 
          Services (DGS), thereby allowing CSU to continue independently 
          purchasing its own vehicles.

           FISCAL EFFECT  

          Minor ongoing savings to the CSU. Based on its most recent, 
          statutorily-required report on fleet purchases, for 2008-09 the 
          system saved about $28,000-an average of $532 per vehicle for 53 
          vehicles purchased.  These savings represent foregone DGS 
          administrative charges and reduced CSU staff resources for this 
          activity.

           COMMENTS 

           Background and Purpose  . AB 1191 (Aguiar)/Chapter 1097 of 1993, 
          authorized CSU to independently purchase goods and services 
          without going through a DGS approval process. SB 1757 
          (Denham)/Chapter 926 of 2004, required CSU to obtain DGS 
          approval for motor vehicle purchases. AB 262 (Coto)/Chapter 679 
          of 2007allowed CSU to again purchase vehicles on its own until 
          January 1, 2012, with a specified annual reporting requirement. 
          CSU maintains this sunset date was negotiated to allow time for 
          CSU to demonstrate their vehicle procurement was more cost 
          effective than vehicle procurement through DGS. 

          In addition to the estimated savings discussed above, CSU 
          reports its own procurement cycle is, on average, about 51 days 








                                                                  AB 633
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          shorter than when the system required DGS approval.  In 
          sponsoring AB 633, CSU contends it has been fiscally responsible 
          in managing its fleet and that this bill will eliminate 
          duplicative administrative processes by making permanent the 
          system's ability to purchase vehicles for academic programs and 
          personnel.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081