BILL ANALYSIS �
Bill No: AB
633
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Bill Analysis
AB 633 Author: Olsen
As Amended: June 23, 2011
Hearing Date: June 28, 2011
Consultant: Paul Donahue
SUBJECT : California State University; Acquisition of motor
vehicles
SUMMARY : Authorizes the California State University (CSU)
to acquire motor vehicles and surplus mobile equipment
without first having the Department of General Services
(DGS) investigate and establish the necessity for the
acquisition.
Existing law :
1) Specifies that no state agency purchase order for the
acquisition or replacement of motor vehicles shall be
issued until DGS has investigated and established that the
vehicle purchase is necessary. (Gov. Code � 13332.09)
2) Prohibits a state agency, including DGS, from purchasing
new vehicles without the approval of the Department of
Finance (DOF) and the secretary or director of the agency
or department requesting the purchase.
3) Authorizes CSU to enter into contracts with any public
or private entity for the furnishing of goods, services or
equipment.
4) Defines "state agency" to include every state office,
officer, department, division, bureau, board, and
commission, and, effective July 1, 2012, would again
include each campus of the CSU within the definition. (Gov.
Code �� 11000, 13332.09)
AB 633 (Olsen) continued
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5) Requires CSU, by June 30th of each year until July 1,
2012, to report to the Legislature on its motor vehicle
procurement, including the following:
a) An inventory of motor vehicles by campus and type
b) The number of vehicles purchased during the prior
fiscal year (FY), by campus and type;
c) The average time taken to complete procurement of
each motor vehicle purchased during the prior FY;
d) Any changes in policies or procedures made during
the prior FY relative to motor vehicle procurement and
contracts, and the identification of any vehicles
procured pursuant to the new policy or procedure; and,
e) The estimated cost savings associated with
management by CSU of motor vehicle procurement,
including average time to complete procurements,
reduced administrative costs, reduced charges paid to
DGS, and competitive or reduced market prices obtained
for vehicles.
This bill :
1) Effective July 1, 2012, eliminates each campus of the
California State University from the definition of a "state
agency," thus authorizing CSU to manage and approve its own
acquisitions of motor vehicles and mobile equipment.
2) Provides that the Trustees of the CSU shall, to the
greatest extent feasible, purchase vehicles using statewide
commodity contracts.
3) Directs the CSU to report to the Legislature on or
before June 30 of each year through June 30, 2017, on their
motor vehicle procurement, including the following:
a) An inventory, by campus, of motor vehicles that
includes the type of vehicle, consistent with the
fleet asset management system reports (maintained by
DGS).
b) The number of motor vehicles purchase during the
AB 633 (Olsen) continued
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prior year, disaggregated by campus and type of
vehicle, if the passenger vehicle or truck was
purchased through statewide commodity contracts, and
the purchase price.
COMMENTS :
1) Purpose of the bill : According to the author's office,
in 2004, SB 1757 (Denham) inadvertently included CSU under
a new and duplicative process for purchasing vehicles. For
several years, this legislation cost CSU over $240,000 per
year to support the DGS Fleet Management Program despite
the fact that CSU is less than two percent of DGS's total
purchases statewide.
The author also notes that AB 262 (Coto) of 2007 suspended
provisions related to DGS approval of vehicle purchasing
and required the CSU Board of Trustees to report annually
to the Legislature until June 30, 2012, certain information
regarding motor vehicle procurement.
The author states that these reports show how CSU was able
to procure their vehicles in a more timely and cost-saving
manner, and that this bill will allow CSU to continue to
procure vehicles cost effectively under its long standing
Education Code authority.
2) Background : In 1994, the Legislature passed AB 1191
(Aguiar), which authorized the CSU to (1) lease any real
property for use by CSU, and (2) procure goods and
services, including telecommunications goods and services,
without going through the State Department of General
Services approval process.
In 2004, however, the Legislature passed SB 1757 (Denham),
which specifies that CSU must receive approval from DGS
before acquiring motor vehicles or general use mobile
equipment.<1> In response to this enactment, CSU sponsored
AB 262 (Coto) in 2007, which suspended temporarily the
requirement that DGS approve motor vehicle purchases made
by CSU, instead requiring that CSU prepare an annual report
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<1> Gov. Code � 13332.09 (f) additionally states that the
"University of California is requested and encouraged to
have the �DGS] perform the tasks identified in this section
with respect to the acquisition or replacement of motor
vehicles by the University of California."
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to the Legislature on its motor vehicle inventory,
purchases, estimated cost savings, and the like. On July
1, 2012, the reporting requirement expires, and DGS would
also resume its oversight and approval of CSU motor vehicle
purchases.
3) Recent amendments to AB 633 : As amended on June 23,
2011, AB 633 would exempt CSU from DGS oversight and
approval of CSU motor vehicle purchasing. It would require
only that CSU continue to report to the Legislature on its
motor vehicle purchases. The reporting requirement would
expire on June 30, 2017.
The policy question raised by the bill is whether the
Legislature considers it appropriate or desirable for DGS
to resume oversight of CSU motor vehicle purchases.
4) Gubernatorial Executive Orders on fleet-related issues :
Executive Order S-14-09, issued in July 2009, prohibits all
state agencies and departments from ordering or purchasing
new vehicles for non-emergency use. The Director of DGS
could still approve a purchase, subject to review by the
Consumer Services Agency Secretary, but only when the
purchase was necessary to protect public health and safety,
provide critical services and functions, utilize federal
stimulus funding, or achieve cost savings.
On January 27, 2011, Governor Brown issued Executive Order
B-2-11, which requires agencies and departments to review
home-storage permits and fleet usage and submit a plan to
DGS to withdraw vehicles that are non-essential or
cost-ineffective to be later sold. Like its predecessor,
EO B-2-11 also prohibits the purchase of non-emergency
vehicles, unless the vehicle is essential for health and
safety purposes or realizes cost savings.
5) Related legislation :
AB 2031 (Evans), Stats. 2010, ch. 247 prohibits a state
agency or department, including 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.
AB 262 (Coto) Stats. 2007, ch. 679 requires CSU to purchase
cars through DGS and be subject to DGS oversight as part of
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the state fleet by redefining "state agency" to include
each campus of the CSU for vehicle purchases, starting in
2012. AB 262 also deleted mandatory annual fleet reporting
requirements from CSU to DGS.
AB 236 (Lieu) Stats. 2007, ch. 593 changed state policies
regarding the purchase of vehicles for state vehicle fleets
in order to increase fuel efficiency and the use of
alternative fuels, and expanded the nature and extent of
information on which DGS is required to report to the
Governor and the Legislature.
SB 1757 (Denham) Stats. 2004, ch. 926 establishes
requirements for CSU for the acquisition of motor vehicles
under the supervision of DGS, and encouraged the University
of California to follow these requirements.
AB 1191 (Aguiar) Stats. 1994, ch. 1097 authorized the CSU
Board of Trustees to lease any real property for use by
CSU, and procure goods and services, including
telecommunications goods and services, without going
through the DGS approval process.
SUPPORT:
California State University (source)
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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