BILL ANALYSIS �
AB 633
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 633 (Olsen)
As Amended August 14, 2012
2/3 vote. Urgency
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|ASSEMBLY: |60-0 |(April 14, |SENATE: |38-1 |(August 20, |
| | |2011) | | |2012) |
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Original Committee Reference: B.,P. & C.P.
SUMMARY : Authorizes the California State University (CSU) to
purchase vehicles for its state fleet without the approval of
the Department of General Services (DGS), until January 1, 2015.
The Senate amendments :
1)Require the CSU, to the greatest extent feasible, to purchase
vehicles using statewide commodity contracts.
2)Exempt passenger vehicles purchased for a state employee from
the requirement that the vehicle be an American-made,
light-duty vehicle.
3)Require the CSU to make an interim report to the Governor and
Legislature on January 1, 2014, and a final report on January
1, 2015, on its motor vehicle procurement, including all of
the following:
a) An inventory of motor vehicles, by campus, that includes
the vehicle type, usage, and fuel data consistent with the
fleet asset management (FAM) system reports;
b) The number of motor vehicles purchased during the prior
fiscal year (FY), disaggregated by campus and vehicle type
if the passenger vehicle or truck was purchased through
statewide commodity contracts, and the purchase price;
c) Any change to a policy or procedure made during the
prior FY related to motor vehicle procurement contracts and
the identification of any vehicle procured pursuant to the
new policy or procedure; and,
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d) Average time to complete procurements, average
administrative costs, any reduced charges paid to the DGS,
and competitive or reduced market prices obtained for the
vehicles.
4)Require that the interim and final report be submitted in
compliance with existing law relating to the submission of
reports to the Legislature.
5)Add an urgency clause to allow the provisions of this bill to
take effect immediately.
6)Sunset the provisions of this bill on July 1, 2015.
7)Make technical and clarifying amendments.
EXISTING LAW :
1)Defines "state agency" to include every state office, officer,
department, division, bureau, board, and commission.
2)Defines "state agency" to include each campus of the CSU, as
of July 1, 2012, and subjects the CSU to the DGS's acquisition
and replacement of motor vehicles.
3)Requires the CSU, by June 30, 2008, and annually thereafter
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,
consistent with the FAM report to the DGS;
b) The number of vehicles purchased during the prior FY, by
campus and vehicle type;
c) The average time to procure 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 the CSU's
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management of motor vehicle procurement, including the
average time to complete procurements, reduced
administrative costs, reduced charges paid to the DGS, and
competitive or reduced market prices obtained for vehicles.
4)Provides that no surplus mobile equipment may be acquired from
any source by any state agency for program support until the
DGS has investigated and established its need.
AS PASSED BY THE ASSEMBLY , this bill authorized the CSU to
purchase vehicles for its state fleet without the approval of
the DGS indefinitely.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : The DGS serves as the state's motor vehicle fleet
manager. While some state departments have delegated vehicle
purchasing authority, others must request vehicle purchases
through DGS. This bill eliminates the requirement that the CSU
obtain approval from the DGS prior to purchasing vehicles and
excludes the CSU from the executive orders relating to state
fleet reduction by redefining "state agency" to exclude the CSU
for vehicle purchases.
The sponsors of this bill, the CSU Board of Trustees, contend
that the CSU previously was authorized to independently purchase
goods and services in AB 1191 (Aguiar), Chapter 1097, Statutes
of 1997, and did so more efficiently than purchasing through the
DGS. The CSU's procurement of its own vehicles ended in 2005,
with the passage of SB 1757 (Denham), Chapter 926, Statutes of
2004, which established requirements for the acquisition of
motor vehicles under the supervision of the DGS. SB 1757
authorized the DGS to collect a fee from the CSU to offset the
cost of services provided. The CSU contends that the DGS
charged the CSU $80 per vehicle annually for service costs. AB
262 (Coto), Chapter 679, Statutes of 2007, afforded the CSU the
opportunity to purchase their own vehicles under their own
policies, subject to oversight by the DGS and annual reporting
requirements to both the Legislature and the DGS, until July 1,
2012. The CSU maintains that this sunset date was negotiated to
allow enough time for the CSU to collect data and prove that its
vehicle procurement was more cost-effective than vehicle
procurement through the DGS.
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The CSU claims that it has been fiscally responsible in managing
its fleet and was never intended to be captured under the DGS's
vehicle procurement in SB 1757. The CSU purchased 86 vehicles
for FY 2007-08, 81 vehicles for FY 2008-09, and 43 vehicles for
FY 2009-10. The CSU's decline in vehicle purchases has been
attributed to recent budget reductions, although the CSU has
continued to steadily purchase vehicles for campus police. The
CSU states that while recent budget reductions has decreased
vehicle purchases, the CSU can still acquire vehicles at a cost
savings of approximately $500 per vehicle and 50 days earlier
than if the CSU were to utilize the DGS to procure its vehicles.
The author amended this bill in the Senate to add an urgency
clause and additional reporting requirements on vehicle usage,
fuel data, and vehicle price to determine the fuel efficiency of
the CSU's fleet vehicles.
According to the sponsors, an urgency clause allows this bill to
take effect immediately and is necessary because the CSU's
authority to purchase its own vehicles expired on July 1, 2012,
and reverted back to the DGS indefinitely. Without this
legislation, the CSU may not purchase any vehicles without the
DGS's approval.
This bill, as amended in the Senate, is consistent with Assembly
actions.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301
FN: 0005187