BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 224
                                                                  Page  1

          Date of Hearing:   July 6, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 224 (Pavley) - As Amended:  April 14, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill exempts, from approval by the Department of General 
          Services (DGS), contracts entered into by the Department of 
          Water Resources (DWR) pursuant to the Water Code or funded with 
          federal or local monies.

           FISCAL EFFECT  

          Minor administrative cost savings to DGS and DWR, and potential 
          contract cost savings.

           COMMENTS  

           1)Background  . Current law stipulates that state contracts for 
            goods and services, including public works, are void until 
            approved by DGS. This is intended to ensure effective 
            compliance with applicable state laws and policies. Certain 
            entities are specifically exempted from this requirement, 
            including Caltrans (for non-state funded contracts), the 
            Legislature, and the State Compensation Insurance Fund. 

           2)Purpose . According to the author's office, "Despite having an 
            extensive contracting operation staffed by dozens of 
            experienced attorneys and contract specialists, DWR must still 
            have many of its contracts reviewed and approved by DGS. This 
            additional level of review delays the execution of contracts 
            and adds unnecessary costs to each contract. SB 224 will 
            provide DWR the same exception to DGS's contract review that 
            has been given to CalTrans. In doing so, SB 224 will eliminate 
            costly contract delays and unnecessary bureaucratic review."
          








                                                                  SB 224
                                                                  Page  2

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