BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 362

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          Date of Hearing:  March 25, 2015


                                  Rudy Salas, Chair

          AB 362  
          Waldron - As Amended March 16, 2015

          SUBJECT:  State printing:  demonstration project:  process free  

          SUMMARY:  Allows the Department of General Services (DGS) to  
          engage in a pilot printing program that would be paid for by a  
          participating vendor.  Specifically, this bill:  

          1)Authorizes DGS to engage in a "process free printing plates"  
            pilot project to demonstrate the possible environmental and  
            economic benefits of this technology.

          2)Requires that if DGS conducts such a pilot, the participating  
            private vendor will pay for the project's cost. 

          EXISTING LAW:  requires that the Office of State Printing (OSP),  
          under DGS, shall conduct all state printing and generally  
          provides OSP with discretion to determine appropriate printing  

          FISCAL EFFECT:  Unknown


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          COMMENTS:  This bill authorizes, but does not require, DGS to  
          conduct a "process free printing plates" pilot program.   
          Traditional printing requires the development of plates that are  
          created with chemical developers.  The process-free approach,  
          proposed in this bill, eliminates chemical processing. The  
          sponsor of this bill, Kodak, states that besides eliminating  
          chemicals, the use of process free printing plates reduces water  
          and energy uses.

          While the OSP has not used process free printing plates for its  
          printing, it has been moving towards digital printing.  This  
          method also does not require the chemical development of plates.

          This bill leaves the decision to participate in a pilot program  
          to DGS, but requires that a vendor participating in the pilot  
          will cover its costs.  While such an approach could reduce state  
          expenses, it is potentially inconsistent with procurement  
          guidance to state agencies, as specified in the State  
          Contracting Manual (SCM).

          Specifically, the SCM "recommends that departments do not accept  
          suppliers' offers of goods or services without cost or  
          obligation to the State.  If a department's decision is contrary  
          to this recommendation, the department must execute a purchase  
          document to document the agreement." According to DGS, this  
          direction is to prevent a vendor from receiving preferential  
          treatment or the perception of preferential treatment.  The SCM  
          further advises that, "Before accepting any suppliers' goods and  
          services offered at no cost or obligation to the department, the  
          department must consider the perception of the acceptance to  
          other suppliers."

          Additionally, DGS is authorized under current law to decide the  
          manner of printing it uses and does not appear to need  


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          additional authority to try different printing methods.         




          Kodak (sponsor)


          None on file

          Analysis Prepared by:Scott Herbstman / A. & A.R. / (916)  


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