BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 362


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          Date of Hearing:  April 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          362 (Waldron) - As Amended March 16, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill 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:  









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          1)Authorizes DGS to engage in a demonstration project using  
            "process free printing plates," as defined, to show the  
            possible environmental and economic benefits of this  
            technology.


          2)Specifies best practices the department must strive to adhere  
            to, including reducing overall chemical usage, maximizing the  
            use of less hazardous chemicals, minimizing water usage,  
            reducing electricity usage, maximizing recycling of materials  
            used, and reducing the carbon footprint.


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


          FISCAL EFFECT:


          1)Negligible state cost.  The bill requires a private vendor  
            engaging in a demonstration project with DGS to cover the  
            costs of the project. 


          2)Staff notes that the details of the pilot project, such as the  
            scope and location, are not included in the bill. Depending on  
            the details, there could be indirect cost implications for the  
            Office of State Publishing (OSP) that go beyond the plates and  
            are more difficult to identify. For example, if the pilot is  
            held in-house, existing equipment may need to be moved or  
            existing production schedules may be disrupted or delayed. It  
            is not clear whether or how those costs would be covered by  
            the vendor. In contrast, if the pilot were held off site, OSP  
            costs would be primarily limited to staff travel time.


          COMMENTS:








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          1)Purpose.  According to the author, traditional printing  
            requires the development of plates that are run through a bath  
            of chemical developer and water. This process is not the most  
            efficient method available and requires more water, energy,  
            and produces more waste than other available methods.  This  
            bill would authorize a pilot project for a "process-free"  
            approach, designed to demonstrate any economic or  
            environmental advantages of this process. 



          2)Background. Established in 1965, the OSP, under DGS, provides  
            a variety of programs, services, and support to all state,  
            federal, county and city agencies. Among its key services are  
            project planning and initiation, creative print and web  
            design, mass mailing and interagency mail, state records  
            center, and digital and offset print production. OSP is  
            committed to energy and cost efficient production. Regarding  
            printing, OSP has not used process free printing plates for  
            its printing, but has moved towards digital printing, a method  
            which also does not require the development of plates.



          3)State Contracting Considerations. 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 this 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  








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            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."


          4)Need for the Bill. DGS is authorized under current law to  
            decide the manner of printing it uses. It does not appear to  
            need additional authority to observe or engage in alternative  
            printing methods.         


          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081