20250AB__078397AMD INTRODUCED 2025-02-18 AMENDED_ASSEMBLY 2025-04-08 AMENDED_ASSEMBLY 2025-05-01 2025 AB AMD Introduced by Assembly Member Caloza LEAD_AUTHOR ASSEMBLY Caloza

An act to add and repeal

Chapter 12.5 (commencing with

Section 14983) of

Part 5.5 of Division of Title of the Government Code, relating to public contracts. public contracts Public contracts: construction materials: disaster relief. Existing law authorizes the Department of General Services to enter into contracts on a bid or negotiated basis with manufacturers and suppliers of single source or multisource drugs, and to obtain from them discounts, rebates, or refunds as permissible under federal law.

This bill would, until January 1, 2031, authorize the department to negotiate and enter into contracts on a bid or negotiated basis for construction materials commonly used in residential structures that may include price discounts, rebates, refunds, or other strategies aimed at lowering the cost of these materials.

The bill would require that these materials be offered at cost or with minimal administrative fees added to homeowners, contractors, nonprofit organizations, and local governments in any area affected by a state of emergency resulting from an earthquake, flood, fire, storm, or other natural disaster, as specified. The bill would require that the materials only be used for recovery efforts that are directly linked to housing losses caused by a state of emergency. This bill would prohibit its provisions from being interpreted to require the department to store or distribute materials.

The bill would also require the department to report annually to specified committees of the Legislature on the implementation, cost savings, and effectiveness of these provisions. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1.

Chapter 12.5 (commencing with

Section 14983) is added to

Part 5.5 of Division of Title of the Government Code , to read: 12.5. Bulk Procurement of Housing Construction Materials for Disaster Relief 14983. The purpose of this

chapter is to authorize the Department of General Services to act as a bulk purchaser of essential construction materials to ensure timely and cost-effective rebuilding of housing lost as a result of natural disasters with the goal of reducing the cost of, and streamlining access to, these materials, and to expedite rebuilding efforts in communities affected by a state of emergency resulting from an earthquake, flood, fire, storm, or other natural disaster. 14983.1. As used in this chapter, “department” means the Department of General Services. 14983.2. (

a) Notwithstanding any other provision, the department may negotiate and enter into exclusive or nonexclusive contracts on a bid or negotiated basis for construction materials commonly used in residential structures. Contracts entered into pursuant to this

chapter may include price discounts, rebates, refunds, or other strategies aimed at lowering the cost of these materials. The materials may include, but are not limited to, all of the following:

(1) Structural materials, such as lumber, concrete, rebar, and steel beams.

(2) Insulation and weatherproofing materials, including, but not limited to, roofing supplies.

(3) Interior and flashing materials, such as drywall, paint, windows, doors, and fasteners.

(4) Mechanical and electrical systems, including, but not limited to, wiring and fixtures. (

b) The department shall, if possible, give priority to sustainable and locally sourced materials. (

c) Contracts under this

chapter shall be exempt from

Chapter 2 (commencing with

Section 10290) of Part of Division of the Public Contract Code. 14983.3. (

a) The materials procured by the department pursuant to this

chapter shall be made available to homeowners, contractors, nonprofit organizations, and local governments in any area affected by a state of emergency resulting from an earthquake, flood, fire, storm, or other natural disaster declared by the President of the United States or the Governor, or upon the declaration of a local emergency resulting from an earthquake, flood, fire, storm, or other natural disaster by the executive officer of any county, city, or city and county for a period of five years following that proclamation or declaration. (

b) The materials shall only be used for recovery efforts that are directly linked to housing losses caused by a state of emergency. (

c) The materials shall be offered to homeowners, contractors, nonprofit organizations, and local governments at cost or with minimal administrative fees added in order to ensure affordability for disaster survivors. <caml:Num>14983.4.</caml:Num><caml:LawSectionVersion id="id_FACB080C-9F05-4229-AE64-DCBCBD50CBF2"><caml:Content><xhtml:p>The department shall coordinate with local governments, housing agencies, and nonprofit organizations to establish sufficient distribution of the materials within areas affected by a state of emergency resulting from an earthquake, flood, fire, riot, storm, or other natural disaster.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 14983.4.

Nothing in this

chapter shall be interpreted to require the department to store or distribute materials. 14983.5. (

a) The department shall maintain transparency in procuring construction materials pursuant to this

chapter and, notwithstanding

Section 10231.5, report annually to the Assembly Committee on Emergency Management and the Senate Committee on Governmental Organization on the implementation, cost savings, and effectiveness of this chapter. The report shall include, but not be limited to, both of the following:

(1) Quantities purchased. (2)<xhtml:span class="EnSpace"/>Distribution metrics.</xhtml:p>"?> (3)</xhtml:p>"?>

(2) Rebuilding outcomes in areas affected by a state of emergency resulting from an earthquake, flood, fire, storm, or other natural disaster. (

b) A report to be submitted pursuant to subdivision (

a) shall be submitted in compliance with

Section of the Government Code. 14983.6. This

chapter shall remain in effect only until January 1, 2031, and as of that date is repealed.