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Committee advances bill to let state negotiate bulk prices for construction materials after disasters
Summary
AB 783 would authorize the Department of General Services (DGS) to negotiate bulk purchasing agreements for construction materials to lower rebuilding costs in declared disaster areas; supporters said it would reduce barriers to rebuilding while critics warned about state contracting risks.
Assemblymember Colosa presented AB 783 to give the Department of General Services authority to negotiate contracts for commonly used construction materials so those materials can be offered at cost or with minimal administrative fees to homeowners, contractors, nonprofits and local governments in declared disaster areas.
Colosa said the bill is intended to lower rebuilding costs and speed recovery for communities affected by fires, floods and earthquakes. Ally Zaperman of the Housing Action Coalition and other housing and building-industry representatives testified in support, saying high material costs and tariffs have worsened rebuilding timelines and affordability.
Committee members raised implementation and contracting concerns. Assemblymember DeMayo recounted a San Diego experience in which a bulk contract for debris removal produced substantial cost overruns and litigation because of poor contract management. DeMayo asked whether the state could adequately manage large purchasing programs and suggested a feasibility study or using preexisting federal scheduling approaches (e.g., GSA schedules) to reduce risk. Colosa said the bill tasks DGS to negotiate prices but not to store materials, and the author accepted committee amendments including a five-year sunset and transparency/reporting requirements to the Legislature. The committee passed AB 783 as amended to the Assembly Committee on Emergency Management.
