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AB 783

Public contracts: construction materials: disaster relief.

2025-2026 Regular Session Introduced by Jessica Caloza

DGS can bulk-purchase common residential construction materials after disasters to lower costs and speed housing recovery, with prices at cost and a sunset in 2031.

In committee: Held under submission.
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Bill Summary · AB 783

AB 783 — Public contracts: construction materials: disaster relief

Status: In committee — Held under submission (Assembly Appropriations).
Introduced: February 18, 2025. Author: Caloza.

Purpose / Intent

Authorize the Department of General Services (DGS) to act as a bulk purchaser of common residential construction materials after declared natural-disaster emergencies, with the goals of reducing material costs, streamlining access, and expediting housing recovery. The authority sunsets January 1, 2031.

Key provisions

  • New chapter added to Gov. Code (commencing with Section 14983) creating a temporary bulk procurement authority for DGS.
  • Procurement authority:
    • DGS may negotiate and enter into exclusive or nonexclusive contracts (bid or negotiated) with manufacturers/suppliers for construction materials commonly used in residential structures.
    • Contracts may include price discounts, rebates, refunds or other cost-lowering strategies.
    • Contracts are explicitly exempted from Chapter 2 (commencing with Section 10290) of the Public Contract Code, allowing alternative procurement rules.
    • DGS instructed, where possible, to give priority to sustainable and locally sourced materials.
  • Covered materials (non‑exhaustive list):
    • Structural: lumber, concrete, rebar, steel beams.
    • Insulation/weatherproofing and roofing supplies.
    • Interior/flashing: drywall, paint, windows, doors, fasteners.
    • Mechanical/electrical: wiring, fixtures.
  • Availability and use limits:
    • Materials must be made available to homeowners, contractors, nonprofit organizations, and local governments in areas subject to a state of emergency (federal, state, or local declaration) for five years following that declaration.
    • Materials may only be used for recovery efforts directly linked to housing losses from the declared emergency.
    • Materials must be offered at cost or with only minimal administrative fees to ensure affordability.
  • Distribution and logistics:
    • DGS must coordinate with local governments, housing agencies, and nonprofits to establish sufficient distribution within affected areas.
    • The statute expressly states it shall not be interpreted to require DGS to store or distribute materials (i.e., DGS may arrange procurement but is not forced to maintain physical warehouses/perform distribution).
  • Reporting and transparency:
    • DGS must report annually to the Assembly Committee on Emergency Management and the Senate Committee on Governmental Organization on implementation, cost savings, quantities purchased, distribution metrics, and rebuilding outcomes.
    • Reports must comply with Government Code §9795.
  • Sunset: Authority repealed January 1, 2031.

Who is affected

  • DGS (new procurement and coordination responsibilities).
  • Homeowners, contractors, nonprofit housing/recovery organizations, and local governments in disaster-declared areas (eligible recipients).
  • Construction suppliers and manufacturers (potential new state contracts and volume procurement).
  • Local housing agencies and emergency management entities (coordination and distribution partners).

Potential impacts and considerations

  • Intended to lower rebuilding costs and accelerate housing recovery after disasters through bulk purchasing and negotiated discounts.
  • Fiscal effects: bill is not an appropriation but may have administrative costs and potential savings; Fiscal Committee review noted.
  • Operational challenges: defining “at cost”/“minimal administrative fees,” ensuring equitable distribution, verifying eligible use tied to housing losses, coordination with local procurement/relief systems, and supplier capacity during high demand.
  • Legal/procurement implications: exemption from certain Public Contract Code provisions permits flexible contracting but may raise oversight or competitive-bidding concerns.

Legislative progress (selected)

  • Introduced 02/18/25; referred to committees (G.O., E.M.).
  • Amended and passed out of Assembly committees in April 2025.
  • Referred to Assembly Appropriations; set for hearing and, as of 05/23/25, held under submission.

Compiled from official sources — confirm details with the bill’s official record.

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