BILL ANALYSIS Ó AB 1998 Page 1 Date of Hearing: April 18, 2012 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Cameron Smyth, Chair AB 1998 (Achadjian) - As Amended: April 12, 2012 SUBJECT : County surplus property. SUMMARY : Authorizes the board of supervisors to authorize county welfare directors to donate surplus computer equipment directly to persons receiving specified public benefits. Specifically, this bill : 1)Authorizes the board of supervisors of a county to authorize the county welfare department to donate surplus computer equipment directly to persons receiving public benefits under one or more of the following programs: CalFresh; California Work Opportunity and Responsibility to Kids Act (CalWORKs); County Relief, General Relief, or General Assistance; or Medi-Cal. 2)Requires the board to make findings and declarations relating to the public purpose served by the donation. 3)Requires the board to develop terms and conditions to govern any donations made pursuant to this measure. EXISTING LAW authorizes the board of supervisors of a county to donate or lease any real or personal property that the board declares to be surplus to a school or community college district, a county children and families commission, or an organization exempt from taxation pursuant to specified provisions of federal law. FISCAL EFFECT : None. This bill is keyed non-fiscal. COMMENTS : 1)This bill would authorize county boards of supervisors to authorize county welfare departments to donate surplus computer equipment directly to individuals already receiving public benefits. The bill is sponsored by the County of Santa Barbara. 2)The sponsor, Santa Barbara County, estimates that it surpluses AB 1998 Page 2 up to 100 computers per year from the Department of Social Services (DSS), although it would "expect no more than half of those (50) would go to DSS clients. Some would still go to other county departments." The surplus equipment would be depreciated computers from the county's CalWorks, CalFresh, and MediCal programs that have been "officially and legally surplused under Federal and State rules, as required in the Government Code." According to the author, the current process for declaring property surplus is established by each board of supervisors. The pool of individuals receiving CalWorks, CalFresh, and MediCal benefits and therefore eligible to receive surplus computer equipment under this bill is estimated to be approximately 20,000 families. 3)According to the author, this bill would "allow a Board of Supervisors to locally opt-in to amend their surplus property plan to include the ability to donate surplus computer property directly to Ýpublic assistance] recipients. Current Government ÝC]ode does not provide the flexibility needed to get surplus computers and computer equipment quickly into the hands of needy low-income recipients of public assistance?without the utilization of pass through agencies. AB 1998 would streamline the donation process by allowing direct donation of surplus computer equipment to low-income households. This would help these individuals gain access to the type of computer technology necessary to meet the conditions of receiving aid and give recipients better access to online employment training and job search information." 4)According to the sponsor, counties should have the authority to donate directly to individuals rather than work through non-profit groups because: "Ýs]ome counties don't have a non-profit with the capability of conducting this type of distribution process. This is a true inefficiency for social service departments as ÝFederal Government agencies] continue to push electronic access by clients in our benefit programs." Furthermore, "Ýi]n some counties, non-profits do not want to engage in this process. And in some situations, the non-profit attempts to benefit from this arrangement in such a way as to make it unbeneficial to the county to pursue it." Additionally, using non-profits for donations can be costly: "current law which requires going through non-profits has a AB 1998 Page 3 local cost attached to develop contracts and arrangements with non-profits, conduct inventories, and conduct fiscal monitoring. Our proposal 'cuts the middle man out' of the process and allows us, with a Board approved process, to deal directly with our clients with whom we already have regular contact. Current law still allows the involvement of non-profits if that is already working well in an individual county. Our proposal is simply an additional option which some counties will find very beneficial as they move toward more 'remote access' as a business model, ultimately reducing administrative expenses since clients will be able to access social services on-line, without making multiple visits to our offices." The sponsor also contends that the authority to donate surplus computer equipment directly to needy families is better for counties than trying to sell it because "then the state would have to set up an additional fund that would have to be audited etc. Direct donation would be much more effective and efficient in getting the computers to the individuals who need them." Finally, the author points out the permissive nature of the bill and the possibility of routing donations to both non-profits and individuals: "Non-profits are by no means excludedÝ.] I expect in our county that we will split the available equipment and still give some to a non-profit, but benefit program clients will now be able to obtain equipment that has not been previously available to them." Nevertheless, by giving surplus computers directly to individuals, the county would lose the opportunity to work with the local non-profit or educational sectors to put the equipment to a more public use, like making terminals available in a school, library, or community employment center. The Committee may wish to consider whether or not the private use of surplus public property is the best means to achieve the larger public purpose of increasing employment among public assistance recipients. 5)The Legislature considered two similar surplus property bills during the 2001-02 Session. AB 1998 Page 4 AB 314 (Chan), Chapter 18, Statutes of 2001, authorized the board of supervisors to donate or lease any real or personal property that the board declares to be surplus to a school or community college district, a county children and families commission, or a nonprofit corporation organized for the care, teaching, or training of children, developmentally disabled children, or Native Americans. The bill received unanimous support in the Assembly Local Government committee (11-0), as well as on the Assembly floor (77-0). SB 1815 (Chesbro), Chapter 97, Statutes of 2002, added tax-exempt organizations that provide health or human services to the list of organizations to which counties may donate or lease surplus property. The bill received unanimous support in the Assembly Local Government Committee (11-0) on consent, as well as on the Assembly floor (72-0). 6)Support arguments : According to the author, this bill would empower counties to donate surplus computer property directly to public assistance recipients, allowing the county streamline the donation process, save time and money, and enable low-income individuals to better utilize computer technology to increase their employment opportunities. Opposition arguments : This bill would allow counties to give public property directly to individuals without clear accountability. By failing to properly utilize the experience and connections of the non-profit sector, surplus property will likely go to a personal use rather than a broader public use, resulting in reduced access and a duplication of effort. REGISTERED SUPPORT / OPPOSITION : Support County of Santa Barbara ÝSPONSOR] California State Association of Counties County Welfare Directors' Association of California Regional Council of Rural Counties Urban Counties Caucus Opposition None on file AB 1998 Page 5 Analysis Prepared by : Hank Dempsey / L. GOV. / (916) 319-3958