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 








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            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 








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            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.








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          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








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          Analysis Prepared by  :    Hank Dempsey / L. GOV. / (916) 319-3958