BILL ANALYSIS Ó
Bill No: SB
493
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 493 Author: Padilla
As Introduced: February 17, 2011
Hearing Date: March 22, 2011
Consultant: Art Terzakis
SUBJECT
State Surplus Personal Property: computers
DESCRIPTION
SB 493 is an urgency measure that requires the Department
of General Services (DGS) to first offer state surplus
computers, at less than fair market value, to public
computer centers and digital literacy programs that
received broadband grants under the American Recovery and
Reinvestment Act (ARRA). Specifically, this measure:
1. Requires DGS, notwithstanding existing provisions of
law, to first offer state surplus computers at less than
fair market value to California ARRA broadband grantees
for use with an approved broadband adoption project
involving a public computer center or digital literacy
training.
2. Requires DGS, on or before January 15, 2012, to report
to the Legislature on its implementation of the above
referenced provision and recommend whether other
nonprofits organizations working to close the "digital
divide" among low-income households should be eligible
for state surplus computers at less than fair market
value.
3. Contains two boiler plate provisions relative to
reporting parameters pursuant to the requirements of AB
SB 493 (Padilla) continued
Page 2
1585, Chapter 7, Statutes of 2010.
EXISTING LAW
Existing law requires DGS to perform various functions and
duties with respect to state real and personal property.
Existing law (Public Contract Code Section 10389.1)
provides that, if feasible and consistent with existing
law, DGS shall first offer appropriate state surplus
personal property to school districts prior to offering
that property to the public, except for property more
appropriately suited for public safety uses. The law also
authorizes DGS to offer school districts state surplus
personal property at less than fair market value if DGS
determines it's in the state's best interest.
Existing law (Government Code Section 10231.5) provides
that any bill introduced or amended in either house of the
Legislature requiring a state agency to submit a report on
any subject to either house of the Legislature, a committee
or office of either house of the Legislature, or
Legislative Counsel must include a provision repealing or
making inoperative the operating requirement no later than
a date four years following the operative date of the bill
or four years after the date of any report required every
four or more years. (Reports are due on different
schedules Ýe.g., two, three, four or even five and ten year
cycles]. This sunset requirement is intended to ensure
that a report due, for example, every five years will not
be repealed until four or more years after the due date in
order to provide ample time to effect obtaining the
information via budget or legislative means.)
Existing law (Government Code Section 9795) provides that
any report required or requested by law to be submitted by
a state or local agency to the members of either house of
the Legislature must be submitted as a printed copy to
Legislative Counsel and the Secretary of the Senate and as
an "electronic copy" to the Chief Clerk of the Assembly.
The law also requires an agency to provide a one-page
electronic summary directly to each member of the
Legislature rather than a full copy now that reports are
available electronically.
SB 493 (Padilla) continued
Page 3
Existing law, (AB 855 - Firebaugh, Chapter 820 of 2003),
established the Digital Divide Grant Program with a funding
mechanism of 15% of the proceeds from wireless
telecommunications facility leases of state property,
excluding Caltrans, that were entered into after January 1,
2004. The law requires the California Public Utilities
Commission (PUC) to deposit the proceeds of these leases
into a Digital Divide Account of the California Teleconnect
Fund (CTF) to be used to finance digital divide projects.
BACKGROUND
Purpose of SB 493: The author's office points out that
last year, numerous California nonprofit organizations were
awarded ARRA broadband grants to help fund public computer
centers and digital literacy programs specifically aimed at
those populations least likely to have their own computers,
subscribe to Internet service, or have skills to navigate
"on-line." The purpose of these projects is to provide
public access to computers with Internet service at
libraries, workforce centers, parks and youth and family
centers in various locations throughout the state
especially for low-income and non-English speaking
communities. The expectation is that such projects will
enable individuals without a personal computer to be able
to apply for jobs, get online training, access health care
and government services, or engage in the activities that
are now available only with Internet access. Several of
the grant recipients are implementing these projects in
partnership with school districts.
The author's office notes that DGS receives and disposes of
surplus computers no longer used by state agencies. The
most recent auction of surplus personal property conducted
by DGS was in January of 2011. That auction listed
hundreds of surplus state computers (including monitors and
printers) - the next auction is scheduled for May 2011.
DGS currently is required to make surplus state computers
available first to public schools prior to disposing of the
property at an auction. The law also permits DGS to offer
the surplus computers to school districts for less than
fair market value provided it's in the state's best
interest. The author's office claims that while this
requirement was aimed at giving students access to
SB 493 (Padilla) continued
Page 4
affordable computers to enhance digital literacy, very few
schools have chosen to obtain used computers from DGS. The
ARRA broadband grantees, on the other hand, are currently
seeking low-cost computers so that they can provide
Internet access and digital literacy skills to as many
Californians as possible.
The author's office emphasizes that access to high-speed
Internet connections - broadband - and basic digital
literacy skills are essential to virtually every aspect of
daily life in our 21st century digital economy. California
has been a national leader in efforts to close the digital
divide and bring broadband to citizens from every
background and in all parts of the state.
Arguments in Support: Writing in support of SB 493
proponents state that, "A computer has been shown to have a
huge positive impact on a child's ability to do schoolwork,
an outof work adults ability to find a job, and everyones
ability to access online healthcare information. For so
many of Californias citizens to be unable to afford
computers, keeping them out of touch and unable to fully
participate in society, is a tremendous waste of human
resources. The state's surplus computer can help eliminate
this barrier to full citizenship at virtually no cost to
taxpayers."
Staff Comment: SB 493 requires DGS to submit a report to
the Legislature no later than January 1, 2012. This
relatively short reporting time-frame may not allow DGS
sufficient time to fully evaluate the program. Thus, the
author may wish to consider amending the reporting due date
to June 30, 2012 or even December 31, 2012.
As noted above, existing law permits DGS to offer surplus
personal computers to school districts for less than fair
market value. SB 493 would, regardless of existing
provisions, require DGS to first offer surplus computers to
public computer centers and digital literacy programs for
less than fair market value if DGS determines it's in the
state's best interest. Although this proposal is indeed a
noble one, due to the current state Budget crisis and all
the proposed cuts in funding to education and numerous
existing social programs, the state should be seeking to
maximize its return on surplus computers, monitors,
printers and the like. Thus, the author may wish to
SB 493 (Padilla) continued
Page 5
consider amending this proposal to simply grant DGS the
authority to offer surplus computers to public computer
centers and digital literacy centers at less than fair
market value.
PRIOR/RELATED LEGISLATION
AB 1585 (Accountability & Administrative Review Committee)
Chapter 7, Statutes of 2010. Among other things, deleted
hundreds of obsolete reports and revised the procedure for
mandatory reporting requirements by state agencies.
SB 909 (Bowen) Chapter 870, Statutes of 2006. Authorized
the PUC to expend up to
$2 million of the unencumbered amount for the nonrecurring
installation costs of high-speed broadband services, as
defined, for community organizations that are eligible for
discounted rates pursuant to the teleconnect program.
SB 1645 (Mountjoy) Chapter 731, Statutes of 1998. Among
other things, authorized DGS to first offer appropriate
surplus state personal property, at less than fair market
value, to school districts prior to offering that property
to the public, except for equipment more appropriately
suited for public safety uses.
SUPPORT: As of March 18, 2011:
California State Library
Computers for Youth
ReliaTech
The Stride Center
Youth Policy Institute
OPPOSE: None on file as of March 18, 2011.
FISCAL COMMITTEE: Senate Appropriations Committee
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