BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 493|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 493
Author: Padilla (D), et al.
Amended: 4/26/11
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORG. COMMITTEE : 9-3, 3/22/11
AYES: Wright, Calderon, Cannella, Corbett, De León, Evans,
Padilla, Wyland, Yee
NOES: Anderson, Berryhill, Strickland
NO VOTE RECORDED: Hernandez
SENATE APPROPRIATIONS COMMITTEE : 6-2, 5/26/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Runner
NO VOTE RECORDED: Emmerson
SUBJECT : State surplus property
SOURCE : Author
DIGEST : This bill specifies that Department of General
Services policies and procedures regarding the disposition
of state surplus computers, laptops, monitors, and related
computer equipment shall do all of the following: (1)
facilitate the disposition of state surplus computers to
further the state policy of bridging the digital divide, as
described in subdivision (d) of Section 709 of the Public
Utilities Code (PUC); (2) authorize nonprofit entities
that, in partnership with a school district, operate a
public computer center to further the state policy of
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bridging the digital divide, as described in subdivision
(d) of Section 709 of the PUC, to be eligible for receipt
of state surplus computers under Section 10389.1 and
through approved disposition directly from a state agency;
(3) include a procedure enabling state agencies with
surplus computers to ascertain whether the nonprofit
entities described in #2 are interested in receiving those
surplus computers; the procedure shall include a
preference for nonprofit entities within the same
geographic region as the state agency in order to minimize
transportation and disposition costs; (4) require that
state agency documentation of the disposition of surplus
computers include a certification that all confidential,
sensitive, and personal information was removed from the
computers prior to disposition; and (5) require DGS, in
collaboration with the California Technology Agency, to
promote increased awareness among state agency officials of
the requirement to remove from all state surplus computers
all confidential, sensitive, and personal information prior
of any disposition of those computers.
ANALYSIS : Under current law, DGS shall first offer
appropriate state surplus personal property to school
districts prior to offering that property to the public,
except for property with public safety uses. DGS may offer
school districts state surplus personal property at less
than fair market value, if it is determined to be in the
best interests of the state pursuant to DGS policies and
procedures. When it is not cost effective for state
agencies to transport surplus property to Sacramento for
auction, or the property is not suitable for sale,
authority can be requested to dispose of that property.
One disposition method is to donate computers to school
programs.
The number of state surplus computers may be sold to the
grant recipients and at what amount less than fair market
value is unknown. If these grant recipients can now
purchase retail a new desktop (estimated $500) or laptop
(estimated $300) computer with software and warranty, state
surplus computers would have to be price competitive before
this bill has a fiscal impact.
DGS surplus property auctions which were scheduled on a
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monthly basis are now being scheduled bi-monthly. The
following is data from the January 2011 auction:
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| | | | |
|Hardware |Number |Total |Average price per |
|type |sold |sales |unit |
| | | | |
|------------+-----------+----------+----------------------|
| | | | |
|CPUs |390 |$15,235.00|$39.06 |
| | | | |
| | | | |
|------------+-----------+----------+----------------------|
| | | | |
|Laptops |29 |$4,125.00 |$142.24 |
| | | | |
|------------+-----------+----------+----------------------|
| | | | |
|Monitors |83 |$4,145.00 |$49.94 |
| | | | |
| | | | |
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For CPUs (central processing units) and laptops, the hard
drives have been wiped clean to erase any sensitive data
and are no longer equipped with any software, including a
basic operating system. Each CPU or laptop has been tested
for function and each one will boot up to the C prompt.
If a state surplus computer (desktop and monitor) had a
fair market value of $100, for every 100 computers sold
pursuant to this bill, at 10 percent, 50 percent or 90
percent less than fair market value, the loss of revenue
would be $1,000 ($100 x 100 = $10,000 x 0.10), $5,000, or
$9,000. Assuming surplus sales were made at 50 percent of
fair market value, sale of 1,000 computers at this price
and configuration would be needed to incur a revenue loss
of $50,000 (assuming all computers were purchased by the
same fund). As noted, this estimate would be affected by
demand from non-school district bidders, retail and
wholesale options, and disposition of computers directly to
school districts.
This bill specifies that DGS policies and procedures
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regarding the disposition of state surplus computers,
laptops, monitors, and related computer equipment shall do
all of the following:
1. Facilitate the disposition of state surplus computers to
further the state policy of bridging the digital divide,
as described in subdivision (d) of Section 709 of the
Public Utilities Code (PUC);
2. Authorize nonprofit entities that, in partnership with a
school district, operate a public computer center to
further the state policy of bridging the digital divide,
as described in subdivision (d) of Section 709 of the
PUC, to be eligible for receipt of state surplus
computers under Section 10389.1 and through approved
disposition directly from a state agency;
3. Include a procedure enabling state agencies with surplus
computers to ascertain whether the nonprofit entities
described in #2 are interested in receiving those
surplus computers; the procedure shall include a
preference for nonprofit entities within the same
geographic region as the state agency in order to
minimize transportation and disposition costs;
4. Require that state agency documentation of the
disposition of surplus computers include a certification
that all confidential, sensitive, and personal
information was removed from the computers prior to
disposition; and
5. Require DGS, in collaboration with the California
Technology Agency, to promote increased awareness among
state agency officials of the requirement to remove from
all state surplus computers all confidential, sensitive,
and personal information prior of any disposition of
those computers.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
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Major Provisions 2011-12 2012-13 2013-14 Fund
State surplus computer Unknown,
potentially up to $50 or more General*
sales in lost revenue annually, potentially
negligible
* Service Revolving Fund (a combination of General Funds
and special funds) plus minor other General Fund and
special fund losses
SUPPORT : (Verified 5/31/11)
California State Library
Computers for Youth
ReliaTech
The Stride Center
Youth Policy Institute
PQ:kc 5/31/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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