BILL ANALYSIS Ó
SB 493
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Date of Hearing: June 21, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
SB 493 (Padilla) - As Amended: May 31, 2011
SENATE VOTE : 35-3
SUBJECT : State surplus property.
SUMMARY : Revises the Department of General Services' (DGS)
policy on surplus computers to allow state agencies to sell
surplus computers at less than fair market value to nonprofits
partnering with a school district to operate a public computer
center, before the computers are put out to bid or otherwise
disposed of. Specifically, this bill :
1)Require that DGS's policies and procedures on the disposition
of state surplus computers, laptops, monitors, and related
computer equipment do all of the following:
a) Bridge the digital divide by encouraging expanded access
to state-of-the-art technologies for rural, inner-city,
low-income, and disabled Californians;
b) Authorize nonprofits partnering with a school district
to operate a public computer center, to be eligible to
purchase state surplus computers directly from a state
agency, and authorizes DGS to sell those computers below
fair market value if DGS determines it is in the state's
best interests;
c) Include a procedure for state agencies with surplus
computers to ascertain whether eligible nonprofits are
interested in receiving surplus computers, with a
preference to nonprofits located within the same geographic
region as the state agency in order to minimize
transportation and disposition costs; and,
d) Require the state agency to certify that all
confidential, sensitive, and personal information was
removed from computers prior to disposition;
2)Requires DGS, in collaboration with the California Technology
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Agency, promoted awareness among state agencies to remove all
confidential, sensitive, and personal information has been
removed from state surplus computers prior to disposition.
3)Declares that this bill shall take effect immediately as an
urgency measure.
EXISTING LAW authorizes DGS to offer the first rights of refusal
for appropriate state surplus personal property to school
districts for less than fair market value prior to offering that
property to the public.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "This
bill seeks to find a feasible, cost-effective means of matching
public computer centers working to close the digital divide with
surplus state computers that would otherwise go to electronic
waste."
Background . According to DGS, which oversees the disposal of
surplus state property, approximately 80% of all surplus state
computers go to electronic waste and approximately 20% are
transported to the Sacramento DGS warehouse for sale at a public
auction. The majority of state surplus computers go to
electronic waste because it is more costly to transport
computers to the DGS warehouse for sale compared to having an
electronic waste recycler pick up the computers for free, and
because auction proceeds are retained by DGS. DGS does not
maintain an inventory of surplus computers after they are sold
or disposed of. Existing law already authorizes a school
district to acquire computers below fair market value prior to
an auction, including for a nonprofit it partners with to
operate a public computer center. DGS is currently updating its
October 2007 management memo on the removal of confidential,
sensitive or personal information from state-owned surplus
personal property and state-owned surplus vehicles.
According to the author's office, five nonprofits were awarded
federal grants for public computer centers that offer Internet
broadband access to low-income and other populations least
likely to have their own computer and Internet service. The
author's office states, "For many program participants, a public
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computer center is the only option to access online education
and training, and Ýto apply] for jobs. These nonprofits, many
of which are in partnership with a school district, are
constantly looking to purchase the least expensive computers,
including surplus computers from public and private
organizations.
Support . According to the California Broadband Policy Network,
"The Legislature has long recognized the important role that
community-based organizations play in working to close the
digital divide through programs such as the California
Teleconnect Fund, the Digital Divide Account, and SB 909
(Bowen), Chapter 870, Statutes of 2006, which provided funding
to support the costs of installation of high-speed broadband
services to public computing centers. With this bill, many
community-based organizations would have an opportunity and
could afford to expand their program's capacity or even make
needed technology upgrades, such as switching to flat screen
monitors, which would improve the user experience."
Previous Legislation . SB 1645 (Mountjoy), Chapter 731 Statutes
of 1998, required
DGS to, if feasible and consistent with existing law, first
offer appropriate surplus state equipment to school districts,
except for equipment more appropriately suited for public safety
uses.
REGISTERED SUPPORT / OPPOSITION :
Support
California Broadband Policy Network
California Communications Association
California State Library
Computers for Youth
EmpowerNet California
ReliaTech
SureWest Communications
The Stride Center
Youth Policy Institute
Opposition
None on file.
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Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301