BILL ANALYSIS Ó
SB 493
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Date of Hearing: July 6, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 493 (Padilla) - As Amended: June 29, 2011
Policy Committee: Business and
Professions Vote: 9-0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires Department of General Services (DGS)
procedures regarding the disposition of surplus state computers
to allow disposition to certain nonprofit entities at less than
fair market value and prior to offering the property to the
public. Specifically, this bill:
1)Requires DGS policies regarding disposition of surplus state
computer, laptops, monitors, and related equipment to:
a) Facilitate state policies to address the digital divide.
b) Authorize nonprofit entities operating a public computer
center in conjunction with school district to be eligible
for receipt of surplus computers at less than fair market
value and through direct disposition from a state agency.
c) Provide a procedure for state agencies to ascertain
whether any nonprofit entities are interested in receiving
surplus computers. The nonprofit would be required to use
the computers at a public computing center and would be
prohibited from reselling the computers.
d) Require state agencies documentation of disposition to
certify that all confidential, sensitive, and personal
information was removed prior to disposition.
2)Requires DGS, in collaboration with the State Technology
Agency, to promote increased awareness among state agencies of
the requirement to comply with (1)(c).
SB 493
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FISCAL EFFECT
1)DGS would incur one-time special fund costs of about $75,000
for the equivalent of one position to establish and implement
the revised policies and procedures and ongoing costs of about
$40,000 for these activities. ÝService Revolving Fund]
2)Minor annual revenue loss to the extent computers and related
equipment are sold to nonprofits at less than fair market
value, (Service Revolving Fun). In the two most recent
auctions conducted by DGS (January and May 2011), 700
computers sold at an average cost of $44 and 70 laptops sold
at an average cost of $123. DGS indicates few schools exercise
their statutory authority to obtain state computers at less
than fair market value, probably because the state computers
are old and the hard drives have been wiped clean and are no
longer equipped with any software.
COMMENTS
1)Background . Current law authorizes DGS, which oversees the
disposal of surplus state property, to offer the first rights
of refusal for appropriate state surplus personal property,
including computers, to school districts for less than fair
market value prior to offering that property to the public.
This bill expands this authorization to include nonprofits
that partner with school districts, pursuant to current law,
to operate computer centers. According to DGS, approximately
80% of all surplus state computers go to electronic waste,
because (a) it is more costly to transport computers to the
DGS Sacramento warehouse for sale compared to having an
electronic waste recycler pick up the computers for free, and
(b) because auction proceeds are retained by DGS.
2)Purpose . According to the author's office, five nonprofits
were awarded federal grants for public computer centers that
offer broadband access to low-income and other populations.
For these groups, a public computer center is often the only
option to access online education and training, and to apply
for jobs. These nonprofits are constantly looking to purchase
the least expensive computers, including surplus computers
from public and private organizations. This bill is intended
to facilitate 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
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electronic waste.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081