BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1890
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

              AB 1890 (Committee on Higher Education) - As Introduced:   
                                  February 16, 2010

          Policy Committee:                              Higher  
          EducationVote:9-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes that the University of California (UC) and  
          the California State University (CSU) must hold only unclaimed,  
          lost, or abandoned property with a value of $300 or greater, and  
          that the segments must hold such property for only three months  
          before sale at a public auction.

           FISCAL EFFECT  

          By providing the universities flexibility in the disposition of  
          low value unclaimed property, the segments will likely realize  
          minor administrative cost savings at each UC and CSU campus.

           COMMENTS  

           Background and Purpose  .  Under current law, when an item is  
          turned into a UC or CSU campus, the campus is required to hold  
          this item for a defined period, after which UC and CSU are  
          required to sell the collected lost and abandoned property at a  
          public auction.  According to the CSU Chancellor's Office  
          (sponsor), any revenues collected by the selling of items at CSU  
          campuses are placed in a scholarship fund, and any items that  
          have not been sold at auction are donated to non-profit  
          organizations.  The sponsor reports that larger CSU campuses  
          maintain two full-time employees to manage the lost property  
          inventory, which often includes items such as books, sunglasses,  
          and articles of clothing, in addition to more valuable items  
          like bicycles and computers. The Chancellor's Office argues that  
          the changes proposed in AB 1890 this bill would allow campuses  
          to streamline their abandoned property processes and utilize  








                                                                  AB 1890
                                                                  Page  2

          staff more efficiently.

          Currently CSU is required to hold property for six months, while  
          UC, state agencies like the Department of General Services and  
          the Department of Parks and Recreation, and cities and counties  
          are required to keep property for three months prior to placing  
          items for sale at a public auction.  This bill thus provides CSU  
          with a conforming, three-month holding period.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081