BILL ANALYSIS
AB 2052
Page 1
Date of Hearing: April 20, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2052 (Hayashi) - As Introduced: February 18, 2010
SUBJECT : State surplus personal property: centralized sale.
SUMMARY : Requires the Department of General Services (DGS) to
establish a program to centralize the sale of state surplus
personal property using the best available technology,
including, but not limited to, the Internet. Specifically, this
bill :
1)Requires DGS to establish a program to centralize the sale of
state surplus personal property using the best available
technology, including, but not limited to, the Internet.
2)Requires DGS to recover its costs through a surcharge on each
property.
EXISTING LAW establishes DGS as the state government entity
responsible for providing a broad range of business services to
government. DGS' functions include: procurement and
contracting for goods and services; real estate and design
services for state buildings; telecommunications; fleet
management; information services; publishing services;
architectural services; energy efficiency programs; legal
services; and, building maintenance.
FISCAL EFFECT : Unknown
COMMENTS : In 2004, the final report of the California
Performance Review (CPR) recommended the state pursue innovative
techniques to improve the sale of state surplus property to
increase efficiency and revenues. The CPR report cited DGS as
one of the major sellers of surplus personal property (e.g.,
office equipment), receiving about 16,000 shipments each year,
with each shipment containing anywhere from a single item, up to
200 different pieces of surplus personal property.
Further, the traditional method for the sale of personal
property has been through public warehouse sales which are
generally limited to customers residing within the general area
AB 2052
Page 2
of the warehouse. It is believed that broadening the customer
base through the use of the Internet could produce more sales
and revenue. Additionally, pursuing sales of surplus personal
property over the Internet could result in state cost savings by
reducing the costs DGS incurs to warehouse, maintain, and
conduct sales.
The CPR report also recommended that DGS continue to fund itself
from the proceeds of sales of surplus personal property in the
manner that they currently do for warehouse sales.
Previous Legislation . This bill is similar to AB 240 (Eng) of
2007 and AB 302 (Negrete McLeod) of 2005, which were
substantively amended to address an unrelated issue.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301