BILL ANALYSIS
AB 2052
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ASSEMBLY THIRD READING
AB 2052 (Hayashi)
As Introduced February 18, 2010
Majority vote
BUSINESS & PROFESSIONS 11-0 APPROPRIATIONS 12-5
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|Ayes:|Hayashi, Emmerson, |Ayes:|Fuentes, Ammiano, |
| |Conway, Eng, | |Bradford, |
| |Hernandez, Hill, Ma, | |Charles Calderon, Coto, |
| |Nava, Niello, Ruskin, | |Davis, |
| |Smyth | |De Leon, Hall, Skinner, |
| | | |Solorio, Torlakson, |
| | | |Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
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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 requires DGS to:
1)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)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's 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 : According to the Assembly Appropriations
Committee analysis, little fiscal impact, as DGS reports it has
AB 2052
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already centralized and employed an online auction site through
a contract with a vendor for disposition of state surplus
assets. DGS indicates that, as a fee-for-service agency, it
already has the authority to cover its costs. DGS also
indicates that it has not seen significant saving in
warehousing, shipping, and handling costs.
Revenues from state surplus personal property sales totaled
about $550,000 in 2004-05 and $860,000 in 2006-07, and exceeded
$1 million in 2007-08. DGS states that revenues have been down
recently due to reductions in state purchases of new property
such as furnishings. DGS's recent emphasis has been on
disposing of surplus vehicles.
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
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.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301
FN: 0004211
AB 2052
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