BILL ANALYSIS
Bill No: AB
2052
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2052 Author: Hayashi
As Introduced: February 18, 2010
Hearing Date: June 22, 2010
Consultant: Art Terzakis
SUBJECT
State Surplus Personal Property
DESCRIPTION
AB 2052 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. Specifically, this measure:
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
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.
AB 2052 (Hayashi) continued
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BACKGROUND
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, automobiles, computers, tools,
etc.), 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.
The CPR report noted that 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. The CPR report
suggested 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.
Staff Comments: DGS reports it has 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 began selling
surplus property to the public via a partnership with eBay
in April 2000 under a program called CaliforniaGold2000.
The Office of Surplus Property Reutilization (OSPR) is
responsible for the proper disposition of all State-owned
surplus personal property and for the allocation of Federal
surplus personal property to the State of California's
qualified recipients. State surplus property is available
to the public through auctions held every six weeks at a
warehouse located in Sacramento.
In 2007, AB 240 (Eng), which was substantially similar to
this measure, passed the Assembly 78-1 but was never heard
AB 2052 (Hayashi) continued
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in the Senate. In 2005, AB 302 (Negrete McLeod), which was
substantially similar to this measure, also passed the
Assembly 78-1 but was subsequently amended in the Senate to
address an unrelated issue.
SUPPORT: None on file as of June 18, 2010.
OPPOSE: None on file as of June 18, 2010.
FISCAL COMMITTEE: Senate Appropriations Committee
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