BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1998
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1998 (Achadjian) 
          As Amended  May 25, 2012
          Majority vote 

           LOCAL GOVERNMENT    8-0                                         
           
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          |Ayes:|Smyth, Alejo, Bradford,   |     |                          |
          |     |Campos, Gordon, Hueso,    |     |                          |
          |     |Knight, Norby             |     |                          |
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           SUMMARY  :  Authorizes the board of supervisors (board) to 
          authorize county welfare directors to donate surplus computer 
          equipment directly to persons receiving specified public 
          benefits.   Specifically,  this bill  :

          1)Authorizes the board of supervisors of a county to authorize 
            the county welfare department to donate surplus computer 
            equipment directly to persons receiving public benefits under 
            one or more of the following programs:  CalFresh; California 
            Work Opportunity and Responsibility to Kids Act (CalWORKs); 
            County Relief, General Relief, or General Assistance; or, 
            Medi-Cal.

          2)Requires the board to make findings and declarations relating 
            to the public purpose served by the donation.

          3)Requires the board to develop terms and conditions to govern 
            any donations made pursuant to this measure. 

          4)Requires a participating county welfare department to do all 
            of the following:

             a)   Maintain a list of all eligible persons receiving public 
               benefits who have requested to receive surplus computer 
               equipment;

             b)   Establish a fair and impartial selection process by 
               using a random lottery;

             c)   Follow any rules and regulations adopted by the board; 
               and, 









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             d)   Require the recipient of any surplus computer equipment 
               to sign an agreement prohibiting the recipient from selling 
               the equipment. 

          5)Prohibits a county welfare department from donating surplus 
            computer equipment to a person receiving public benefits who 
            is in sanction status or otherwise noncompliant with the rules 
            and regulations of his or her benefits program. 

           EXISTING LAW  authorizes the board of supervisors of a county to 
          donate or lease any real or personal property that the board 
          declares to be surplus to a school or community college 
          district, a county children and families commission, or an 
          organization exempt from taxation pursuant to specified 
          provisions of federal law.

           FISCAL EFFECT  :  None

           COMMENTS  :  This bill would authorize county boards of 
          supervisors to authorize county welfare departments to donate 
          surplus computer equipment directly to individuals already 
          receiving public benefits.  This bill is sponsored by the County 
          of Santa Barbara. 

          Santa Barbara County estimates that it currently surpluses up to 
          100 computers per year from the Department of Social Services 
          (DSS), although it would "expect no more than half of those (50) 
          would go to DSS clients.  Some would still go to other county 
          departments."  The surplus equipment would be depreciated 
          computers from the county's CalWORKS, CalFresh, and MediCal 
          programs that have been "officially and legally surplused under 
          Federal and State rules, as required in the Government Code."  
          According to the author, the current process for declaring 
          property surplus is established by each board of supervisors.

          The pool of individuals receiving CalWORKS, CalFresh, and 
          MediCal benefits and therefore eligible to receive surplus 
          computer equipment under this bill is estimated to be 
          approximately 20,000 families.  

          According to the author, this bill would "allow a Board of 
          Supervisors to locally opt-in to amend their surplus property 
          plan to include the ability to donate surplus computer property 
          directly to �public assistance] recipients.  Current Government 
          �C]ode does not provide the flexibility needed to get surplus 








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          computers and computer equipment quickly into the hands of needy 
          low-income recipients of public assistance?without the 
          utilization of pass through agencies.  AB 1998 would streamline 
          the donation process by allowing direct donation of surplus 
          computer equipment to low-income households.  This would help 
          these individuals gain access to the type of computer technology 
          necessary to meet the conditions of receiving aid and give 
          recipients better access to online employment training and job 
          search information."  

          According to the sponsor, counties should have the authority to 
          donate directly to individuals rather than work through 
          non-profit groups because: "�s]ome counties don't have a 
          non-profit with the capability of conducting this type of 
          distribution process.  This is a true inefficiency for social 
          service departments as �federal government agencies] continue to 
          push electronic access by clients in our benefit programs."  
          Furthermore, "�i]n some counties, non-profits do not want to 
          engage in this process.   And in some situations, the non-profit 
          attempts to benefit from this arrangement in such a way as to 
          make it unbeneficial to the county to pursue it."

          Additionally, using non-profits for donations can be costly:  
          "current law which requires going through non-profits has a 
          local cost attached to develop contracts and arrangements with 
          non-profits, conduct inventories, and conduct fiscal 
          monitoring?Our proposal is simply an additional option which 
          some counties will find very beneficial as they move toward more 
          'remote access' as a business model, ultimately reducing 
          administrative expenses since clients will be able to access 
          social services on-line, without making multiple visits to our 
          offices."

          The sponsor also contends that the authority to donate surplus 
          computer equipment directly to needy families is better for 
          counties than trying to sell it because "then the state would 
          have to set up an additional fund that would have to be audited 
          etc.  Direct donation would be much more effective and efficient 
          in getting the computers to the individuals who need them."

          Finally, the author points out the permissive nature of the bill 
          and the possibility of routing donations to both non-profits and 
          individuals:  "Non-profits are by no means excluded�.] I expect 
          in our county that we will split the available equipment and 
          still give some to a non-profit, but benefit program clients 








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          will now be able to obtain equipment that has not been 
          previously available to them."

          Nevertheless, by giving surplus computers directly to private 
          individuals, the county would forgo the opportunity to put that 
          equipment to a more public use, like making computers available 
          in a school, library, or community employment center.  The 
          Legislature may wish to consider whether or not the private use 
          of surplus public property is the best means to achieve the 
          larger public purpose of increasing employment among public 
          assistance recipients.

          Recent amendments require the county welfare department to 
          maintain a list of eligible recipients who have requested 
          surplus computer equipment, use a random lottery process to 
          select recipients from that list, follow any other rules and 
          regulations adopted by the board, and require the recipient to 
          sign an agreement prohibiting the recipient from selling the 
          equipment.  The county welfare department would also be barred 
          from donating equipment to a person who is in sanction status or 
          otherwise noncompliant with the rules and regulations of his or 
          her benefits program.  

          The Legislature considered two similar surplus property bills 
          during the 2001-02 Session.

          AB 314 (Chan), Chapter 18, Statutes of 2001, authorized the 
          board of supervisors to donate or lease any real or personal 
          property that the board declares to be surplus to a school or 
          community college district, a county children and families 
          commission, or a nonprofit corporation organized for the care, 
          teaching, or training of children, developmentally disabled 
          children, or Native Americans.  The bill received unanimous 
          support in the Assembly Local Government Committee (11-0), as 
          well as on the Assembly Floor (77-0).

          SB 1815 (Chesbro), Chapter 97, Statutes of 2002, added 
          tax-exempt organizations that provide health or human services 
          to the list of organizations to which counties may donate or 
          lease surplus property.  The bill received unanimous support in 
          the Assembly Local Government Committee (11-0) on consent, as 
          well as on the Assembly Floor (72-0).

          Support arguments:  According to the author, this bill would 
          empower counties to donate surplus computer property directly to 








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          public assistance recipients, allowing the county to streamline 
          the donation process, save time and money, and enable low-income 
          individuals to better utilize computer technology to increase 
          their employment opportunities.  

          Opposition arguments:  This bill would allow counties to give 
          public property directly to individuals without clear 
          accountability.  By failing to properly utilize the experience 
          and connections of the non-profit sector, surplus property will 
          likely go to a personal use rather than a broader public use, 
          resulting in reduced access and a duplication of effort. 

          Analysis Prepared by  :    Hank Dempsey / L. GOV. / (916) 319-3958 



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