BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 1998                     HEARING:  6/27/12
          AUTHOR:  Achadjian                    FISCAL:  No
          VERSION:  5/25/12                     TAX LEVY:  No
          CONSULTANT:  Phan                     

                            COUNTY SURPLUS PROPERTY
          

            Allows counties to donate surplus computers directly to 
                           social service recipients.


                           Background and Existing Law  

          State law regulates how and under what circumstances 
          counties are allowed to acquire, use, and dispose of county 
          properties.  Counties may sell, auction, lease, or donate 
          surplus real or tangible properties to specified parties.  
          A county board of supervisors may donate or lease any 
          property it deems to be surplus to any public agency, 
          school or community college district, a county children and 
          families commission, or an organization exempt from 
          taxation pursuant to specified provisions of law.  The 
          board may impose any terms and conditions it deems 
          appropriate on the donation or lease. 

          The federal and state governments encourage service 
          agencies to use the Internet to provide clients with 
          greater access to their services.  The Internet allows 
          clients to learn about services, apply for services, 
          recertify their eligibility, make appointments, update 
          their records, and contact county workers.  A study in 2009 
          by the Public Policy Institute of California found that 25% 
          of Californians did not own a computer, with the Latino and 
          African American populations owning the least number of 
          computers.

          Counties frequently update their technology.  Although 
          figures differ across counties, Santa Barbara County 
          estimates it has around 100 computers in surplus each year 
          from its Department of Social Services (DSS), with about 
          half of those going to other county departments and half 
          going to social service recipients. 





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          Currently, counties may not donate property directly to 
          social service recipients.  If counties want to donate 
          computers to social service recipients, they must donate 
          the computers to a nonprofit, which can distribute them to 
          recipients.  However, some counties do not have a 
          non-profit capable of distributing or willing to distribute 
          computers to social service recipients.  In other counties, 
          nonprofits keep the computers for their own use.  Although 
          some counties want their surplus computers to reach 
          eligible families, current law does not give them the power 
          to ensure surplus computers get to people who need them 
          most. 


                                   Proposed Law  

          Assembly Bill 1998 allows counties to directly donate 
          surplus computer equipment to social service recipients.  
          Specifically, it allows the county board of supervisors 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.  AB 1998 requires the 
          board to make findings and declarations relating to the 
          public purpose served by the donation, and develop terms 
          and conditions to govern any donations made pursuant to 
          this measure.

          The bill also requires a participating county welfare 
          department to:
             1) Maintain a list of all eligible persons receiving 
              public benefits who have requested to receive surplus 
              computer equipment;
             2) Establish a fair and impartial selection process by 
              using a random lottery;
             3) Follow any rules and regulations adopted by the 
              board; and,
             4) Require the recipient of any surplus computer 
              equipment to sign an agreement prohibiting the 
              recipient from selling the equipment.

          AB 1998 prohibits a county welfare department from donating 
          surplus computer equipment to a person receiving public 
          benefits who is in sanction status or otherwise 





          AB 1998 -- 5/25/12 -- Page 3



          noncompliant with the rules and regulations of his or her 
          benefits program.


                               State Revenue Impact
           
          No estimate. 


                                     Comments  

          1.   Purpose of the bill  .  Access to a computer and the 
          Internet improves access to public resources and employment 
          information.  Current law allows counties to donate or 
          lease surplus property only to an organization, not to 
          individuals.  AB 1998 gives counties the option to donate 
          their surplus computers directly to a social service 
          recipient, ensuring that donated technology gets into the 
          hands of deserving recipients.  AB 1998 is optional and 
          allows counties to create rules and regulations as they see 
          fit, giving counties flexibility and discretion in how it 
          designs its program.  By eliminating the nonprofit 
          organization as the middleman, this bill streamlines the 
          steps of donating surplus computer equipment to individual 
          recipients, allowing recipients to receive their computers 
          sooner.  Counties that do not have a nonprofit capable of 
          or willing to distribute computers to social service 
          recipients will have the ability to ensure their computers 
          reach a recipient.  Counties also have greater control over 
          where their resources go.  With approximately 20,000 
          families qualifying for the CalWORKS, CalFresh, and 
          Medi-Cal programs, this bill gives counties a tool to help 
          thousands of low income families acquire a computer.

          2.   Public versus private property  .  County surplus 
          properties were bought with public dollars and intended for 
          public use.  AB 1998 allows counties to donate to private 
          individuals, which would take away public resources and 
          turn them into private property.  The Committee may wish to 
          consider whether these computers can serve a greater public 
          purpose if they remained in the public domain -- such as 
          libraries, schools, or nonprofits that allow public access 
          to their computers -- instead of given to private 
          individuals.

          3.   Cutting out the middleman  .  Nonprofits that distribute 





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          resources to needy families already exist.  Some may be 
          more adept at identifying needy families and distributing 
          resources than counties.  AB 1998 gives counties the 
          authority to duplicate what some nonprofits are already 
          doing.  The Committee may wish to consider whether 
          nonprofits are better suited to distribute these surplus 
          computers.


                                 Assembly Actions  

          Assembly Local Government   8-0
          Assembly Floor           78-0


                         Support and Opposition  (6/21/12)

           Support  :  County of Santa Barbara (Sponsor); California 
          State Association of Counties (CSAC); County Welfare 
          Directors Association of California (CWDA); Regional 
          Council of Rural Counties (RCRC); Santa Clara County Board 
          of Supervisors; Urban Counties Caucus (UCC).

           Opposition  :  Unknown.