[DOCID: f:hr625.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-625
======================================================================
FEDERAL ELECTRONIC EQUIPMENT DONATION ACT OF 2008
_______
May 8, 2008.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Waxman, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 752]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 752) to direct Federal agencies to
donate excess and surplus Federal electronic equipment,
including computers, computer components, printers, and fax
machines, to qualifying small towns, counties, schools,
nonprofit organizations, and libraries, having considered the
same, report favorably thereon with amendments and recommend
that the bill as amended do pass.
CONTENTS
Page
Legislative History.............................................. 4
Section-by-Section............................................... 5
Explanation of Amendments........................................ 7
Rollcall Votes................................................... 8
Application of Law to the Legislative Branch..................... 8
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 8
Statement of General Performance Goals and Objectives............ 9
Constitutional Authority Statement............................... 9
Federal Advisory Committee Act................................... 9
Unfunded Mandates Statement...................................... 9
Earmark Identification........................................... 9
Budget Authority and Congressional Budget Office Cost Estimate... 9
Changes in Existing Law Made by the Bill, as Reported............ 10
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Electronic Equipment Donation
Act of 2008''.
SEC. 2. REQUIREMENT TO TRANSFER USEFUL FEDERAL ELECTRONIC EQUIPMENT TO
EDUCATIONAL RECIPIENTS.
(a) Transfer of Equipment to Educational Entities.--
(1) In general.--Each Federal agency shall identify useful
Federal electronic equipment that the agency has determined is
excess to its needs and--
(A) report such equipment to the Administrator of
General Services for processing for transfer to an
educational recipient in accordance with section 549 of
title 40, United States Code;
(B) transfer such equipment directly to an
educational recipient, through an arrangement made by
the Administrator of General Services under subsection
(b);
(C) transfer such equipment directly to an
educational recipient pursuant to section 11(i) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3710(i)); or
(D) report such equipment to the Administrator of
General Services as excess property if transfer under
subparagraphs (A) through (C) is not practicable.
(2) Management of nontransferable equipment.--For equipment
reported under paragraph (1)(D), the Administrator of General
Services shall manage the equipment in accordance with
subchapters II and III of title 40, United States Code.
(b) Advance Reporting of Equipment to GSA.--Each Federal agency shall
report to the Administrator of General Services the availability of
useful Federal electronic equipment as far as possible in advance of
the date the equipment is expected to become excess to its needs, so
that the Administrator may attempt to arrange for the direct transfer
from the donating agency to educational recipients.
(c) Use of Nonprofit Refurbishers.--In transferring any equipment
pursuant to this Act, at the request of the educational recipient and
if appropriate, if the equipment is not classroom-usable, the
transferring agency shall convey the equipment initially to a nonprofit
refurbisher for upgrade before transfer to the educational recipient.
(d) Removal of Data Before Transfer.--In transferring any equipment
pursuant to this Act, the transferring agency shall remove data from
the equipment prior to transfer to the educational recipient according
to accepted sanitization procedures. To the maximum extent practicable,
the transferring agency shall remove data using a means that does not
remove, disable, destroy, or otherwise render unusable the equipment or
components.
(e) Preference.--In transferring any equipment pursuant to this Act,
the transferring agency shall give the highest preference to
educational recipients located in an enterprise community or
empowerment zone designated under section 1391 or 1400 of the Internal
Revenue Code of 1986, a qualifying small town, or a qualifying county.
(f) Low Cost.--Any transfer made pursuant to this Act shall be made
at the lowest cost to the educational recipient permitted by law.
(g) Title.--Title of ownership of equipment transferred pursuant to
this Act shall transfer to the educational recipient receiving the
equipment.
(h) Notice of Availability of Equipment.--The Administrator of
General Services shall provide notice of the anticipated availability
of useful Federal electronic equipment to educational recipients by all
practicable means, including newspapers, community announcements, and
the Internet.
(i) Facilitation by Regional Federal Executive Boards.--The regional
Federal Executive Boards (as that term is used in part 960 of title 5,
Code of Federal Regulations) shall help facilitate the transfer of
useful Federal electronic equipment from the agencies they represent to
educational recipients under this Act.
SEC. 3. RULEMAKING.
The Administrator of General Services shall prescribe rules and
procedures to carry out this Act.
SEC. 4. EFFECT ON OTHER LAWS.
This Act supersedes Executive Order No. 12999 of April 17, 1996.
SEC. 5. RULE OF CONSTRUCTION.
This Act may not be construed to create any right or benefit,
substantive or procedural, enforceable at law by a party against the
United States or its agencies, officers, or employees.
SEC. 6. DEFINITIONS.
In this Act:
(1) The term ``Federal agency'' means an Executive department
or an Executive agency (as such terms are defined in chapter 1
of title 5, United States Code).
(2) The term ``educational recipient'' means a school or a
community-based educational organization.
(3) The term ``school'' includes a pre-kindergarten program
(as that term is used in the Elementary and Secondary Education
Act of 1965), an elementary school, a secondary school, and a
local educational agency (as those terms are defined in section
9101 of that Act.)
(4) The term ``community based educational organization''
means a nonprofit entity that qualifies as a nonprofit
educational institution or organization for purposes of section
501(c)(3) of the Internal Revenue Code of 1986 and--
(A) is engaged in collaborative projects, the primary
focus of which is education, with schools, qualifying
small towns, qualifying counties, or libraries; or
(B) provides use of computers and Internet access to
members of the community at no charge.
(5) The term ``qualifying small town'' means a political
subdivision with a population of not more than 24,999
individuals where 20 percent or more of the residents earn less
than the poverty threshold (as defined by the Bureau of the
Census).
(6) The term ``qualifying county'' means a county where 20
percent or more of the residents earn less than the poverty
threshold (as defined by the Bureau of the Census).
(7) The term ``useful Federal electronic equipment''--
(A) means--
(i) computers and related peripheral tools
(such as computer printers, modems, routers,
and servers), including telecommunications and
research equipment;
(ii) fax machines; and
(iii) any other electronic equipment
determined by a Federal agency to be
potentially useful to an educational recipient;
and
(B) includes computer software, where the transfer of
a license is permitted.
(8) The term ``classroom-usable'', with respect to useful
Federal electronic equipment, means such equipment that does
not require an upgrade of hardware or software in order to be
used by an educational recipient without being first
transferred under section 2(c) to a nonprofit refurbisher for
such an upgrade.
(9) The term ``nonprofit refurbisher'' means an organization
that--
(A) is exempt from income taxes under section 501(c)
of the Internal Revenue Code of 1986; and
(B) upgrades useful Federal electronic equipment that
is not yet classroom-usable at no cost or low cost to
the ultimate educational recipient.
SEC. 7. PREFERENCE IN DONATION OF PERSONAL PROPERTY THROUGH STATE
AGENCIES.
Section 549(e)(3)(B) of title 40, United States Code, is amended--
(1) by striking ``The state plan'' and inserting the
following:
``(i) In general.--The state plan''; and
(2) by adding at the end the following new clause:
``(ii) Preference.--The state plan of
operation shall require the state agency to
give the highest preference for electronic
equipment to eligible institutions (as
described in subsection (c)(3)) that are
located in an enterprise community or
empowerment zone designated under section 1391
or 1400 of the Internal Revenue Code of 1986, a
political subdivision with a population of not
more than 24,999 individuals where 20 percent
or more of the residents earn less than the
poverty threshold (as defined by the Bureau of
the Census), or a county where 20 percent or
more of the residents earn less than poverty
threshold (as defined by the Bureau of the
Census).''.
SEC. 8. REPORT TO CONGRESS.
(a) Report Required.--Not later than 18 months after the date of the
enactment of this Act, the Administrator of General Services shall
submit to Congress a report.
(b) Contents of Report.--The report shall contain the following:
(1) An inventory of items that Federal agencies identified as
useful Federal electronic equipment that the agency has
determined is excess to its needs in the first 365 days after
the date of the enactment of this Act.
(2) The number of such items that were--
(A) transferred to educational recipients pursuant to
this Act;
(B) transferred to other Federal agencies and
organizations pursuant to section 521 of title 40,
United States Code;
(C) transferred to State agencies pursuant to section
549 of title 40, United State Code; or
(D) disposed of through other means.
(3) Recommendations for further legislation or administrative
action that the Administrator considers appropriate to
establish an effective system for transferring excess useful
Federal electronic equipment to educational recipients.
Amend the title so as to read:
A bill to direct Federal agencies to transfer excess
Federal electronic equipment, including computers, computer
components, printers, and fax machines, to educational
recipients.
Purpose and Summary
H.R. 752, the Federal Electronic Equipment Donation Act,
was introduced by Rep. Butterfield on January 31, 2007. H.R.
752 codifies Executive Order 12999, which allows federal
agencies to transfer excess electronic equipment directly to
schools and educationally related nonprofit organizations, and
directs that special consideration be given to schools in
enterprise zones and empowerment communities and small towns.
Background and Need for Legislation
Executive Order 12999, signed April 17, 1996, allowed the
General Services Administration (GSA) to establish the
Computers For Learning Program (CFL), which GSA still
administers today. The program encourages and facilitates the
transfer of electronic equipment that federal agencies
designate as excess to their needs to educational recipients.
The Executive Order included a preference for schools located
in empowerment communities and enterprise zones.
A study by RAND in 1997 indicated the program had mixed
results, and found problems including lack of refurbishment and
limited geographic distribution of the available equipment.
Representatives of small towns and rural communities have
testified that such difficulties in obtaining equipment persist
today.
This bill codifies Executive Order 12999, and includes
additional provisions to address issues that have been raised
about the operation of the program. Further, the bill expands
the preference described in the Executive Order to include
schools located in small towns and counties.
Legislative History
H.R. 752, legislation to direct federal agencies to
transfer excess and surplus federal electronic equipment,
including computers, computer components, printers, and fax
machines, to qualifying schools, nonprofit organizations, and
libraries, was introduced on January 31, 2007, and referred to
the Committee on Oversight and Government Reform.
The Subcommittee on Government Management, Organization,
and Procurement held a hearing on H.R. 752 on February 13,
2008. The witnesses were Rebecca Rhodes, Deputy Associate
Administrator, General Services Administration; Hon. Estelle
``Bunny'' Sanders, Mayor, Roper, North Carolina; Shane Bailey,
President, National Association of State Agencies for Surplus
Property; John Rosenthall, President, Small Towns Alliance; and
Thomas Williams, President, National Auctioneers Association.
The Subcommittee held a business meeting to consider H.R.
752 on March 11, 2008, and ordered the bill to be favorably
reported to the full Committee, as amended, by voice vote.
The Committee held a business meeting to consider H.R. 752
on April 9, 2008, and ordered the bill to be favorably
reported, as amended, by voice vote.
Section-by-Section
Section 1: Short title
The short title of the bill is the Federal Electronic
Equipment Donation Act of 2008.
Section 2: Requirement to transfer useful federal electronic equipment
to qualifying recipients
Section 2(a) directs federal agencies to identify
electronic equipment that the agency has determined is excess
to its needs. It also requires agencies to report the equipment
to the Administrator of General Services for processing for
transfer to qualifying recipients, to transfer the equipment
directly to the qualifying recipients through an arrangement
with the Administrator of General Services, to transfer the
equipment directly pursuant to section 11(i) of the Stevenson-
Wydler Technology Innovation Act of 1980, or to report the
equipment to the Administrator of General Services as excess
property if the previous measures are unfeasible. In the latter
scenario, the equipment would be handled according to the
procedures for excess property outlined in subchapters II and
III of title 40, USC.
Section 2(b) directs federal agencies to report the
availability of the excess equipment to the Administrator of
General Services as far in advance as possible to allow the
Administrator to arrange for the direct transfer from the
donating agency to qualifying recipients.
Section 2(c) directs agencies, at the direction of the
recipient and if appropriate, to convey non-classroom-useable
equipment to a nonprofit refurbisher for upgrade before
transfer to the recipient.
Section 2(d) directs agencies to remove data from the
equipment according to accepted sanitization procedures before
transfer, and directs the agencies, to the maximum extent
practicable, not to remove, disable, destroy, or otherwise
render unusable the equipment or its components.
Section 2(e) directs agencies to give highest preference to
recipients located in an enterprise community or empowerment
zone, a qualifying small town, or a qualifying county.
Section 2(f) indicates that any transfer made under this
Act must be made at the lowest possible cost to the recipient
allowed by law.
Section 2(g) indicates that title of ownership of the
equipment will transfer to the educational recipient who
receives the equipment.
Section 2(h) directs the Administrator of General Services
to publicize the anticipated availability of the equipment by
all practicable means, including newspapers, community
announcements, and the Internet.
Section 2(i) directs the regional Federal Executive Boards
to help facilitate the transfer of the equipment.
Section 3: Rulemaking
This section directs the Administrator of General Services
to prescribe rules and procedures to carry out the Act.
Section 4: Effect on other laws
This section states that the Act supersedes Executive Order
12999.
Section 5: Rule of construction
This section states that the Act may not be construed to
create any right or benefit, substantive or procedural,
enforceable at law by a party against the United States or its
agencies, officers, or employees.
Section 6: Definitions
This section defines key terms of the bill.
A federal agency is defined as an executive department or
executive agency as such terms are defined in Chapter 1 of
Title 5, USC.
An educational recipient is defined as a school or
community-based educational organization. A school is defined
as a public or private non-profit pre-kindergarten program,
elementary school, secondary school, or local educational
agency.
A community-based educational organization is defined as a
nonprofit entity that is engaged in collaborative projects with
schools, qualifying small towns, qualifying counties, or
libraries, the primary focus of which is education, or that
provides use of computers and Internet access to members of the
community at no charge.
A qualifying small town is defined as a political
subdivision with a population of not more than 24,999
individuals where 20% or more of the residents earn less than
the poverty threshold as defined by the Bureau of the Census.
A qualifying county is defined as a county where 20% or
more of the residents earn less than the poverty threshold as
defined by the Bureau of the Census.
Useful federal electronic equipment is defined as computers
and peripheral tools, fax machines, and any other electronic
equipment determined by a federal agency to be potentially
useful to a qualifying recipient. This includes software, if
the transfer of the license is permitted.
Classroom-usable, with respect to useful federal electronic
equipment, is defined as equipment that does not require an
upgrade of hardware or software in order to be used by an
educational recipient without being transferred to a nonprofit
refurbisher.
A nonprofit refurbisher is defined as a nonprofit
organization that upgrades useful federal electronic equipment
that is not yet classroom-useable at no cost or at low cost to
the recipient.
Section 7: Preference in donation of personal property through state
agencies
This section directs state agencies for surplus property to
give the highest preference in their state plans for transfer
of electronic equipment to educational institutions located in
enterprise zones, empowerment communities, and poor small towns
and counties.
Section 8: Report to Congress
This section directs the Comptroller General of the United
States to submit a report to Congress no later than 18 months
after the enactment of the Act. The report will contain an
inventory of items identified as useful federal electronic
equipment in the first year after the enactment of the Act as
well as the number of such items that were transferred to
educational recipients, other federal agencies, state agencies,
or disposed of through other means. The report will also
contain recommendations for further action that the
Administrator considers appropriate for getting the most excess
useful federal electronic equipment to educational recipients.
Explanation of Amendments
The following amendments were adopted in the Subcommittee
on Government Management, Organization and Procurement:
Mr. Towns offered an amendment in the nature of a
substitute. The amendment changed the bill as introduced to:
(1) change language in Section 2(a) to specify that
agencies shall identify useful federal electronic equipment
that the agency has determined is excess to its needs, not
surplus. This change, from ``surplus'' to ``excess,'' is made
throughout the bill.
(2) change language in Section 2(a)(1) specifying that this
equipment shall be reported to the Administrator of General
Services for processing, and not physically transferred.
(3) change language in Section 2(a)(2) specifying that the
equipment may be transferred directly to an educational
recipient, not a ``qualifying recipient.''
(4) change language in Section 2(c) to specify that
equipment would be transferred to a nonprofit refurbisher for
upgrade at the request of the recipient and as appropriate.
(5) insert a new Section 2(d) directing agencies to remove
data from the equipment prior to transfer and, to the maximum
extent practicable, to do this using a means that does not
remove, disable, destroy, or otherwise render unusable the
equipment or its components.
(6) redraft the definition of ``community based educational
organization'' in Section 6.
(7) insert a Section 7 amending Section 549(e)(3)(B) of
title 40, United States Code, to say that in general, the State
Agencies for Surplus Property shall give the highest preference
for the transfer of electronic equipment to enterprise
communities, empowerment zones, and poor small towns and
counties.
The Towns amendment in the nature of a substitute passed by
voice vote.
The following amendments were adopted in Committee:
Mr. Towns offered an amendment in the nature of a
substitute. The amendment changed the bill as amended to:
(1) designate Section 2(a)(1), (2) and (3) as Section
2(a)(1)(A), (B) and (C).
(2) insert a new Section 2(a)(1)(D) specifying that
agencies may report such equipment to the Administrator of
General Services as excess if transfer under subparagraphs (A)
through (C) is not practicable.
(3) insert a new Section 2(a)(2) specifying that for
equipment reported under paragraph (1)(D), the Administrator of
General Services shall manage the equipment in accordance with
subchapters II and III of title 40, United States Code.
(4) clarify that the preference in Section 7 for enterprise
communities, empowerment zones, and poor small towns and
counties is for educational institutions.
(5) insert a Section 8 requiring the Comptroller General of
the United States to submit a report to Congress no later than
18 months after the enactment of the Act. The report will
contain an inventory of items identified as useful federal
electronic equipment in the first year after the enactment of
the Act as well as the number of such items that were
transferred to educational recipients, other federal agencies,
state agencies, or disposed of through other means. The report
will also contain recommendations for further action that the
Administrator considers appropriate for getting the most excess
useful federal electronic equipment to educational recipients.
The Towns amendment in the nature of a substitute passed by
voice vote.
Committee Consideration
The Subcommittee held a business meeting to consider H.R.
752 on March 11, 2008, and ordered the bill to be reported to
the full Committee, as amended, by voice vote.
The Committee held a business meeting to consider H.R. 752
on April 9, 2008, and ordered the bill to be favorably
reported, as amended, by voice vote.
Rollcall Votes
No rollcall votes were held.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to terms and conditions of
employment or access to public services and accommodations. The
bill does not relate to employment or access to public services
and accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report, including the need to improve distribution of
computers to schools in small towns and rural communities.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 752. Article I, Section 8, Clause 18 of the
Constitution of the United States grants the Congress the power
to enact this law.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandates Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement on
whether the provisions of the report include unfunded mandates.
In compliance with this requirement the Committee has received
a letter from the Congressional Budget Office included herein.
Earmark Identification
H.R. 752 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 752. However, clause 3(d)(3)(B) of that rule provides that
this requirement does not apply when the Committee has included
in its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 752 from the Director of
the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 17, 2008.
Hon. Henry A. Waxman,
Chairman, Committee on Oversight and Government Reform
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 752, the Federal
Electronic Equipment Donation Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 752--Federal Electronic Equipment Donation Act of 2008
H.R. 752 would direct all federal agencies to donate any
surplus electronic equipment to libraries, schools,
communities, and nonprofit organizations. Under the
legislation, each federal agency could either transfer such
equipment to the General Services Administration (GSA) or
directly to a qualified recipient. In addition, GSA would be
required to prescribe rules and regulations governing such
transfers and report to the Congress on the program's
activities.
Most of the provisions of H.R. 752 would codify and expand
the current practice of federal agencies. Under Executive Order
12999, GSA currently donates used electronic equipment to
educational facilities through its Computers for Learning
Program. Based on information from GSA, CBO estimates that
implementing this legislation would not significantly increase
costs to GSA or any other federal agencies. Enacting the bill
would not affect direct spending or revenues.
H.R. 752 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act. The
bill would benefit public schools by authorizing federal
agencies and GSA to transfer electronic equipment to those
schools.
The CBO staff contacts for this estimate are Matthew
Pickford (for federal costs), and Elizabeth Cove (for the state
and local impact). This estimate was approved by Theresa Gullo,
Deputy Assistant Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 40, UNITED STATES CODE
* * * * * * *
SUBCHAPTER III--DISPOSING OF PROPERTY
* * * * * * *
Sec. 549. Donation of personal property through state agencies
(a) * * *
* * * * * * *
(e) State Plan of Operation.--
(1) * * *
* * * * * * *
(3) Requirements.--
(A) * * *
(B) Equitable distribution.--[The state plan]
(i) In general.--The state plan of
operation shall provide for fair and
equitable distribution of property in
the State based on the relative needs
and resources of interested public
agencies and other eligible
institutions in the State and their
abilities to use the property.
(ii) Preference.--The state plan of
operation shall require the state
agency to give the highest preference
for electronic equipment to eligible
institutions (as described in
subsection (c)(3)) that are located in
an enterprise community or empowerment
zone designated under section 1391 or
1400 of the Internal Revenue Code of
1986, a political subdivision with a
population of not more than 24,999
individuals where 20 percent or more of
the residents earn less than the
poverty threshold (as defined by the
Bureau of the Census), or a county
where 20 percent or more of the
residents earn less than poverty
threshold (as defined by the Bureau of
the Census).
* * * * * * *
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