Creating a Policy for the Management and Sale of Agency Surplus Computer Equipment 

THE ARKANSAS COMPUTER AND ELECTRONIC SOLID WASTE MANAGEMENT ACT
Arkansas Code § 25-34-101 through 111
Act 1410 of 2001 and Act 970 of 2005
(Document Revised 7/20/2005)

General Provisions

Arkansas Code § 25-34-101 through 111, enacted by the General Assembly of the State of Arkansas in 2001, is an act concerning computer and electronic solid waste management for the State of Arkansas. The intent of Arkansas Code § 25-34-101 through 111 is to achieve the maximum possible benefit from use of state Agency owned computers, electronics, and peripherals; to achieve maximum benefit from the sale of surplus state Agency assets; and to protect the public health, safety, and the environment by mandating steps be taken to address the solid waste management of computers and other electronic solid waste statewide.

All State Agencies are required to participate in the program and each must provide an agency-wide policy for the management and sale of Agency surplus computer equipment and electronics and a plan for the sale of such equipment. The law allows state agencies to make choices determining the disposal process of their computer and electronic equipment, which will dictate the form of their agency policy. County, municipal, and other local government units are not mandated to comply with Arkansas Code § 25-34-101 through 111, but they may use the services of the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration if they wish.

Summary of Arkansas Code § 25-34-101 Through 111 Mandates

State agencies are mandated to implement an agency-wide policy that ensures the management and sale of agency surplus computer equipment and electronics in accordance with the Executive Chief Information Officer's policies for review and replacement of computer and electronic equipment.

The policy must mandate that all hard drives of surplus computer equipment be degaussed, cleared of all data, software, and be otherwise prepared for sale within 90 days after replacement.

In addition, agencies may keep a back stock of computer hardware and electronics for the purpose of parts harvesting for the repair, maintenance and upgrade of computers.  However the back stock must not exceed ten percent of the number of state employee computers in the agency.

Agencies are also mandated to create a plan to account for the sale of used equipment and present that plan for review to the Department of Finance and Administration, the Executive Chief Information Officer, and the Legislative Council.

If an agency policy established under § 25-34-104 provides for the preferential sale of surplus computer and electronic equipment to Arkansas public schools or local governments, that computer and electronic equipment shall be sold at a price determined by the Department of Finance and Administration.

If an agency policy established under § 25-34-104 provides for the preferential sale of surplus computer and electronic equipment to agency employees, that computer and electronic equipment shall be sold at a price determined by the Department of Finance and Administration.

If agencies allow state employees to purchase agency computers and electronic equipment, the employees must accept the computer or equipment on an "as is" basis, without any warranty of any kind by the agency.

Agencies are not mandated to utilize the services of the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration in the sale of their surplus computers and electronic equipment.

Policy Choices

Agencies may wish to consider the following approaches in the development of their reuse/recycling policies:

  • Offer retired computers and electronic equipment to agency personnel after degaussing of the hard drive.
  • Send retired computers and electronic equipment to M&R, rather than offering them for sale.
  • Donate surplus computers to a local school district or local governments . The local school or local governments, have the right to accept or not accept the computers.
  • Sell surplus computers and electronic equipment to a school district or local governments, at a price determined by the Department of Finance and Administration.

Definitions

For purposes of this document, the following definitions apply

AGENCY - (your state agency name)

AGENT - the person(s) in agencies responsible for purchasing and/or maintaining computer equipment.  The fiscal agent responsibilities may also lie with the same person(s) with the computer equipment maintenance responsibilities.  In smaller agencies, this may be one person, and in large agencies it may be several people.

COMPUTER - a programmable electronic machine that performs high-speed mathematical or logical operations or that assembles, stores, correlates, or otherwise processes information.

CONSUMER ELECTRONIC ITEM - a personal computer, computer component, audio player, stereo player, videocassette player, facsimile machine, copy machine, cellular telephone, wireless paging device, video game console, or any electronic item containing an intact or broken cathode ray tube. An electronic item containing a cathode ray tube includes a television, computer monitor, or any other cathode ray tube monitor or display device;

DEGAUSS - the complete removal of information from the hard drive of a computer.

DEMANUFACTURING - end of life disposition of electronic devices and computers; includes recovery of hard drives and chips with resale value, the removal of commodities, such as copper, aluminum, and gold for sale to scrap consumers, the removal and hazardous waste disposal of toxins and heavy metals, and the shredding or melting of materials that can be sold and manufactured into new products.

DIRECTOR - the director of (state agency name)

ELECTRONICS - devices utilizing electrons and electric circuits including household appliances, televisions, recording and playing devices for music or video tapes, compact discs and digital technology.

FUGITIVE AMOUNTS OF CONSUMER ELECTRONIC ITEMS - small quantities that escape the approved methods of usage, reduction, reuse, or recycling.

FUND - the Computer and Electronic Equipment Recycling Fund established by Act 1410 of 2001.

MARKETING AND REDISTRIBUTION - the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration (M&R).

RECYCLE - the use of previously manufactured materials including metals, glass, and plastics in the manufacture of new products.

REUSE - use of electronics, computers, and equipment for harvesting of spare parts, resale or donation.

SURPLUS COMPUTER EQUIPMENT - computer components no longer in use in the Agency which have residual market value.

If the agency chooses to first offer their computer to their employees, the following procedures could be included in the agency policy.  Please note that this procedure may not be appropriate for your agency.

(Computer Agent) Procedures

  • All new or used computer and electronic equipment shall be approved for purchase and shall be installed for use by employees within the agency by the (agency agent responsible for computer purchases).
  • The (agent responsible for fiscal activities or computer maintenance is suggested) will maintain inventory control documentation of equipment purchased for Department use. The inventory will include the inventory tag number, purchase price, date of purchase, brand name, type of equipment, model number, serial number and any other identifying data.
  • All computer and electronic equipment not in service within the Agency shall be returned to the (computer agent).
  • The (agent responsible for fiscal activities or computer maintenance is suggested) may keep a back stock of the used computer hardware and electronics for the purpose of parts harvesting for the repair, maintenance, and upgrade of computers in use by the Agency. The back stock, whenever feasible, shall not exceed ten percent (10%) of the number of State employee computers employed within the Agency.

This component could be used to define the process to determine if the equipment is surplus.  Please note that this component may not be appropriate for your agency.

Surplus Computer or Electronic Equipment

No used computer or electronic equipment shall be considered surplus or shall be offered by the Agency for sale or donation or shall be delivered to the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration (M&R) until after the equipment has met the following criteria:     

  • The (computer agent) has thirty (30) days after the receipt of the used equipment to examine the equipment and to evaluate whether or not it can be put to further use by the Agency in accordance with the Executive Chief Information Officer's policy on replacement of computer and electronic equipment; and
  • The (computer agent) has determined that the equipment is not currently needed by the Agency; is not anticipated to be utilized by the Agency within the next six (6) months; and/or that the equipment is obsolete for further Agency use; or
  • There is a back stock of used equipment which exceeds ten percent (10%) of the number of employee computers in the Agency and the equipment which has been held as back stock by the Agency for more than six (6) months.
    All hard drives of surplus computer equipment shall be degaussed and be otherwise prepared for sale within ninety (90) days after replacement.

This component could be used if the agency offers its surplus computers to its employees:

Employee Purchase Policy

  • The Department's policy provides for the preferential sale of surplus computer and electronic equipment to Agency employees, at a price determined by the Department of Finance and Administration.
  • The (computer agent) will provide the (fiscal agent) a list of surplus computer and electronic equipment, along with the description of the equipment, available for sale.
  • The (fiscal agent), utilizing the descriptive information provided by the (computer agent), will ascertain the sale price and will process the sale transaction.

This component could be used if the agency offers its surplus computers to public schools or local governments after being offered to its employees.  Please note that this component may not be appropriate for your agency.

Arkansas Public Schools or Local Governments Purchase Policy

  • This policy provides that surplus computer and electronic equipment, after having been offered to Agency employees, will be offered for sale to Arkansas public schools or local governments at a price determined by the Department of Finance and Administration.
  • The (fiscal agent), utilizing the descriptive information provided by the (computer agent), will ascertain sale prices and will process any sale transactions.

Sample Agency Plan to Sell Surplus Computers

This is an example of an agency plan to sell surplus computers. It is mandatory for agencies to not only create a policy, but a plan for the sale of their computers and electronic equipment. The following agency plan is for an agency that has decided to first offer its equipment to its employees, and finally the local school district.  Please note that this plan is only one possible example and may not be appropriate for your agency.

"THE ARKANSAS COMPUTER AND ELECTRONIC SOLID
WASTE MANAGEMENT ACT"
DEPARTMENT PLAN

(Fiscal Agent) Administrative Procedures

  • The Department shall apply the administrative procedures of Marketing & Redistribution to the sale.
  • The Agency shall prepare by October 13, 2001 a plan to account for the sale of used equipment and present that plan for review to the Department of Finance and Administration, the Executive Chief Information Officer, and the Legislative Council.

Sale of Surplus Computer and Electronic Equipment

  • Computer or electronic equipment that has been determined by the (computer agent) to be surplus shall be offered for sale to Agency personnel.
  • Sales notices should be published so that agency employees are made aware of the sales in a timely manner.
  • Computer or electronic equipment still on hand after following options 1and 2 above will be offered for sale to the Arkansas public schools.
  • Agency employees or Arkansas public schools purchasing Agency computers and electronic equipment accept the computer or equipment on an "as is" basis, without any warranty of any kind by the Agency.
  • The item pricing, invoicing and collections of funds for the sale transaction of surplus computers and electronic equipment will be administered by the (fiscal agent) in conjunction with the (computer agent)
  • All processes and procedures including the receipt, installation, removal, storage, inventory, documentation and delivery of new, used, stored, or back-stocked computers and electronic equipment will be developed and maintained by the (computer agent).

Surplus Equipment Not Sold

  • Unsold surplus computer and electronic equipment will first be offered by the Agency's (fiscal agent) in conjunction with the (computer agent) to Arkansas public schools as a donation.
  • Any remaining computer and electronic equipment may be sent by the (computer agent) to Maintenance & Redistribution for sale, auction, recycling, donation, demanufacturing or disposal.
  • Alternatively, if the Department so desires, possession of surplus computers and electronics may be maintained by the (computer agent) while allowing Maintenance & Redistribution to sell or auction the computer or electronic equipment via an Internet web site.
    The disbursement of revenues is set by law. The following percentages apply to all entitled state employees.

Disbursement of Revenues

Funds generated from the sale of Agency surplus computer and electronic equipment to state employees, public schools, or by other sale, shall be allocated as follows:

  • Of the sale of surplus computer or electronic equipment is made within the Agency to employees or to Arkansas public schools:
  • Sixty percent (60%) of the proceeds shall be returned to the Department.
  • Fifteen percent (15%) of the proceeds shall be deposited with the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration; and
  • Twenty-five percent (25%) of the proceeds shall be deposited in the Computer and Electronic Recycling Fund established by Act 1410;
  • If thesale of surplus computer or electronic equipment is outside the Department and conducted by the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration, either internally or via the internet:
  • Fifty-percent (50%) of the proceeds shall be returned to the Department;
  • Twenty-five percent (25%) of the proceeds shall be deposited with the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration; and
  • Twenty-five percent (25%) of the proceeds shall be deposited in the Computer and Electronic Recycling Fund established by Act 1410.

Severability

If any provision of the (state agency name) 's Policy and Plan for Surplus Computer and Electronic Equipment or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications herein which can be given effect without the invalid provision or application, and to this end provisions of this policy and plan are declared to be severable.

Effective Date

The (state agency name) 's Policy and Plan for Surplus Computer and Electronic Equipment and any amendment or revision thereof are dependent upon approval by the signature of the Director. The official effective date is October 13, 2001, or the date of the Director's signature whichever comes first.

Agency Director

Agency Name