A3980

An Act concerning the disposition of certain State computers, devices, and software, supplementing P.L.1944, c.112 (C.52:27B-1 et seq.), and amending P.L.1999, c.194.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. As used in this section:

"Computer" means an electronic, magnetic, optical, electrochemical or other high speed data processing device or another similar device capable of executing a computer program, including arithmetic, logic, memory, data storage or input-output operations and includes all computer equipment connected to the device, but shall not include an automated typewriter or typesetter or a portable, hand-held calculator.

"Computer equipment" means any equipment or device, including all input, output, processing, storage, software, or communications facilities, intended to interface with the computer.

"Computer program" means a series of instructions or statements executable on a computer, which directs the computer system in a manner to produce a desired result.

"Computer software" means a set of computer programs, data, procedures, and associated documentation concerned with the operation of a computer system.

“Computer system" means a set of interconnected computer equipment intended to operate as a cohesive system.

"Data" means information, facts, concepts, or instructions contained in a computer, computer equipment, or computer system. It shall also include, but not be limited to, any alphanumeric, hexadecimal, octal or binary code.

"Data base" means a collection of data.

“Division” means the Division of Purchase and Property in the Department of the Treasury.

“Portable communication device” means a computer that is designed to be personally portable and capable of sending, receiving, storing, reproducing, or displaying communications or information.

“State entity” means any department, institution, commission, board, body, or other agency of the State.

b. The director of the division, in consultation with the Chief Technology Officer of the Office of Information Technology, in but not of the Department of the Treasury, shall develop a program regarding the disposition of any computer, computer equipment, computer software, or portable communication device in the custody and control of any State entity that the entity determines to be surplus, obsolete or no longer suitable for the purpose for which it was intended. The program shall include procedures concerning the redistribution of items among State entities, the distribution of items to local governmental entities, boards of education, nonpublic schools and nonprofit charitable corporations pursuant to section 1 of P.L.1999, c.194 (C.52:27B-67.1), the public purchase of items, and the final disposal of items not distributed or purchased.

c. In accordance with regulations promulgated by the director of the division, whenever a State entity possesses any unused computer, computer equipment, computer software, or portable communication device and is unable to redistribute the item for further use within the entity, that entity shall:

(1) declare the item to be surplus, obsolete or no longer suitable for the purpose for which it was intended, subject to further disposition by the division;

(2) in the case of any computer, computer equipment, or portable communication device, remove all data and any data base, or render the data and data base unreadable, undecipherable, unusable or otherwise unrecoverable, by means of any process approved by the Office of Information Technology concerning data security as authorized pursuant to “The Office of Information Technology Reorganization Act,” sections 6 through 16 of P.L.2007, c.56 (C.52:18A-224 through C.52:18A-234);

(3) notify the division with respect to the entity’s declaration of the item as surplus, obsolete or no longer suitable for the purpose for which it was intended, and include in that notice:

(a) an item description, make and model, and quantity if there is more than one of the same item being forwarded;

(b) an indication whether the item is under warranty, and if so, the expiration date on the warranty;

(c) the location of the item, for reference by any other State entity which claims the item through the division’s State-level redistribution procedure set forth in subsection d. of this section;

(d) a certification of the removal or rendering of all data and any data base unrecoverable pursuant to paragraph (2) of this subsection, if applicable; and

(e) the name and contact information, including a telephone number, of the director of information technology for that entity, the person named in the certification accompanying the notice pursuant to subparagraph (d) of this paragraph, or another person with knowledge regarding the entity’s declaration of the item as surplus, obsolete or no longer suitable for the purpose for which it was intended.

d. (1) The director of the division shall coordinate the redistribution of any item declared by a State entity to be surplus, obsolete or no longer suitable for the purpose for which it was intended to another State entity, by developing and maintaining a comprehensive list for all State entities consisting of their directors of information technology and relevant contact information.

(2) Upon receipt of a notice from a State entity declaring an item to be surplus, obsolete or no longer suitable for the purpose for which it was intended pursuant to paragraph (3) of subsection c. of this section, the director shall notify all other State entities, through their directors of information technology, of the availability of each item as noticed to the division. An interested State entity shall respond to the director in writing, within 30 calendar days, with a request for the item, and the director shall at the conclusion of the 30-day period notify the original State entity regarding the request in order to effectuate the redistribution of the item to the requesting State entity. The director shall promulgate regulations concerning the order of redistribution regarding requests by more than one State entity for the same item.

e. If an item that has been declared by a State entity to be surplus, obsolete or no longer suitable for the purpose for which it was intended is not claimed by another State entity pursuant to subsection d. of this section, then the director of the division may declare the item eligible for distribution to local governmental entities, boards of education, nonpublic schools and nonprofit charitable corporations pursuant to section 1 of P.L.1999, c.194 (C.52:27B-67.1).

f. The director of the division may, with the State Treasurer’s approval and after notification in writing to the State Auditor, take any item that is not otherwise distributed pursuant to the provisions of this section or section 1 of P.L.1999, c.194 (C.52:27B-67.1) and dispose thereof, and thereupon the director shall pay the proceeds arising from the item’s disposition into the general fund of the State.

g. The State shall not be liable for any damages that may result from the use or operation of any computer, computer equipment, computer software, or portable communication device distributed or purchased pursuant to this section.

h. The director of the division shall issue an annual report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature regarding the disposition program established pursuant to this section, which report shall include, but not be limited to, information concerning data security and item inventory controls employed by the program, as well as an analysis of the financial benefits derived from the program by the State and local governmental entities, boards of education, nonpublic schools and nonprofit charitable corporations.

2. Section 1 of P.L.1999, c.194 (C.52:27B-67.1) is amended to read as follows:

1. a. (1) Whenever [, in the opinion of the Director of the Division of Purchase and Property,] any [computers] computer, computer equipment [or], software, or portable communication device in the custody and control of any State department, institution, commission, board, body, or other agency of the State is deemed by that State entity to be surplus, obsolete or no longer suitable for the purpose for which it was intended pursuant to subsection c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), and the item is not claimed by another State entity pursuant to subsection d. of that section, the [director] Director of the Division of Purchase and Property in the Department of the Treasury may declare the item available for distribution and make a transfer of the custody and control of [such computers, computer equipment or software] the item to local units, boards of education, nonpublic schools or nonprofit charitable corporations organized pursuant to N.J.S.15A:1-1 et seq. in accordance with this section.

(2) To assist in the coordination of any distribution, the director of the division, in consultation with the Division of Property Management and Construction in the Department of the Treasury, shall designate a storage facility to be utilized for holding and processing any item designated for distribution.

(a) The storage facility shall utilize reasonable protocols in order to secure any item being stored, including but not limited to, employee and visitor sign-in procedures, required escorts for each visitor, and multilayered supervision of loading and unloading operations.

(b) The director of the division shall only accept an item at the storage facility from a sending State department, institution, commission, board, body, or other agency for holding and subsequent transfer to local units, boards of education, nonpublic schools or nonprofit charitable corporations that: (i) has been previously declared as available for distribution by the director pursuant to subsection a. of this section; (ii) is scheduled by the director for holding at the facility; and (iii) upon arrival at the facility, is accompanied by a copy of the notice form containing information on the item, a certification of the removal or rendering of all data unrecoverable, if applicable, and a contact person as prepared by the State department, institution, commission, board, body, or other agency of the State pursuant to paragraph (3) of subsection c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. Whenever such [computers] computer, computer equipment [or], software, or portable communication device deemed surplus, obsolete or no longer suitable for the purpose for which it was intended cannot be used by local units, boards of education, nonpublic schools or nonprofit charitable corporations, the director may, with the State Treasurer's approval and after notification in writing to the State Auditor, dispose thereof, and thereupon the director shall pay the proceeds arising from such disposition into the general fund of the State.

c. The director shall develop a plan for the notification and distribution to local units, boards of education, nonpublic schools or nonprofit charitable corporations of computers, computer equipment [or], software, or portable communication devices designated as surplus, obsolete or no longer suitable for the purpose for which it was intended by any State department, institution, commission, board, body or other agency of the State. The distribution of any designated item to local units, boards of education, nonpublic schools or nonprofit charitable corporations shall only be permitted through the distribution plan established pursuant to this section.

d. The State shall not be liable for any damages that may result from the use or operation of any transferred computer, computer equipment [or], software, or portable communication device.

(cf: P.L.1999, c.194, s.1)

3. This act shall take effect on the first day of the fourth month next following enactment.

STATEMENT

This bill provides updated procedures for the disposition of State surplus computers, computer equipment, software, and portable communication devices designated for redistribution, sale, or disposal. Its provisions are based largely upon recommendations contained within a report issued by the State Comptroller on March 9, 2011 titled Disposition of Excess and Surplus Computer Equipment, and it additionally codifies existing procedures for the disposition of such surplus items located in N.J.A.C. 17:12-9.1 et seq. and the State’s Department of the Treasury Circular Letter 00-17-DPP, originated by the Treasury’s Division of Purchase and Property.

The Director of the Division of Purchase and Property, in consultation with the Chief Technology Officer of the State’s Office of Information Technology, shall develop a program regarding the disposition of any computer, computer equipment, computer software, or portable communication device in the custody and control of any State department, institution, commission, board, body, or other agency (hereafter “State entity”). The program shall include procedures concerning the redistribution of items among State entities, the distribution of items to local governmental entities, boards of education, nonpublic schools and nonprofit charitable corporations pursuant to section 1 of P.L.1999, c.194 (C.52:27B-67.1), the public purchase of items, and the final disposal of items not distributed or purchased.

Under the bill, whenever a State entity possesses any unused item and is unable to redistribute the item within the entity, that entity shall: (1) declare the item to be surplus, obsolete or no longer suitable for the purpose for which it was intended; (2) in the case of any computer, computer equipment, or portable communication device, remove all data and any data base, or render such unrecoverable by means of any process approved by the Office of Information Technology; and (3) notify the Division of Purchase and Property concerning the item’s availability, and include an item description, certification of the removal or rendering of all data unrecoverable, if applicable, and a contact person regarding the item. The director of the division shall then coordinate the redistribution of any such item by notifying all other State entities, through a contact list prepared containing the entities’ directors of information technology, of the availability of the item. Upon a written request from a State entity for the item, the director shall notify the original State entity regarding the request in order to effectuate the redistribution of the item.

If an item made available is not claimed by another State entity, then the director of the division may declare the item eligible for distribution to local governmental entities, boards of education, nonpublic schools and nonprofit charitable corporations pursuant to section 1 of P.L.1999, c.194 (C.52:27B-67.1). In order to assist in the coordination of any such distribution to a non-State entity, the director of the division, in consultation with the Division of Property Management and Construction in the Department of the Treasury, shall designate a storage facility to be utilized for holding and processing any item designated for distribution.

The designated storage facility shall utilize reasonable protocols in order to secure any item being stored, including but not limited to, employee and visitor sign-in procedures, required escorts for each visitor, and multilayered supervision of loading and unloading operations. Also, the director of the division shall only accept an item at the storage facility from a sending State entity for holding and subsequent transfer that: (1) has been previously declared as available for distribution by the director; (2) is scheduled by the director for holding at the facility; and (3) upon arrival at the facility, is accompanied by a copy of the above described notice form prepared by the sending State entity which contains an item description, a certification of the removal or rendering of all data unrecoverable, if applicable, and a contact person for the item.

Any item that is not otherwise distributed pursuant to the provisions of the bill or section 1 of P.L.1999, c.194 (C.52:27B-67.1) may be taken by the director of the division, with the State Treasurer’s approval and after notification in writing to the State Auditor, and disposed thereof, and thereupon the director shall pay the proceeds arising from the item’s disposition into the general fund of the State.

In order to assist in tracking this disposition program, the director of the division shall issue an annual report to the Governor and Legislature, which report shall include, but not be limited to, information concerning data security and item inventory controls employed by the program, as well as an analysis of the financial benefits derived from the program by the State and local governmental entities, boards of education, nonpublic schools and nonprofit charitable corporations.