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[House Report 110-625]
[From the U.S. Government Publishing Office]

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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