Chapter Six:  Statutory Compliance
 
Procedure Title: Procedures and Plan for Surplus Computer and Electronic Equipment
Based On: Board Policies 1 and 5
Procedure Number: 6.15
Date Adopted/Revised: October 27, 2005; November 21, 2006; May 15, 2007; November 30, 2015
  1. 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 College owned computers, electronics, and peripherals; to achieve maximum benefit from the sale of surplus state College 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 a College wide procedure for the management and sale of College 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 College procedure. 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:

    State agencies are mandated to implement a College-wide procedure that ensures the management and sale of College 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 procedure must mandate that all hard drives of surplus computer equipment be degaussed, cleared of all data, software, and be otherwise prepared for sale within ninety (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 College.

    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 a College procedure established under § 25-34-104 provides for the preferential sale of surplus computer and electronic equipment to Arkansas public schools or local governments, or College 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 College 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 College.

    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

  2. DEFINITIONS

    For purposes of this document, the following definitions apply:

    COLLEGE: South Arkansas Community College

    AGENT: the person(s) in agencies responsible for purchasing or maintaining computer equipment.

    COMPUTER: a programmable electronic machine that performs high-speed mathematical or logical operations or that assembles, stores, correlates, and 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.

    ELECTRONICS: devices utilizing electrons and electrical 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 (M&R): the Marketing and Redistribution Section of the Office of State Procurement of the Department of Finance and Administration.

    PRESIDENT: the President of South Arkansas Community College

    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 College which have residual market value.

  3. COMPUTER SERVICES PROCEDURES

    General:

    All new or used computer and electronic equipment shall be approved for purchase and shall be installed for use by employees within the College by Computer Services.

    The Purchasing Agent, in conjunction with Computer Services, will maintain inventory control documentation of equipment purchased for College 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 College shall be returned to Computer Services.

    Computer Services 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 College. The back stock, whenever feasible, shall not exceed ten percent (10%) of the number of State employee computers employed within the College.


    Determining Surplus Computers or Electronic Equipment:

    No used computer or electronic equipment shall be considered surplus, or shall be offered by the College 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:

    1. Computer Services has thirty (30) days after the receipt of the used equipment to examine the equipment and evaluate whether or not it can be put to further use by the College in accordance with the Executive Chief Information Officer's policy on replacement of computer and electronic equipment; and

    2. Computer Services has determined that the equipment is not currently needed by the College; is not anticipated to be utilized by the College within the next six (6) months; and/or that the equipment is obsolete for further College use; or

    3. There is a back stock of used equipment which exceeds ten percent (10%) of the number of employee computers in the College, and the existing back stock equipment has been held by the College 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.

    All degaussing methods must be documented. One copy goes with the device if it is reassigned, sent to Marketing and Redistribution, sold, or donated, and the other copy is maintained by Computer Services.


    Determining the Price of Surplus Computers and Electronic Equipment:

    Once identified as surplus, Computer Services will provide the Purchasing Agent a list of surplus computer and electronic equipment available for sale.

    The list shall include, but is not limited to, a description of the equipment, the purchase date, purchase price, and its inventory number.

    The Purchasing Agent will submit the list to the Department of Finance and Administration in order that they may determine a market value for the equipment.

    Department of Finance and Administration will communicate their evaluations to the Purchasing Agent.


    Sale of Surplus Computers and Electronic Equipment:

    First Priority – Agency Personnel Purchase Procedure

    1. The College’s procedure provides for the preferential sale of surplus computer and electronic equipment to College employees, at a price determined by the Department of Finance and Administration.

    2. All equipment is sold “as is” without any warranty of any kind and without any technical support.

    3. Based on the data received from the Department of Finance and Administration, the Purchasing Agent will process the sale transaction. (see process below) Second Priority – Arkansas Public Schools or Local Governments Purchase Procedure.

    4. This procedure provides that surplus computer and electronic equipment, after having been offered to College employees, will be offered for sale to Arkansas public schools or local governments at a price determined by the Department of Finance and Administration.

    5. All equipment is sold “As Is” without any warranty of any kind and without any technical support.

    6. Based on the data received from the Department of Finance and Administration, the Purchasing Agent will process the sale transaction. (see process below)

  4. PURCHASING AGENT ADMINISTRATIVE PROCEDURES

    General:

    The College shall apply the administrative procedures of Marketing & Redistribution to the sale.

    The College shall prepare 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 Computers and Electronic Equipment:

    Computer or electronic equipment that has been determined by Computer Services to be surplus shall be offered for sale based on the priorities above.

    Sales notices should be published so the intended audience is made aware of the sales in a timely manner. Notifications may be made via, but not limited to, campus-wide e-mail, postings on campus bulletin boards, postings on the College Intra-net, local and regional newspapers, and the U.S Postal Service.

    The item pricing, invoicing, and collections of funds for the sale transaction of surplus computers and electronic equipment will be administered by the Purchasing Agent in conjunction with the Fiscal Area, or designee.

    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 Purchasing Agent, in conjunction with the Fiscal Area and Computer Services.

    All funds received from the sale of surplus equipment will be forwarded to the Department of Finance and Administration so they may distribute the funds according to the legislatively mandated disbursement policies. (see distribution of revenues below).


    Surplus Equipment Not Sold:

    Unsold surplus computer and electronic equipment will first be offered by the College’s Purchasing Agent, in conjunction with Computer Services, to Arkansas Public Schools as a donation.

    Any remaining computer and electronic equipment may be sent by Computer Services to Maintenance & Redistribution for sale, auction, recycling, donation, demanufacturing, or disposal.

    Alternatively, if the College so desires, possession of surplus computers and electronics may be maintained by Computer Services while allowing Maintenance & Redistribution to sell or auction the computer or electronic equipment via an Internet web site.


    Disbursement of Revenues:

    The disbursement of revenues is set by law. Funds generated from the sale of College surplus computer and electronic equipment to state employees, public schools, or by other sale, shall be allocated as follows: If the sale of surplus computers or electronic equipment is made within the College to employees or to Arkansas public schools:

    1. Sixty percent (60%) of the proceeds shall be returned to the College; and

    2. 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

    3. Twenty-five percent (25%) of the proceeds shall be deposited in the Computer and Electronic Recycling Fund established by Act 1410.

    If the sale of surplus computer or electronic equipment is outside the College 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:

    1. Fifty-percent (50%) of the proceeds shall be returned to the College; and

    2. 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

    3. Twenty-five percent (25%) of the proceeds shall be deposited in the Computer and Electronic Recycling Fund established by Act 1410.

  5. SEVERABILITY

    If any provision of South Arkansas Community College’s Procedure 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 procedure and plan are declared to be severable.

  6. EFFECTIVE DATE

    South Arkansas Community College's Procedure and Plan for Surplus Computer and Electronic Equipment and any amendment or revision thereof are dependent upon approval by the signature of the President. The official effective date is the date of the President’s approval.

    Should any procedure(s) in this policy be found to be inconsistent with State regulations or statutes, the procedure(s) will be considered void and the relevant State regulation(s) or statute(s) provisions will be in effect. This policy has been drafted to meet the Arkansas Department of Information Systems (DIS) guidelines (http://www.dis.arkansas.gov/policiesStandards/Pages/comp_recyc.aspx)