Download PDF: 08-2026 – AB 2726 Modernized Disposal of Surplus Technology – Effective January 1, 2027 (LWS)

Governor Newsom recently signed Assembly Bill (“AB”) 2726, which modernizes how California school districts, county offices of education, and community college districts may dispose of surplus technology. The new law recognizes that computers, tablets, servers, networking equipment, and other technology rapidly depreciate and provides educational agencies with greater flexibility when replacing outdated equipment.

Existing law authorizes the governing board of any school district or community college district to sell any personal property belonging to the school district or community college district if the property is not required for school purposes, should be disposed of for the purpose of replacement, or is unsatisfactory or not suitable for school use, pursuant to certain requirements, including, among others, notice and bid requirements.

For county offices of education, existing law prohibits a county superintendent of schools from disposing of any item of personal property worth over $25,000 that belongs to the county office of education without meeting specified conditions, including conditions relating to valuation, advertising, and county board of education approval.

AB 2726 authorizes governing boards to adopt policies allowing surplus technology to be disposed of through a variety of methods, including:

Public auction or sealed bid sale;
Manufacturer or vendor trade-in and buyback programs;
Negotiated sales where appropriate; and
Donations to eligible public agencies or nonprofit organizations.

These options provide greater flexibility than traditional surplus property procedures and may allow educational agencies to maximize the value of aging technology while reducing storage and administrative costs.

Before utilizing the new disposal authority, educational agencies should adopt or revise board policies establishing procedures for:

Determining when technology is surplus;
Selecting appropriate disposal methods;
Ensuring reasonable value is obtained;
Securely removing all confidential and personally identifiable information from devices before disposal; and
Complying with any state or federal restrictions applicable to technology purchased with grant or categorical funds.

Prior to January 1, 2027, educational agencies should begin reviewing their current surplus property policies and technology replacement. Agencies should also work with information technology staff to establish documented data sanitization protocols and evaluate whether manufacturer trade-in or buyback programs can be incorporated into future technology procurements.

Please contact our office with questions regarding this Legal Update or any other legal matter.

The information in this Legal Update is provided as a summary of law and is not intended as legal advice. Application of the law may vary depending on the particular facts and circumstances at issue. We, therefore, recommend that you consult legal counsel to advise you on how the law applies to your specific situation.

Legal Update Memo No. 08-2026 – AB 2726 Modernized Disposal of Surplus Technology – Effective January 1, 2027 (K-12)

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