BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 1192 (Oropeza) Hearing Date: 5/24/2010 Amended: 5/11/2010 As proposed to be amended Consultant: Bob Franzoia Policy Vote: Judiciary 4-0 Local Gov 5-0 _________________________________________________________________ ____ BILL SUMMARY: SB 1192 would expand the definition of customer facility charge to include a fee that is required by an airport to be collected from the purposes of financing, designing, and constructing terminal modifications to accommodate and provide customer access to common use transportation systems. This bill would require Burbank, Fresno, Los Angeles and San Diego airports to provide reports on an annual basis to the Senate and Assembly Committees on Judiciary detailing the total amount of the customer facility charge collected, how the funds are being spent, and whether certain airport concession fees have been increased since the prior report, if any. This bill would also require the above noted airports to complete an audit upon initial collection of the customer facility charge and every three years thereafter. This bill would require the Bureau of State Audits to review those audits and independently examine the collection of the customer facility charge, as necessary, and to report to the Legislature on its conclusions. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Bureau of State Audits review $550* General * Costs on a triennial basis ($100 to $175 per audit times four); costs reimbursed _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. To comply with Joint Rule 37.4 (b) which requires that any bill requiring action by the BSA shall contain an appropriation for the cost of any study or audit, staff recommends this bill be amended to appropriate up to $550,000 from the General Fund to the BSA for the purposes of this bill. Preliminary information indicates none of the 12 airports authorized to collect a customer facility charge have completed the audit required by Civil Code 1936 (a) (4) (B), which was adopted in Chapter 661/2001. When the airports have commenced collection varies. The proposed amendments would: - Specify that requirements to the BSA for data collection and reporting shall have costs reimbursed by the individual airport being audited. - Clarify that audits need only to be conducted beginning one year after a "customer facility charge" has been imposed and after an independent audit is available. - Expand the list of applicable airports to include Burbank, Fresno and San Diego.