BILL ANALYSIS Ó
AB 1353
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Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1353 (Patterson) - As Introduced February 27, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires Caltrans, rather than vendors operating under
the Business Enterprise Program (BEP), to pay all utility costs
associated with vending machines at roadside rest areas.
AB 1353
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FISCAL EFFECT:
Annual special fund costs of about $200,000 for Caltrans to pay
vending machine utility costs at the state's 30 roadside rest
areas. [State Highway Account]
COMMENTS:
1)Background. The BEP is a food service program operating in
government as well as private facilities. Blind vendors in
this program receive ongoing support services from the
Department of Rehabilitation (DOR), such as financial
assistance for buying new appliances and equipment, various
training opportunities, upward mobility support, business
counseling services, fiscal oversight, and guidance to assist
with their financial responsibilities. Vendors pay up to 6%
of their net sales to the DOR for deposit into a trust fund,
which is used to pay for the above-mentioned services.
The current interagency agreement between the DOR and Caltrans
requires vendors to pay for utility costs at the rest sites.
Caltrans has completed installation of electric meters at 10
of the sites-at a cost of $580,000-and these vendors pay
utility costs directly to the electricity provider. At the
remaining sites, the interagency agreement requires vendors to
pay $200 per month per vending site and DOR reimburses
Caltrans for the balance of electricity costs. (Plans to
convert all vending locations to independent meters are in
process.)
2)Purpose. The author and supporters assert that AB 1602 is
needed to address an inequity whereby blind vendors are
subject to utility costs at roadside rest areas but not, for
example at state buildings operated by the Department of
General Services.
AB 1353
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3)Prior Legislation. Last year, AB 1602 (Patterson), an
identical bill, was held on Suspense in Senate Appropriations.
1)Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081