BILL ANALYSIS Ó
AB 1353
Page 1
ASSEMBLY THIRD READING
AB
1353 (Patterson)
As Introduced February 27, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
|----------------+------+---------------------+---------------------|
|Transportation |15-0 |Frazier, Achadjian, | |
| | |Baker, Bloom, | |
| | |Campos, Chu, Daly, | |
| | |Dodd, Eduardo | |
| | |Garcia, Kim, Linder, | |
| | |Medina, Melendez, | |
| | |Nazarian, O'Donnell | |
| | | | |
|----------------+------+---------------------+---------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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AB 1353
Page 2
SUMMARY: Prohibits the California Department of Transportation
(Caltrans) from being reimbursed for utility costs of vending
facilities operated under the Business Enterprises Program for the
Blind at safety roadside rest areas; requires Caltrans to pay
utility costs (e.g., fees for electricity, water, and sewage
services) associated with these vending activities.
FISCAL EFFECT: According to the Assembly Appropriations Committee
analysis, 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: The Business Enterprises Program is a food service
organization with operations in government facilities as well as
in private industry. Blind vendors receive ongoing support from
the Department of Rehabilitation as long as they remain in the
program. This support may include such benefits 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 Department of Rehabilitation for deposit into a
trust fund, which in turn is used to pay for services provided in
the program. Vendors are required to secure all necessary
business and health permits, obtain required insurance policies,
hire and supervise employees, pay business and sales taxes,
develop menus, and purchase merchandise for sale.
The current interagency agreement between the Department of
Rehabilitation and Caltrans provides for vending machines in 29
safety roadside rest areas. Consistent with state law and
regulations, the interagency agreement requires vendors to pay for
utility costs at these sites. Ten of the sites have independent
electric meters. Plans are in the works to convert all vending
AB 1353
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locations to independent meters. At these sites, 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 for costs incurred by Caltrans for
electricity.
Not all vendors in the Business Enterprises Program are required
to pay for utilities. For instance, vending facilities in state
buildings within the purview of the Department of General Services
do not pay utility costs. On the other hand, Caltrans is not
alone in charging for utilities. For example, facilities on
county government properties generally pay utility costs and a
cursory review of other state laws indicates that charging vendors
in safety roadside rest areas for utilities is not uncommon.
Furthermore, that practice is not inconsistent with the
requirement that vendors cover other operating costs like rent and
utilities for use of private property used to support their
vending businesses, such as warehouses used to store vending
merchandise.
The author introduced this bill to remedy what he believes is an
inequity in the Business Enterprises Program with respect to
requirements that vendors pay utility costs. The author argues
that vendors operating vending machines in state buildings do not
to pay utility costs (because state agencies absorb the
electricity costs) while vendors that operate vending machines at
safety roadside rest areas do. The author introduced this bill to
"ensure that all participants in the Business Enterprises Program
for the Blind are treated equally."
Supporters of this bill are concerned that Caltrans' plans to
install independent electric meters at safety roadside rest areas
will put vendors out of business. They argue that this will
negatively affect motorists who rely on safety roadside rest area
vending facilities for refreshment during a break from driving.
AB 1353
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There is no opposition on file.
There are 29 vending locations currently provided for in the
interagency agreement between the Department of Rehabilitation and
Caltrans, with an average of nine vending machines at each safety
roadside rest area. According to the author's office, utility
cost estimates for existing vending facilities that have
independent electric meters range from a low of $350 a month in
winter months to a high of $900 in summer months. Under this
bill, Caltrans will be responsible for incurring all utility costs
associated with these vending machines.
Please see the policy committee analysis for full discussion of
this bill.
Analysis Prepared by:
Janet Dawson / TRANS. / (916) 319-2093 FN:
0000633