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.