Amended in Assembly March 4, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1602

Introduced by Assembly Member Patterson

February 5, 2014

An act to amend Section 220.5 of the Streets and begin delete Highway end delete begin insert Highways end insert Code, begin delete and to amend Section 19629 of the Welfare and Institutions Code, end delete relating to public social services.

LEGISLATIVE COUNSEL’S DIGEST

AB 1602, as amended, Patterson. Public social services: business enterprises for the blind.

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Existing law establishes the Business Enterprises Program for the Blind for the purpose of providing blind persons with remunerative employment, enlarging the economic opportunities of the blind, and stimulating the blind to greater efforts in striving to make themselves self-supporting. To further these purposes, existing law requires that blind persons be given priority in operating vending facilities, and in the assignment of vending machine income, on state property. Existing law requires that, if any funds are set aside, or caused to be set aside, by the Department of Rehabilitation from the net proceeds of the operation of the vending facilities, the set aside only be to the extent necessary, but not to exceed 6% of gross sales, to pay for specified costs, including maintenance and replacement of equipment and the purchase of new equipment.

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This bill would specify that the maximum 6% set aside may be used to pay for power supplies, which is a component of maintenance.

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Existing law requires the Department of Transportation to authorize the placement of vending machines in safety roadside rests, except as specified, and requires the department to give preference in the placement of vending machines to vendors operating under the Business Enterprises Program for the Blind. Existing law requires the department to determine the costs for specified activities, including any maintenance and operation, related to the vending machines and requires that the department be reimbursed for those costs from the revenues derived from the operation of the machines.

This bill would prohibit the department from begin delete seeking reimbursement from end delete begin insert being reimbursed for power-supply costs incurred by end insert vendors operating under the Business Enterprises Program for the Blind begin delete for power-supply costs not included in a reimbursement to the department from that set aside. end delete begin insert and would require the department to pay for those power-supply costs using state funds. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 220.5 of the Streets and Highways Code
is amended to read:

220.5.  

(a) The department shall authorize the placement of
vending machines in safety roadside rests, unless prohibited by
federal laws, rules, or regulations.

(b) The department, pursuant to provisions contained in
paragraph (5) of subsection (a) of Section 2 of the Act of June 20,
1936, commonly known as the Randolph-Sheppard Act, as
amended (20 U.S.C. Sec. 107a(a)(5)), shall give preference for the
placement of vending machines in safety roadside rest areas along
state highways to vendors operating under the Business Enterprises
Program for the Blind in accordance with Article 5 (commencing
with Section 19625) of Chapter 6 of Part 2 of Division 10 of the
Welfare and Institutions Code.

(c) The department may determine which safety roadside rest
areas are suitable for inclusion in the vending machine program
and the appropriate location within each roadside rest area for the
placement of the machines, and the department shall approve the
design and construction of any shelter or structure that may be
required for the machines.

(d) (1) The department shall determine the costs for any
maintenance, operations, design review, or other activities related
to the vending machines begin delete and end delete begin insert and, except as provided in paragraph
(2), end insert shall be reimbursed for those costs from the revenues derived
from the operation of the machines.

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(2) If a set aside has been authorized pursuant to Section 19629
of the Welfare and Institutions Code, the department shall not seek
reimbursement from vendors operating under the Business
Enterprises Program for the Blind for power-supply costs not
included in any reimbursement provided to the department from
that set aside.

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(2) The department shall not be reimbursed for power-supply
costs incurred by vendors operating under the Business Enterprises
Program for the Blind and shall pay for those power-supply costs
using state funds.

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(e) Any money received by the department for authorizing the
placement of, or from the income from, the vending machines shall
be transferred to the State Highway Account.

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SEC. 2.  

Section 19629 of the Welfare and Institutions Code is
amended to read:

19629.  

(a) The department shall provide that, if any funds are
set aside, or caused to be set aside, from the net proceeds of the
operation of the vending facilities those funds shall be set aside,
only to the extent necessary, but not to exceed the amount equal
to 6 percent of gross sales, and may be used only for the following
purposes:

(1) Maintenance, which includes power supplies, and
replacement of equipment.

(2) The purchase of new equipment.

(3) The construction of new vending facilities.

(4) Funding the functions of the committee of blind vendors
established by Section 19638.

(5) Retirement or pension funds, health insurance contributions
or premiums, life insurance contributions or premiums to the extent
approved by the federal Rehabilitation Services Administration,
and provision for paid sick leave or vacation time or
business-related insurance, if it is so determined by a majority vote
of blind vendors after the department provides to each vendor full
information on all matters relevant to these purposes. The
department shall seek the necessary approval for expenditures of
set-aside funds for life insurance contributions or premiums.

(b) No set-aside funds shall be collected where the monthly net
proceeds are less than one thousand dollars ($1,000). This amount
shall be annually adjusted by the department to reflect changes in
the cost of living. The average of the separate indices of cost of
living for Los Angeles and San Francisco, as published by the
United States Bureau of Labor Statistics, shall be used as the basis
for determining the change in the cost of living.

(c) Set-aside funds collected from the operation of all vending
facilities administered by the Business Enterprise Program shall
be placed in a single fund.

(d) As used in this section, “net proceeds” shall be the sum of
the amount remaining from the sale of articles or services and the
amount of any vending machine or other income accruing to blind
vendors after the cost of sale and other expenses (excluding
set-aside charges required to be paid by the blind vendors) have
been deducted.

(e) It is the intent of the Legislature that the expenditure of the
service charges authorized by this section shall be supplemental
to any current appropriations available for these purposes and shall
not constitute an offset or diminution of any appropriations.

(f) An amount equal to 10 percent of the wages paid by a vendor
to any blind person, as defined in Section 19153, or to any disabled
person, as defined in regulations issued by the department, shall
be deducted from any service charge paid by the vendor, in order
to encourage vendors to employ more blind and disabled workers
and thereby set an example for industry and government. There
shall be no deduction from any service charge paid by a vendor if
the vendor does not pay wages at least equal to the minimum wages
required of employers pursuant to Chapter 1 (commencing with
Section 1171) of Part 4 of Division 2 of the Labor Code.

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