BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1602
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1602 (Patterson) - As Amended:  March 13, 2014 

          Policy Committee:                               
          TransportationVote:15-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           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.

           FISCAL EFFECT  

          Annual special fund costs in the range of $200,000 to $250,000  
          for Caltrans to pay vending machine utility costs at the state's  
          29 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  








                                                                  AB 1602
                                                                  Page  2

            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. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081