BILL NUMBER: AB 2024 CHAPTERED 09/30/04 CHAPTER 941 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2004 APPROVED BY GOVERNOR SEPTEMBER 29, 2004 PASSED THE ASSEMBLY AUGUST 25, 2004 PASSED THE SENATE AUGUST 24, 2004 AMENDED IN SENATE AUGUST 19, 2004 AMENDED IN SENATE JULY 28, 2004 AMENDED IN SENATE JULY 6, 2004 AMENDED IN ASSEMBLY MAY 20, 2004 AMENDED IN ASSEMBLY APRIL 28, 2004 INTRODUCED BY Assembly Member Bermudez FEBRUARY 13, 2004 An act to add Chapter 4.9 (commencing with Section 2196) to Division 3 of the Streets and Highways Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 2024, Bermudez. Ports: transportation network. Existing law provides that the Department of Transportation in the Business, Transportation and Housing Agency has full possession and control of all state highways. Existing law requires the department to engage in various transportation planning activities, including activities related to identification of intermodal corridors of economic significance. This bill would require the Port of Los Angeles and the Port of Long Beach to evaluate changes to the goods movement network to gauge adherence by those ports to the certain state goals relative to utilization of and congestion at ports and to collect statistics regarding compliance with federal, state, and local efforts to achieve certain related objectives. The bill would require the ports to report to the Business, Transportation and Housing Agency, the Office of Goods Movement of the Department of Transportation, and the Assembly and Senate Committees on Transportation in this regard by January 31, 2005, and annually thereafter through 2007. Because the bill would place duties on the ports, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) California's maritime ports play an integral role in the state' s economy, providing the focal point for importation of foreign goods and exportation of California goods. (b) California consumers and businesses rely heavily on the maritime industry and the ports to transport goods for use throughout the state. (c) In 2000, 248 billion imports entered the United States through California's ports. With more than three hundred fifty billion dollars ($350,000,000,000) in international commerce, California's economy depends on trade. More than one in seven California jobs is tied to trade. (d) Consumer demand for goods is essential to growth of the California economy, however, the increase in cargo movement resulting from increased commerce and a growing economy poses significant challenges. (e) The increasing amount of cargo movement through the ports has created traffic congestion and higher emissions levels during peak commuter traffic hours. This congestion and air pollution is a result of the current system that encourages traffic to move during peak hours. (f) The transportation network must be modernized to encourage the flow of goods during off-peak hours and to thereby also reduce air emissions. Modernization of the transportation network cannot be accomplished incrementally, as all parts of the network must work together to redirect traffic. (g) Off-peak use of the transportation network must be supported by all sectors of the transportation industry. (h) The transportation industry must employ comprehensive, strict security mechanisms that ensure the safety of communities in the vicinity of the ports and that protect valuable cargo. (i) It would be appropriate to create an intermodal transportation system that encourages all participants to utilize transportation facilities during off-peak hours in order to streamline the movement of cargo from the ports to distribution centers and to prevent an increase in environmental concerns in the vicinity of the ports. (j) It would be appropriate to develop structural improvements to the intermodal system that would enable movement of increased volumes of cargo through operational efficiencies, greater utilization of alternative transportation systems, and the introduction of new technologies. SEC. 2. Chapter 4.9 (commencing with Section 2196) is added to Division 3 of the Streets and Highways Code, to read: CHAPTER 4.9. PORT-RELATED CARGO 2196. The Port of Los Angeles and the Port of Long Beach shall evaluate changes to the goods movement network to gauge adherence by those ports to the state goals in subdivisions (i) and (j) of Section 1 of the statute enacting this chapter and shall collect statistics on the operation of the two ports regarding compliance with federal, state, and local efforts to achieve all of the following: (a) Utilization of off-peak hours at port terminals. For the purposes of this section, "off-peak hours" means Monday through Friday between the hours of 6 p.m. and 3 a.m., and all day on Saturdays and Sundays. (b) Utilization of distribution centers during off-peak hours. (c) Utilization of rail facilities. (d) Appointments made at port terminals during peak and off-peak hours through the appointment system as described in Chapter 1129 of the Statutes of 2002. (e) Appointments honored at port terminals during peak and off-peak hours. 2196.1. The Port of Los Angeles and the Port of Long Beach shall provide the statistical data obtained pursuant to Section 2196 to the Business, Transportation and Housing Agency, the Office of Goods Movement of the Department of Transportation, and the Assembly and Senate Committees on Transportation. That information shall be provided on or before January 31, 2005, and annually thereafter through 2007. SEC. 3. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.