BILL ANALYSIS Ó
AB 1409
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1409 (Jobs, Economic Development, and the Economy Committee)
As Amended: April 25, 2011
Policy Committee: JEDE Vote:5-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires that the next update of the international
trade and investment strategy by the Business, Transportation
and Housing Agency (BTH) include policy goals, objectives and
recommendations from the state Goods Movement Plan (GMAP), as
well as related measurable outcomes and timelines.
FISCAL EFFECT
The Business, Transportation and Housing Agency indicates that
the updates, including changes to the requirements of the
strategy, can be done within existing resources.
COMMENTS
1)Purpose. According to the author, California must ensure that
it has a robust trade infrastructure including its airports,
seaports and land ports of entry in order to facilitate the
efficient transfer of exports and imports. If prepared,
California will benefit under the National Export Initiative,
a federal effort to double American exports from 2010 to 2015
and support the growth of two million jobs across the United
States.
2)Previous legislation. SB 1513 (Romero), Chapter 663 of 2006,
addressed these concerns over the efficient movement of
exports by first requiring BTH to undertake a trade study to
determine what role, if any, the state should play in
international trade and foreign investment activities.
Second, SB 1513 also required BTH to establish a business
AB 1409
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advisory committee to provide California businesses with
direct access to the policy making process and required that
once the study was completed, a trade strategy would be
developed based on the trade study and the strategy would be
the vehicle for implementing the state's trade policy. The
first trade strategy was published in February 2008. The next
update is required in February 2013.
3)The Goods Movement Action Plan: The purpose of the GMAP is to
improve and expand California's goods movement industry and
infrastructure in a manner which will generate jobs, increase
mobility, reduce traffic congestion, improve air quality,
protect public health, enhance port safety and improve
people's quality of life. The GMAP work done to date takes a
very macro look at the goods movement industry currently
serving California business, and makes recommendations for
projects on California's highway, rail, and air transport
goods movement networks.
4)California Goods Movement: California shipped to over 226
foreign destinations in 2010. The state's three major
container ports, Long Beach, Los Angeles, and Oakland, carry
more than 99% of California's total container cargo volume.
For California, expanded supply chains for manufacturing and
product distribution have resulted in congested ports, where
cargo ships are often delayed for extended periods of time
waiting to unload. Truck access is often cited for the
delays. At international airports, truck access is also a
problem, and expansion of major airports is severely limited
by urbanization, ground access, air quality impacts and local
opposition.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081