BILL ANALYSIS Ó
AB 600
Page 1
ASSEMBLY THIRD READING
AB 600 (Bonta)
As Amended March 19, 2013
Majority vote
TRANSPORTATION 11-0
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|Ayes:|Lowenthal, Ammiano, | | |
| |Blumenfield, Bonta, | | |
| |Buchanan, Daly, Frazier, | | |
| |Gatto, Holden, Nazarian, | | |
| |Quirk-Silva | | |
| | | | |
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SUMMARY : Restricts an intermodal equipment provider from
unilaterally requiring a motor carrier to return intermodal
equipment to satellite locations unless the requirement is
specified in a written bilateral agreement. Specifically, this
bill :
1)Changes the term "intermodal marine equipment provider" to
"intermodal equipment provider" and defines the new term to
mean "any party authorizing delivery or receipt of physical
possession of equipment with a motor carrier (trucker)
commonly used in the road transport of intermodal freight,
including, but not limited to, trailers, chassis, containers,
and associated devices, but excluding, tractors. This
definition applies to all intermodal equipment providers,
regardless of whether the party participates in the Uniform
Intermodal Interchange and Facilities Access Agreement."
2)Modifies the circumstances under which an intermodal equipment
provider or an intermodal marine terminal operator is
prohibited from imposing per diem, detention, or demurrage
charges.
3)Extends restrictions placed upon intermodal equipment
providers from unilaterally terminating, suspending, or
restricting the equipment moves of a trucker after a challenge
by a trucker is resolved in the trucker's favor.
4)Requires a trucker to return intermodal equipment to locations
other than where the equipment was received unless the
AB 600
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intermodal equipment provider directs, with reasonable advance
notice, the equipment to be returned to a satellite location
as governed by a bilateral agreement.
5)Prohibits an intermodal equipment provider from unilaterally
requiring a motor carrier to return intermodal equipment to
satellite locations through notifications not specified in the
written bilateral agreement between the intermodal equipment
provider and the motor carrier.
EXISTING LAW : (See the Assembly Transportation Committee
analysis.)
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS : Over 40% of the goods and materials from other
countries enter through California ports. Arriving from ships
and then received at the ports, they are they primarily
transported by cargo containers carried on truck vehicles as
well as rail lines. Marine terminal operators at the state's
seaports provide these containers under contractual agreements
to truck operators and the goods or containerized material is
then transported from the ports to warehouses, retail
establishments, manufacturing facilities, and railyards.
Accordingly, the movement of freight involves multiple modes of
transit: truck, ship, and rail. During a single move, a
container may be handled by all three modes.
Currently, interchange agreements establish the commercial terms
by which intermodal equipment, including trailers, chassis,
containers and associated devices, changes hands and is returned
to the equipment provider. A motor carrier (trucker) is
typically required to return intermodal equipment to the
location it was originally received. However, an equipment
provider may redirect the return of equipment to another
"satellite location" within the same commercial territory by
either: 1) a written bilateral agreement; or 2) unilaterally by
providing notification via internet posting, e-mail, or shipping
order.
This bill is intended to clarify the rights of intermodal motor
carriers and truck drivers regarding the pick-up and delivery of
intermodal equipment and would prohibit the imposition upon
AB 600
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truckers of equipment diversions to satellite locations by an
intermodal equipment provider. Further, the bill is intended to
establish certain protections and prohibit marine terminals from
penalizing or imposing certain charges on truck operators
related to the transportation of goods from the state's seaports
and the delayed return of empty cargo containers.
This bill is opposed by organizations representing the shippers
and marine terminal operators who contend that the Federal
Aviation Administration Authorization Act of 1994 (F4A),
establishes uniform regulations for the truckers basically
restricting individual states and local governments from
creating their own rules, resulting in a patchwork, regulatory
framework leading to inefficient commerce at the interstate,
intrastate, and international levels.
They further contend that the pick-up and return locations for
the equipment are generally well established and known by all
parties prior to commencement of the move. They argue that, in
some cases, the return location must be changed to ensure the
proper inventory balance of the equipment. Such circumstances
are addressed in the Uniform Intermodal Interchange and
Facilities Access Agreement (UIIA), a national compact that sets
forth the terms and conditions for the transfer and operation of
equipment under interchange between ocean and rail carriers and
motor carriers.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0000301