BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 600
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 600 (Bonta) 
          As Amended  May 28, 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  :  Establishes conditions for the movement of intermodal  
          marine equipment by intermodal marine carriers.  Specifically,  
           this bill  :  

          1)Clarifies the extent to which parties in the drayage  
            marketplace, such as the shippers, terminal operators, and  
            truckers, are able to contract for drayage services for the  
            movement of intermodal marine equipment, as defined.  

          2)Establishes restrictions upon intermodal marine terminals  
            relative to parking violations or citations issued to  
            intermodal motor carriers.  

          3)Defines the term "intermodal marine equipment" to mean  
            equipment commonly used in the transport of international  
            cargo by an intermodal motor carrier to or from an intermodal  
            marine terminal, as specified.  

          4)Establishes that the definition of intermodal marine terminal  
            does not pertain to railroads as well as a warehouse, or any  
            other domestic terminal facility, as specified.  

          5)Defines the term "intermodal marine equipment provider" to  
            mean "the party providing intermodal marine equipment to an  
            intermodal motor carrier at an intermodal marine terminal  
            pursuant to the Uniform Intermodal Interchange and Facilities  
            Access Agreement or any other interchange agreement."  

          6)Requires intermodal marine terminals, beginning January 1,  
            2015, to ensure that outstanding cargo charges, including but  








                                                                  AB 600
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            not limited to demurrage charges, be paid electronically by  
            the responsible party or that party's agent prior to transport  
            of the container.  Establishes restrictions on intermodal  
            marine terminal operators from imposing additional charges if  
            a loaded container is not available for transport by an  
            intermodal motor carrier.  

          7)Defines "cargo demurrage" and treats cargo demurrage charges  
            differently from per diem and detention charges.  

          8)Modifies the circumstances under which an intermodal marine  
            equipment provider or an intermodal marine terminal operator  
            is prohibited from imposing per diem or detention charges and  
            treats demurrage charges in a different manner.  

          9)Extends restrictions placed upon intermodal marine equipment  
            providers from unilaterally terminating, suspending, or  
            restricting the equipment moves of a trucker after a challenge  
            is resolved, solely on the basis that the dispute resolution  
            process was utilized by the intermodal motor carrier.  

           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  








                                                                  AB 600
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          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 regarding the pick-up and delivery of intermodal  
          equipment.  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 


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