BILL ANALYSIS Ó AB 600 Page 1 ASSEMBLY THIRD READING AB 600 (Bonta) As Amended May 28, 2013 Majority vote TRANSPORTATION 11-0 ----------------------------------------------------------------- |Ayes:|Lowenthal, Ammiano, | | | | |Blumenfield, Bonta, | | | | |Buchanan, Daly, Frazier, | | | | |Gatto, Holden, Nazarian, | | | | |Quirk-Silva | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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 FN: 0001008