California Legislature—2013–14 Regular Session

Assembly Bill No. 1081

Introduced by Assembly Member Medina

February 22, 2013

An act to amend Sections 13101, 13102, 13996.55, and 14526 of the Government Code, relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 1081, as introduced, Medina. Economic development: goods-movement-related infrastructure.

(1) Existing law requires the Governor, in conjunction with the Governor’s Budget, to submit annually to the Legislature a proposed 5-year infrastructure plan containing specified information concerning infrastructure needed by state agencies, public schools, and public postsecondary educational institutions, and a proposal for funding the needed infrastructure.

This bill would require the infrastructure plan to include information related to infrastructure identified by state and federal transportation authorities and a recommendation for public sector financing, as specified.

(2) Existing law requires the Director of the Governor’s Office of Business and Economic Development to provide the Legislature a strategy for international trade and investment, as provided.

This bill would require that strategy to include the identification of trade-related infrastructure enhancements to support the state’s international trade policies, programs, and services.

(3) Existing law requires the Department of Transportation to submit to the California Transportation Commission a 5-year interregional transportation improvement program that includes specified information, as provided.

This bill would require that program to include projects to improve international movement of goods through air, land, and water ports.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) California is the ninth largest economy in the world with a
state gross product of over $1.9 trillion in 2011. As a global
economy, international trade-related commerce represents
approximately one-quarter of California’s economy. If California
were a country, it would be the 11th largest exporter in the world.
In 2011, California exported $159 billion in products through
California ports to 220 foreign destinations, which accounted for
over 11 percent of total United States exports in goods.

(b) California’s significance in the global marketplace results
from a variety of factors, including: its strategic west coast location,
providing direct access to the growing markets in Asia; its diverse
regional economies; its large, ethnically diverse population,
representing both a ready workforce and significant consumer
base; its access to a wide variety of venture and other private
capital; its broad base of small- and medium-sized businesses; and,
its culture of innovation and entrepreneurship, particularly in the
area of high technology.

(c) California’s largest industry sector is trade, transportation,
and utilities, which encompasses everything from major retail
outlets, to import-export businesses, to transportation and
warehousing. Manufacturing, of course, is the cornerstone to the
industry sector. California leads the nation in export-related jobs.
The United States Department of Commerce estimates that for
every one million dollars of increased trade activity, 11 new jobs
are supported. Workers in trade-related jobs earn on average 13
percent to 28 percent higher wages than the national average.
One-fifth of all manufacturing workers in California depend on
exports for their jobs.

(d) It is the state’s goods movement infrastructure network that
allows raw materials and semimanufactured products to reach
other manufacturers and assemblers and then move on to California
ports for export to other nations or across the United States.
California’s competitiveness is dependent upon the efficient
connectivity between differing modes of transportation, including
highways, waterways, rail, and air.

(e) Much of this infrastructure is, however, over 30 years old
and requires maintenance as well as improvements and expansion
to accommodate the state’s population growth and evolving policy
priorities. Inclusion of goods-movement-related infrastructure
within the state’s five-year plan would enhance the state’s ability
to develop a more efficient goods movement and logistical network,
attract private capital, and support the retention and expansion of
jobs.

SEC. 2.  

Section 13101 of the Government Code is amended
to read:

13101.  

As used in this begin delete article, “infrastructure” means real
property, including land and improvements to the land, structures
and equipment integral to the operation of structures, easements,
rights-of-way and other forms of interest in property, roadways,
and water conveyances. end delete begin insert article: end insert

begin insert

(a) “Goods-movement-related infrastructure” means air, water,
land, and sea port of entry facilities, roads, rail, and other facilities
and infrastructure projects that move goods, energy, and
information.

end insert begin insert

(b) “Infrastructure” means real property, including land and
improvements to the land, structures, and equipment integral to
the operation of structures, easements, rights-of-way, and other
forms of interest in property, roadways, and water conveyances.

end insert

SEC. 3.  

Section 13102 of the Government Code is amended
to read:

13102.  

In conjunction with the Governor’s Budget submitted
pursuant to Section 13337, the Governor shall submit annually a
proposed five-year infrastructure plan to the Legislature. This plan
shall cover a five-fiscal-year period beginning with the fiscal year
that is the same as that covered by the Governor’s Budget with
which it is being submitted.

The infrastructure plan shall contain the following information
for the five years that it covers:

(a) (1) Identification of new, rehabilitated, modernized,
improved, or renovated infrastructure requested by state agencies.

(2) Aggregate funding for transportation as identified in the
four-year State Transportation Improvement Program Fund
Estimate prepared pursuant to Sections begin delete 14524 and 14525 end delete begin insert 14524,
14525, and 14526 end insert .

(3) Infrastructure needs for Kindergarten through grade 12 public
schools necessary to accommodate increased enrollment, class
size reduction, and school modernization.

(4) The instructional and instructional support facilities needs
for the University of California, the California State University,
and the California Community Colleges.

begin insert

(5) Identification of new, rehabilitated, modernized, improved,
or renovated infrastructure identified by state or federal agencies
or regional transportation authorities, not otherwise identified in
paragraph (2), that directly relate to the enhancement of goods
movement.

end insert

(b) The estimated cost of providing the infrastructure identified
in subdivision (a).

(c) A proposal for funding the infrastructure identified in
subdivision (a), that includes all of the following:

(1) Criteria and priorities used to identify and select the
infrastructure it does propose to fund, including criteria used to
identify and select infrastructure that by January 1, 2005, shall be
consistent with the state planning priorities specified pursuant to
Section 65041.1 for infrastructure requested by state agencies
pursuant to paragraph (1) of subdivision (a).

(2) Sources of funding, including, but not limited to, General
Fund, state special funds, federal funds, general obligation bonds,
lease revenue bonds, and installment purchases.

(3) An evaluation of the impact of the new state debt on the
state’s existing overall debt position if the plan proposes the
issuance of new state debt.

(4) (A) Recommended specific projects for funding or the
recommended type and amount of infrastructure to be funded in
order to meet programmatic objectives that shall be identified in
the proposal.

begin insert

(5) For goods-movement-related infrastructure, the plan shall
also include recommendations for private sector financing
including, but not limited to, public pension fund investors, private
sector investors, and commercial and industrial users who would
benefit from the enhanced logistical network.

end insert

(B) Any capital outlay or local assistance appropriations
intended to fund infrastructure included in the Governor’s Budget
shall derive from, and be encompassed by, the funding proposal
contained in the plan.

begin insert

(d) Eligible goods-movement-related infrastructure shall also
be submitted to infrastructure financing exchanges, including, but
not limited to, the West Coast Infrastructure Exchange.

end insert

SEC. 4.  

Section 13996.55 of the Government Code is amended
to read:

13996.55.  

(a) The Director of the Governor’s Office of
Business and Economic Development shall provide to the
Legislature, not later than February 1, 2014, a strategy for
international trade and investment that, at a minimum, includes
all of the following:

(1) Policy goals, objectives, and recommendations necessary
to implement a comprehensive international trade and investment
program for the State of California. This information shall be
provided in a fashion that clearly indicates priority within the
overall strategy.

(2) Measurable outcomes and timelines for the goals, objectives,
and actions for the international trade and investment program.

(3) Identification of impediments for achieving goals and
objectives.

(4) Identification of key stakeholder partnerships that will be
used in implementing the strategy.

(5) Identification of options for funding recommended actions.

(6) Identification of an international trade and investment
organizational structure for the state administration of international
trade and investment policies, programs, and services.

begin insert

(7) Identification of trade-related infrastructure enhancements
to support the state’s international trade policies, programs, and
services.

end insert

(b) The strategy shall be submitted to the Chief Clerk of the
Assembly and the Secretary of the Senate. A copy of the strategy
shall be provided to the Speaker of the Assembly, the President
pro Tempore of the Senate, and the chairs of the Assembly
Committee on Jobs, Economic Development, and the Economy
and the Senate Committee on Business, Professions and Economic
Development, or the successor committees with jurisdiction over
international trade and economic development programs.

(c) The strategy shall be updated pursuant to the procedures of
this section at least once every five years.

SEC. 5.  

Section 14526 of the Government Code is amended
to read:

14526.  

(a) Not later than December 15, 2001, and December
15 of each odd-numbered year thereafter, and after consulting with
the transportation planning agencies, county transportation
commissions, and transportation authorities, the department shall
submit to the commission its five-year interregional transportation
improvement program consisting of all of the following:

(1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.

(2) Projects to improve the intercity passenger rail system.

(3) Projects to improve interregional movement of people,
vehicles, and goods.

begin insert

(4) Projects to improve international movement of goods through
air, land, and water ports.

end insert

(b) Projects may not be included in the interregional
transportation improvement program without a project study report
or major investment study.

(c) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the
appropriate year, and shall be consistent with, and provide the
information required in, subdivision (b) of Section 14529.

(d) Projects included in the interregional transportation
improvement program shall be consistent with the adopted regional
transportation plan.