BILL ANALYSIS �
AB 1081
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Date of Hearing: April 29, 2013
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 1081 (Medina) - As Amended: April 3, 2013
SUBJECT : Economic development: goods-movement-related
infrastructure
SUMMARY : Requires goods movement-related infrastructure to be
considered and included within the state five-year
infrastructure plan and international trade and foreign
investment strategy. Specifically, this bill :
1) Makes findings and declarations that California's:
a) Significance in the global marketplace is the result of
many factors including its strategic west coast location
which provides direct access to Asian markets;
b) Largest industry sectors are trade, transportation, and
utilities and the state leads the nation in export-related
jobs; and,
c) Infrastructure is aging and requires maintenance, as well
as improvements and expansion.
2) Require the state's five-year infrastructure plan to include
identification of goods movement- related infrastructure
including the need for new, rehabilitated, modernized,
improved, or renovated infrastructure that has been identified
by state and federal agencies and regional transportation
agencies.
3) Requires the five-year infrastructure plan to additionally
include recommendations for private sector financing of goods
movement-related infrastructure including, but not limited to,
public pension funds, private sector investors, and commercial
and industrial users who would benefit from the enhanced
logistical network.
4) Requires that the state international trade and investment
strategy (ITI Strategy) include the identification of
trade-related infrastructure enhancements to support the
state's international trade policies, programs, and services.
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EXISTING LAW :
1)Requires the Governor to annually submit a proposed five-year
infrastructure plan to the Legislature in conjunction with the
Governor's Budget.
2)Requires the plan to identify state infrastructure needs and
set out priorities for funding.
3)Does not require the plan to identify specific infrastructure
projects to be funded, but requires the plan to be
sufficiently detailed to provide a clear understanding of the
type and amount of infrastructure to be funded and the
programmatic objectives to be achieved by that funding.
4) Requires the infrastructure plan to include the following:
a) New, rehabilitated, modernized, improved, or renovated
infrastructure, which is requested by state agencies
including the estimated cost and funding options;
b) Aggregate funding for transportation as identified in the
State Transportation Improvement Program;
c) Infrastructure needs for K-12 public schools necessary to
accommodate increased enrollment, class size reduction, and
school modernization; and,
d) Instructional and instructional support facilities for the
University of California, California State University, and
the California Community College System.
5) Requires the Governor's Office of Business and Economic
Development (GO-Biz) to provide the Legislature with an ITI
Strategy by February 2014, which contains:
a) Policy, goals, and objectives;
b) Measurable outcomes and timelines for meeting the goals
and objectives;
c) Identification of key stakeholder partnerships that will
be used to implement the goals and objectives;
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d) Identification of impediments for achieving the goals and
objectives;
e) Identification of options for funding recommended action;
and,
f) Identification of an international trade and investment
organizational structure.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, "when transportation
functions efficiently, manufacturing and retail firms can carry
less inventory because they can rely on goods being delivered
when and where they are needed. But if the transportation
system is congested and unreliable, firms must carry more
inventory to ensure production processes are uninterrupted and
the availability of goods is maintained. In order to improve
our current transportation system we need to stop a piecemeal
system and develop a plan that includes a national and
international approach to how we move goods. It is crucial that
we develop this into our plan now because the amount of freight
will increase drastically in the next 20 years. In southern
California, it is expected to triple. In addition, the federal
government wants to double the exports by 2014. We need to have
an efficient system to export our products overseas that will
also provide opportunities for our small businesses and we need
to prepare for that increase. According to the Federal Highway
Administration, the United States surface transportation
network, which includes rail and highway, is reaching or has
reached capacity in many areas. The congestion largely stems
from the lack of capacity to meet traffic demand and lack of
infrastructure."
This bill requires the consideration of goods movement within
two key state planning documents including the state
infrastructure plan and ITI strategy. Given the significance of
global logistical networks to efficiently support expanded
supply chains, California is potentially at an infrastructure
disadvantage due to the demand for improvements currently
exceeding the supply of financial resources. In proposing a
heightened priority for planning and funding goods movement
infrastructure, the author notes the changing global economy and
the expanding investment opportunities with public pension
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funds, among others.
Moreover, world class infrastructure plays a key role in
business attraction, as multinational companies consistently
rank the quality of infrastructure among their top four criteria
in making investment decisions. According to the American
Society of Civil Engineers, California Infrastructure Report
Card 2012, the state possesses an estimated $65 billion a year
investment gap. The impact of this lack of investment is
compounded by the substantial new investments made in other
states and nations, including the expansion of the Panama Canal.
AB 1081 would provide greater certainty and strategic direction
to the deployment of state infrastructure expenditures within
the broader context of public and private sector infrastructure
investments.
Related legislation: AB 716 (Quirk-Silva), adds housing to the
list of topics considered to be "infrastructure" for purposes of
the state's five-year infrastructure plan and requires the
Strategic Growth Council to review and comment on the plan. AB
716 passed out of the Assembly Housing and Development Committee
referred to the Assembly Budget Committee.
Previous legislation: SB 907 (Evans) of 2012, would have
established an 11-member Master Plan for Infrastructure
Financing and Development Commission. The commission would have
been required to submit to the Governor and Legislature, by
December 1, 2013, a long-term plan and strategy for the state's
infrastructure needs and a prioritized plan to meet those needs.
The commission would have been required to submit periodic
progress reports. SB 907was held in the Assembly Committee on
Jobs, Economic Development and the Economy.
Double referred : This bill was heard in the Assembly Jobs,
Economic Development and the Economy Committee on April 9, 2013,
and passed out with a vote of 8-0.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
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Opposition
None on file
Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093