BILL ANALYSIS �
AB 1081
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Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1081 (Medina) - As Amended: April 3, 2013
Policy Committee: JEDE Vote:8-0
Transportation 15-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill 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)Require the state's five-year infrastructure plan, which is
submitted annually in conjunction with the Governor's budget,
to include identification of infrastructure for goods
movement, including the need for new, rehabilitated,
modernized or renovated infrastructure that has been
identified by state and federal agencies and regional
transportation agencies, and include recommendations for
private sector financing of goods movement-related
infrastructure.
2)Requires the Governor's Office of Business and Economic
Development (GO-Biz) to include the identification of
trade-related infrastructure enhancements to support the
state's international trade policies, programs and services
when it updates the state international trade and investment
strategy (ITI Strategy).
FISCAL EFFECT
Combined GO-Biz and Department of Finance costs of approximately
$150,000.
COMMENTS
1)Purpose . According to the author, to improve our current
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transportation system we need to develop a plan that includes
a national and international approach to how we move goods.
The author contends it is crucial to develop this plan now
because the amount of freight will increase drastically in the
next 20 years. In southern California, it is expected to
triple in this period. The author states California needs an
efficient system to export products overseas that also provide
opportunities for small businesses.
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.
2)Background. There are four statutory mandates regarding overall
state planning. These include the Environmental Goals and
Policy Report (EGPR,) Five-Year Infrastructure Plan
(Infrastructure Plan), the International Trade and Investment
Strategy (ITI Strategy) and the Economic Development Strategic
Plan.
The EGPR sets the overall long-term framework in which
individual departments and agencies develop more detailed
plans, including elements of the state transportation and
state housing plans. The Infrastructure Plan allows the state
to keep track of its infrastructure needs and set a rational
infrastructure development agenda that supports the long-term
economic and population growth assessments outlined in the
EGPR. The ITI Strategy sets measureable economic objectives
relative to the state's position within the global economy.
Finally, the development of the state Economic Development
Strategic Plan is built on the information and policies
provided in the EGPR, the Infrastructure Plan, and the ITI
Strategy.
Currently the EGPR and Infrastructure Plan are out of date.
The requirement for an Economic Development Strategic Plan was
removed in a 2010 budget action. Governor Brown has, however,
committed to preparing a Strategic Growth Plan in 2013, which
could serve as a partial Infrastructure Plan. Speaker John A.
P�rez introduced AB 53, which would reinstate the Economic
Development Strategy.
3)Related legislation.
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a) AB 53 (J. P�rez) requires the Governor's Office of
Business and Economic Development to lead the preparation
of a biennial California Economic Development Strategic
Plan. This bill is pending in this committee.
b) AB 716 (Quirk-Silva) requires housing to be considered
infrastructure for purposes of the state's five-year
infrastructure plan. AB 716 is pending in the Assembly
Budget Committee.
1)Previous legislation .
a) SB 907 (Evans) of 2012, would have established an
11-member Master Plan for Infrastructure Financing and
Development Commission. SB 907 was held in the Assembly
Committee on Jobs, Economic Development and the Economy.
b) SB 822 (Evans) would have made minor changes to the
requirements for the Five-Year Infrastructure Plan. SB 822
was held in the Assembly Committee on Budget in 2012.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081