BILL NUMBER: SB 1228 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 27, 2014
INTRODUCED BY Senator Hueso
FEBRUARY 20, 2014
An act to amend Section 63021.5 of the Government Code,
relating to the Infrastructure and Economic Development Bank.
add Chapter 4.8 (commencing with Section 2192) to
Division 3 of the Streets and Highways Code, relating to
transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1228, as amended, Hueso. Infrastructure and Economic
Development Bank. Trade Corridors Improvement Fund.
Existing law, the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, approved by the voters as
Proposition 1B at the November 7, 2006, statewide general election,
provides for transfer of $2 billion of bond proceeds to the Trade
Corridors Improvement Fund, created by the bond act, for
infrastructure improvements along federally designated Trade
Corridors of National Significance, to be allocated by the California
Transportation Commission to eligible projects, as specified.
This bill would continue the Trade Corridors Improvement Fund in
existence for the purpose of receipt and expenditure of revenues from
sources other than the bond act. The bill would provide for
allocation of these revenues, upon appropriation, by the California
Transportation Commission for largely similar purposes as the bond
act funds, but would specifically reference, as eligible projects,
infrastructure improvements that benefit the state's land ports of
entry. In that regard, the bill would also omit references to
infrastructure improvements relating to goods movement to and from
airports. The bill, to the extent funds are transferred to the Trade
Corridors Improvement Fund from the Greenhouse Gas Reduction Fund,
would require projects funded with those funds to demonstrate how
they will reduce greenhouse gas emissions consistent with the goals
and objectives of the Greenhouse Gas Reduction Fund.
Existing law creates the Infrastructure and Economic Development
Bank within the Governor's Office of Business and Economic
Development. Existing law requires the bank to be governed, and its
corporate power exercised, by a board of directors, as specified.
This bill would make technical, nonsubstantive changes to this
law.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that
international trade in California is an increasingly important
component of the state's $2 trillion economy. In 2013, California
exported $168 billion in products, an increase of more than 4 percent
over the amount exported in 2012. California has five major land
ports of entry, yielding $535.9 billion in economic activity in 2012.
California is also home to 11 seaports on over 1,000 miles of
coastline. Seaports generate billions of dollars in economic activity
and millions of jobs. Land ports of entry and seaports create busy
borders and harbors with heavy industrial commerce. It is
imperative that safety i ssues and pollution generated by
trade are mitigated in order to reduce those impacts and to allow
additional growth in international trade.
SEC. 2. Chapter 4.8 (commencing with Section 2192)
is added to Division 3 of the Streets and Highways Code
, to read:
CHAPTER 4.8. TRADE CORRIDORS IMPROVEMENT FUND
2192. (a) The Trade Corridors Improvement Fund, created pursuant
to subdivision (c) of Section 8879.23 of the Government Code, is
hereby continued in existence to receive revenues from sources other
than the Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006. This chapter shall govern expenditure of
those other revenues.
(b) The moneys in the fund from those other sources shall be
available upon appropriation for allocation by the California
Transportation Commission for infrastructure improvements in this
state on federally designated Trade Corridors of National and
Regional Significance, on the Primary Freight Network, and along
other corridors that have a high volume of freight movement, as
determined by the commission. In determining the projects eligible
for funding, the commission shall consult the trade infrastructure
and goods movement plan submitted to the commission by the Secretary
of Transportation and the Secretary for Environmental Protection. The
commission shall also consult trade infrastructure and goods
movement plans adopted by regional transportation planning agencies,
adopted regional transportation plans required by state and federal
law, and the statewide port master plan prepared by the California
Marine and Intermodal Transportation System Advisory Council
(Cal-MITSAC) pursuant to Section 1730 of the Harbors and Navigation
Code, when determining eligible projects for funding. Eligible
projects for these funds include, but are not limited to, all of the
following:
(1) Highway capacity improvements and operational improvements to
more efficiently accommodate the movement of freight, particularly
for ingress and egress to and from the state's land ports of entry
and seaports, including navigable inland waterways used to transport
freight between land ports of entry and seaports and between
seaports, and to relieve traffic congestion along major trade or
goods movement corridors.
(2) Freight rail system improvements to enhance the ability to
move goods from land ports of entry and seaports to warehousing and
distribution centers throughout California, including projects that
separate rail lines from highway or local road traffic, improve
freight rail mobility through mountainous regions, relocate rail
switching yards, and other projects that improve the efficiency and
capacity of the rail freight system.
(3) Projects to enhance the capacity and efficiency of land ports
of entry and seaports.
(4) Truck corridor improvements, including dedicated truck
facilities or truck toll facilities.
(5) Border access improvements that enhance goods movement between
California and Mexico and that maximize the state's ability to
access coordinated border infrastructure funds made available to the
state by federal law.
(c) (1) The commission shall allocate funds for trade
infrastructure improvements from the fund in a manner that (A)
addresses the state's most urgent needs, (B) balances the demands of
various land ports of entry and seaports, between large and small
land ports of entry and small and large seaports, as well as between
land ports of entry and seaports, (C) provides reasonable geographic
balance between the state's regions, and (D) places emphasis on
projects that improve trade corridor mobility while reducing
emissions of diesel particulate and other pollutant emissions.
(2) In addition, the commission shall also consider the following
factors when allocating these funds:
(A) "Velocity," which means the speed by which large cargo would
travel from the land port of entry or seaport through the
distribution system.
(B) "Throughput," which means the volume of cargo that would move
from the land port of entry or seaport through the distribution
system.
(C) "Reliability," which means a reasonably consistent and
predictable amount of time for cargo to travel from one point to
another on any given day or at any given time in California.
(D) "Congestion reduction," which means the reduction in recurrent
daily hours of delay to be achieved.
(d) To the extent moneys from the Greenhouse Gas Reduction Fund,
attributable to the auction or sale of allowances as part of a
market-based compliance mechanism relative to reduction of greenhouse
gas emissions, are transferred to the Trade Corridors Improvement
fund, projects funded with those moneys shall demonstrate how they
will reduce emissions consistent with the goals and objectives of the
Greenhouse Gas Reduction Fund.
(e) The commission shall allocate funds made available by this
section to projects that have identified and committed supplemental
funding from appropriate local, federal, or private sources. The
commission shall determine the appropriate amount of supplemental
funding each project should have to be eligible for moneys from the
fund based on a project-by-project review and an assessment of the
project's benefit to the state and the program. Except for border
access improvements described in paragraph (5) of subdivision (b),
improvements funded with moneys from the fund shall have supplemental
funding that is at least equal to the amount of the contribution
from the fund. The commission may give priority for funding to
projects with higher levels of committed supplemental funding.
(f) The commission shall include in its annual report to the
Legislature, required by Section 14535 of the Government Code, a
summary of its activities related to the administration of this
section. The summary shall, at a minimum, include a description and
the location of the projects contained in the program funded by the
fund, the amount of funds allocated to each project, the status of
each project, and a description of the mobility and air quality
improvements the program is achieving.
SECTION 1. Section 63021.5 of the Government
Code is amended to read:
63021.5. (a) The bank shall be governed and its corporate power
exercised by a board of directors that shall consist of the following
persons:
(1) The Director of Finance or his or her designee.
(2) The Treasurer or his or her designee.
(3) The Director of the Governor's Office of Business and Economic
Development or his or her designee, who shall serve as chair of the
board.
(4) An appointee of the Governor.
(5) The Secretary of Transportation or his or her designee.
(b) Any designated director shall serve at the pleasure of the
designating power.
(c) Three of the members shall constitute a quorum and the
affirmative vote of three board members shall be necessary for any
action to be taken by the board.
(d) A member of the board shall not participate in any bank action
or attempt to influence any decision or recommendation by any
employee of, or consultant to, the bank that involves a sponsor of
which he or she is a representative or in which the member or a
member of his or her immediate family has a personal financial
interest within the meaning of Section 87100. For purposes of this
section, "immediate family" means the spouse, children, and parents
of the member.
(e) Except as provided in this subdivision, members of the board
shall serve without compensation, but shall be reimbursed for actual
and necessary expenses incurred in performing their duties to the
extent that reimbursement for these expenses is not otherwise
provided or payable by another public agency, and shall receive one
hundred dollars ($100) for each full day of attending meetings of the
authority.