(July 28, 2004) California Chamber-opposed “job killer” legislation increasing the cost of goods movement will be heard by the Assembly Appropriations Committee August 4.

SB 1397 (Escutia; D-Norwalk) increases the cost of goods movement and discourages job creation by authorizing the South Coast Air Management District to impose a fee on railroad companies that operate in the counties of Los Angeles, Riverside and San Bernardino.

The Chamber has labeled this bill a “job killer” because it will have a negative effect on California’s economy by increasing the cost of importing and exporting goods.

SB 1397 would require railroads to install emission retrofits on locomotives and potentially impose a “mitigation fee” on railroad companies that operate in specific counties within the state.

“Other alternatives should be considered before imposing fees for unsubstantiated programs without accountability standards,” said Bruce Magnani, Chamber legislative advocate. ”Imposing fees and placing more burdens on businesses in the state would further compound the negative impact of doing business in California.”

Currently, locomotives are fully regulated by the federal government and authorizing the South Coast Air Quality Management District (SCAQMD) to impose a new fee (tax) on rail operations in their district would likely violate the well-established regulatory structure for interstate commerce.

A high volume of goods moves through Los Angeles, San Bernardino and Riverside counties en route to and from the ports and trading partners on the Pacific Rim. Consequently, fees imposed on the railroad system within these counties would increase the cost of goods moved throughout the state.

The Chamber believes that these fees on goods movement would damage California’s economy which is on the road to recovery and working to strengthen the state’s business and commerce.

Action Needed
The Chamber is asking all employers to contact members of the Assembly Appropriations Committee and urge a “no” vote on SB 1397.

For more information on this bill or to view the entire “job killer” list, please visit the website at www.calchamber.com.