(August 19, 2005) A California Chamber of Commerce-opposed “job killer” port bill was put on hold by the author this week.

SB 760 (Lowenthal; D-Long Beach) is not expected to be considered further this year.

'The fact that SB 760 has been set aside for this year is good news for California's economy,' said Bruce Magnani, Chamber legislative advocate. 'No other ports in the state or nation would have been subject to the fee proposed in SB 760. Its passing would have made these ports less attractive to shippers and hurt California in the competition for jobs.'

The bill, which was waiting to be heard by the Assembly Appropriations Committee, would have increased the cost of goods movement in California by assessing a $30 fee per 20-foot equivalent unit on containers processed through the Los Angeles and Long Beach ports.

SB 760 would have put these ports at a competitive disadvantage for future business and would have put California in the position to lose market share in the goods movement industry as shippers searched for more cost-effective alternative ports. The bill would have been damaging to the state’s economy and ultimately would have cost jobs in the industry.

Unintended Consequences

SB 760 not only would have increased the cost of goods movement in the state, but also would have made California ports less competitive in the goods movement segment of the national economy. Issues relating to port activity and goods movement must be managed in a manner that does not jeopardize job growth or job retention, and this bill would have had severe unintended consequences on the state’s recovering economy.

Staff Contact: Bruce Magnani