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SB-517 Economic development: movement of freight.(2023-2024)



Current Version: 03/22/23 - Amended Senate

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SB517:v98#DOCUMENT

Amended  IN  Senate  March 22, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 517

Introduced by Senator Gonzalez
(Coauthor: Assembly Member Vince Fong)

February 14, 2023

An act to amend Section 12096.3 of, and to add Section 12096.3.6 to, the Government Code, relating to transportation. economic development.


LEGISLATIVE COUNSEL'S DIGEST


SB 517, as amended, Gonzalez. Transportation: Economic development: movement of freight.
Existing law creates the Governor’s Office of Business and Economic Development, known as “GO-Biz,” and requires GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Under existing law, GO-Biz is under the direct control of the Director of the Governor’s Office of Business and Economic Development, who is responsible to the Governor. Existing law authorizes GO-Biz to undertake various activities relating to economic development, including the provision of prescribed information.
Existing law requires the Transportation Agency to prepare a state freight plan that provides a comprehensive plan to govern the immediate and long-range planning activities and capital investments of the state with respect to the movement of freight.
This bill would declare the Legislature’s intent to enact subsequent legislation relating to increasing efficiency of ports and the goods movement industry. authorize GO-Biz to serve as the coordinating entity to steer the growth, competitiveness, and sustainability for freight and the supply chain across the state and to promote and assess the continued economic vitality, economic competitiveness, and sustainability of the freight sector. The bill would also authorize GO-Biz to provide freight and supply chain economic competitiveness information.
This bill would require the Governor to appoint a freight coordinator with prescribed experience to serve as the advisory and coordinating entity for GO-Biz. The bill would require the freight coordinator to advise and coordinate policies that promote the growth, competitiveness, and sustainability for freight and the supply chain across the state, and to promote and assess the continued economic vitality and sustainability of the freight sector. The bill would require the freight coordinator to advocate for the implementation of these policies in the freight sector. The bill would require the freight coordinator to advise the Governor and director on issues affecting the state’s freight and supply chain and on policy and administrative regulations affecting the state’s freight and supply chain. The bill would require the freight coordinator to work directly with prescribed state entities as necessary to address and discuss ongoing freight and supply chain issues. The bill would authorize the freight coordinator, in consultation with the director, to establish and convene one or more stakeholder advisory groups to help inform the work of the freight coordinator in implementing their mission and duties. The bill would require the freight coordinator to undertake additional responsibilities relating to developing relevant information, goal setting, and making recommendations, as prescribed. The bill would also require the freight coordinator to participate in future updates to the California Freight Mobility Plan of the Department of Transportation and the AB 32 climate change scoping plan pursuant to the California Global Warming Solutions Act of 2006.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares the following:
(a) California receives tremendous benefit from but also must address costs associated with its premier role in the international and national supply chain and as a freight gateway. It is imperative that the state have a lead policy coordinator to address its myriad efforts to invest in, grow, and improve the sustainability of its freight and supply chains.
(b) The freight sector, including seaports, airports, land ports of entry, truck and rail transportation, and warehouses and distribution centers, is vital to California’s economy. The freight sector drives one-third of California’s economy, and creates millions of direct and indirect jobs with trillions of dollars of goods being shipped in the state. However, despite its critical importance to the state, the freight sector lacks high-level coordination and resiliency, as evidenced during the pandemic-induced supply chain crisis.
(c) To facilitate coordination between various governmental entities and industries, California must coordinate its efforts and create a strategic coordinated approach to industrial planning, infrastructure planning, and environmental planning.
(d) While the state has various and multiple plans for addressing freight issues, including the Sustainable Freight Action Plan developed pursuant to Executive Order No. B-32-15, a California Freight Mobility Plan, updated every five years in consultation with the Sustainable Freight Action Plan pursuant to AB 14 (Chapter 223 of the Statutes of 2013), and dozens of regulations and incentive programs to address sustainability and the reduction of environmental impacts from the freight sector, including the inclusion of the freight sector in the AB 32 climate change scoping plans, updated every five years pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code), these efforts are not coordinated and no one individual or agency is tasked with facilitating that coordination.
(e) The state does not have a coordinated and comprehensive freight and supply chain policy in place to facilitate the measured and planned growth of intrastate, interstate, and international freight movements, nor to address the significant direct and indirect infrastructure, environmental, health, financial, and congestion impacts resulting from interstate and international trade, and the lack of this coordination and comprehensive freight and supply chain policy hampers our ability to invest in our supply chains, support our supply chains, and green our supply chains efficiently and cost-effectively.

SEC. 2.

 Section 12096.3 of the Government Code is amended to read:

12096.3.
 The office shall serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. In this capacity, the office may:
(a) Recommend to the Governor and the Legislature new state policies, programs, and actions, or amendments to existing programs, advance statewide economic goals and respond to emerging economic problems and opportunities, and ensure that all state policies and programs conform to the adopted state economic and business development goals.
(b) Coordinate the development of policies and criteria to ensure that federal grants administered or directly expended by state government advance statewide economic goals and objectives.
(c) Market the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state.
(d) Provide, including, but not limited to, all of the following:
(1) Economic and demographic data.
(2) Financial information to help link businesses with state and local public and private programs.
(3) Workforce information, including, but not limited to, labor availability, training, and education programs. The office shall not do either of the following:
(A) Track or monitor the productivity of port workers, including, but not limited to, productivity metrics.
(B) Interfere with any collective bargaining agreement or workers’ right to collectively bargain.
(4) Transportation and infrastructure information.
(5) Assistance in obtaining state and local permits.
(6) Information on tax credits and other incentives.
(7) Permitting, siting, and other regulatory information pertinent to business operations in the state.
(8) Freight and supply chain economic competitiveness information.
(e) Establish a well-advertised telephone number, an interactive Internet Web site, internet website and an administrative structure that effectively supports the facilitation of business development and investment in the state.
(f) Encourage collaboration among research institutions, startup companies, local governments, venture capitalists, and economic development agencies to promote innovation.
(g) In cooperation with the federal government, foster relationships with overseas entities to improve the state’s image as a destination for business investment and expansion.
(h) Conduct research on the state’s business climate, including, but not limited to, research on how the state can remain on the leading edge of innovation and emerging sectors.
(i) Support small businesses by providing information about accessing capital, complying with regulations, and supporting state initiatives that support small business.
(j) Serve as the coordinating entity to steer the growth, competitiveness, and sustainability for freight and the supply chain across the state, and promote and assess the continued economic vitality, economic competitiveness, and sustainability of the freight sector.

SEC. 3.

 Section 12096.3.6 is added to the Government Code, to read:

12096.3.6.
 (a) For purposes of this section, the following definitions apply:
(1) “Economic competitiveness” means the ability of the California freight sector to successfully compete with freight sectors in other states and countries as measured by using existing comparable metrics, to increase the productivity of freight and related sectors, and to contribute to the growth of the state’s economy. Economic competitiveness is affected by policies, institutions, and investments that influence the freight sector’s productivity.
(2) “Freight sector” means all transportation-based and transportation-dependent enterprises involved in the supply chain from point of origin to point of consumption, including ports, rail, freight corridors, and warehouses and distribution centers.
(3) “Supply chain” means participants in the economic supply chain of this state, including, but not limited to, seaports, airports, land ports of entry, air carriers, motor carriers, ocean carriers, rail carriers, marine terminals, rail terminals, trucking terminals, warehouses, the agriculture industry, manufacturers, and retailers.
(b) The Governor shall appoint a freight coordinator to serve as the advisory and coordinating entity for the office. The freight coordinator shall have experience in commerce, trade, and cross-cutting supply chain management.
(c) The freight coordinator shall advise and coordinate policies that promote the growth, competitiveness, and sustainability for freight and the supply chain across the state, and shall promote and assess the continued economic vitality and sustainability of the freight sector. The freight coordinator shall advocate for the implementation of these policies in the freight sector. The freight coordinator shall advise the Governor and director on issues affecting the state’s freight and supply chain, including economic strategy, investment, and improvements in technology. The freight coordinator shall also advise the Governor and director on policy and administrative regulations affecting the state’s freight and supply chain.
(d) The freight coordinator shall work directly with the California Transportation Commission, the Transportation Agency, the Department of Transportation, the State Energy Resources Conservation and Development Commission, the Department of Food and Agriculture, the Public Utilities Commission, the State Lands Commission, and the State Air Resources Board as necessary to address and discuss ongoing freight and supply chain issues.
(e) The freight coordinator, in consultation with the director, may establish and convene one or more stakeholder advisory groups to help inform the work of the freight coordinator in implementing their mission and duties.
(f) The freight coordinator shall do all of the following:
(1) Consult with a representative cross section of public and private sector freight stakeholders, including representatives of seaports, airports, land ports of entry, organized labor, cargo owners including agricultural exporters, shippers, carriers, freight-related associations, supply chain businesses, the freight industry workforce, academic and research institutions, local air pollution control districts, environmental, safety, and community organizations, and representatives from communities that are adjacent to, or environmentally impacted by, the freight sector.
(2) Consult with the Legislature.
(3) Use the most current data reasonably available to update freight and supply chain economic competitiveness information such that it reflects current market conditions.
(4) Evaluate the resiliency of the state’s freight sector, including assessing the ongoing needs to address supply chain congestion outlined in Executive Order No. N-19-21.
(5) Expand on the California Sustainable Freight Action Plan developed pursuant to Executive Order No. B-32-15, and evaluate the role and capacity of the freight sector in advancing the zero-emission goals set forth in Executive Order No. N-79-20.
(6) Determine the economic competitiveness of all sectors of freight movement along the supply chain. This determination shall include an evaluation of the state’s supply chain competitiveness, international trade and exports, manufacturing, warehousing, distribution centers, capacity to support, defend, and aid workforce development, to the extent each of these may impact businesses, workers, and communities as they relate to the freight industry.
(7) Identify metrics and baselines from which to measure the effectiveness of the goals, recommendations, and actions to improve financial performance, market share performance, workforce development, positive labor market effects, emerging technologies including logistics, and overall short- and long-term economic performance of the freight sector.
(8) Assess the relative competitiveness and resiliency of different sectors of the supply chain, the impacts of trends in the economy across the supply chain, and how businesses and the freight sector can be supported under state and federal climate and air pollution policies.
(9) Identify goals to increase economic competitiveness and strengthen resilience to economic downturns and the effects of climate change.
(10) Determine a process to track, at least annually, progress being made to reach the goals and implement the recommendations and other actions.
(11) Identify ongoing strategies the state is employing to address freight mobility issues, such as congestion, truck bottlenecks, inefficiencies, and a lack of workforce training, and prioritize and recommend to the California Transportation Commission and the Transportation Agency complementary or additional strategies to reduce these mobility issues.
(12) Identify challenges the California freight sector faces in meeting the state’s emission reduction goals, quantify the costs associated with meeting those emission reduction goals, and prioritize and recommend strategies the state can use to address these challenges.
(13) Participate in the California Freight Advisory Committee and in all future updates to the California Freight Mobility Plan of the Department of Transportation.
(14) Participate in all future updates to the AB 32 climate change scoping plan, updated every five years pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).

SECTION 1.

It is the intent of the Legislature to enact subsequent legislation relating to increasing efficiency of ports and the goods movement industry.