Governor Schwarzengger Vetoes L.A./Long Beach Container Fee Bill
California Governor Arnold Schwarzengger recently vetoed SB 927, a bill passed by the California Legislature that would have imposed a container fee of $30 per twenty foot equivalent unit (TEU) and $60 per forty foot equivalent unit (FEU) on all cargo – both imports and exports – moving through the ports of Los Angeles and Long Beach, the two busiest U.S. ports.
In his veto statement, the Governor said that the bill "is flawed in its construction" and that it is drafted "to include only two ports and applies only to goods shipped in containers, ignoring all other forms of shipping and ports of entry." He also stated that the bill would have a negative impact on the "the sale and delivery of goods grown and manufactured in California."
The bill was opposed by many trade groups, including the California Chamber of Commerce, Los Angeles Area Chamber of Commerce, National Retail Federation, Retail Industry Leaders Association, California Manufacturers and Technology Association, Waterfront Coalition, Wine Institute, California Farm Bureau, California Trade Coalition, and Pacific Merchant Shipping Association.
Many legal experts believed that the container "user fees" established by SB 927 would have been held to be unconstitutional.
The author of the bill, Senator Alan Lowenthal told the Governor that "I'll be back" with similar legislation next year.
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