BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 974
                                                                  Page  1

          Date of Hearing:  July 9, 2007

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                  Pedro Nava, Chair
                    SB 974 (Lowenthal) - As Amended:  May 24, 2007

           SENATE VOTE :  22-12
           
          SUMMARY  :  Imposes a maximum $30 fee on each shipping container  
          processed at the Ports of Los Angeles, Long Beach, and Oakland  
          to fund congestion management and air quality improvement  
          projects related to the ports.  Specifically,  this bill  :  

          1)Establishes various definitions to terms as specified.  

          2)Makes various findings and declarations relative to the burden  
            imposed on the state's highway system due to the sharp  
            increases in "overland" traffic resulting from containers  
            arriving and departing from the ports; needed mitigation of  
            the environmental pollution that is created by the operations  
            at the ports; and the improvement of goods movement  
            infrastructure and reduction of goods movement pollution.  

          3)Establishes the following four funds in the State Treasury:   
            Southern California Port Congestion Relief Trust Fund;  
            Southern California Port Mitigation Relief Trust Fund;  
            Northern California Port Congestion Relief Trust Fund; and  
            Northern California Port Mitigation Relief Trust Fund.  

          4)Requires the Ports of Long Beach, Los Angeles, and Oakland, by  
            January 1, 2008, to develop a process to notify and collect  
            user fees from container cargo owners.  The ports must notify  
            the cargo owners by June 1, 2008, that a maximum $30 per  
            twenty-foot equivalent unit (TEU) user fee will be assessed.   
            Certain information must be provided, such as the process and  
            frequency of payment, and that the user fee is being assessed  
            to improve goods movement infrastructure serving the port, and  
            to reduce pollution from all forms of port-related equipment.   


          5)Requires the three ports to assess the $30 (not to be  
            exceeded) TEU user fee beginning January 1, 2009, and collect  
            the fee twice a year, with 50% of the fees directed to a  
            California Transportation Commission (CTC)-administered  
            congestion relief fund (to fund projects that improve the flow  








                                                                  SB 974
                                                                  Page  2

            and efficiency of container cargo) and 50% to an California  
            Air Resources Board (ARB)-administered mitigation fund (to  
            mitigate environmental pollution caused by cargo movement).   
            Moneys deposited in the funds cannot be loaned or transferred  
            to the General Fund.  

          6)Establishes a process, beginning January 1, 2008, for CTC to  
            select eligible congestion relief infrastructure projects for  
            funding from the Southern California and Northern California  
            Congestion Relief Funds, giving priority to those projects  
            that have been designed to measurably reduce air pollution and  
            environmental impacts to local communities, and assisting in  
            attaining state and federal air quality goals, while  
            addressing the overall efficiency of container cargo movement.  
             Emission requirements are specified for all mobile non-road  
            equipment used on projects.  

          7)Establishes a process, beginning January 1, 2008, for ARB to  
            select port mitigation projects for funding from the Southern  
            and Northern California Port Mitigation Trust Funds that  
            reduce air pollution caused by movement of container cargo at  
            the ports, and are designed to reduce air pollution at the  
            ports in order to reach federal air quality attainment  
            standards.  

          8)Requires the Ports of Long Beach and Los Angeles to report to  
            CTC on implementation of the Final 2006 San Pedro Bay Clean  
            Air Action Plan, and if certain goals are not met, prohibits  
            CTC from awarding funding to any project until the goals are  
            met (other than projects awarded funding prior to this  
            finding).  

          9)Authorizes the California Infrastructure and Economic  
            Development Bank (I-Bank) to enter into financing agreements  
            and issue revenue bonds for the purpose of financing or  
            refinancing port congestion relief and mitigation projects,  
            and specifies parameters for doing so.  

           EXISTING LAW :  

          1)Establishes 11 ports in the state:  Humboldt Bay, Hueneme,  
            Long Beach, Los Angeles, Oakland, Redwood City, Richmond,  
            Sacramento, San Diego, San Francisco, and Stockton.  The law  
            allows each port to lay out, plan, and establish a general  
            plan and port system improvements and prescribe the  








                                                                  SB 974
                                                                  Page  3

            specifications for such improvements.  

          2)Requires, pursuant to the California Coastal Act, that each  
            port governing body prepare and adopt a port master plan that  
            includes:  

             a)   Proposed uses of land and water areas.  

             b)   Projected design and location of port land areas, water  
               areas, berthing, and navigation ways and systems intended  
               to serve commercial traffic within the area of jurisdiction  
               of the port governing body.  

             c)   An estimate of the effect of development on habitat  
               areas and the marine environment, a review of existing  
               water quality, habitat areas, and quantitative and  
               qualitative biological inventories and proposals to  
               minimize and mitigate any substantial adverse impact.  

             d)   Adequate public hearing and public participation in port  
               planning and development decisions.  

          3)Establishes the California Marine and Intermodal  
            Transportation System Advisory Council (CALMITSAC) and  
            requests it to study and compile information on the impacts of  
            port growth on the state's transportation system and report  
            its findings to the Legislature with recommendations on  
            methods to better manage port growth and address the  
            environmental impacts of moving goods through the ports.   
            Establishes it as a regional subunit of the Marine  
            Transportation System National Advisory Council chartered by  
            the federal Secretary of Transportation under the Federal  
            Advisory Council Act.  

          4)Requires a public agency to approve certain mitigation for  
            port projects involving filling of subtidal habitats within  
            ocean or inland ports (Harbors and Navigation Code 1720 et  
            seq.).  

          5)Establishes CTC and sets various duties and procedures for  
            CTC.  CTC is responsible for the programming and allocating of  
            funds for the construction of highway, passenger rail and  
            transit improvements throughout California.  

          6)Authorizes ARB to coordinate efforts to attain and maintain  








                                                                  SB 974
                                                                  Page  4

            ambient air quality standards and specifies its powers.  

          7)Creates I-Bank and specifies its powers.  

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, start-up costs of $200,000/year to ARB from the Air  
          Pollution Control Fund and $100,000/year to CTC from the State  
          Highway Account.  Ongoing costs funded by fee revenues.  I-Bank  
          administrative costs funded through financing agreements.  Fees  
          revenues estimated to reach $500 million in 2008/09, growing to  
          over $1.5 billion annually by 2020 if the projected container  
          volume growth continues as expected.  The fees would discontinue  
          after the eligible projects are constructed and any revenue  
          bonds are paid off.  

           COMMENTS  :  Ports are local government agencies governed by port  
          commissions that are responsible for developing, maintaining,  
          and overseeing the operation of shore side facilities for the  
          intermodal transfer of cargo between ships, trucks, and  
          railroads.  In some cases, certain ports 
          have jurisdiction over affiliated airports, build and maintain  
          terminals for the passenger cruise ship industry, or manage  
          marinas and other public facilities.  Many industrial,  
          manufacturing, and other businesses locate their facilities near  
          ports to take advantage of the low-cost inbound transportation  
          of raw materials and cost-efficient outbound shipments of  
          products for both 
          domestic and foreign markets.  
           
          As public entities, and due to their geographical location,  
          ports are regulated by several state and local government  
          agencies, including the Business, Transportation and Housing  
          Agency, State Resources Agency, Bay Conservation and Development  
          Commission, State Air Resources Board, and the South Coast Air  
          Quality Management District.  

          California's 11 public ports, located along the coast from San  
          Diego to Humboldt and inland along the Sacramento and San  
          Joaquin Rivers, are the global gateways for goods movement.   
          Governed by "port commissions," these local government bodies  
          develop, maintain, and oversee the operation of shore side  
          facilities for the intermodal transfer of cargo between ships,  
          trucks, and railroads.  A significant number of jobs in the  
          state are tied to trade, and the value of international trade  
          alone exceeds $350 billion.  Ports are seen as integral to  








                                                                  SB 974
                                                                  Page  5

          keeping California the sixth largest economy in the world.  

          According to a 2006 report by ARB, pollution from our state's  
          ports causes 2,400 premature deaths annually.  ARB recently  
          estimated that over the next 15 years, polluting activity from  
          operations at California's ports will have an aggregate health  
          impact equivalent to approximately $200 billion in present value  
          dollars.  

          A disproportionate number of communities impacted by port  
          pollution are low-income communities of color, the state  
          currently shoulders much of these port-caused health costs.  By  
          2020, ports and freight transport operations will be the largest  
          source of particulate matter (PM) and nitrogen oxide (NOx)  
          emissions in the state, producing more diesel PM than all  
          passenger vehicles, off-road equipment and stationary sources  
          combined.  

          According to the Los Angeles Economic Development Corp.,  
          Southern California must spend at least $10.5 billion to improve  
          railroads, rail yards and highways to keep up with surging  
          international trade or risk losing more than 500,000 new jobs  
          and more than $1 billion of taxes a year.  Inefficiencies in the  
          freight transport system are costly to the state.  Improving our  
          rail system will reduce the number of diesel trucks on our  
          freeways and alleviate congestion.  For example, "on-dock rail"  
          is a less polluting and more efficient alternative to trucking  
          goods on our freeways.  Congestion costs Southern California  
          more than $10 billion in 2003.  

          Southern California risks losing $12.1 billion in federal  
          highway funds if federal Clean Air Act standards aren't met.  So  
          far, the basin has failed to meet national standards for ozone  
          or for particulate emissions.  

          Trade activity loss/diversion?:  The results from two research  
          studies examining the potential for diversion expressly due to  
          container fees suggest that significant diversion is unlikely  
          with a $30/TEU container fee.  A study commissioned by the  
          Southern California Association of Governments between 2003 and  
          2005 found that cargo volumes are more sensitive to congestion  
          than to cargo fees.  Without congestion relief, the study found  
          that even a modest container fee would result in the diversion  
          of some cargo.  With congestion relief, however, volume cargos  
          would remain constant with a container fee up to $200/TEU.  A  








                                                                  SB 974
                                                                  Page  6

          study titled "Cargo on the Move in California:  Evaluating  
          Container Fee Impacts on Port Choice" conducted by Energy and  
          Environmental Research Associates LLC found that a $30/TEU fee  
          at the Ports of Los Angeles and Long Beach would increase a  
          shipper's voyage costs 1.5% to 2.5%, but given the high demand  
          for those ports, diversion is estimated to be less than 1.5%.   
          The same fee imposed at the Port of Oakland would increase  
          voyage costs 1.5% to 2.7%, and diversion is estimated to range  
          from 2% to 4.7%.  Given that trade activity at the ports is  
          expected to double or triple by 2020, the authors conclude that  
          any diversion that occurs as a result of a $30/TEU container fee  
          would be rendered "unobservable."  

          Fee and commerce clause issue:  Due to concerns that the SB 974  
          user fee is a tax, Legislative Counsel concludes that "it is our  
          opinion that a court faced with the question would find that the  
          charge proposed under Section 1745 is a valid regulatory fee  
          imposed under the police power of the state, as long as the  
          amount of the charge assessed does not exceed the reasonable  
          cost of providing the services described, and that amount bears  
          a reasonable relationship to the burdens created by the marine  
          terminal operators."  

          Regarding the commerce clause issue, Legislative Counsel  
          concludes that "there is not federal legislation relating to the  
          subjects addressed under [Section 1745].  Thus, it is our view  
          that, generally, the state may legislate in this area" and that  
          "we conclude that the charge proposed under Section 1745 would  
          survive scrutiny under the commerce clause of the United States  
          Constitution as a legitimate regulatory fee imposed under the  
          police power of the state."  

          Port of Oakland:  The Port of Oakland proposes several  
          amendments that basically would allow them to control the funds,  
          since they are locally-collected, instead of statewide  
          authorities as identified in the bill.  

          Port of Long Beach:  The Port of Long Beach voted to support  
          this bill provided the bill is amended as follows:  

          1)Require that user fees must be spent where collected.  

          2)Allow the use of user fee funds for port-related highway  
            projects, such as the Gerald Desmond Bridge replacement  
            project and the State Highway 47 project.  








                                                                  SB 974
                                                                  Page  7


          3)Eliminate restrictions placed upon the port if emission  
            reduction goals are not achieved due to circumstances beyond  
            their reasonable control.  

          San Pedro Bay Ports Clean Air Action Plan:  Approved by the  
          governing boards of the Ports of Los Angeles and Long Beach on  
          November 20, 2006, the San Pedro Bay Ports Clean Air Action Plan  
          is "the most comprehensive strategy to cut air pollution and  
          reduce health risks ever produced for a global seaport complex."  
           Additionally, port staff were directed to develop:  A truck  
          replacement program to phase out all "dirty" diesel trucks from  
          the ports in five years, replaced with a new generation of clean  
          or retrofitted vehicles and driven by people who earn at least  
          the prevailing wage; aggressive milestones with measurable goals  
          for air quality improvements; recommendations to eliminate  
          emissions of ultra-fine particulates; a technology advancement  
          program to reduce green house gases; and a public participation  
          process with environmental organizations and the business  
          communities.  

          CALMITSAC:  AB 2043 (Lowenthal) Chapter 942, Statutes of 2004,  
          requires CALMITSAC to hold public hearings, compile  
          comprehensive data on port-related issues, and report to the  
          Legislature on its findings.  The report was released on May 1,  
          2007.  The report indicates that "The bond initiative alone  
          won't solve California's goods movement problems however.  Other  
          solutions are needed.  The shipping industry strongly opposes  
          legislatively imposed container fees and Customs carve-outs.   
          CALMITSAC opposes both in this report.  This does not mean that  
          industry arbitrarily opposes all user fees; but there should be  
          a clear distinction between a legislatively imposed fee and a  
          negotiated fee for projects that benefit the industry.   
          Project-specific revenue streams for focused, well-managed  
          projects can be protected for the benefit of bondholders and  
          users alike.  Specific plans of finance must be developed around  
          a limited set of high-priority projects; i.e., future success  
          stories, that all stakeholders agree are absolutely essential,  
          as opposed to mandating user fees through legislation."  

          Opposition:  Tax opposition agencies contended that this bill  
          really imposes a new tax and that taxes called fees are an  
          end-run around the Constitution.  They believe that the tax/fee  
          should require a two-thirds vote for approval and imposition.   
          These opponents also cite general opposition to majority-vote  








                                                                  SB 974
                                                                  Page  8

          taxes disguised as fees and that such charges damage future  
          economic growth in the state.  They believe the new fees will  
          increase the costs of goods and services and place a drag on the  
          economy.  

          The Hawaiian Chamber of Commerce says that its 1100 local  
          businesses are joining to ask California legislators to vote  
          against California SB 974.  Hawaii is dependent on goods being  
          shipped there from California.  The chamber and Hawaii shippers  
          estimate that the fee would cost businesses $68 million dollars  
          a year, or $50 for every man, woman and child in Hawaii.  

          Committee questions:  This bill places an unequal burden upon  
          the Ports of Long Beach and Los Angeles that is not concurrently  
          placed upon the Port of Oakland regarding the withholding of  
          locally-collected funds in the event emission reduction goals as  
          identified in existing regional and local emission reduction  
          plans are not met.  As the San Pedro ports have developed a  
          voluntary port air emission reduction plan, to have their  
          locally-generated funds withheld from allocation to them, should  
          identified goals not be met, does not seem justifiable,  
          especially when considering that the Port of Oakland is not held  
          to the same funding requirement and that emission increases  
          could be attributed to sources beyond their control.  The author  
          may wish to speak to this conditioned inequity that is placed  
          upon the southern ports and not Oakland.

          Related legislation:  SB 927 (Lowenthal) and SB 760 (Lowenthal)  
          2006, would have imposed a fee on containers that are discharged  
          at the Ports of Long Beach and Los Angeles in order to fund rail  
          system improvements, pollution mitigation measures, and port  
          security enhancements.  SB 760 was held under submission by the  
          Assembly Appropriations Committee.  SB 927 was vetoed by the  
          Governor indicating that "this measure is flawed in its  
          construction, application, lack of accountability and failure to  
          coordinate with other public and private financing sources  
          ignoring opportunities to leverage additional funding."  
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           

           ----------------------------------------------------------------- 
          |Alameda Corridor-East           |Gateway Chamber Alliance        |








                                                                  SB 974
                                                                  Page  9

          |Construction Authority          |Gateway Council of Governments  |
          |American Academy of Pediatrics, |(27 cities)                     |
          |California Division             |Interfaith Environmental        |
          |American Cancer Society         |Council                         |
          |American Heart Association      |Lakewood Chamber of Commerce    |
          |American Lung Association of    |Long Beach Alliance for         |
          |California                      |Children with Asthma            |
          |Asthma Coalition of Los Angeles |Long Beach Unified School       |
          |County                          |District                        |
          |Bay Area Air Quality Management |Los Angeles Alliance for a New  |
          |District                        |Economy                         |
          |Breast Cancer Fund              |Los Angeles County Metropolitan |
          |Breathe California              |Transportation Authority        |
          |California Air Pollution        |Mayor, Todd Campbell, City of   |
          |Control Officers Association    |Burbank                         |
          |California League of            |Mayor, Curt Pringle, City of    |
          |Conservation Voters             |Anaheim                         |
          |California Natural Gas Vehicle  |Medical Advocates for Healthy   |
          |Coalition                       |Air                             |
          |California Nurses Association   |Natural Resources Defense       |
          |California Teamsters            |Council                         |
          |California Thoracic Society     |Parents for a Safer Environment |
          |Cerritos Chamber of Commerce    |Parents for Safer Schools       |
          |City of Burbank                 |Physicians for Social           |
          |City of Cudahy                  |Responsibility                  |
          |City of Downey                  |Planning and Conservation       |
          |City of Lakewood                |League                          |
          |City of Long Beach              |Plug In America                 |
          |City of Commerce                |Port of Long Beach (support     |
          |City of Signal Hill             |only if amended)                |
          |City of South Gate              |Progressive Christians Uniting  |
          |Coalition for Clean Air         |Regional Asthma Management &    |
          |Coalition for A Safe            |Prevention Initiative           |
          |Environment                     |San Gabriel Valley Council of   |
          |Coalition on the Environment    |Governments                     |
          |and Jewish Life                 |San Gabriel Valley Economic     |
          |of Southern California          |Partnership                     |
          |Communities for Clean Ports     |Santa Barbara County Air        |
          |Community Action to Fight       |Pollution Control District      |
          |Asthma                          |San Francisco Medical Society   |
          |Consumer Attorneys of           |SEIU Local 721 (85,000 members) |
          |California                      |Sierra Club California          |
          |Downey Chamber of Commerce      |South Coast Air Quality         |
          |East Yard Communities for       |Management District             |
          |Environmental Justice           |South Bay Cities Council of     |








                                                                  SB 974
                                                                  Page  10

          |Elizabeth Hudson Elementary     |Governments                     |
          |School -                        |Strategic Concepts in           |
          |Environmental Committee         |Organizing & Policy Education   |
          |Environmental Entrepreneurs     |South Gate Chamber of Commerce  |
          |End Oil                         |Union of Concerned Scientists   |
                                           |Environment California          |West Long Beach Association     |
          |Environmental Defense           |West Oakland Environmental      |
          |Friends of the Earth            |Indicators                      |
          |                                |                                |
           ----------------------------------------------------------------- 


           Opposition
           

           ----------------------------------------------------------------- 
          |Abercrombie and Fitch           |California Retailers            |
          |ACG Cotton Marketing LLC        |Association                     |
          |Ag Processing, Inc.             |California Seed Association     |
          |Agricultural Council of         |California Taxpayers            |
          |California                      |Association                     |
          |Agriculture Transportation      |California Trade Coalition      |
          |Coalition                       |California Trucking Association |
          |Allenberg Cotton Co.            |California Warehouse            |
          |Allen Group                     |Association                     |
          |Aloha Airlines                  |Carriere Family Farms           |
          |American Apparel and Footwear   |Castle & Cooke Homes Hawaii,    |
          |Association                     |Inc.                            |
          |American Chemistry Council      |Casual Male Retail Group, Inc.  |
          |American Cotton Shippers        |Central Pacific Bank            |
          |Association                     |Chamber of Commerce of Hawaii   |
          |American Council for Food       |Charming Shoppes, Inc.          |
          |Safety and Quality              |Circuit City                    |
          |American Eagle Outfitters Inc.  |Coalition Opposed to SB 974     |
          |American Electronics            |Coca-Cola Bottling Company of   |
          |Association                     |California                      |
          |American Foods Group            |Coca-Coal Bottling Co. of       |
          |American Forest and Paper       |Southern CA                     |
          |Association                     |Colorado Food Products          |
          |American Import Shippers        |Columbine Vineyards of Delano,  |
          |Association                     |CA                              |
          |Anheuser-Busch Companies, Inc.  |Corona Chamber of Commerce      |
          |Anzco Foods North American,     |Crain Walnut Shelling, Inc.     |
          |Inc.                            |Crate & Barrel                  |
          |APL                             |CTP Transport, Inc.             |








                                                                  SB 974
                                                                  Page  11

          |Association of International    |Dairy America, Inc.             |
          |Automobile Manufacturers        |Del Monte Foods                 |
          |Association of Recycling        |Derco Associates, Inc.          |
          |Industries                      |Diamond Foods, Inc.             |
          |Badger Forest Products          |Distilled Spirits Council       |
          |Bank of Hawaii                  |Dole Food Company, Inc.         |
          |Beall's, Inc.                   |Dressbarn, Inc.                 |
          |Belk, Inc.                      |Duncan and Sons Lines, Inc.     |
          |Best Buy                        |DVN Louis Dreyfus Corporation   |
          |Blue Diamond Growers            |E.I. DuPont de Nemours & Co.    |
          |Bonanza Foods and Provisions,   |ECOM USA, Inc.                  |
          |Inc.                            |Edwards Luggage                 |
          |Bon-Ton Stores, Inc.            |EFI Logistics, Inc.             |
          |Border Valley Trading LTD       |Ethan Allan Global, Inc.        |
          |Borders Group, Inc.             |First Hawaiian Bank             |
          |Borges of California            |Food Marketing Institute        |
          |Boscov's Department Stores,     |Gap Inc.                        |
          |LLC.                            |Grain Millers, Inc.             |
          |Braun Export                    |Greater Bakersfield Chamber of  |
          |Burger King, Inc.               |Commerce                        |
          |CA Commodity Export Corporation |Grocery Manufacturers/Food      |
          |Calcot LTC                      |Products Association            |
          |California Bean Shippers        |Harland M. Braun and Company    |
          |Association                     |Hawaii Island Chamber of        |
          |California Business Properties  |Commerce                        |
          |Association                     |Hawaii Korean Chamber of        |
          |California Cattlemen's          |Commerce                        |
          |Association                     |Hawaii Tourism Authority        |
          |California Chamber of Commerce  |Hedley Construction and         |
          |California Citrus Mutual        |Development                     |
          |California Cotton Ginners and   |Heineken USA, Inc.              |
          |Growers Association             |Hewlett-Packard Company         |
          |California Farm Bureau          |Home Depot                      |
          |Federation                      |Howard Jarvis Taxpayers         |
          |California Fisheries and        |Association                     |
          |Seafood Institute               |Institute of Scrap Recycling    |
          |California Grain and Feed       |Industries                      |
          |Association                     |Intel Corporation               |
          |California Grape and Tree Fruit |JC Penny                        |
          |League                          |Jo-Ann Fabric and Craft Stores  |
          |California Grocers Association  |Jockey International            |
          |California Independent Grocers  |Kailua Chamber of Commerce      |
          |Association                     |Kohl's Corporation              |
          |California League of Food       |Lake Elsinore Valley Chamber of |
          |Processors                      |Commerce                        |








                                                                  SB 974
                                                                  Page  12

          |California Manufacturers &      |Leading Lady                    |
          |Technology Association          |                                |
          |California Metals Coalition     |                                |
          |California Nevada Soft Drink    |                                |
          |Association                     |                                |
          |California Railroad Industry    |                                |
          |California Restaurant           |                                |
          |Association                     |                                |
          |California Taxpayers'           |                                |
          |Association                     |                                |
          |                                |                                |
           ----------------------------------------------------------------- 
           
           ----------------------------------------------------------------- 
          |Levi Strauss & Co.              |Refuse Removal Council          |
          |Limited Brands, Inc.            |Rekerdres and Sons Insurance    |
          |Limtiaco Company                |Retail Industry Leaders         |
          |Linens-N-Things                 |Association                     |
          |Liz Claiborne Inc.              |Retail Merchants of Hawaii      |
          |Long Beach Area Chamber of      |Rite-Aid                        |
          |Commerce                        |Rocky Brands, Inc.              |
          |Lowes                           |Safeway, Inc.                   |
          |Macy's/Macy's West              |SAMPCO, Inc.                    |
          |Mallory Alexander International |San Rafael Luggage Center       |
          |Logistics                       |Seaboard Foods LP               |
          |Mathiesen Maritime Services,    |Securakey                       |
          |Inc.                            |Seven-Eleven                    |
          |Matson Navigation Company       |Smurfit-Stone Container Company |
          |Maurice's, Inc.                 |Sonnet Technologies             |
          |Mazda North American Operations |Southlands Organic Ltd          |
          |Meat Importers Council of       |Southwest California            |
          |America                         |Legislative Council             |
          |Meridian Nut Growers LLC        |Southwest Hide Company          |
          |Michaels Arts and Crafts        |Specialty Crop Trade Council    |
          |Midwest Shippers Association    |Spencer Gifts LLC               |
          |Miller Brewing Company          |Spirit Halloween Superstores    |
          |Milpitas Chamber of Commerce    |Sporting Goods Manufacturers    |
          |Mohawk Industries               |Association                     |
          |Murphy Imports, LLC             |SSA Marine                      |
          |Murrieta Chamber of Commerce    |Starboard Alliance Company      |
          |NAIOP Inland Empire             |Stop Hidden Taxes Coalition     |
          |NAIOP SoCal                     |Sunview Marketing International |
          |National Association of         |Target                          |
          |Industrial and Office           |Temecula Valley Chamber of      |
          |Properties - CA State Council   |Commerce                        |








                                                                 SB 974
                                                                  Page  13

          |National Association of         |The Kitchen Collection, Inc.    |
          |Manufacturers                   |The Refrigerated Shipping       |
          |National Chicken Council        |Association                     |
          |National Coffee Association     |TJX Companies, Inc.             |
          |National Federation of          |Toy Association of Southern     |
          |Independent Business            |California                      |
          |National Industrial             |Toy Industry Association, Inc.  |
          |Transportation League           |Transgroup Worldwide Logistics  |
          |National Retail Federation      |Travel Goods Association        |
          |National Turkey Federation      |U.S. Association of Importers   |
          |Natural & Organic Imports       |of Textiles & Apparel           |
          |Neiman Marcus                   |U.S. Chamber of Commerce        |
          |New Balance Athletic Shoe, Inc. |United Chambers of Commerce of  |
          |Newell Rubbermaid Inc.          |the San Fernando Valley         |
          |Nike, Inc.                      |United Laundry Services, Inc.   |
          |Nisei Farmers League            |United States Council for       |
          |North Dakota Department of      |International Business          |
          |Agriculture                     |U.S. Dairy Export Council       |
          |Office Depot                    |USA Poultry & Egg Export        |
          |OZ Logistics Inc.               |Council                         |
          |Pacific Coast Council of        |Valley Industry and Commerce    |
          |Customs Brokers & Freight       |Association                     |
          |Forwarders                      |Vergel N. Adonis Realty Inc.    |
          |Pacific Egg and Poultry         |VF Outdoor, Inc.                |
          |Association                     |Voit Development Company        |
          |Pacific Merchant Shipping       |Walgreens                       |
          |Association                     |Wal-Mart Stores, Inc.           |
          |Panasonic Corporation of North  |Washington State Potato         |
          |America                         |Commission                      |
          |Payless Shoe source             |Waterfront Coalition            |
          |Perry Ellis International       |Weil Brothers Cotton, Inc.      |
          |Pier 1 Imports                  |Western Cotton Shippers         |
          |Polo Ralph Lauren Corporation   |Association                     |
          |Preferred Freezer Services      |Western Growers                 |
          |Ralphs Grocery Company          |Western Home Furnishings        |
          |Red Wing Shoe Company           |Association                     |
          |Redondo Beach Chamber of        |Western United Dairymen         |
          |Commerce                        |Wilson Homecare                 |
          |Regional Legislative Alliance - |Wine Institute                  |
          |Venture/Santa Bara              |World Sake Imports              |
          |Counties                        |WS Badcock Corp, DBA Badcock    |
          |                                |Home Furnishings                |
          |                                | and More                       |
          |                                |                                |
          |                                |                                |








                                                                  SB 974
                                                                  Page  14

           ----------------------------------------------------------------- 
           

           Analysis Prepared by  :    Ed Imai / TRANS. / (916) 319-2093