NRF to Schwarzenegger: Hasta la vista to container bill
The National Retail Federation said it has urged California Gov. Arnold Schwarzenegger to veto legislation that would impose a $60 fee on containers moving through the nation’s two largest ports (Long Beach and Los Angeles), saying the measure would force retailers to bring imported goods into the country through ports in other states.
“Container fees of the sort contemplated in the bill would violate the Commerce Clause of the U.S. Constitution, international law and U.S. treaty obligations, and would expose the state of California to court challenge were it to become law,” said Tracy Mullin, NRF president and chief executive officer, in a letter to Schwarzenegger Wednesday. “In addition, the fee would substantially increase the cost of moving goods through L.A.-Long Beach and adversely impact these ports’ competitiveness and workforce as retailers and other shippers are forced to look for alternative ports outside the state of California to enter their goods.”
SB 927, sponsored by state Sen. Alan Lowenthal, D-Long Beach, passed the state Senate 22-16 Aug. 31, one day after being approved 42-35 in the state Assembly, and is now awaiting action by Schwarzenegger.
The measure, which NRF estimates would cost retailers and other shippers $500 million a year, would impose a $60 tax on each 40-foot container moving through the ports of Los Angeles and Long Beach.
Supporters say the bill would raise funds for improving port security, cleaning up pollution and building port infrastructure, but the measure is written in a way that would allow it to be used for non-transportation projects and initiatives as well, NRF added.
NRF to Schwarzenegger: Hasta la vista to container bill
