Governor terminates California container tax

By Staff -- Logistics Management, 9/27/2006

WASHINGTON—Governor Arnold Schwarzenegger has vetoed the container tax bill, Senate Bill 927.  In returning the bill back to Members of the California State Senate, the Governor said the 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."

In issuing the veto the Governor said while he agrees with the objectives of S.B. 927 that would develop more secure ports, congestion relief and environmental mitigation, this measure he said, "provides no mechanism for the usage of fees collected to favorably leverage the billions of dollars in available funding to develop public private partnerships."

The Governor also cited the bill's negative impact on exports, "it is very important that any measure that increases fees that impact exporters not have the unintended consequence of negatively impacting the sale and delivery of goods grown and manufactured in California."

For a complete copy of the Governor's message, click here.

The League thanks all members who communicated with the Governor's office in voicing their concerns over this bill.