Gov. Arnold Schwarzenegger has killed a bill that would have protected intermodal truckers from certain actions – including shipper-imposed “fines” – by port terminal operators or shipping lines.

The bill, SB348, was sponsored by Sen. Richard Alarcon, D-San Fernando Valley. It passed the Assembly Aug. 25 51-16, and was OK’d by the Senate Aug. 27 21-5. Schwarzenegger vetoed it Sept. 29, saying it had not had adequate public review.

Bob Jiminez, who works on Sen. Alarcon’s staff, said the legislator introduced the bill in response to fines levied against port truckers.

Jiminez said the truckers are often charged $65 if they don’t return port containers during a specified time period that is written into their contracts. However, sometimes, when truckers attempt to return the containers or other equipment, the gates to the terminal are closed, or some other factor beyond the truckers’ control prevents their returning the container.

That situation is exactly what SB348 was written to address.

“What the bill does, basically, is say that if they’re late and it’s beyond the truckers control, they can’t be fined the $65 a day,” Jiminez said. “And if they do get fined, basically, the bill also says that the shipping companies cannot prevent these truckers from working while they appeal those fines.”

Frances Low, a staff consultant for the California Senate’s Labor Committee, told Land Line the bill mainly targeted fines for late return of port containers. In essence, the truckers didn’t like getting fined when being late wasn’t their fault. SB348 spelled out what situations causing late return would not be regarded as the truckers’ fault – and which ones they could not be fined for.

“For instance, if the port is closed after 5 o’clock on Friday and the trucker was unable to return his container – it’s not a time where the container could be used for other purposes because the port’s closed,” Low said. “So he shouldn’t be fined for those days over the weekend when the shipping company couldn’t even use the container.”

Shipping companies opposed SB348, but truckers, trucking companies and the companies the truckers deliver to all supported it, Low said. The bill has enjoyed bipartisan support in the Legislature as well.

“These are independent truck drivers,” Low said. “These are small businessmen, and the governor has talked a lot about saving jobs and keeping good jobs.

“These truckers are faced with high fuel costs and insurance costs, many of them are leaving the business. … They’re hoping that this type of legislation would be considered good for business.”

However, Schwarzenegger, in his veto message, said the bill’s provisions had not received a full enough review for lawmakers to know their full effect.

“I believe the issue of fees charged to truckers deserves a full airing through the legislative process,” the governor said. “This bill was amended late in the legislation session with entirely new provisions and did not go through the public process.”

– By Mark H. Reddig, associate editor
mark_reddig@landlinemag.com