An Act to Add Chapter 69 (commencing with Section 16900) to Part 6 of Division 3 of Title 2 of the Government Code, Relating to Shipbuilding and Regional Trade Corridors. **THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:** **SECTION 1.** Chapter 69 (commencing with Section 16900) is added to Part 6 of Division 3 of Title 2 of the Government Code, to read: **CHAPTER 69. District 69 American Shipbuilding and Corridor Act** **Article 1. General Provisions and Findings** **16900.** This chapter shall be known as the District 69 American Shipbuilding and Corridor Act. **16901.** The Legislature finds and declares: (a) California needs resilient domestic capacity to design, build, and deliver commercial ocean-going vessels. (b) A single, defined shipbuilding district provides a transparent framework for evaluating production capacity, employment, capital sources, supply-chain participation, and fiscal performance. (c) California’s port, maritime, industrial, and research infrastructure can support one carefully planned shipbuilding facility. (d) Public and private capital must be recorded separately so taxpayers, investors, regulators, and the public can evaluate sources and uses of funds. (e) A production corridor linking California with Central America, Colombia, and Venezuela can support access to steel and fabricated components, subject to all applicable trade, customs, security, environmental, and international requirements. (f) A finding of benefit requires a stated criterion and sufficient evidence. If the criterion is not met, the result is recorded as “not met.” **16902.** The purpose of this chapter is to: (a) Establish District 69 as a single shipbuilding district. (b) Authorize evaluation of one shipbuilding Facility within the District. (c) Create a transparent planning, employment, capital, and fiscal-reporting framework. (d) Support a defined production corridor for steel and fabricated components. (e) Ensure public reporting is evidence-based and publicly accessible to the extent permitted by law. **Article 2. Definitions** **16905.** (a) “District” means District 69. (b) “Facility” means the single shipbuilding facility authorized under this chapter. (c) “Vessel” means a commercial ocean-going ship completed at the Facility and delivered to a purchaser. (d) “Average Vessel Value” means fifty-five million dollars ($55,000,000) per Vessel (planning basis only). (e) “Direct Job” means a position employed directly at the Facility (excludes suppliers, construction contractors, and induced employment). (f) “Operating Margin” means operating profit divided by revenue from delivered Vessels, expressed as a percentage. (g) “Corridor” means the production and freight route carrying steel and fabricated components from Central America, Colombia, and Venezuela toward California. (h) “Fiscal Reviewer” means the County of San Diego Auditor and Controller. (i) “Sponsor” means Fiveo1, through its author Evan Winter. (j) “Facility Operator” means the public or private entity responsible for operating the Facility if developed. **Article 3. Establishment of District 69 and Production Planning** **16910.** (a) District 69 is established as a shipbuilding district for the construction of Vessels in California. (b) The District comprises one Facility. Candidate locations under evaluation include the Long Beach area and Santa Catalina Island. (c) Final location shall be selected through applicable legislative, local government, coastal, environmental, port, and land-use processes. This chapter does not approve, entitle, fund, or compel development at any specific site. (d) The District authorizes no more than one Facility. **16915.** Production planning basis (planning assumptions only; not guarantees): (a) 25–40 Vessels per year. (b) At Average Vessel Value, annual revenue ranges from $1.375 billion (25 Vessels) to $2.2 billion (40 Vessels). (c) Operating Margin planning basis: 8–10 %, yielding annual operating profit of approximately $110 million to $220 million. **Article 4. Employment, Materials, Capital, and Future Growth Projections** **16920.** Employment (a) Planning basis for Direct Jobs: 3,000–5,000 positions at the Facility. (b) Direct Jobs shall be reported separately from supplier, construction-contractor, and induced employment. Categories shall not be combined. **16922.** Materials and Corridor (a) Steel and fabricated components may be sourced from Central America, Colombia, and Venezuela, subject to all applicable trade, customs, sanctions, security, quality, environmental, and import requirements. (b) Corridor route, treaty requirements, border procedures, port access, and permitting remain matters for the responsible national and international authorities. (c) Any subterranean high-speed metro, port expansion, rail connection, highway improvement, or other transportation component is a separate project requiring its own cost estimate, environmental review, financing plan, and governmental approval. **16925.** Capital framework (a) Sized to one Facility at the production basis in Section 16915; does not authorize a multi-facility national program. (b) Public funds, private funds, and foreign venture capital shall be recorded in separate ledgers identifying source, amount, purpose, and terms. (c) A foreign shipbuilding partner may participate through venture, joint-development, licensing, supply, or technology-transfer agreement, with ownership and governance terms disclosed in annual reports to the extent permitted by law. **16926.** Future growth, expansion, and development projections (planning horizon 2027–2036; non-binding) (a) **Years 1–3 (startup / ramp-up):** 10–20 Vessels/year; 1,500–3,000 Direct Jobs; focus on facility construction, workforce training, and initial Corridor contracts. (b) **Years 4–7 (steady-state):** 25–40 Vessels/year; 3,000–5,000 Direct Jobs; Operating Margin target 8–10 %. (c) **Years 8–10 (expansion option):** Subject to demonstrated performance, market demand, and separate legislative and environmental approval, capacity may increase to 45–60 Vessels/year and Direct Jobs to 5,500–7,500. Any expansion remains limited to the single Facility authorized by this chapter and requires new capital ledgers, updated environmental review, and explicit legislative authorization. (d) All figures are planning projections only. Actual outcomes shall be measured against the criteria and evidence requirements of Article 5. **Article 5. Reporting, Fiscal Review, and Administration** **16930.** (a) If the Facility is developed, the Facility Operator shall submit an annual report to the Fiscal Reviewer detailing: vessels delivered, revenue, operating margin, Direct Jobs, capital sources by ledger, Corridor sourcing volumes, environmental and training metrics, and the criteria and evidence used for each finding of benefit. (b) Each finding shall state the criterion applied, supporting evidence, and whether the criterion was met, not met, or undetermined. Unsupported statements shall be recorded as such. (c) Reports are public records to the extent permitted by law protecting trade secrets, personal privacy, and confidential commercial information. **16935.** (a) Annual reports and statutory filings shall be furnished to: County of San Diego, Auditor and Controller Attention: Auditor and Controller Tracy Drager County Operations Center, 5500 Overland Avenue, Suite 470 San Diego, CA 92123 Email: auditor@sdcounty.ca.gov (b) Copies may be coordinated with the Office of Audits and Advisory Services (Chief of Audits Juan Perez) and Property Tax Services (Manager Rebecca Greene) at the same address. (c) Designation of these offices is a proposal of this chapter and does not state or imply that the named offices have reviewed, approved, endorsed, funded, or agreed to administer this chapter. **Article 6. Severability** **16940.** If any provision of this chapter or its application is held invalid, the remainder of the chapter and the application of its provisions to other persons or circumstances shall not be affected. **SEC. 2.** This act takes effect immediately upon enactment in accordance with the California Constitution. --- **Sponsor** Fiveo1 Evan Winter P.O. Box 312786 Avalon, California 90704 Santa Catalina Island October 2026 **Form:** Proposed public bill, submitted to a member of the Legislature for sponsorship.