STAND. COM. REP. 485

Honolulu, Hawaii

, 2003

RE: H.B. No. 458

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 458 entitled:

"A BILL FOR AN ACT RELATING TO WHARFAGE FEES,"

begs leave to report as follows:

The purpose of this measure is to provide equity among all users of state wharves by exempting interstate and intrastate shipping cargo from wharfage fees at intermediate ports within the State.

The Pineapple Growers Association of Hawaii, Meadow Gold Dairies, Hawaii Food Industry Association, and Hawaii Farm Bureau Federation testified in support of this measure. Young Brothers Limited testified in support of the intent of the measure. The Department of Transportation (DOT) and Matson Navigation Company testified in opposition to this measure.

Current law provides for an exemption from wharfage fees of interstate cargo originating outside of Hawaii. This exemption appears to discriminate against local companies using state wharves for inter-island transport.

Your Committee understands the concerns raised by DOT regarding the loss of approximately $25,000,000 in revenues because of the broad definition of "intermediate ports". Accordingly, your Committee has amended this measure by:

(1) Limiting the exemption from wharfage fees to outgoing inter-island cargo moved over state wharves; and

(2) Making technical, nonsubstantive amendments for purposes of clarity, conformity, and style.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 458, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 458, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Transportation,

 

____________________________

JOSEPH M. SOUKI, Chair