HOUSE OF REPRESENTATIVES

H.C.R. NO.

276

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

Opposing the enactment by the california state legislature of a bill proposing to impose a fee on the processing of shipping containers in the state of california because of the negative impact of the fee on the people and the economy of the state of hawaii.

 

 

 


     WHEREAS, California has been one of the primary gateways to Hawaii for a great number of years, serving as an access point to Hawaii even before Hawaii became the 50th State in the Union; and

 

     WHEREAS, the people of the State of Hawaii continue to depend on ships and barges to move the majority of the necessities of daily life from the State of California to Hawaii; and

 

     WHEREAS, over 90 percent of all the value of goods shipped to Hawaii are shipped by water; and

 

     WHEREAS, most of the products produced in Hawaii and bound for the Continental United States are shipped by water to ports in California; and

 

     WHEREAS, Senate Bill 974, currently pending before the California State Legislature, would impose a fee of $30 per 20-foot equivalent unit on every cargo container traveling between California and Hawaii; and

 

     WHEREAS, most cargo containers used to transport goods to and from Hawaii are at least two 20-foot equivalent units, subjecting these containers to a fee of $60 each time the container leaves or returns to California regardless of whether the container is empty, partially loaded, or full; and


     WHEREAS, because of Hawaii's unique dependence on shipping for the goods used in its people's daily lives, and these goods are shipped primarily from ports in California, enactment of Senate Bill 974 would have a detrimental effect on the trading relationship between California and Hawaii and would damage Hawaii's economy and cripple the major islands in Hawaii by raising the cost of living for Hawaii's people by several percent; and

 

     WHEREAS, the Legislature recognizes that California ports are experiencing a serious problem with freight congestion and that this problem not only negatively impacts California but has negative consequences for Hawaii as well; and

 

     WHEREAS, the Legislature also recognizes that the efficient and economical transport of freight along the West Coast of the United States is a regional issue that takes a regional solution, a solution that the State of Hawaii is willing to help find; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the Senate concurring, that the Legislature respectfully requests the California State Legislature to recognize the negative effect that Senate Bill 974 would have on the trading relationship between California and Hawaii and the economic costs associated with that negative effect to both states; and

 

     BE IT FURTHER RESOLVED that the Legislature respectfully requests the California State Legislature to also recognize the negative effect that Senate Bill 974 would have on the people and the State of Hawaii; and

 

     BE IT FURTHER RESOLVED that the Legislature opposes the enactment of Senate Bill 974 and urges the California State Legislature to consider alternative means for raising revenue for infrastructure of California ports; and


     BE IT FURTHER RESOLVED that the Legislature is willing to assist, and will work with, the California State Legislature to find a mutually beneficial means for the efficient and economic transport of goods between Hawaii and California; and

 

     BE IT FURTHER RESOLVED that the Legislature urges the Attorney General to research the legal issues raised by the tax on shipping containers proposed in Senate Bill 974; and

 

     BE IT FURTHER RESOLVED that if the tax in Senate Bill 974 is enacted and the facts and law support an action by the State of Hawaii to challenge the tax, the Legislature urges the Attorney General to immediately file a complaint and request an injunction in the federal district court and in any other forum that could provide relief; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Honorable Arnold Schwarzenegger, Governor of the State of California; the Honorable John Garamendi, Lieutenant Governor of the State of California; the California State Senate; the California State Assembly; the Honorable Linda Lingle, Governor of the State of Hawaii; the Honorable James Aiona, Lieutenant Governor of the State of Hawaii; and Hawaii's Congressional Delegation.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Opposing the enactment by the Legislature of the State of California of a bill proposing to impose a fee on the processing of shipping containers in the State of California because of the negative impact of the fee on the people and the economy of the State of Hawaii.