HB2027 HSCR24-02

 

STAND. COM. REP. NO.24-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2027

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 2027 entitled:

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

begs leave to report as follows:

The purpose of this bill is to provide equitable treatment to all users of state wharves and aid local businesses by eliminating wharfage fees at the intermediate port for interstate and intrastate cargo destined for the Neighbor Islands.

Testimony in favor of this measure was submitted by Young Brothers, Ltd. The Department of Transportation (DOT) and Matson Navigation Company testified in opposition to this bill.

Current law provides for an exemption of wharfage fees of domestic overseas or foreign cargo, transshipped to the Neighbor Islands via Honolulu, from wharfage fees at intermediate ports. However, cargo, bound for the neighbor islands, which must be stored, repacked, or processed in Honolulu before being shipped to its ultimate destination, is subject to wharfage fees at the intermediate port. This is also true for cargo being shipped between Neighbor Islands. Your Committee feels that this fee makes it difficult for local companies to compete with mainland concerns who can ship their goods directly to the neighbor islands on through bills of lading. This bill will correct this inequity and level the playing field among shipping companies throughout Hawaii.

Although DOT felt that this inequity could be dealt with through their administrative rules, it was pointed out by your Committee that attempts to solve this problem via administrative rules have failed over the last three years and that legislative action was necessary to address the concerns of equitable shipping practices.

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. 2027 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

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

 

		____________________________ JOSEPH M. SOUKI, Chair