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Home My WebLink AboutCOM 0521.001 2000-2002 e+~v'°S'" ~'e r, AL KONISHI ;'~~.e COIvSTANCE R. KIRIU County Clerk Native Auditor DONALD IKEDA ~ F~'~ f l~~ i~~~ F~ ~ ' ! 1 ~ t"' I Deputy County Clerk ~~~~~m~ County ofHawai `i `-~'~y'- Office of the County Clerk 25 Aupuni Street Hilo, Hawaii 96720 Telephone: (808) 961-8255 Facsimile: (808) 961-8912 MARCI-I 12, 2002 TO: COUNCIL MEMBERS HAWAII COUNTY COUNCIL FROM: JAY MENDS ~y;~;, , LEGISLATIVE AUDITOR'S OFFICE REGARDING: RESOLUTION 175 (PASSENGER VESSEL SERVICES ACT) Please find attached the following copies of source documents relating to Resolution 175 (Passenger Vessel Services Act): 1. Passenger Vessel Services Act 2. Impact study from Hilo Harbor Master, Ian Birnie 3. Portion of Public Law 105-56 4. Portion of Public Law 106-55~ 5. Senate: Resolution No. 6 6. Senate; Resolution No. 8 7. Senate Concurrent Resolution No. 12 8. Senate Concurrent Resolution No. 14 Also, a copy of Senator John McCain's "United States Cruise Vessel Act" can be found on the WEB at: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_bills&docid=fa 127is.txt.pdf If you have any questions or prefer an electronic copy of Senator McCain's act by e-mail, contact Jay Mende at ext. 8580. File boa Fief. ~o: - Ref. D~I`~ ~~F ~ ~ 106th Congress ( COMMITTEE PRINT 2c1 Sessflon (1®~r-62) COMPILATION OF MARITIME LAWS As Amended Through June 30, 2000 SHIPPING ACT OF 1984 FOREIGN SHIPPING PRACTICES ACT OF 1988 SHIPPING ACT, 1916 MERCHANT MARINE ACT, 1936 MERCHANT MARINE ACT, 1920 PASSENGER VESSEL SERVICES ACT U.S. DREDGES PUERTO RICO PASSENGER SHIP ACT TAX DEDUCTIONS FOR CRUISE SHIP CONVENTIONS FINANCIAL RESPONSIBILITY FOR PASSENGER VESSELS JOHNSON ACT GAMBLING SHIPS BRIDGE ACT OF 1906 TRUMAN-HOBBS ACT PREPARED FOR THE USE OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES JULY 2000 SECTION 8 OF TFiE AC'I. OF JUNE 19, 1886 (Chapter 421, 24 Stat. 81; 46 App. U.S.C. 289) (Popularly loano®s as as tlae "Passeaager Vessel Services Act") ~ * * * * * ~ SEC. 8. No foreign Vessel shall transport passengers between ports or places in the United States, either directly or by way of a foreign port, under a penalty of two hundred dollars for each pas- senger so transported and landed. 157 DEC 21 '01_ 04~23PM. ,..,,y , ~ ~ •'P.1::. . , fir.: ~ ~ , 1 ~ ' , ' ~ ' O~FFIC~ OF ~ENAT~.F~ ®AN1~L K. IN®UY~ n ~O: ~ 1 ~ . FRONI: FI~ONE: NUM~~~ OF ~f~C ~ FOLLOWING ~~il~ i~,~G~: ra , COMMENT L' r a• h, .t r ~ ~ DEC 21 '81 04:23pM p.2 q .s' ~ ry A ~ 9 'o ~ ~ ~ ~ ~ ~o ~ ~ ~ ~ YF' ~ ~ ~ ~ ~~,g ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ ~ ~ n a DEC 21 '81 04~24PM P.3 U. ~ ~ ~ ~o~' as ~o~•~~.m~~,~~~~~ C7~ boo ~o o ~g.~ ~~`~~~on ; ~ Atp J~o~~S' n.~~oAR~~ y~~,~ C--,+o°°o ~~~oa-~~~~° ~ ~C ~ As o f9 m C9i to w c~ O '"9 o~'""~ ~O O C3vC]~~ m~ ~'o p° ~ ~ ~ w ~ n ~.fl ~ ~co v~ ~ ~ ~ ~ ~r.. 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L~~' 49~ (9) the ~eparCntent' of CorrcmerCS recently documented the underlying market-distos-ting practices and longstanding struc- ~ tgcral probletn$ that pl~ue tlae global steel trarl.e with mesa ca. p~achy and cause diversdon of unfairly trad¢d foreign steel to the United ,Mates, (10) 7'he President recognized that unfair tg°ao'e pplayed as sigraificatst mode in the devastating import Bur a of Bteerand r~sc- o~niQed the need to vigorousl enforce the tra laws. (b) Con~reas calla Capon tlae president--- (1) to flake ail appropriate action within his power to pro- vide relief from it}juty~caused by steel irraport8; a (3) to itnanediately request the United States Internataonal• ?~°ade Commission to comrrtesxce an ~pedited fytar Eior~ ~r positive ao~ustment under section 201 of the ~°ade tit of 1574 • e azech steel iara~or~ts. .~e. 147, Section 5lb)(1) of the Act ~ Januarys 19x51 (16 tf.S.C. 1176(b)(1); popularly known as the " ohnson Act'> is ar~aend- ¢d by inserting for a voyage or a s'egnaent of a voye tdaat begins and ends in the State of l~'auiaii, or"a~er "except'. S~°C. 1.48. (a) Section 313(x)(9) of the Comrsp.aanieatiorts A,ct o 19~?~4 (~7 U.B.C. 312(x)(7)) is amended by inserting other than a non-coraar~aereiad educational broadcast station,'° afte~° "5ase of a broadcasting station". B) I'he p°ederal Communications Corra»aission Shalt take no ac- lion against any non-commercial educational brnatdca<st stestgora which declines to rarpy a vliticaZ +sdvertiserraent. ' Bic. 1~9. Z'Iae Small Business Innovation ~e~aearch pro~°arn, otherwise expiring at the end of fiscal year 2000, as authorized to continase in effect during fiscal year 3002. Sic. 150. 7`6aei'e is hereby appropriated f~rr pa ment to the ~tck 1Zayy Mena®g~hilia kielie~ Fund, as pr+avided bbyy Priblic w 10a~89, $105,000, I0, of what notwithhartandin~ any other rovieion o law $10,000,000 shall be for program managerraerat o~the .tlealtds I~e- source~ and Services Administration, to remain auailaabde until ex- ptnded. SAC. 181. (a) ?'faere w hereby appro mated to a separate account to be eatabdtahed in the Ilepartment of ~abor for expenses of adnain- isteri the energy ~mpdoyees Occupationral Illness Corn~~vv¢nsation ACC, 50,400,000, to renaacaa available until expended. 1~'rovi • 9'°hat the Secretary of .labor is authori.~ ed to transf~°' to-any ~~cu- tive agency with authority under the Ener,~ys .Errapdoy~a Occu tional Illness Compensation Act, such sums as may bt necessa~ n F`5'204X to carry out those authorities. (b) p`or pu Dees of the Balanced•,d3udget and emergency 1)efdcit Control ACt o~Z986, arnorxnts appropraected aan~r Bub~ctiora la) shall be dir¢CE spending; Provided, That arraounts appro rioted an- nuadlyy • thereafter for such administrative expenses sha be direct epe ~3 x.163. 1T1i2E7VT of C~`RTAFN CANCER Ilos~I?°~S. (a) IN C~<~4ection 1888(d)(I)(S)(v) of the Social Sectar°ity Aet (4,2 U,S.C. 1996ww(d.J(X}(.S)(v)) is asnende~ (I} in aubclause (I) by strshing Qor" at the end (2) in subclauae (I by Btfiilsing the semfcolfon act the end and in~rting or"'; and • :i °.i 7"he Economic Impact of A1~IC'~ Bankrsptcy and the Poteittiai Impact of Waiving The Passe»ger Services Act . Island of >flawati Only f With the demise of American Classic Voyages (AMCV), the parent company of United States Lines, operator of MS PATRIOT, and American Hawaii Cruises, operator of SS CONSTITUTION the d of Hawaii lost its two weckl callers, or ti3 per cent of scheduled port calls for 2002 The impact on actual passenger numbers, however, is a little Less, as ese twos ips were among the Lower capacity vessels in operation in the islands, Sveraging 1100 and 719 passengers, respectively, far 41 calls each in 2001. The average count for currently scheduled foreign vessels is expected to be about I?20 for Hilo and 17?b for Kailua for 2002, not including Norwegian Star, which advertises 2200 berths and will be calling weekly in Kailua. Thus the actual passenger count for foreign ships alone may exceed the total number of passengers, foreign and domestic, that the island saw in 1999, and should easily surpass what they had in 2000. In December, 2001, Norwegian Cruise Lines (NCL) will begin 7-day cruises through the islands, with Norwegian Star departing Honolulu every Sunday evening, and returning the following Sunday morning. They will stop at Kailua-Kona, Fanning Island, Lahaina, and Nawiliwili before resuming to Honolulu. Because of the necessity of going to the nearest foreign port, Fanning ]`sland, they must depart Kailua by ~,c~?'~ 1400 (x:00 p.tn.) Monday afternoons, and they return to Lahaina around 12:00 noon on 1~ridays. The only pot's in which the vessel wilt spend a full day is Nawiliwili, Kauai. The end result is that Hilo is left out of the schedule entirely, and both Kailua and Lahaina have less than full-day visits. 11, If the Passenger Services Act were waived £or NCL, i.e., if they were not forced to sail to a foreign port, Norwegian Star could spend a full day, or longer, in Kailua and Lahaina, and could also call ai Hiio for a full day. The economic impact of that on the island of Hawaii - in both Kailua and Hilo - is substantial. And the savings in fuel for NCL would also be substantial. Additionally, NCL would seem to b~ inviting criticism from passengers for the short stays in Kailua and Lahaina, so one would have to think that, from a passenger satisfaction standpoint, the proposed itinerary may well generate complaints from their passengers as well as from the merchants who are left out. NCL has been successful with their 10 and 11 day cruises from konolulu to Fanning and back, with Norwegian Sky and Norwegian Wind, but with Norwegian Star; they are attempting to compress into ?days what has traditionally taken 10-11 days, and it appeal's that every port but Nawiliwili will be `shorted.' The enclosure shows island of Hawaii passenger economic impact projections for 2002, bout prior to 9111 and as revised after the bankruptcy of AMCV. 'lie third column, `Without PSA,' projects the impact on this island alone if NCL could obtain a waiver to the PSA and call at both Hilo and Kailua. Ena. ~ ~ a xe~ t ~ x xs~ ~ p auWd A auoUd ~'°Pf ~ ~ ~ ~~dao/'o0 ~ ~oo oy woad a1oN xe~ ,14-1$Qd ~sao 4 ~ Z ~ ~ eaeQ lL9L i r . H - ~ IS88~~6808~°N ~~l CRUISE SI-FIP PASSENGER 11k1PACT ON T8E ISLAND OIT tIAWATi 81L0 AND KAiLUA ~ KONA aaD2 Pro' Jetted Pro~ecfed As of 1/1/D1 As of 11/13/02 Wititout 1- Nurrsbee of domestic ship arrivals PSA 2 - Average number of passengers per ship (2000 av 208 0 (NCI,) 104 3 -Average length of stay 8) 872 0 4 - Number of visitor days {I x 2 x 3) 181 37b 2000 1 1 $ -Number of foreign ship arrivals 0 208,000 b - Aveeagc number of passengers per ship 1750 169 117 7 -Average length of stay 1825 1720 8 -Number of visitor days (5 x 6 x 7} 283 500 1 1 9 -Total visitor days (4 t g) 464,$75 308,350 204,320 10 - ~'xpenditures per visitor per day 308,350 ~ $$3 412,320 1 11 -Total visitor expepditttres (9 x 10) $38,584,708 583 $g3 b~ I $25,593,050 $34,222,560 ~~Z~~~t~ u5, {8~~7, ~~S 12 - GSP multiplier 0.7 ' ~ 13 -Job multiplier for tourisan 0'7 0,7 13.31i~i 13,3/lM 13.3/1M i 14 -Household income multiplier 0,4 1 S - GSp generated (12 x 11 0'4 0.4 $27,009,295 $17,9]5,135 $23,955,792 I6 -Jobs generated (l3 x 1 I} 513 340 ] 7 -Household income 14 x I 1 455 f ( ) $15,433,883 $10,23?,220 $13,689,024 I8 -Estimated atatellocal tax rate 0.17 0.17 0.17 19 -Efate and local taxes generated (17 x 18} $2,623,160 $1,740,327 $2,327,134 i IF: I O - 8xpenditures per visitor perday = 6140 $100 S [00 'TgIEN; 11 -Total visitor expenditures $46,487,600 $30,835,000 $41,232,000 1 S - CSl' generated $32,541,320 $21,584,500 $28,862,400 16 -Jobs generated (118 410 548 17 -Household income $18,595,040 512,334,000 $16,492,800 l9 -State and local taxes generated $3,161,157 $2,096,780 $2,803,776 Multipliers are as provided by DBEDT in May, 1997, when estimating the economic impact of cruise ships on the economy of the Island of I{awaii for Hawaii County's Department of Research and Developmenk In 1997, HVB estimated the average expendihare per visitor per day at $88.00. That was revised downward in 2000 to $83.OU. The Cruise Line Industry Association estimates it at $200.00 worldwide, so it may well be highar than $83 or even $88. We are providing impact numbers for $83.00 and $100.00. As Norwegian Star will only be staying 6 to b.5 hones in Kona, spending maybe less than if they spent the entire day there. I1ilo has 62 foreign vessels scheduled, avg pax count 1720. Kailua has SS Foreign ships, avg count 1776, plus 52 calls by Norwegian Star, avg 2000. If pSA (Passenger Services Act, aka 3ones Act) ware waived, NCI, could home port Star in Honolulu, antic the Farming trip, cal! at Hilo for a day and spend a whole day in Kona. '[lte third column, "without PSA," assumes that scenario and reflects Norwegian Star as a `domestic' vessel. 1 I S jobs would be saved or retained - 455 vice 340 (iteru 1 b). pthenvise we lose approximately 173 jobs (513-340), as well as commensurate household income, state and local tax revenues. v u_~,~-tu MARS S'E,RnR' oni -l~ i ~ inn' onl Rb:R [C)` t7, ~2(I _ CRUISE SHIP P6~,SSENGEIZ IMPACT ON THE ISLAND OF !-IAWAII HILO AND KAILUA-KONA 2002 Projected As of Projected As 1/1!01 of 11/15!01 ~lathout PSA 1- # of domestic ship arrivals 208 0 104 2- Avg. # of passengers/ship 872 0 2000 3- Avg. length of stay 1 1 1 4- # of visitor days (1x2x3) 181376 0 208000 5- # of foreign ship arrivals 162 169 117 6- Avg. # of passengers/ship 1750 1825 1720 7- Avg. length of stay 1 1 1 8- # of visitor days (5x6x7) 283500 308425 201240 9- Total visitor days (4+8) 464876 308425 409240 10- Expenditures/visitor/day $ 83 $ 83 $ 83 11- Total visitor expenditures (9x10) $ 38,584,708 $ 25,599,275 $ 33,966,920 t3 12- GSP multiplier 0.7 0.7 0.7 13- Job multiplier for tourism/1 M 13.3 13.3 13.3 14- Household income multiplier 0.4 0.4 0.4 15- GSP generated (12x11) $ 27,009,296 $ 17,919,493 $ 23,776,844 16- Jobs generated (13x11) 513 340 452 17- Household (14x11) $ 15,433,883 $ 10,239,710 $ 13,586,768 18- Estimated state/IocaB tax rate 0.17 0.17 0.17 19- State and local taxes generated (17x18} $ 2,623,760 $ 1,740,751 $ 2,309,751 IF: 10- Expenditures/visitor/day $ 100 $ 100 $ 100 THEN: 11- Total visitor expenditures $ 46,487,600 $ 30,842,500 $ 40,924,000 15- GSP generated $ 32,541,320 $ 21,589,750 $ 28,646,800 16- Jobs generated 618 41 54~ 17- Household income $ 18,595,040 $ 12,337,000 69,600 19- State & local taxes generated $ 3,161,157 $ 2,097,290 $ 2,782,832 -Possible error(s) in calculation (immaterial) Impact from Harbor Master.xls Impact 12/21 /01 C i SR6 Page 1 of 2 TFiE SENATE 6 TWENTY-FIRST LEGISLATURE, 2002 • STATE OF RAWAII ~~I REQUESTING THE CONGRESS OF THE UNITED STATES TO REPEAL THE PASSENGER SERVICES ACT OF 1886. WHEREAS, the Passenger Services Act of 1886 was enacted in the late 19th century to protect the interests of United States shipbuilders and to also protect a United States merchant marine fleet in the event of war; and WHEREAS, the Passenger Services Act operates in conjunction with the Jones Act and other shipping laws to define vessels authorized to carry passengers in the coastwise trades; and WHEREAS, the Passenger Services Act prohibits the carrying of passengers by foreign ships between United States ports, requires a stop at a foreign port for round trips between two U. S. cities, and prevents one-way passenger cruises between U. S. ports; and WHEREAS, the original intent of the Passenger Services Act is now unnecessary because United States shipyards have not built a U. S. flagged, ocean-going passenger cruise liner since 1951; and WHEREAS, advances in technology have made the defense justification no longer applicable as a method of achieving many national defense goals and specially-built craft rather than modified commercial vessels adequately address defense needs; and WHEREAS, the Cruise America Coalition estimates that the average cruise passenger spends more than $200 a day ashore; and WHEREAS, according to the Cruise America Coalition, amending the Passenger Services Act could be worth an additional $1 billion to the coastal communities of the United States; and WHEREAS, the repeal of the Passenger Services Act could greatly boost Hawaii's economy insomuch as cruise liners benefit numerous businesses, including local retailers and shops, travel agents, restaurants, stevedores, tour operators, hotels, and transportation companies; now, therefore, http://www.capitol.hawaii.gov/sessioncurrent/bills/sr6_.htrn 3/7/02 _ SR6 Page 2 of 2 BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2002, that the Hawaii State Legislature respectfully requests that the Congress of the United States repeal the Passenger Services Act of 1886; and BE IT FURTHER RESOLVED that the Hawaii State Legislature respectfully requests the President of the United States and his administration support the repeal of the Passenger Services Act as requested herein; and BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Secretary of the United States Department of Transportation and to members of Hawaii's congressional delegation. OFFERED BY: Report title: REQUESTING THE CONGRESS OF THE UNITED STATES TO REPEAL THE PASSENGER SERVICES ACT OF 1886. httpa/www.capitol.lawaii.gov/sessioncurrent/bills/sr6_.htm 3/7/0? SR8 Page 1 of 2 TFiE SENATE g TWENTY-FIRST LEGISLATURE, 2002 ¦ STATE OF HAWAII ~~~I REQUESTING CONGRESS TO EXEMPT HAWAII, ALASKA, GUAM, AND PUERTO RICO FROM THE JONES ACT FOR THE HEALTH, SAFETY, AND SECURITY OF THEIR RESIDENTS. WHEREAS, historically the United States has sought to protect its shipping industry through cabotage laws, such as the Merchant Marine Act of 1920, commonly known as the Jones Act; and WHEREAS, the Jones Act strictly limits the shipping of merchandise between the United States and its territories to American-built and registered ships crewed by United States citizens; and WHEREAS, eighty per cent of the goods consumed in Hawaii are imported from the mainland or foreign countries and ninety-eight per cent of these goods come by ship; and WHEREAS, while transpacific shipping costs are some of the lowest in the world, especially from the United States to Asia, the freight rates between the mainland and Hawaii are some of the highest; and WHEREAS, much of the high cost of living in Hawaii can be attributed to unnecessarily high shipping costs caused by the Jones Act; and WHEREAS, such excess costs present an immense and unfair burden on the people of Hawaii; and WHEREAS, Congress has already recognized the unique aspects of the Pacific region and the excessive burdens placed on it by the Jones Act when it exempted the Northern Marianas and American Samoa from the applicability of the Jones Act; and WHEREAS, Alaska, Guam, and Puerto Rico are also heavily dependent on the shipping industry and endure similar economic hardships as a result of the restrictions of the Jones Act; and WHEREAS, the almost total dependence on sea freight services makes the economies of Hawaii, Alaska, Puerto Rico, and Guam extremely sensitive to even minor restrictions or disruptions in transportation; and WHEREAS, any disruption in the delivery of oil, food, or other vital goods would severely threaten the health, safety, and general welfare of residents of Hawaii, http://ww~~.capitol.hawaii.gov/sessioncurrent/bills/sr8_.htm 3/7/02 SR8 Page 2 of 2 Alaska, Guam, and Puerto Rico, as well as visitors to these destinations; and WHEREAS, an exemption from the Jones Act would protect the collective health, safety, and security of the people of Hawaii, Alaska, Puerto Rico, and Guam; and WHEREAS, there are no ocean-going livestock carriers in the Jones Act fleet and the approximately one hundred and sixty livestock carriers comprising the world fleet are registered in other nations; and WHEREAS, the currently available waterborn transportation aboard container ships is not inherently well-suited for large-scale movement of livestock, thereby restricting the development of the Hawaii beef cattle industry; and WHEREAS, there are currently no specialized bulk carriers registered in the United States that are capable of servicing the large-scale movement of Alaska coal and coal derived fuels, which impedes the movement of a potential fuel source to the west coast of the United States, Hawaii and the territories of Guam and Puerto Rico; and WHEREAS, allowing foreign shippers to participate in the United States mainland trade to Hawaii, Alaska, Puerto Rico, and Guam would protect the health, safety, and security of these state and territorial residents and also foster shipping competition which will result in economic benefit to consumers; now, therefore, BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, that this body respectfully requests the Congress of the United States to pass legislation granting an exemption from the Jones Act to Hawaii, Alaska, Puerto Rico, and Guam; and BE IT FURTHER RESOLVED that the Hawaii State Legislature respectfully requests the President of the United States and his administration to support the congressional legislation requested herein; and BE IT FURTHER RESOLVED that Hawaii's congressional delegation is urged to request Congress to exempt Hawaii, Alaska, Puerto Rico, and Guam from the Jones Act; and BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Secretary of the United States Department of Transportation, and to the members of Hawaii's congressional delegation. OFFERED BY: Report Titlc: Jones Act; Ask Congress to Repeal http://www.capitol.hawaii.gov/sessioncurrent/bills/sr8_.htm 3/7/02 SClz12 Page 1 of 2 TFfE SENATE 12 TWENTY-FIRST LEGISLATURE, 2002 ¦ STATE OF ~9AWAll ~~I1 ~ REQUESTING THE CONGRESS OF THE UNITED STATES TO REPEAL THE PASSENGER SERVICES ACT OF 1886. WHEREAS, the Passenger Services Act of 1886 was enacted in the late 19th century to protect the interests of United States shipbuilders and to also protect a United States merchant marine fleet in the event of war; and WHEREAS, the Passenger Services Act operates in conjunction with the Jones Act and other shipping laws to define vessels authorized to carry passengers in the coastwise trades; and WHEREAS, the Passenger Services Act prohibits the carrying of passengers by foreign ships between United States ports, requires a stop at a foreign port for round trips between two U. S. cities, and prevents one-way passenger cruises between U. S. ports; and WHEREAS, the original intent of the Passenger Services Act is now unnecessary because United States shipyards have not built a U. S. flagged, ocean-going passenger cruise liner since 1951; and WHEREAS, advances in technology have made the defense justification no longer applicable as a method of achieving many national defense goals and specially-built craft rather than modified commercial vessels adequately address defense needs; and WHEREAS, the Cruise America Coalition estimates that the average cruise passenger spends more than $200 a day ashore; and WHEREAS, according to the Cruise America Coalition, amending the Passenger Services Act could be worth an additional $1 billion to the coastal communities cf the United States; and http://www.capitol.hav~~aii.gov/sessioncurrent/bills/scrl2_.htm 3/7/02 _ _ _ SCR12 Page 2 of 2 WHEREAS, the repeal of the Passenger Services Act could greatly boost Hawaii's economy insomuch as cruise liners benefit numerous businesses, including local retailers and shops, travel agents, restaurants, stevedores, tour operators, hotels, and transportation companies; now, therefore, BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that the Hawaii State Legislature respectfully requests that the Congress of the United States repeal the Passenger Services Act of 1886; and BE IT FURTHER RESOLVED that the Hawaii State Legislature respectfully requests the President of the United States and his administration support the repeal of the Passenger Services Act as requested herein; and BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Secretary of the United States Department of Transportation and to members of Hawaii's congressional delegation. OFFERED BY: Report T'i tl~ REQUESTING THE CONGRESS OF THE UNITED STATES TO REPEAL THE PASSENGER SERVICES ACT OF 1886. http://w~>>vw.capitol.hawaii. gov/sessioncurrent/bills/scr 12_.htm 3/x/02 SCR14 Page 1 of 3 TIDE SENATE ,t 14 TWENTY-FIl~ST LEGISLATURE, 2002 ¦ ¦ STATE OF ~4AWAll ~~I REQUESTING CONGRESS TO EXEMPT HAWAII, ALASKA, GUAM, AND PUERTO RICO FROM THE JONES ACT FOR THE HEALTH, SAFETY, AND SECURITY OF THEIR RESIDENTS. WHEREAS, historically the United States has sought to protect its shipping industry through cabotage laws, such as the Merchant Marine Act of 1920, commonly known as the Jones Act; and WHEREAS, the Jones Act strictly limits the shipping of merchandise between the United States and its territories to American-built and registered ships crewed by United States citizens; and WHEREAS, eighty per cent of the goods consumed in Hawaii are imported from the mainland or foreign countries and ninety-eight per cent of these goods come by ship; and WHEREAS, while transpacific shipping costs are some of the lowest in the world, especially from the United States to Asia, the freight rates between the mainland and Hawaii are some of the highest; and WHEREAS, much of the high cost of living in Hawaii can be attributed to unnecessarily high shipping costs caused by the Jones Act; and WHEREAS, such excess costs present an immense and unfair burden on the people of Hawaii; and WHEREAS, Congress has already recognized the unique aspects of the Pacific region and the excessive burdens placed on it by the Jones Act when it exempted the Northern Marianas and American Samoa from the applicability of the Jones Act; and WHEREAS, Alaska, Guam, and Puerto Rico are also heavily dependent on the shipping industry and endure similar economic hardships as a result of the restrictions of the Jones Act; and WHEREAS, the almost total dependence on sea freight services makes the economies of Hawaii, Alaska, Puerto Rico, and Guam extremely sensitive to even minor http://www.capitol.ha`vaii.gov/sessioncurrent/bills/scrl ~_.htm 3/7/02 SCR14 Page 2 of 3 restrictions or disruptions in transportation; and WHEREAS, any disruption in the delivery of oil, food, or other vital goods would severely threaten the health, safety, and general welfare of residents of Hawaii, Alaska, Guam, and Puerto Rico, as well as visitors to these destinations; and WHEREAS, an exemption from the Jones Act would protect the collective health, safety, and security of the people of Hawaii, Alaska, Puerto Rico, and Guam; and WHEREAS, there are no ocean-going livestock carriers in the Jones Act fleet and the approximately one hundred and sixty livestock carriers comprising the world fleet are registered in other nations; and WHEREAS, the currently available waterborn transportation aboard container ships is not inherently well-suited for large-scale movement of livestock, thereby restricting the development of the Hawaii beef cattle industry; and WHEREAS, there are currently no specialized bulk carriers registered in the United States that are capable of servicing the large-scale movement of Alaska coal and coal derived fuels, which impedes the movement of a potential fuel source to the west coast of the United States, Hawaii and the territories of Guam and Puerto Rico; and WHEREAS, allowing foreign shippers to participate in the United States mainland trade to Hawaii, Alaska, Puerto Rico, and Guam would protect the health, safety, and security of these state and territorial residents and also foster shipping competition which will result in economic benefit to consumers; now, therefore, BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that the Hawaii State Legislature respectfully requests the Congress of the United States to pass legislation granting an exemption from the Jones Act to Hawaii, Alaska, Puerto Rico, and Guam; and BE IT FURTHER RESOLVED that the Hawaii State Legislature respectfully requests the President of the United States and his administration to support the congressional legislation requested herein; and BE IT FURTHER RESOLVED that Hawaii's congressional delegation is urged to request Congress to exempt Hawaii, Alaska, Puerto Rico, and Guam from the Jones Act; and BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Secretary of the United States Bepartment of Transportation, and to the members of Hawaii's congressional delegation. OFFERED BY: httpa/www.cit.~ltol.ha~all.gov/sessioncurrent/bills/scr14_.htm 3/7/02 SCIZ14 Page 3 of 3 Report Tit].: Jones Act; Ask Congress to Repeal http://www.capitol.hawaii.gov/sessioncurrent/bills/scr 14_.htm 3/7/02