BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SJR 15|
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CONSENT
Bill No: SJR 15
Author: DeSaulnier (D)
Amended: As introduced
Vote: 21
SENATE TRANSPORTATION & HOUSING COMM : 8-0, 3/27/12
AYES: DeSaulnier, Gaines, Harman, Kehoe, Pavley, Rubio,
Simitian, Wyland
NO VOTE RECORDED: Lowenthal
SUBJECT : Federal harbor maintenance taxes
SOURCE : Pacific Merchant Shipping Association
International Longshore and Warehouse Union
California Marine Affairs and Navigation
Conference
California Association of Port Authorities
DIGEST : This resolution requests that the President and
Congress of the United States increase federal funding for
navigational improvements and continued dredging in the
federal channels of California's ports.
ANALYSIS : Prior to 1986, the federal government funded
entirely the maintenance of federal channels in the
country's ports. In 1986 Congress passed the Water
Resources Development Act, which instituted an ad valorem
tax of 0.125 on shipments for users of these channels. The
federal government deposits the resulting $1.4 billion
annually in the Harbor Maintenance Trust Fund to provide a
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source of revenue for funding all of the maintenance and
operations dredging necessary to keep these navigational
channels open. For many years, the federal government has
not spent all the funds in the account on harbor
maintenance and has allowed a large surplus to develop
totaling roughly $5.6 billion. Instead of spending this
funding on maintaining the nation's federal channels, this
balance has been used to offset other federal general fund
expenditures.
House Resolution 104 and Senate Resolution 412, pending in
Congress, would ensure that the annual revenue collected
from the Harbor Maintenance Tax be fully used for
maintaining the nation's ports and navigational channels.
This resolution requests that the President and Congress of
the United States increase federal funding from the Harbor
Maintenance Trust Fund surplus for navigational
improvements and continued dredging in the federal channels
of California's ports such that these expenditures equal
the amounts contributed from the state's ports. Further,
this resolution urges the President and Congress to enact
House Resolution 104 or Senate Resolution 412 to end
further contribution to the surplus on the trust fund.
Comments
This resolution calls on Congress to properly maintain the
nation's ports and harbors with the revenue provided by
users for that purpose. According to the author,
California deserves its equitable share of all federal port
and goods movement infrastructure funding. Further, the
federal government has the obligation and the funds
necessary to secure and facilitate increased commercial
activity at our public ports. Many jobs and the nation's
economic growth depend on this investment. Therefore, it
is reasonable to expect the federal government to spend
these revenues for the purpose for which it collects them.
Underfunding channel dredging constrains trade . According
to the United States Corps of Engineers, almost 30 percent
of commercial vessel calls at US ports are constrained due
to inadequate channel depths. This sometimes necessitates
transferring products between vessels in order to "light
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load" cargo ships, which increases costs and safety
concerns. Inadequate maintenance of channels due to the
federal government underfunding the program has a negative
impact on trade and the nation's economy.
California does not receive expenditures equal to its
contribution . Supporters note that while California's
ports facilitate the cargo value that generates over 30
percent of the Harbor Maintenance Tax revenues,
expenditures for California state projects made out of the
trust fund from federal fiscal year 2005 to fiscal year
2008 averaged only 4 percent of the revenues collected.
This resolution requests that the federal government return
funding to the revenue source, enabling the state's ports
to better maintain the federal channels and improve the
nation's trade capacity.
FISCAL EFFECT : Fiscal Com.: No
SUPPORT : (Verified 3/27/12)
Pacific Merchant Shipping Association (co-source)
International Longshore and Warehouse Union (co-source)
California Marine Affairs and Navigation Conference
(co-source)
California Association of Port Authorities (co-source)
San Francisco Bar Pilots Association
Contra Costa County Board of Supervisors
Bay Planning Coalition
City of Oceanside - Department of Harbor and Beaches
JJA:nl 3/29/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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