[Congressional Record Volume 148, Number 152 (Friday, November 22, 2002)]
[Extensions of Remarks]
[Pages E2143-E2144]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT ON S. 1214, MARITIME TRANSPORTATION SECURITY ACT OF 
                                  2002

                                 ______
                                 

                               speech of

                             HON. DON YOUNG

                               of alaska

                    in the house of representatives

                      Thursday, November 14, 2002

  Mr. YOUNG of Alaska. Mr. Speaker, I rise to speak about the 
Conference Report on S. 1214, which the House approved last week and is 
now ready for signature by the President. I would like to point out a 
particular concern that is addressed in Section 445 of the conference 
agreement. Section 445 addresses the current problem, and the potential 
for greater future problems, of local jurisdictions seeking to impose 
taxes and fees on vessels merely transiting or making innocent passage 
through navigable waters subject to the authority of the United States 
that are adjacent to the taxing community. We are seeing instances in 
which local communities are seeking to impose taxes or fees on vessels 
even where the vessel is not calling on, or landing, in the local 
community. These are cases where no passengers are disembarking, in the 
case of passenger vessels, or no cargo is being unloaded in the case of 
cargo vessels and where the vessels are not stopping for the purpose of 
receiving any other service offered by the port. In most instances, 
these types of taxes would not be allowed under the Commerce Clause of 
the United States Constitution. Unfortunately, without a statutory 
clarification, the only means to determine whether the burden is an 
impermissible burden under the Constitution is to pursue years of 
litigation.
  Section 445 of the Conference Report addresses this problem by 
clarifying the sole circumstances when a local jurisdiction may impose 
a tax or fee on vessels. Local governments, and other non-Federal 
interests, may

[[Page E2144]]

impose taxes or fees only under an existing exception under the Water 
Resources Development Act or under extremely limited circumstances in 
which reasonable fees can be charged on a fair and equitable basis for 
the cost of service actually rendered to the vessel. The fees must also 
enhance the safety and efficiency of interstate and foreign commerce 
and represent at most a ``small burden'' on interstate and foreign 
commerce. Generally, taxes will not be allowed under this section. The 
sole exceptions are stated in Section 445.
  Mr. President, I support Section 445 as an important correction of a 
silence in current law that should not be allowed to imperil legitimate 
commerce.

                          ____________________