[Congressional Record (Bound Edition), Volume 145 (1999), Part 8]
[Extensions of Remarks]
[Page 11196]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 11196]]

         THE ADMINISTRATION'S HARBOR SERVICES FUND ACT OF 1999

                                 ______
                                 

                            HON. BUD SHUSTER

                            of pennsylvania

                    in the house of representatives

                        Wednesday, May 26, 1999

  Mr. SHUSTER. Mr. Speaker, today I am pleased to introduce by request 
the Administration's Harbor Services Fund Act of 1999 which provides a 
source of funding for the development, operation and maintenance of our 
Nation's harbors. This legislation establishes a fee that would be 
charged to commercial vessels for the services provided at ports within 
the United States. Generally, these services are those provided by the 
Army Corps of Engineers in their maintenance dredging program and in 
their construction of new navigation channels.
  This bill also repeals the Harbor Maintenance Tax that has served as 
a source of funding for maintenance activities since 1986. It also 
transfers the surplus in the Harbor Maintenance Trust Fund to a new 
fund where it could be spent for intended services. Last year the 
Supreme Court ruled that this tax, as it applies to exports, is 
unconstitutional. The intent of the Administration's bill is to 
structure a revenue mechanism to meet the constitutional test for a 
user fee and to prevent a large surplus from developing in the fund.
  The Administration's bill raises a number of significant questions 
and issues. Predictably, this controversial proposal has raised 
concerns among those who would pay--either directly or indirectly--the 
new fee. One common principle shared by both proponents and opponents 
of the bill, however, is the need to find a replacement to finance port 
infrastructure needs.
  Our Nation's ports are a vital link in our intermodal transportation 
network that is the foundation of our competitiveness in international 
trade and our economic well-being. Our deep draft ports move over 95% 
of US trade by weight, and 75% by value. International trade accounts 
for $2.3 trillion, or 30% of our Gross Domestic Product. Addressing the 
question of how to fund the Federal cost of maintaining and improving 
our harbors is an important part of the Transportation and 
Infrastructure Committee's business this year.
  The Transportation and Infrastructure Committee intends to explore 
this proposal and others over the next several months. We will be 
working with the Administration, ports, shippers, carriers and others 
in order to develop a fair and dependable source of funding for this 
important Federal function.

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