Bill S6156-2013

Relates to cargo facility charges by the Port Authority

Relates to cargo facility charges by the Port Authority; prohibits charges on import and export cargo leaving any marine facility owned or operated by the port authority.

Details

Actions

  • Jun 20, 2014: COMMITTED TO RULES
  • May 28, 2014: ADVANCED TO THIRD READING
  • May 21, 2014: 2ND REPORT CAL.
  • May 20, 2014: 1ST REPORT CAL.824
  • Jan 8, 2014: REFERRED TO TRANSPORTATION

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Transportation - May 20, 2014
Ayes (15): Robach, Marcellino, Carlucci, Gallivan, Larkin, Maziarz, Nozzolio, O'Mara, Ranzenhofer, Young, Zeldin, Avella, Diaz, Kennedy, Stavisky
Ayes W/R (4): Dilan, Perkins, Squadron, Gipson

Memo

BILL NUMBER:S6156

TITLE OF BILL: An act to amend the waterfront commission act, in relation to cargo facility charges by the Port Authority of New York and New Jersey

PURPOSE OR GENERAL IDEA OF BILL: To limit the authority or the Port Authority of New York and New Jersey to unilaterally assess new cargo facility charge(s) on import and export cargo upon users, ocean common carriers marine terminal operators, carriers, or rail carriers, as defined in the bill, except upon mutual agreement.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1- adds a new Article VII-A, Cargo Facility Charges, to section 1 of Chapter 882 of the laws of 1953. Within the new Article,

Section 1 contains definitions

Section 2 provides that notwithstanding any law, rule, regulation or existing tariff to the contrary, the Port Authority shall not assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge on import and export cargo leaving any marine facility owned or operated by the Port Authority, except that the Port Authority may assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge upon written mutual agreement between the user, ocean common carrier, marine terminal operator, carrier, or rail carrier and the Port Authority.

Section 2 - provides that this act shall take effect upon the enactment into law by the State of New Jersey of legislation having an identical effect with this act, but if the State of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the Waterfront Commission shall notify the Legislative Bill Drafting Commission upon the occurrence of the enactment of the legislation provided for in section one of the act in order that the Commission may maintain an accurate and timely effective data base of the official text of laws of the State of New York in furtherance of effecting the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law.

JUSTIFICATION: It is critically important to the economic health of New York State that the New York port remain competitive with other ports around the country, and particularly along the east coast. In March of 2011, the Port Authority unilaterally imposed a cargo facility charge (CFC) of $4.95 per twenty foot equivalent unit on ocean carriers, in the mistaken belief that these charges could be spread through to other parties importing the goods and on through the supply chain. No other port in the country charges such a CFC charge. Unfortunately, the Port Authority of New York and New Jersey was already the most expensive port in the country to process a freight container, with costs now being approximately 18% higher than the next highest port at Long Beach, Cali fornia. Ocean carriers have not been able to pass this new fee on because of the highly competitive nature of their industry. Unfortunately, the message of this tariff to ocean carriers is that they are not welcome, and that they will be more competitive bringing their cargo to another port. Cargo ships are by nature moving vessels that can choose where they want to take their cargoes, and you can be sure that if other ports make better economic sense, that is where these ships will dock.

Passage of this law would be a strong signal that New York State is in fact open for business and that we are serious about making New York State economically competitive again.

PRIOR LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect upon the enactment into law by the State of New Jersey of legislation having an identical effect with this act, but if the State of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the Waterfront Commission shall notify the Legislative Bill Drafting Commission upon the occurrence of the enactment of the legislation provided for in section one of the act in order that the Commission may maintain an accurate and timely effective data base of the official text of laws of the State of New York in furtherance of effecting the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law.


Text

STATE OF NEW YORK ________________________________________________________________________ 6156 IN SENATE (PREFILED) January 8, 2014 ___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation AN ACT to amend the waterfront commission act, in relation to cargo facility charges by the Port Authority of New York and New Jersey THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1 of chapter 882 of the laws of 1953, constituting the waterfront commission act is amended by adding a new article VII-A to read as follows: ARTICLE VII-A CARGO FACILITY CHARGES 1. AS USED IN THIS ARTICLE: (A) "BILL OF LADING" MEANS A DOCUMENT EVIDENCING THE RECEIPT OF GOODS FOR SHIPMENT ISSUED BY A PERSON ENGAGED IN THE BUSINESS OF TRANSPORTING OR FORWARDING GOODS. (B) "CARGO FACILITY CHARGE" MEANS ANY FEE APPLICABLE TO CARGO AND CARGO CONTAINERS DISCHARGED FROM, OR LOADED ONTO, VESSELS AT ANY MARINE FACILITY OWNED OR OPERATED BY THE PORT AUTHORITY. (C) "CARRIER" MEANS A CARRIER AS THAT TERM IS DEFINED IN 49 U.S.C. S. 13102. (D) "CONTAINER" MEANS ANY RECEPTACLE, BOX, CARTON, OR CRATE WHICH IS SPECIFICALLY DESIGNED AND CONSTRUCTED SO THAT IT MAY BE REPEATEDLY USED FOR THE CARRIAGE OF FREIGHT BY AN OCEAN COMMON CARRIER. (E) "MARINE TERMINAL OPERATOR" MEANS ANY PERSON, CORPORATION, PARTNER- SHIP, OR ANY BUSINESS ORGANIZATION WHICH SHALL OPERATE AND MAINTAIN ANY OF THE MARINE TERMINALS ESTABLISHED, ACQUIRED, CONSTRUCTED, REHABILI- TATED, OR IMPROVED BY THE PORT AUTHORITY BY MEANS OF AND THROUGH LEASING AGREEMENTS ENTERED INTO BY ANY SUCH PERSON, CORPORATION, PARTNERSHIP, OR ANY BUSINESS ORGANIZATION WITH THE PORT AUTHORITY. (F) "OCEAN COMMON CARRIER" MEANS AN OCEAN COMMON CARRIER AS THAT TERM IS DEFINED IN 46 U.S.C. S.40102.
(G) "RAIL CARRIER" MEANS A RAIL CARRIER AS THAT TERM IS DEFINED IN 49 U.S.C. S. 10102. (H) "TARIFF" MEANS A MARINE TERMINAL OPERATOR SCHEDULE AS THAT TERM IS DEFINED IN 46 C.F.R. 525.2. (I) "USER" MEANS: (1) ANY PERSON, COMPANY, OR OTHER ENTITY THAT IS NAMED AS THE SHIPPER OR CONSIGNEE ON THE OCEAN COMMON CARRIER BILL OF LADING ISSUED FOR EXPORT OR IMPORT CARGO, OR ANY PERSON OWNING OR ENTITLED TO THE POSSESSION, OR HAVING A PAST OR FUTURE INTEREST IN, THE EXPORT OR IMPORT CARGO; (2) IN THE CASE OF NEGOTIABLE BILLS OF LADING, ANY OTHER PERSON, COMPANY, OR OTHER ENTITY THAT IS A BONA FIDE HOLDER OF THE BILL OF LADING OR WHO IS ENTITLED TO RECEIVE DELIVERY OF EXPORT CARGO OR IMPORT CARGO; OR (3) ANY OTHER BAILOR OF EXPORT OR IMPORT CARGO. 2. NOTWITHSTANDING ANY LAW, RULE, REGULATION, OR EXISTING TARIFF TO THE CONTRARY, THE PORT AUTHORITY SHALL NOT ASSESS A USER, OCEAN COMMON CARRIER, MARINE TERMINAL OPERATOR, CARRIER, OR RAIL CARRIER A CARGO FACILITY CHARGE ON IMPORT AND EXPORT CARGO LEAVING ANY MARINE FACILITY OWNED OR OPERATED BY THE PORT AUTHORITY, EXCEPT THAT THE PORT AUTHORITY MAY ASSESS A USER, OCEAN COMMON CARRIER, MARINE TERMINAL OPERATOR, CARRIER, OR RAIL CARRIER A CARGO FACILITY CHARGE UPON WRITTEN MUTUAL AGREEMENT BETWEEN THE USER, OCEAN COMMON CARRIER, MARINE TERMINAL OPERA- TOR, CARRIER, OR RAIL CARRIER AND THE PORT AUTHORITY. S 2. This act shall take effect upon the enactment into law by the state of New Jersey of legislation having an identical effect with this act, but if the state of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the waterfront commission shall notify the legislative bill drafting commission upon the occurrence of the enactment of the legislation provided for in section one of this act in order that the commission may maintain an accurate and timely effective data base of the official text of laws of the state of New York in furtherance of effecting the provisions of section 44 of the legislative law and section 70-b of the public officers law.

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