senate Bill S6156

Relates to cargo facility charges by the Port Authority

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

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

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A9546
Versions:
S6156
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Port Authority of New York and New Jersey
Laws Affected:
Add Art VII-A, Chap 882 of 1953

Votes

Sponsor 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. Unfortunate-
ly, 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 Draft-
ing 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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6156

                            I N  S E N A T E

                               (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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13087-01-3

S. 6156                             2

  (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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