00 SENATE BILL NO. 5  01 "An Act relating to municipal taxes and fees levied on certain commercial vessels 02 operating in waterborne commerce for the privilege of entering into the port or 03 levied on passengers who may disembark from a commercial vessel at a port in 04 the state; and levying and providing for the collection and administration of fees 05 on passengers for the privilege of disembarking certain commercial vessels that 06 carry passengers in waterborne commerce at ports in the state; and providing for 07 an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. STATEMENT OF PURPOSE AND INTENT. (a) Tourism in the state has 10 been marked by significant growth in the number of visitors to the state, especially visitors 11 arriving by cruise vessels, and by a series of accidents involving those visitors that have drawn 12 upon the emergency response resources of adjacent municipalities. Those patterns underscore 13 the need to improve the capacity, safety, and security of the ports and associated facilities of 14 the state and to provide a means by which to advance the ability of municipalities to respond 01 when emergency conditions may so require. The legislature believes that passengers in 02 commerce and the companies providing their carriage to and from the state should be required 03 to pay a fair share of these expenses. The legislature is mindful of the strong interest recently 04 expressed by officials and voters in some municipalities to begin to address these concerns 05 through local levies. The legislature is concerned that enactment of a series of levies by 06 various city and borough governments might ultimately prove detrimental to tourism 07 throughout the state and consequently to the economies of the municipalities in which tourism 08 is an important component. At the same time, the legislature is cognizant of the several 09 constitutional tests -- constraints imposed by the commerce clause and the duty of tonnage 10 provision of the United States Constitution, and equal protection considerations of the Alaska 11 Constitution -- that are implicated when a levy is to be imposed and collected on commercial 12 passengers and vessels that transport them. 13 (b) It is the intent of the legislature that this Act 14 (1) provide a means by which the state may impose and collect a single levy 15 on passengers carried on commercial vessels and for the privilege of disembarking at ports 16 in the state, share the proceeds of the levy with municipalities, directly, for purposes of 17 making improvements to port and associated facilities, and, through the existing program of 18 state revenue sharing with municipalities, to advance the ability of municipalities to respond 19 when circumstances or conditions involving these passengers may so require; 20 (2) allow use of revenue recovered from the fee imposed by this Act as public 21 officials may determine, but always consistent with the constraints set down by cases 22 interpreting and applying the pertinent constitutional restraints; and 23 (3) except as may be required by current covenants and contracts, preempt the 24 state's local governments from individually imposing disembarkation taxes and similar levies; 25 however, if the levy proposed by this Act is found to be unconstitutional, it is the intent of 26 the legislature to set aside the preemption and to restore to the state's municipalities the right 27 of levy and collection of fees on passengers traveling in commerce and on the vessels that 28 carry them. 29 * Sec. 2. AS 29.10.200 is amended by adding a new paragraph to read: 30  (54) AS 29.47.480 (taxation of certain commercial vessels operating in 31 waterborne commerce and of passengers who may disembark those vessels). 01 * Sec. 3. AS 29.47 is amended by adding a new section to read: 02  Sec. 29.47.480. Taxes or fees on transportation by certain commercial 03 vessels operating in waterborne commerce and on passengers who may disembark 04 those vessels.  (a) Except when the tax or fee described in this subsection is being 05 levied and collected on the effective date of this Act for the construction of a port or 06 harbor improvement and the levy of the tax is required by a bond covenant or similar 07 agreement to pay for the improvement or to pay bonds or notes relating to the 08 improvement, notwithstanding other provisions of law, a municipality may not levy or 09 collect a tax or fee 10  (1) on boats or vessels that are used in the common carriage of 11 passengers in commerce if the tax is levied for the privilege of the boat or vessel 12 entering into a port; or 13  (2) on passengers who may disembark a boat or vessel described in (1) 14 of this subsection. 15  (b) This section applies to home rule and general law municipalities. 16 * Sec. 4. AS 43 is amended by adding a new chapter to read: 17 Chapter 52. Excise Fees. 18 Article 1. Excise Fee Administration. 19  Sec. 43.52.010. Administration of fees. (a) The department shall administer 20 the fees imposed by this chapter. 21  (b) The department shall prescribe and furnish all necessary forms, and adopt 22 all necessary regulations, for the fees imposed by this chapter. 23  Sec. 43.52.020. Disposition of receipts. The legislature may use the annual 24 estimated balance of the account maintained under AS 37.05.142 for deposits into the 25 general fund of the proceeds of the fees imposed by AS 43.52.100 - 43.52.199 26  (1) to make appropriations to the tax equalization account established 27 in AS 29.60.060 to make the distributions authorized by AS 29.60.010 - 29.60.080; 28 however, a municipality receiving a distribution under AS 29.60.010 - 29.60.080 must 29 use for purposes that fairly relate to benefits provided in the municipality to passengers 30 traveling in waterborne commerce a percentage of the amount received that is at least 31 equal to the percentage determined by dividing the total proceeds of the fees imposed 01 under AS 43.52.100 - 43.52.199 and appropriated to the account established in 02 AS 29.60.060 by the total amount appropriated to the account established in 03 AS 29.60.060; and 04  (2) to make appropriations for purposes that will preserve or improve 05 the capacity, safety, and security of ports and associated facilities in the state, with 06 emphasis to be given to facilities that are used by boats and vessels operating in the 07 common carriage of passengers in commerce. 08 Article 2. Excise Fee on Passengers Traveling on Commercial Passenger Vessels. 09  Sec. 43.52.100. Levy of fee on passengers traveling aboard commercial 10 passenger vessel. There is imposed an excise fee on passengers traveling in 11 waterborne commerce aboard a commercial vessel for the privilege of disembarking 12 the commercial vessel when the commercial vessel visits the port to disembark 13 passengers. The levy is imposed without regard to whether or not a passenger who 14 may disembark the vessel actually leaves the vessel at the port. 15  Sec. 43.52.110. Rate of fee. The fee imposed by AS 43.52.100 is $25 a 16 passenger for each port that the commercial vessel visits in which the passenger has 17 the privilege to disembark the vessel. 18  Sec. 43.52.120. Liability for payment of fee. The fee imposed by 19 AS 43.52.100 - 43.52.199 shall be collected and is due and payable to the department 20  (1) by the person who provides transportation by commercial vessel to 21 the passenger for whose privilege to disembark the commercial vessel the tax is 22 payable; and 23  (2) in the manner and at the times required by the department by 24 regulation. 25  Sec. 43.52.130. Fee not applicable. The provisions of AS 43.52.100 - 26 43.52.199 do not apply to persons transported on a vessel of the Alaska marine 27 highway system. 28  Sec. 43.52.199. Definitions. In AS 43.52.100 - 43.52.199, 29  (1) "commercial vessel" means a boat or vessel that is used in the 30 common carriage of passengers in commerce; 31  (2) "fee" means the excise fee on passengers traveling in waterborne 01 commerce aboard commercial vessels who, upon arriving at a port in the state, have 02 the privilege to disembark the vessel; 03  (3) "passenger" means a person whom a common carrier has contracted 04 to carry from one place to another; 05  (4) "port" means a place, and the facilities within them, designated by 06 a municipality or the state for the loading and unloading of passengers from boats and 07 vessels. 08 * Sec. 5. PROVISIONS NOT SEVERABLE. Notwithstanding AS 01.10.030, the 09 provisions of this Act are not severable. 10 * Sec. 6. This Act takes effect January 1, 1998.