Legislature(2007 - 2008)CAPITOL 17
02/19/2007 03:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HJR8 | |
| HB116 | |
| HB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 116 | TELECONFERENCED | |
| *+ | HB 28 | TELECONFERENCED | |
| += | HJR 8 | TELECONFERENCED | |
HJR 8-WASHINGTON CONTAINER FEE CHAIR OLSON announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 8, Opposing the enactment by the Washington State Legislature of a bill proposing to impose a fee on the processing of shipping containers in the State of Washington because of the negative impact of the fee on the people and the economy of this state. 3:05:45 PM REPRESENTATIVE BILL THOMAS, Alaska State Legislature, sponsor of HJR 8, stated that he represents House District 5. He gave a brief description of the aforementioned district. 3:06:28 PM REPRESENTATIVE NEUMAN made a motion to adopt [CSHJR 8, Version 25-LS0533\E, Bullock, 2/15/07] as the working document. There being no objection, [Version E] was before the committee. 3:06:59 PM REPRESENTATIVE THOMAS explained that HJR 8 is a resolution opposing the "shipping container tax" which is currently be considered by the Washington State Legislature. Alaska has been a "trading partner" with the state of Washington for over 100 years. Washington State is considered the "gateway to Alaska," and in 2003, Alaska was the Puget Sound's fifth largest trading partner. This economic relationship is responsible for an estimated 103,500 jobs and over $4 billion in labor earnings. He explained that 97 percent of the weight shipped to Alaska is shipped via water. He opined that addressing the aforementioned shipping container tax is critical to the state of Alaska. This tax would be apply to shipping containers traveling to and from Washington State, at a rate of $50 per twenty-foot equivalent. He pointed out that this would mean an additional $100 per 20- foot van, and $200 per 40-foot van. Additionally, Alaska Marine Lines (AML) utilizes a 53-foot van, which would result in a higher tax. REPRESENTATIVE THOMAS explained that the majority of communities in his district are fishing communities, and would be negatively impacted be the proposed tax. He opined that this additional cost would be devastating, pointing out a community with an unemployment rate of 87 percent. Some communities have gas costs as high as $6 per gallon. 3:10:13 PM KACI SCHROEDER-HOTCH, Staff to Representative Bill Thomas, Alaska State Legislature, sponsor, explained that the Washington State Legislature refers legislation to only one committee, taking public testimony during the first hearing. All following hearings are "executive sessions," allowing the public to listen; however, they may not testify. She pointed out that the opportunity for testimony on this issue has passed. CHAIR OLSON expressed his intention to move the bill on to its next committee of referral, due to its time sensitive nature. 3:11:12 PM EVERETT BILLINGSLEA, Vice President of Administrative and Legal Affairs, Lynden Transport, in response to a question from Chair Olson, agreed that he is in support of the resolution. REPRESENTATIVE THOMAS pointed out that a recent estimation shows that the proposed tax would have a $40-$50 million impact statewide. He opined that this would be "catastrophic." 3:11:35 PM REPRESENTATIVE GATTO asked for more information regarding California and its role in the proposed shipping container tax. REPRESENTATIVE THOMAS offered his understanding that California passed similar legislation; however, this was vetoed by the Governor. An additional attempt to pass this legislation is expected. He explained that when the Washington House of Representatives holds a hearing on this issue, a representative from Alaska will be present to testify. In response to an additional question, he explained that California and Washington State are attempting to tax shipping containers from China and Japan. Alaska is "an innocent bystander." He offered his understanding that the additional funds would be used for improvements to the transportation system in Washington State. 3:15:14 PM REPRESENTATIVE RAMRAS stated that he is in support of HJR 8. He inquired as to the legality of the proposed shipping container tax, in regard to inter-state trade laws. REPRESENTATIVE THOMAS offered his understanding that the proposed tax is legal, as it would apply to all parties bringing containers in or out of Washington State. REPRESENTATIVE GATTO offered his understanding that according to the Constitution of the United States, barriers to inter-state commerce are prohibited. He questioned whether the shipping container tax would be considered a "barrier." MS. SCHROEDER-HOTCH replied that there are some legal concerns. HJR 8 recommends that the attorney general research these issues in preparation for any federal injunctions that may be necessary, should the legislation pass. REPRESENTATIVE LEDOUX pointed out that the tax effects cargo both in and out of Washington State, which would also effect Washington State residents. She opined that if the tax is not considered to be in violation with the inter-state commerce laws, this may be why. CHAIR OLSON reiterated his intent to move the bill. 3:17:33 PM REPRESENTATIVE NEUMAN moved to report CSHJR 8, Version 25- LS0533\E, Bullock, 2/15/07, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHJR 8(L&C) was reported from the House Labor and Commerce Standing Committee. 3:18:14 PM
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