Maritime Goods Movement Act for the 21st Century

Bill: 113-s-1509
Sponsor: full_name: Sen. Murray, Patty [D-WA]
Introduced: 2013-09-17
Policy area: Transportation and Public Works
Subjects: Army Corps of Engineers

Department of Homeland Security

Department of Transportation

Executive agency funding and structure

Government trust funds

Marine and inland water transportation

Navigation, waterways, harbors

Sales and excise taxes

Transportation programs funding

User charges and fees
Latest action: action_date: 2013-09-17
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2013-09-17
action_desc: Introduced in Senate
text: <p>Maritime Goods Movement Act for the 21st Century - Directs the U.S. Customs and Border Protection (CBP) to impose a Maritime Goods Movement User Fee of 0.125% on all commercial cargo (except a U.S. export) that: (1) is unloaded from or loaded on a commercial vessel at a U.S. port, or (2) enters a U.S. point of entry.</p> <p>Prescribes a special rule prohibiting the imposition of such fee on: (1) cargo (except crude oil with respect to Alaska) loaded on a vessel in a mainland U.S. port and transported for use or consumption in Alaska, Hawaii, or any U.S. possession; (2) cargo loaded on a vessel in Alaska, Hawaii, or any U.S. possession and transported for use or consumption in the U.S. mainland, Alaska, Hawaii, or U.S. possession; (3) the unloading of such cargo in Alaska, Hawaii, or U.S. possession, or U.S. mainland, respectively; or (4) cargo loaded on a vessel in Alaska, Hawaii, or U.S. possession and unloaded in the state or U.S. possession in which loaded, or passengers transported on U.S.-flag vessels operating solely within Alaskan or Hawaiian waters and adjacent international waters.</p> <p>Prohibits imposition of such fee on: (1) on the United States or any U.S. agency, or (2) a nonprofit organization or cooperative for cargo intended for use in humanitarian or development assistance overseas.</p> <p>Makes available up to $10 million of fees collected during any fiscal year for administrative expenses of the Department of Homeland Security (DHS), the Army Corps of Engineers, and the Department of Transportation (DOT).</p> <p> Makes certain fee allocations for: (1) harbor maintenance programs; (2) low-use ports; and (3) super donor ports to carry out projects or activities under a competitive grant for maritime improvement projects for movement of goods, as well as for other specified maritime improvement projects for movement of international maritime cargo.</p> <p>Defines &quot;super donor port&quot; as a port for which average expenditures in the 5 previous fiscal years: (1) from the Harbor Maintenance Trust Fund, for fiscal years beginning before enactment of this Act, are less than 10% percent of the total average amount of harbor maintenance taxes collected through landings at the port in such fiscal years; or (2) from the amounts collected for the Maritime Goods Movement User Fee, for fiscal years starting after enactment of this Act, are less than 10% of the total average amount of such fees collected through landings at the port.</p> <p>Establishes a Competitive Grant Program for Goods Movement.</p> <p>Amends the Internal Revenue Code to repeal the harbor maintenance tax.</p> <p>Declares that nothing in this Act shall be construed to prevent application of requirements that locally prevailing wages (Davis-Bacon Act) be paid to various classes of laborers and mechanics working on harbor maintenance improvement projects.</p>

tv_txt: II 113th CONGRESS 1st Session S. 1509 IN THE SENATE OF THE UNITED STATES September 17, 2013 Mrs. Murray (for herself and Ms. Cantwell ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To establish a Maritime Goods Movement User Fee and provide grants for international maritime cargo improvements and for other purposes.

1. Short title This Act may be cited as the Maritime Goods Movement Act for the 21st Century . 2. Definitions In this Act: (1) Commercial cargo The term commercial cargo — (A) means— (i) any cargo transported on a commercial vessel, including passengers transported for compensation or hire; and (ii) international maritime cargo; and (B) does not include— (i) bunker fuel, ship’s stores, sea stores, or the legitimate equipment necessary to the operation of a vessel; or (ii) fish or other aquatic animal life caught and not previously landed on shore. (2) Commercial vessel The term commercial vessel — (A) means any vessel used— (i) in transporting cargo by water for compensation or hire; or (ii) in transporting cargo by water in the business of the owner, lessee, or operator of the vessel; and (B) does not include any ferry engaged primarily in the ferrying of passengers (including their vehicles) between points within the United States, or between the United States and contiguous countries. (3) Ferry The term ferry means any vessel which arrives in the United States on a regular schedule during its operating season at intervals of at least once each business day. (4) International maritime cargo The term international maritime cargo means any cargo that is moved by ship that arrives into the United States from a point outside the United States, regardless of whether such cargo— (A) arrives in the United States by ship; or (B) is unloaded in a foreign country and arrives in the United States by another form of transit. (5) Low-use port The term low-use port means a port at which not more than 1,000,000 tons of cargo is transported each calendar year. (6) Point of entry The term point of entry means a place where commercial cargo enters the United States. (7) Port (A) In general Except as provided in subparagraphs (B) and (C), or otherwise specifically provided in this Act, the term port means any channel or harbor (or component thereof) in the United States, which— (i) is not an inland waterway; and (ii) is open to public navigation. (B) Exception for certain facilities The term port does not include any channel or harbor with respect to which no Federal funds have been used since 1977 for construction, maintenance, or operation, or which was deauthorized by Federal law before 2013. (C) Special rule for the Columbia River The term port shall include the channels of the Columbia River in the States of Oregon and Washington only up to the downstream side of the Bonneville Lock and Dam. (8) Super donor port (A) In general The term super donor port means a port for which average expenditures in the 5 previous fiscal years— (i) for fiscal years beginning prior to the date of the enactment of this Act, from the Harbor Maintenance Trust Fund pursuant to section 9505(c)(1) of the Internal Revenue Code of 1986 (relating to expenditures from the Harbor Maintenance Trust Fund) are less than 10 percent of the total average amount of harbor maintenance taxes collected through landings at such port in such fiscal years; or (ii) for fiscal years beginning after such date of enactment, from the amounts collected for the Maritime Goods Movement User Fee are less than 10 percent of the total average amount of such Fees collected through landings at such port. (B) Included expenditures The amount of expenditures under subparagraph (A) shall only include expenditures made at such a port in the immediate harbor area containing docks and other facilities utilized for the loading and unloading of foreign waterborne commerce and in any navigational channels in the United States that are necessary for the transportation of such foreign waterborne commerce between such immediate harbor areas and foreign ports. (9) Value The term value means— (A) with respect to domestic commercial cargo, the value as determined by standard commercial documentation; (B) with respect to imported commercial cargo, the appraised value for duty as determined under section 402 of the Tariff Act of 1930 ( 19 U.S.C. 1401a ); or (C) with respect to the transportation of passengers for hire, the actual charge paid for such service or the prevailing charge for comparable service if no actual charge is paid. 3. Establishment of Maritime Goods Movement User Fee (a) Establishment of fee (1) In general Except as otherwise provided in this section, there is imposed a Maritime Goods Movement User Fee on all commercial cargo— (A) unloaded from or loaded on a commercial vessel at a port; or (B) that enters the United States at a point of entry. (2) Effective date The Maritime Goods Movement User Fee shall be imposed on commercial cargo under paragraph (1) beginning on October 1 of the first fiscal year beginning after the date of the enactment of this Act. (b) Fee amount The amount of the Maritime Goods Movement User Fee shall be an amount equal to 0.125 percent of the value of the commercial cargo. (c) Collection of fee The Maritime Goods Movement User Fee shall be collected by U.S. Customs and Border Protection. (d) Time of imposition of fee The Maritime Goods Movement User Fee shall be imposed on commercial cargo at the time— (1) the commercial cargo is unloaded from or loaded on a commercial vessel at a port in the United States; or (2) the commercial cargo enters the United States at a point of entry. (e) Inapplicability to cargo No Maritime Goods Movement User Fee shall be imposed under this section on any export of the United States. (f) Coordination of fee where transportation subject to tax imposed under 4042 of the Internal Revenue Code No Maritime Goods Movement User Fee shall be imposed under this section with respect to the loading or unloading of any cargo on or from a vessel if any fuel of such vessel has been (or will be) subject to the tax imposed by section 4042 of the Internal Revenue Code of 1986 (relating to tax on fuels used in commercial transportation on inland waterways). (g) Special rule for Alaska, Hawaii, and possessions (1) In general No Maritime Goods Movement User Fee shall be imposed on— (A) cargo loaded on a vessel in a port in the United States mainland for transportation to Alaska, Hawaii, or any possession of the United States for ultimate use or consumption in Alaska, Hawaii, or any possession of the United States; (B) cargo loaded on a vessel in Alaska, Hawaii, or any possession of the United States for transportation to the United States mainland, Alaska, Hawaii, or such a possession for ultimate use or consumption in the United States mainland, Alaska, Hawaii, or such a possession; (C) the unloading of cargo described in subparagraph (A) or (B) in Alaska, Hawaii, or any possession of the United States, or in the United States mainland, respectively; or (D) cargo loaded on a vessel in Alaska, Hawaii, or a possession of the United States and unloaded in the State or possession in which loaded, or passengers transported on United States flag vessels operating solely within the State waters of Alaska or Hawaii and adjacent international waters. (2) Cargo For purposes of this subsection, the term cargo does not include crude oil with respect to Alaska. (3) United States mainland For purposes of this section, the term United States mainland means the continental United States (not including Alaska). (h) Special rules Except as provided by regulations: (1) Fee imposed only once The Maritime Goods Movement User Fee shall be imposed on the same commercial cargo only 1 time. (2) Exception for intraport movements Under regulations, no Maritime Goods Movement User Fee shall be imposed on the mere movement of commercial cargo within a port. (3) Relay cargo Only 1 Maritime Goods Movement User Fee shall be imposed on cargo (moving under a single bill of lading) which is unloaded from one vessel and loaded onto another vessel at any port in the United States for relay to or from any port in Alaska, Hawaii, or any possession of the United States. For purposes of this paragraph, the term cargo does not include any item not treated as cargo under subsection (g)(2). (i) Exemption for United States No Maritime Goods Movement User Fee shall be imposed on the United States or any agency or instrumentality thereof. (j) Exemption for humanitarian and development assistance cargos No Maritime Goods Movement User Fee shall be imposed on any nonprofit organization or cooperative for cargo which is owned or financed by such nonprofit organization or cooperative and which is certified by the U.S. Customs and Border Protection as intended for use in humanitarian or development assistance overseas. (k) Limitation on collection of fee No fee may be collected under this section except to the extent that the expenditure of the fee to pay the costs of activities and services for which the fee is imposed is provided for in advance in an appropriations Act. (l) Receipts credited as offsetting collections Notwithstanding section 3302 of title 31, United States Code, any fee collected under this section— (1) shall be credited as offsetting collections to the accounts that finance the activities and services detailed in section 4; (2) shall be available for expenditure only to pay the costs of activities and services detailed in section 4; and (3) shall remain available until expended. 4. Expenditures of Maritime Goods Movement User Fee (a) Administrative costs Up to $10,000,000 of the amount of the Maritime Goods Movement User Fees collected during any fiscal year shall be available for payment of expenses of administration incurred by the Department of Homeland Security, the Army Corps of Engineers, and the Department of Transportation. (b) Other expenditures The amounts of the Maritime Goods Movement User Fees collected for a fiscal year that are not used for administration under subsection (a) shall be allocated as follows: (1) Harbor maintenance programs For the first 5 fiscal years beginning after the date of the enactment of this Act, 95 percent, and for each fiscal year thereafter 80 percent, of such amounts shall be available to pay up to 100 percent of the eligible operations and maintenance costs assigned to commercial navigation of all harbors and inland harbors within the United States, as authorized by section 210(a)(2) of the Water Resources Development Act of 1986 ( 33 U.S.C. 2238(a)(2) ), including the Federal share of the cost of— (A) maintenance of Federal navigation projects to their authorized depths and widths; (B) disposal of maintenance dredged material; (C) construction and maintenance of dredged material placement facilities; (D) projects or activities for the beneficial use of dredged material or sand mitigation; (E) jetties, breakwaters, bridges, and other navigation structures; and (F) related studies and surveys. (2) Low-use ports Of the amounts made available each fiscal year for harbor maintenance programs under paragraph (1), up to 8 percent shall be allocated for low-use ports. Special emphasis shall be placed on low-use ports where there is a Coast Guard presence and low-use ports which the Coast Guard determines to be restricted navigation areas or harbors of refuge. (3) Competitive grant program for goods movement (A) Super donor ports For each fiscal year beginning with the sixth fiscal year beginning after the date of the enactment of this Act, 15 percent of the amounts of the Maritime Goods Movement User Fee not used for administration under subsection (a), shall be allocated to super donor ports to carry out projects or activities described in paragraphs (1), (2), and (3) of section 5(e). (B) Other uses For each fiscal year beginning after the date of the enactment of this Act, 5 percent of the amounts of the Maritime Goods Movement User Fee not used for administration under subsection (a) shall be allocated to carry out projects or activities described in paragraphs (4), (5), and (6) of subsection 5(e). 5. Competitive Grant Program for Goods Movement (a) Establishment of grant program There is established a Competitive Grant Program for Goods Movement to be administered by the Secretary of Transportation in consultation with the Assistant Secretary of the Army for Civil Works. (b) Purpose The purpose of the Competitive Grant Program for Goods Movement to provide financial assistance for capital investments that improve the efficiency of the transportation system of the United States to move international maritime cargo. (c) Project eligibility (1) Minimum number of grantees For each fiscal year, there shall be no less than— (A) 3 grantees that are super donor ports; and (B) 3 grantees that are eligible entities under subsection (d). (2) Cost-share The Federal cost share of a project awarded a grant under this section shall be no more than 50 percent of the total cost. (d) Eligible entity A grant under this section may only be awarded to a State or local government entity, including a port authority. (e) Eligible projects A grant awarded under this section may be used for the following: (1) Any in-water improvement in the navigable waters in or near such port that the Secretary of the Army is authorized to make, including environmental remediation and habitat mitigation if certified by the Assistant Secretary to improve the movement of international maritime cargo. (2) Any in water improvement in berthing areas in such port pursuant to a channel widening or deepening project. (3) Maintenance of berthing areas adjacent to navigational channels in such port. (4) Improvements to an intermodal corridor facility project to benefit international maritime cargo as certified by the Secretary of Transportation or designee, in consultation with the Assistant Secretary of the Army for Civil Works or designee. (5) Improvements to a land port of entry project to benefit international maritime cargo as certified by the Secretary of Transportation or designee, in consultation with the Assistant Secretary of the Army for Civil Works or designee. (6) A project that improves access to a port or intermodal terminal facility to benefit international maritime cargo as certified by the Secretary of Transportation or designee, in consultation with the Assistant Secretary of the Army for Civil Works or designee. 6. Repeal of harbor maintenance tax (a) In general Subchapter A of chapter 36 of the Internal Revenue Code of 1986 is repealed. (b) Conforming amendment The table of subchapters for chapter 36 of the Internal Revenue Code of 1986 is amended by striking the item relating to subchapter A. (c) Effective date The amendments made by this section shall apply to port uses (as defined in section 4462, as in effect on the day before the date of the enactment of this Act) on or after October 1 of the first fiscal year beginning after the date of the enactment of this Act. 7. Treatment of balances from the Harbor Maintenance Trust Fund Any remaining balances in the Harbor Maintenance Trust Fund established by section 9505 of the Internal Revenue Code of 1986 (relating to expenditures from the Harbor Maintenance Trust Fund) shall remain available until expended in accordance with the requirements of subsection (c) of that section. 8. Application of wage requirements Nothing in this Act shall be construed to prevent the application of wage requirements otherwise applicable to harbor maintenance improvement projects on the date of enactment of this Act.