RELATING TO MARINE PASSENGER FEES.

SB634

THE SENATE

S.B. NO.

634

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating to Marine Passenger Fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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The
legislature finds that three cities in Alaska have enacted marine passenger fees
that are assessed for each cruise ship passenger arriving in the respective
city.
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The fees assist in funding city
projects that offset the impacts created by the cruise ship industry and
enhance the tourism experience, such as improving port facilities and
infrastructure, and mitigating the negative effects of natural disasters.

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Juneau has imposed a $5 per passenger marine
passenger fee since 1999.
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It also
charges a $3 per passenger port development fee.
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In Haines, Alaska, the marine passenger fee
is $9 per passenger, which will increase to $12 per passenger in 2027 and $13
in 2029.
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In Ketchikan, the marine passenger
fee is currently $11 per passenger.

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The legislature further finds that the
imposition of cruise ship passenger fees by Alaskan cities has been litigated
and determined by the United States District Court for the State of Alaska to
be lawful.
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As long as the fees are used
for services that are provided to the cruise ship, they do not violate the Tonnage
Clause of the United States Constitution or the River and Harbors Appropriation
Act of 1899.
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Examples of permissible
fees and uses that the court discussed include wharfage from vessel owners for
city-constructed wharves, quarantine fees to examine passengers at a quarantine
station so that the ship could receive the necessary certification to proceed,
construction of facilities that constitute a service to a vessel such as a
gangplank, and services provided to a vessel entering a port, such as charges
for regulation of harbor traffic, use of locks, and emergency services for
vessels
.
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Cruise Lines Int'l Ass'n
Alaska v. City & Borough of Juneau
, 356 F. Supp. 3d 831 (D. Alaska
2018).

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The legislature also finds that, according
to the Hawaii tourism authority, 149,980 visitors arrived in Hawai
ʻ
i
aboard seventy-seven out-of-state cruise ships for the period of January to
November 2024.
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In 2023, there were
157,612 visitors who arrived on seventy-four cruise ships.
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These ships all stop at one or more state
harbors.

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Accordingly, the purpose of this Act is to
establish:

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(1)
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A
cruise ship passenger fee of $10 per passenger of vessels sized to carry twenty-one
or more passengers; and

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(2)
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A
cruise ship fee special fund, into which shall be deposited all collected fees for
infrastructure projects benefiting cruise ships with an emphasis on climate
change mitigation and adaptation.

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SECTION 2.
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Chapter 266, Hawaii Revised Statutes, is amended by adding two new
sections to be appropriately designated and to read as follows:

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"
�266-A
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Cruise ship passenger fee.
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(a)
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It is the purpose of the fee imposed under this section to be utilized
for infrastructure projects by the State that benefit cruise ships with an
emphasis on climate change mitigation and adaptation projects.

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(b)

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Beginning January 1, 2026, the
department of transportation shall assess a fee of $10 per passenger per visit
for every marine passenger ship not otherwise exempted.
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The fee shall be increased annually on
January 1 based on the urban Hawaii consumer price index, or a successor index,
for the twelve months prior, as calculated by the federal Department of Labor.

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(c)
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The passenger fee for each ship shall be
calculated based on the passenger manifest for the ship upon entry into any
port within the State.
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Upon entry, the
owner or authorized agent from each ship shall present the department of
transportation with a passenger manifest.

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(d)
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Passenger manifests obtained by the department of transportation under
this section shall be kept confidential and shall not be subject to public inspection;
provided that the following information shall be made available to the public:

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(1)
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Names
and owners of ships subject to the fee under this section;

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(2)
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Number
of passengers per ship;

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(3)
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Names
and owners of ships which have been issued an exemption certificate; and

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(4)
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Names
and owners of ships delinquent in the payment of fees, total amount
outstanding, and date the fee accrued.

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The department of transportation shall
post on its website the public information updated on a monthly basis.

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(e)
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The passenger fees shall be paid by the owner or agent of the ship to
the state within sixty days from entry of the ship into any port within the State.
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Interest shall accrue at a rate of ten per cent
per year on any fees not paid after sixty days.

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(f)
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The fee shall not apply to:

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(1)
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Ships
having accommodations for twenty or fewer passengers;

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(2)
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Ships
without berths or overnight accommodations for passengers; or

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(3)
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Noncommercial
ships, ships operated by nonprofit entities as determined by the United States
Internal Revenue Service, or ships operated by the State, the United States of
America, or a foreign government.

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The burden of proving an exemption shall
be on the person claiming the exemption.

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(g)
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Each owner or agent of a ship subject to
payment of a fee under this section shall maintain and keep for a period of
three years after the date of filing all of the passenger manifests, forms,
supporting records, and other records prescribed by the manager by regulation.
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Upon the request of the department of
transportation, the owner or agent of a marine passenger ship shall make
available for examination in the State the books, records, and other documents
of the ship.

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(h)
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No ship delinquent in the payment of passenger fees, nor any vessel
carrying passengers to or from the ship shall be allowed to moor at any port
facility in the State.

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(i)
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Any fees collected under this section shall be placed in the cruise ship
passenger fee special fund.

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(j) The department of transportation shall
administer and enforce this section and may adopt rules pursuant to chapter 91.

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(k)
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For the purposes of this section:

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"Agent" and "authorized
agent" mean the master or person in charge of the ship or any other person
authorized by the owner or operator of the ship to act on behalf of the owner
or operator with respect to the ship.

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"Entry" into any port means
anchoring or mooring and allowing passengers to disembark.

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"Marine passenger" and
"passenger" mean any person who has paid any amount for a ticket
contract entitling that person to transportation aboard the ship.
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The term does not include the owner's or
operator's employees or their immediate family members sharing their quarters;
the owner's or operator's contractors or subcontractors; or musicians, artists,
guest speakers, art auctioneers, interpreters, rangers or similar persons
traveling without charge but providing passenger services for the owner or
operator.

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"Marine passenger ship" and
"ship" mean a vessel carrying passengers for compensation.

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"Person" means any individual,
partnership, firm, association, joint stock company, corporation or combination
of individuals of whatever form or character.

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"Visit" means an entry into
any port of the State more than twenty-four hours before or after another entry
by the same ship, excluding visits for emergency purposes.

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266-B
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Cruise Ship Passenger Fee Special Fund.
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(a)
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There is established within the treasury of
the State, a cruise ship passenger fee special fund, into which shall be
deposited all moneys collected by the department of transportation from cruise
ship passenger fees pursuant to section 266-A.

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(b)
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Moneys in the fund may be used by the department of transportation for
port infrastructure projects that benefit cruise ships with an emphasis on
climate change mitigation and adaptation projects.
"

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SECTION 3.
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There is appropriated out of the general revenues of the State of Hawaii
the sum of $ or so
much thereof as may be necessary for fiscal year 2025-2026 and the same sum or
so much thereof as may be necessary for fiscal year 2026-2027 to be deposited
into the cruise ship passenger fee special fund.

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The sums

appropriated shall be expended by the department of transportation
for the purposes of this Act.

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SECTION 4.
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In codifying the new sections added by section 2 of this Act, the
revisor of statutes shall substitute appropriate section numbers for the
letters used in designating the new sections in this Act.

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SECTION 5.
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New statutory material is underscored.

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SECTION 6.
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DOT; Marine Passenger Fees; Cruise Ship Passenger Fee;
Cruise Ship Passenger Fee Special Fund; Appropriation

Description:

Establishes
a
cruise ship passenger fee to be collected beginning 1/1/2026 by the
Department of Transportation to be used for infrastructure projects benefiting
cruise ships with an emphasis on climate change mitigation and adaptation.
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Establishes the Cruise Ship Passenger Fee
Special Fund.
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Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.