HB2781.DOC

SECTION 1. The purpose of this bill is to encourage compliance with the inspection, quarantine, and eradication service fee (inspection fee) by assessing fines on persons who fail to pay the inspection fee and on transportation companies that fail to remit the inspection fees collected to the Department of Agriculture.

In addition, this bill exempts dry bulk freight and liquid bulk freight from the inspection fee assessment.

The legislature finds that fees for the inspection of certain dry bulk freight for invasive species are unnecessary since the United States Department of Agriculture currently performs this task; and that duplication of this inspection is violative of the commerce clause and supremacy clause and is inconsistent with federal law, and is not an appropriate expenditure of limited state funds and personnel resources.

Section 436 of the federal Plant Protection Act (7 U.S.C. 7756) prohibits states from regulating foreign commerce in order to control, eradicate, or prevent dissemination of any plant, biological control organism, plant pest, noxious weed or plant product. Senate Concurrent Resolution 72, H.D. 1, (2009) recognized this preemption: "…the Agriculture Risk Protection Act of 2000, expressly preempted states from controlling, eradicating, or preventing the introduction or dissemination of a plant pest from any foreign origin."

It must also be noted that pre-inspected and pre-processed dry bulk freight from foreign sources, specifically coal, cement, and fine and coarse aggregate are different from other types of freight. Chapter 150A, Hawaii Revised Statutes was created to protect Hawaii from the Brown Tree Snake, Miconia calvescens, coqui frog, Salvinia molesta and other types of invasive species which travel in incoming cargo into the state, including containerized and non-containerized general freight.

Pre-inspected and pre-processed dry bulk freight from foreign sources is not a transporter for such invasive species, and to date no such invasive species has been found in dry bulk freight. Accordingly the legislature believes the current fee schedule should not be applicable to the transport of dry bulk freight from foreign sources that is inspected by and under the regulatory jurisdiction of the U.S. Department of Agriculture and the Plant Health Inspection Service (APHIS) rules and regulations.

The legislature also believes that the assessment of the inspection fee for liquid bulk freight is unnecessary because this commodity has not been shown to be a significant pest risk pathway since it is not a habitable environment.

SECTION 2. Chapter 150A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§150A- Failure to pay or remit the inspection, quarantine, and eradication service fee; fines. (a) The following fines shall be imposed for failure to pay, bill, or remit the inspection, quarantine, and eradication service fee as provided for in section 150A-5.3:

(1) A person responsible for paying the freight charges to the transportation company who does not pay the fee shall be assessed a fine of $100 for every one thousand pounds of freight or part thereof; and

(2) A transportation company that does not:

(A) Bill the fee to the person responsible for paying the freight charges to the transportation company within fifteen days of the delivery of the freight; or

(B) Remit the fee to the department within forty-five days of collecting the fee from the person responsible for paying the freight charges to the transportation company,

shall pay a fine of $100 for every one thousand pounds of freight or part thereof.

(b) All fines shall be paid to the department and deposited into the pest inspection, quarantine, and eradication fund under section 150A-4.5."

SECTION 3. Section 150A-2, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Dry bulk freight" means unpackaged, pre-processed and pre-inspected homogenous cement, coal and quarry products from foreign countries including aggregate, gravel and sand, that is inspected under U.S. Department of Agriculture and Plant Health Inspection Service (APHIS)rules and regulations, without mark or count and usually free-flowing, bought and sold by weight or volume.

"Liquid bulk freight" means unpackaged, homogenous liquid goods, without mark or count and usually free-flowing, bought and sold by weight or volume, such as oil."

SECTION 4. Section 150A-5.3, Hawaii Revised Statutes, is amended to read as follows:

"§150A-5.3 Inspection, quarantine, and eradication service fee and charge. There is imposed a fee for the inspection, quarantine, and eradication of invasive species contained in any freight, including but not limited to marine commercial container shipment, air freight, or any other means of transporting freight, foreign or domestic, that is brought into the [~~State.~~] state, except for liquid bulk freight and dry bulk freight. The fee shall be paid by the person responsible for paying the freight charges to the transportation company, who shall collect the fee and forward the payment to the department at the port of disembarkation; provided that the transportation company shall not be liable for any fee that is not paid by the person responsible for paying the freight charges to the transportation company. The department shall deposit the fee into the pest inspection, quarantine, and eradication fund under section 150A-4.5.

The fee shall be assessed on the net weight of the imported freight computed on the basis of 50 cents for every one thousand pounds of freight brought into the [~~State,~~] state, or part thereof."

SECTION 5. All fees which may have been previously assessed for the importation of freight under section 150A-3.5, Hawaii Revised Statutes, are repealed as it relates to dry bulk freight and liquid bulk freight as defined in section 150A-2.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2781
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII