Louisiana House Bill HB669

Louisiana 2017 Regular Session

• Introduced: 4/19/17
• Refer: 4/20/17

Caption

Establishes a fee to fund dredging and deepening of waterways (OR INCREASE SD RV See Note)

Impact

This legislation is expected to have a significant impact on both state revenue and the operation of commercial marine activities in Louisiana. By generating funds dedicated to the dredging and deepening of waterways, the bill seeks to enhance navigability and potentially improve safety for marine vessels. Moreover, it aligns with broader state goals of promoting economic growth through active engagement in maritime activities, which are vital for trade and industry in coastal regions. The specified fee structure also sets a framework for how these funds will be managed through the Louisiana Department of Revenue.

Summary

House Bill 669, introduced by Representative Zeringue, establishes a fee on dyed diesel fuel used by commercial marine vessels in Louisiana. Specifically, the bill imposes a fee of eight cents per gallon on diesel fuel consumed by commercial vessels such as ships, tankers, and tugs, with the intention of funding the dredging and deepening of waterways crucial for the transportation and movement of these vessels. The collected fees will be channeled into the Dredging and Deepening Fund, which aims to support the maintenance and development of water infrastructure in the state.

Sentiment

The sentiment surrounding HB 669 appears to be generally supportive among stakeholders who recognize the importance of maintaining and improving waterways for commercial marine operations. However, there may be underlying concerns regarding the increase in operating costs for businesses dependent on these vessels due to the new fuel fee. While the fee is positioned as a necessary measure to ensure the sustainability of vital marine infrastructure, some members of the community may view it as an additional financial burden on the maritime industry.

Contention

A notable point of contention is the bill's sunset provision, which states that the fee will cease to be effective on July 1, 2019, unless further action is taken to extend or modify its provisions. This raises questions about the long-term viability of the funding source for dredging initiatives and whether sufficient funds will be generated in the interim. Critics of the sunset clause may argue that such temporary measures could lead to funding instability, affecting the ongoing maintenance of marine infrastructure in Louisiana.