HomeMy WebLinkAbout03/03/1998, C5 - RESOLUTION SUPPORTING THE CRUISE TOURISM ACT OF 1997 Council °-�/�/�9
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CITY OF SAN LUIS OBISPPO�
FROM: Ken Hampian, Assistant CAO �J
Prepared By: Diane Sheeley,Economic Development Manager D 5
SUBJECT: RESOLUTION SUPPORTING THE CRUISE TOURISM ACT OF 1997
CAO RECOMMENDATION
Adopt a resolution supporting the Cruise Tourism Act of 1997 to permit certain foreign flag
vessels to transport passengers between United States ports.
DISCUSSION
The Port San Luis Harbor District is in support of the United States Cruise Tourism Act of 1997
and has asked for the City's support.
In 1997, bills were introduced in both the House of Representatives (I-I.R. 2420) and Senate (S.
803) to enact this act, and action is scheduled to continue this year. If enacted, the Act would
eliminate an outdated prohibition of foreign-flag vessels from transporting passengers between
United States ports that was established in 1920. With this change in Federal law, it is expected
that travel along the California coast will be initiated which will be very beneficial to the overall
economic vitality of San Luis Obispo County and California. Port San Luis is the only harbor in
the county which can accommodate the type of cruise ship this legislation targets.
The issue of foreign flag vessels transporting passengers between American ports was a major
concern in the early part of the century for a number of reasons. Even though the number of such
ships was relatively low, the competition was primarily seen as damaging to the success of
American register vessels and their crews. Therefore, in 1920 the United States Congress passed
the Jones Act, which prohibited foreign-flag vessels from transporting passengers between
American ports. Today the issue of competition is no longer considered a concern since
approximately 95% of all such vessels are now of foreign registry and the American cruise ship
industry is virtually non-existent. On the contrary, the possibility of foreign-flag vessels
conducting cruises along the east and west coasts is now seen as an attractive economic proposal.
On February 1.7, 1998,the City Council added support for this Act to the City's 1998 Legislative
Program.
FISCAL IMPACT
None.
ATTACEAMNT
Resolution
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RESOLUTION NO. (1998 Series)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
SUPPORTING THE UNITED STATES CRUISE TOURISM ACT OF 1997
(H.R. 2420 AND S. 803)
WHEREAS,the City of San Luis Obispo supports and encourages the development of tourism;
and
WHEREAS, the Jones Act was enacted in 1920 to prolubit foreign flag vessels from transporting
passengers between United States ports as a means of protecting American registered ships and
crews; and
WHEREAS, it is no longer practical or desirable for the Jones Act to be in effect since over 95%of
all such vessels are now of foreign registry; and
WHEREAS, it is in the interest of the United States to now maximize economic return from the
growing pleasure cruise industry by encouraging the growth of new cruise itineraries between
coastal cities in the United States; and
WHEREAS, both California and San Luis Obispo County can reap great benefit from elimination
of the current restrictions on foreign flag vessels without serious negative impacts;and
WHEREAS,the United States Cruise Tourism Act of 1997,as set forth in House Resolution(H.R.)
2420 and Senate bill (S) 803, will, if enacted, permit certain foreign flag vessels to transport
passengers between United States ports;and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Luis Obispo
hereby supports enactment of the United States Cruise Tourism Act of 1997.
On motion of Councilmember seconded by Councilmember
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 3nd day of March, 1998.
cs�-,
Resolution No.
Page 2
Allen K Settle,Mayor
ATTEST:
Bonnie L. Gawij City Clerk
APPROVED AS TO FORM:
9&41 �
G. or ity Attorney
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