STAND. COM. REP. NO. 1067

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1296
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Water, Land, and Hawaiian Affairs and
Economic Development, to which was referred H.B. No. 1296,
H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO KANEOHE BAY,"

beg leave to report as follows:

     The purpose of this measure is to provide to the Department
of Land and Natural Resources (DLNR) flexibility in implementing
the Kaneohe Bay master plan recommendations.

     Your Committees received testimony in support of the measure
from the Department of Land and Natural Resources, Boats Hawaii,
Inc., the Kaneohe Bay Commercial Operators Association, Mid
Pacific of Hawaii, Inc., and a private citizen.  The Office of
Hawaiian Affairs testified in opposition to the measure.

     The measure specifies that in managing the commercial
operation of ocean use activities in Kaneohe Bay:

     (1)  The rules adopted by DLNR shall be:

          (A)  Based on, rather than in accordance with, the
               recommendations in the master plan; and

          (B)  In a manner that assures public safety, public
               health, resource protection, public access for

 
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               recreation, efficient permit administration, and
               other matters of public welfare;

     (2)  The Council shall submit recommendations to amend the
          master plan, rather than an amended master plan, to the
          Legislature by December, 1999; and

     (3)  The permits issued by DLNR shall be consistent with the
          specifications described in the master plan until DLNR
          adopts applicable rules; provided that DLNR shall not
          adopt any rules until after December 31, 1999;

     Your Committees find that currently, the permits issued by
DLNR for the commercial operation of ocean use activities must
comply with amendments made by the Kaneohe Bay Regional Council
(Council) to the master plan.  The intent of the measure is to
clarify that the Council has no authority to amend the master
plan.

     Your Committees have amended the measure by:

     (1)  Limiting the number of permits the DLNR may issue for
          commercial operation of ocean use activities to the
          amount specified in the Kaneohe Bay Master Plan as it
          existed on June 21, 1993;

     (2)  Requiring that all rules relating to the Kaneohe Bay
          Master Plan shall be done in accordance with sections
          4.9 and 4.10 of the Kaneohe Bay Master Plan as adopted
          by the Office of State Planning on March 19, 1992, and
          with Chapter 91, Hawaii Revised Statutes;

     (3)  Stating that any rule adopted by the DLNR that is in
          conflict with the Kaneohe Bay Master Plan must be for
          reasons of public health or safety, or resource
          protection or preservation;

     (4)  Stating that if any provision of section 200-39, Hawaii
          Revised Statutes, is in conflict with Chapter 91,
          Hawaii Revised Statutes, Chapter 91 shall prevail; and

     (5)  Requiring the Council to review the master plan and
          submit any amendments to DLNR, rather than the
          Legislature by December, 1999.

     Your Committees are concerned over the potential for the
Chapter 91, Hawaii Revised Statutes, rulemaking process to be
circumvented when establishing rules for the use of Kaneohe Bay.
By clearly specifying that Chapter 91, Hawaii Revised Statutes,

 
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does apply, your Committees believe that the necessary public
input will be provided to ensure decisions that are sensitive to
the needs of all users of Kaneohe Bay.

     Your Committees believe that the amendments will preserve
the long-term integrity and beauty of Kaneohe Bay while
addressing the needs of the commercial operators who utilize
Kaneohe Bay as their place of business.

     As affirmed by the records of votes of the members of your
Committees on Water, Land, and Hawaiian Affairs and Economic
Development that are attached to this report, your Committees are
in accord with the intent and purpose of H.B. No. 1296, H.D. 1,
as amended herein, and recommend that it pass Second Reading in
the form attached hereto as H.B. No. 1296, H.D. 1, S.D. 1, and be
referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Water, Land, and
                                   Hawaiian Affairs and Economic
                                   Development,



____________________________       ______________________________
LORRAINE R. INOUYE, Chair          COLLEEN HANABUSA, Chair

 
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