CONFERENCE COMMITTEE REPORT NO. 2

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 1321
                                  S.D. 2
                                  H.D. 2
                                  C.D. 1




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

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 1321, S.D. 2, H.D. 2, entitled:  

     "A BILL FOR AN ACT RELATING TO OCEAN LEASING," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to facilitate and support
research and development of open ocean mariculture by clarifying
the law dealing with the leasing of state marine waters for
aquaculture and mariculture purposes.

     Upon further consideration, your Committee has amended the
measure by:

     (1)  Changing the repeal date from June 30, 2001, to five
          years after the effective date of the measure for the
          amendments made in the measure to the Ocean and
          Submerged Lands Leasing Law (Law), which remove certain

 
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          limitations to allow commercial mariculture as a
          permitted use under the law, clarify the process for
          obtaining a mariculture lease, and provide potential
          mariculture projects with the flexibility to adapt
          technology and designs to a site; and

     (2)  Removing the ten lease limit on the amount of leases
          that may be executed pursuant to the measure.

     Your Committee finds that this measure would remove key
limitations and allow mariculture leases, streamline and clarify
the process for a mariculture lease, and provide potential
mariculture projects with the flexibility to adapt technology and
designs to a site.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 1321, S.D. 2, H.D. 2, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 1321, S.D. 2, H.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
ROY M. TAKUMI, Co-Chair            LORRAINE R. INOUYE, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
NATHAN SUZUKI, Co-Chair            COLLEEN HANABUSA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
NESTOR R. GARCIA, Member           JAN YAGI BUEN, Member
                                   
                                   
                                   
______________________________     ______________________________
BRIAN SCHATZ, Member               JOE TANAKA, Member
                                   
                                   
                                   
______________________________     ______________________________
GALEN FOX, Member                  SAM SLOM, Member

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