STAND. COM. REP. NO. 551

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1321
                                        S.D. 2




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

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred S.B. No. 1321, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to encourage public and
private interests to invest in research and development of open
ocean aquaculture or mariculture.

     Your Committee received testimony in support of the measure
from the Hawaii Aquaculture Association, Black Pearls, Inc.,
Pacific Pearl Appraisal Service, and a concerned individual.  The
Department of Agriculture, the Department of Business, Economic
Development, and Tourism, and the Department of Land and Natural
Resources testified in support of the measure with amendments.

     Your Committee finds that in 1986, the Legislature passed
the Ocean and Submerged Lands Leasing Act, Chapter 190D, Hawaii
Revised Statutes (HRS), which established procedures for the
leasing of State marine waters and submerged lands for
mariculture.  However, no lease has ever been granted under
Chapter 190D, HRS, because of limitations in the law.

     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.

 
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                                   STAND. COM. REP. NO. 551
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     Your Committee has amended this measure by:

     (1)  Adding a section that amends Section 171-53, HRS to
          allow the Department of Land and Natural Resources to
          lease state marine waters under Chapter 190D, HRS,
          without the prior approval of the Legislature;

     (2)  Requiring that an application for the leasing of state
          marine waters include an initial description of current
          users of the waters to be leased;

     (3)  Adding a statement to the lease agreement that
          describes the degree to which the leased site shall be
          exclusively used by the lessee and the reasons
          therefor;

     (4)  Adding a five-year drop dead provision from the
          effective date of the measure; and

     (5)  Making technical amendments for the purposes of clarity
          and style.

     Your Committee is in support of this measure, as amended,
and believes it will foster further economic development of the
mariculture industry, while promoting environmental
sustainability.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 1321, S.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as S.B. No. 1321, S.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water, Land, and
                                   Hawaiian Affairs,



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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