STAND. COM. REP. NO. 71

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 809
                                        S.D. 1




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

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 809 entitled: 

     "A BILL FOR AN ACT RELATING TO BOATING,"

begs leave to report as follows:
     
     The purpose of this measure is to allow a sole proprietor of
a catamaran operating with a valid commercial registration
certificate at Waikiki Beach to transfer the ownership and the
commercial registration to a corporate entity.

     Your Committee received testimony in support of this measure
from the Boats Owners Association of The State of Hawaii and one
individual.  The Department of Land and Natural Resources
submitted testimony in opposition.  One individual submitted
comments.

     Your Committee finds that in 1984, the Legislature approved
a measure to allow owners of commercial vessels with commercial
permits, and moored in small boat harbors, to transfer both
ownership of the vessel and the authority for the permit to a new
corporate entity.  However, Act 187, Session Laws of Hawaii 1984,
did not extend to commercial catamaran owners operating at
Waikiki Beach.

     Your Committee further understands that only two of the
seven catamaran operations currently at Waikiki Beach are sole
proprietorship, and that the measure would not affect the total
number of commercial catamaran operations.

 
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     Your Committee believes this measure will provide these two
remaining sole proprietors with the option to make a one-time
change to corporate ownership.  Your Committee has amended this
measure to make a technical, nonsubstantive amendment.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 809, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 809,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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