STAND. COM. REP. NO. 659-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2572
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ocean Recreation and Marine Resources, to
which was referred H.B. No. 2572 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to address matters relating to
the roles of the Kaneohe Bay Master Plan (Plan), the Kaneohe Bay
Regional Council (Council), and the Department of Land and
Natural Resources (DLNR) in the management of Kaneohe Bay.

     This bill clarifies certain aspects of the management of
Kaneohe Bay by:

     (1)  Deleting provisions that authorize the Council to amend
          the Plan.  Since DLNR is required to implement the
          recommendations in the Plan, some believe these
          provisions give the Council rule-making authority;

     (2)  Deleting provisions that require DLNR to adopt rules
          drafted in consultation with the Council that must be
          in accordance with the Plan as the Plan may be amended
          by the Council;

     (3)  Deleting from the permits for the commercial operation
          of ocean use activities in Kaneohe Bay the limitations
          of location and type of vessel that are provided in the
          Plan until DLNR adopts applicable rules; and


 
 
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     (4)  Repealing the Council following the adoption of rules
          relating to ocean use activities in Kaneohe Bay.

     Kaneohe Bay Ocean Sports, Kaneohe Bay Association of
Mariners, Boats Hawaii, Kaneohe Bay Cruises, Inc., Hawaiian
Island Jet Sport Association, Windward Watersports Center, and
several concerned individuals testified in support of this bill.
The University of Hawaii at Manoa Environmental Center,
Earthjustice Legal Defense Fund, the Office of Hawaiian Affairs,
the Kaneohe Neighborhood Board, and several concerned individuals
testified in opposition to this bill.  DLNR strongly supports
this bill.  

     Your Committee believes that the Council provides a useful
function in the management of Kaneohe Bay.  Accordingly, your
Committee has amended this bill by:

     (1)  Deleting provisions that would have repealed Chapter
          200D, HRS, which created the Council;

     (2)  Reducing the Council's authority by eliminating its
          power to amend the Plan, and in its place, giving the
          Council power to recommend changes subject to DLNR
          approval; and

     (3)  Authorizing the Council to include recommended changes
          to the Plan in its semi-annual reports.

     Your Committee has also clarified the rule-making provisions
of the bill by:

     (1)  Restoring provisions that require all rules adopted by
          DLNR to be drafted in consultation with the Council and
          in accordance with the Plan;

     (2)  Allowing DLNR to adopt rules inconsistent with the Plan
          only if the rule is required to protect public health
          or safety or to ensure resource preservation or
          protection;

     (3)  Requiring that all rules adopted by DLNR:

          (a)  Be in accordance with Chapter 91 of the HRS
               (Administrative Procedure Act), thereby ensuring
               public input; and

          (b)  Follow the criteria and general management
               concepts set forth in sections 4.9 and 4.10 of the
               Plan; and

 
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     (4)  Resolving any conflict in the adoption of rules between
          the Chapter 91 procedures and the procedures set forth
          in this bill in favor of Chapter 91.

     Technical, nonsubstantive amendments to the bill have also
been made for the purpose of clarity.

     As affirmed by the record of votes of the members of your
Committee on Ocean Recreation and Marine Resources that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 2572, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2572, H.D. 1, and be placed on the calendar
for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Ocean Recreation
                                   and Marine Resources,



                                   ______________________________
                                   ROY M. TAKUMI, Chair