STAND. COM. REP. NO. 3540

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.C.R. No. 165
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.C.R. No. 165, H.D. 1, entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF
     LAND AND NATURAL RESOURCES TO IMPLEMENT THE RECOMMENDATIONS
     REGARDING HAWAII'S COMMERCIAL BOATING AND OCEAN RECREATION
     INDUSTRY MADE BY THE SMALL BUSINESS TASK FORCE ON REGULATORY
     RELIEF,"

begs leave to report as follows:

     The purpose of this measure is to request the Department of
Land and Natural Resources to implement the recommendations
regarding Hawaii's commercial boating and ocean recreation
industry made by the Small Business Task Force on Regulatory
Relief.

     Testimony in favor of this measure was submitted by the
Small Business Regulatory Review Board, Hawaii Business League,
NFIB Hawaii, Activity Owners Association, Bluewater Sailing
Kauai, Inc., Capt. Andy's Sailing, Inc., Captain Sundown
Enterprises, Ed Robinson's Diving Adventures, Expeditions,
Flexible Flyer Yacht Charters, Lahaina Divers, Maui Classic
Charters, Na Pali Eco Adventures, Neptune Underwater Adventures,
Inc., Paragon Sailing Charters, Pride Charters Incorporated,
South Pacific Kayaks & Outfitters, Trilogy, and Body Glove
Cruises.  The Department of Land and Natural Resources submitted
testimony in opposition.


 
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     Your Committee has heard that the department is actively
pursuing recommendations to redraft administrative rules
affecting the commercial ocean recreation industry, including a
reassessment of the present fee structure for commercial use of
the State's facilities and resources.  The department expressed
concern, however, that some of the recommendations by the Small
Business Task Force on Regulatory Relief can be implemented only
if existing statutes are changed, and others are currently in
litigation.

     Your Committee heard considerable discussion regarding the
handling of information requested by the Task Force on complaints
and concerns listed in one of their reports, in the event any of
these complaints are currently in litigation.  As stated by the
Committee, it is not the intent of the Legislature to approve
legislation that may interfere with the judicial process.
However, after further consideration, it was determined that the
annual report that was submitted by the Task Force in December
1998, does not contain such specific information, so the issue of
complaints in litigation would not arise.

     Your Committee has amended this measure accordingly, to
clarify that the report referenced in this measure is the annual
report submitted in 1998.

     Your Committee is well aware that there remains a great deal
of frustration among the members of the commercial boating and
recreation industry, and wishes to commend both the industry and
the department for their continued dialogue to resolve their many
differences.  Your Committee believes that the information
requested in this measure will assist in those efforts, and
should not be unduly burdensome to the department, as much of the
information is contained in existing reports.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee concurs with the intent and purpose of
H.C.R. No. 165, H.D. 1, as amended herein, and recommends that it
be referred to the Committee on Ways and Means, in the form
attached hereto as H.C.R. No. 165, H.D. 1, S.D. 1.


 
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                                   STAND. COM. REP. NO. 3540
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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