STAND. COM. REP. NO. 1440-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2301
                                     S.D. 2
                                     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 Finance, to which was referred S.B. No.
2301, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HARBORS,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Specify that Piers 1 and 2 and certain contiguous
          state-owned lands shall be limited to maritime use;

     (2)  Increase the Department of Transportation's powers and
          duties to include control over maritime lands; and

     (3)  Define "maritime lands" to include, with specific
          exceptions, any public lands required for commercial
          and industrial activities that are dependent on being
          adjacent to the harbor.

     Your Committee circulated a proposed H.D. 2 version of this
bill for purposes of discussion and public hearing.  The proposed
H.D. 2 version included a part II that:

     (1)  Authorizes the Board of Land and Natural Resources to
          lease by public auction Ala Wai and Keehi small boat
          harbors for redevelopment, management, and operations
          by private firms for a lease term not in excess of 55
          years;

 
 
                                 STAND. COM. REP. NO. 1440-00
                                 Page 2

 

     (2)  Clarifies that leases issued for Ala Wai and Keehi
          small boat harbors may include uses, other than
          maritime related activities, that complement or support
          the purposes of the lease;

     (3)  Clarifies that the revenue due the State from these
          leases shall be deposited into the Boating Special
          Fund;

     (4)  Provides for an orderly transition from state
          operation, management, and control to private
          management and operation; and

     (5)  Provides for an ad hoc panel of interested parties to
          assist with the development of a master plan for
          redevelopment of Ala Wai Harbor.

     The City and County of Honolulu and the Department of
Planning and Permitting testified in support of the proposed
draft.

     The Department of Land and Natural Resources (DLNR), Hawaii
Community Development Authority, the Maritime Committee of the
Chamber of Commerce of Hawaii, CSX Lines, Hawaii Boaters
Political Action Association, and several individuals offered
comments.

     The Office of Hawaiian Affairs, Hawaii Government Employees
Association, Hawaii Coalition Against Legalized Gambling,
Advocates for Consumer Rights, Hawaii's Thousand Friends, Ilikai
Marina, Na Ohana O Na Hui Wa'a Association, Waikiki Beach Kupuna
Catamaran Association, Boats/Hawaii, Hawaiian Canoe Racing
Association, Oahu Hawaiian Canoe Racing Association, Na Wahine O
Ke Kai, and many individuals testified in opposition to this
proposed draft.

     Your Committee finds that there has been a desire and effort
to privatize the management of Hawaii's harbors.  Accordingly,
your Committee greatly appreciates the effort made by DLNR in
putting forth a viable system for the issuance of requests for
proposals necessary to realize the goal of privatization.

     Upon further consideration and discussion, however, your
Committee has elected not to pass the proposed H.D. 2 version of
this bill.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your

 
                                 STAND. COM. REP. NO. 1440-00
                                 Page 3

 
Committee is in accord with the intent and purpose of S.B. No.
2301, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair