CONFERENCE COMMITTEE REPORT NO.121

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 2303
                                  S.D. 2
                                  H.D. 2
                                  C.D. 1




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

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 2303, S.D. 2, H.D. 2, entitled:  

     "A BILL FOR AN ACT RELATING TO HARBORS," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to allocate the public
service company tax revenue stream from passenger cruise vessels
to finance the improvements and additions to passenger cruise
facilities around the State.  The public service company tax
revenues identified shall be transferred to the department of
transportation's harbor special fund and the department of land
and natural resources' boating special fund for this purpose.

     Your Committee upon further consideration has made the
following amendments:

     (1)  Deleted the sections amending sections 248-8 and
          266-19, Hawaii Revised Statutes, as unnecessary due to
          the elimination of the substantive amendments to the
          section by your Committee; and


 
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     (2)  Provided that the Act shall take effect upon approval.    

     Your Committee believes that this measure, as amended, will
provide the support necessary for the cruise ship industry to
become a significant contributor to Hawaii's economy.  To further
the growth of the cruise ship industry, your Committee notes that
current inequities in the assessment of user fees on cruise ship
companies must be addressed.  Accordingly, the Department of
Transportation and the Department of Land and Natural Resources
are requested to examine their user fee schedules to address such
inequities and to ensure that fees imposed on cruise ship
companies are fairly and equitably assessed.  Your Committee
requests the Department of Land and Natural Resources and the
Department of Transportation to submit a report to the Regular
Session of 2001 setting forth the various fees imposed on the
cruise ship industry by type of fee, amount, place, and type of
cruise ship.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 2303, S.D. 2, H.D. 2, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 2303, S.D. 2, H.D. 2, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE



_____________________________     _______________________________
Rep. KENNETH T. HIRAKI            Sen. CAL KAWAMOTO
Co-Chair                          Co-Chair


_____________________________     _______________________________
Rep. KENNY GOODENOW               Sen. LORRAINE R. INOUYE
Co-Chair                          Co-Chair


                                  _______________________________
                                  Sen. CAROL FUKUNAGA
                                  Co-Chair


                                  _______________________________
                                  Sen. ANDREW LEVIN
                                  Co-Chair
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