STAND. COM. REP. NO. 2212_____

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2303
                                        S.D. 1




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

Sir:

     Your Committees on Transportation and Intergovernmental
Affairs and Economic Development, to which was referred S.B.
No. 2303 entitled: 

     "A BILL FOR AN ACT RELATING TO HARBORS,"

beg leave to report as follows:

     The purpose of this measure is to transfer certain Public
Service Company tax revenue to the harbor special fund for the
improvement of cruise ship facilities.

     Testimony in support of this measure was received from the
Department of Transportation, Mayor of Maui County, a member of
the Maui County Council, County of Hawaii, Hawaii State
Association of Counties, Hawaii Tourism Authority, Maritime
Committee of the Chamber of Commerce, Maui Divers of Hawaii, Kona
Historical Society, Daughters of Hawaii, Liferaft & Marine Safety
Equipment, Inc., Hawaii Island Economic Development Board,
Kaahumanu Center, American Hawaii Cruises, Big Island Business
Council, Kona-Kohala Chamber of Commerce, Charleys Taxi &
Limousine, CSX Lines, Hawaii Attractions Association, Maui Hotel
Association, Hawaii Boaters Political Action Association, VIP
Foodservice, Big Island Visitors Bureau, Atlantis Adventures,
Waldron Steamship Co., Ltd., Kahua Na'au A'o ma Pu'uhonua o
Honaunau NHP, Inc., Matson Navigation Company, and a citizen.
Testimony in opposition to the measure was received from the
Department of Budget and Finance and comments were received from
the Tax Foundation.


 
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     Your Committees find that this measure will provide a
mechanism to provide the necessary funds to improve the State's
passenger cruise facilities for the next nine years.

     Your Committees have amended the measure by clarifying that
those funds that are not deposited into the harbor special fund
shall be deposited into the general fund, changing the date of
vessels placed in service from December 31, 2000, to December 1,
2000, and providing that only harbor special funds derived from
the public service company tax paid by cruise ships may be used
for improving cruise ship facilities.  Your Committees also have
made technical, nonsubstantive amendments.      

     As affirmed by the records of votes of the members of your
Committees on Transportation and Intergovernmental Affairs and
Economic Development that are attached to this report, your
Committees are in accord with the intent and purpose of S.B.
No. 2303, as amended herein, and recommend that it pass Second
Reading in the form attached hereto as S.B. No. 2303, S.D. 1, and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Transportation
                                   and Intergovernmental Affairs
                                   and Economic Development,



_____________________________      ______________________________
LORRAINE R. INOUYE, Chair          CAL KAWAMOTO, Chair


 
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