STAND. COM. REP. NO. 2179

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2912
                                        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 S.B. No. 2912 entitled: 

     "A BILL FOR AN ACT RELATING TO STATE BOATING FACILITIES,"

begs leave to report as follows:

     The purposes of this measure are to:

     (1)  Clarify that the Board of Land and Natural Resources
          may lease fast and submerged lands within an existing
          state boating facility, and that permissible uses may
          include any use that will complement or support the
          maritime activities of the state boating facility;

     (2)  Allow limited commercial vessel activities within the
          Ala Wai and Keehi small boat harbors; and

     (3)  Delete language added to Section 200-9(b), Hawaii
          Revised Statutes, by Act 266, Session Laws of Hawaii
          1999, regarding existing commercial catamaran
          operators.

     Testimony in favor of this measure was submitted by the
Department of Land and Natural Resources (DLNR), BOATS/HAWAII,
Hawaii Boaters Political Action Association, Activity Owners
Association of Hawaii, Waikiki Improvement Association, The
Chamber of Commerce of Hawaii Maritime Committee, CSX Lines,
HGEA-AFSCME Local 152, AFL-CIO, and Atlantis Adventures.  Capt.
Andy's, Frogman Charters, and two individuals submitted testimony

 
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                                   STAND. COM. REP. NO. 2179
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in favor of portions of the measure.  The Office of Hawaiian
Affairs, Ala Wai Marina Committee, and twenty individuals
submitted testimony in opposition.

     Your Committee finds that existing state resources are
insufficient to meet the projected costs of needed repair and
construction projects at the state small boat harbors, and that
alternatives for increasing revenues should be investigated.
DLNR is considering a number of revenue enhancement options,
including the leasing of small boat harbor properties for
development, management, and operation by private firms, allowing
limited commercial vessel activity at Ala Wai and Keehi boat
harbors, and increasing mooring and other harbor use fees.

     Your Committee has heard that the additional revenue from
leases and the reduction of development, maintenance, and
operating costs, including debt service, will enable DLNR to
reexamine the level of revenue that will need to be generated
through future rate increases.  Your Committee has also heard
considerable opposition to any change in the allowable activities
at small boat harbors and acknowledges the frustration voiced by
many of those presenting testimony.  However, your Committee
finds the facilities at many of our harbors require substantial
improvements, and new sources of revenue must be identified for
these improvements.

     Your Committee has amended this measure to make technical,
nonsubstantive amendments for the purpose of style. 

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2912, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2912,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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