Creates a 10-year pilot program within the department of land and natural resources for administrative purposes to convert the Ala Wai boat harbor into an independent, privately managed marine park in accordance with an operating agreement to be entered into with the department.

A BILL FOR AN ACT

SECTION 1. The legislature reiterates its findings in section 2 of Act 160, Session Laws of Hawaii 1997, that a system of community-based management allows those who have a direct stake in a facility, and the outcome of decision making regarding that facility, to take a significant and effective role in the process, while giving the people involved a greater sense of ownership and commitment. The legislature further finds that community-based management is worthy of pursuit as a means of restructuring the State's Ala Wai boat harbor, increasing efficiency, resolving some of the concerns raised in the 1993 and 2000 auditor's reports, and creating the Ala Wai marine park that will better serve all of the user groups.

User groups of that small boat harbor include trailer boaters who use the launching ramp and parking facilities, fishers, marina slip tenants, marina dry storage tenants, marina live aboard tenants, marina neighbors such as condominiums and hotels, surfers who regularly use the area, beach goers and picnickers with barbecue facilities, paddlers and their organizations, and yacht clubs with their attendant youth sailing programs. Other user groups include educational programs and racing activities, including such world class events as the Asahi Cup, Kenwood Cup and the Transpac, as well as shoreside marine-related businesses such as the fuel pier, boat repair yard, yacht brokerages, tackle shops, marine hardware and convenience stores, restaurants, and coin-operated laundry facilities.

The legislature finds that allowing Ala Wai boat harbor to be converted into an independent Ala Wai marine park will foster greater responsibility and accountability in the management of the Ala Wai boat harbor. Moreover, instituting a community-based management system in Ala Wai marine park will help to reduce the existing bureaucracy, streamline government services, and better serve the marine recreational needs of the user groups.

Currently, Ala Wai boat harbor, which is regulated by the board of land and natural resources, is subjected to a multitude of confusing and cumbersome administrative rules. While these rules may be necessary to implement legislative mandates and to comply with court decisions which have been made over the years, some rules have been shown to be superfluous, excessive, and costly.

In addition, user fees paid by Ala Wai boat harbor into the boating special fund are currently used for maintaining boating facilities around the State without regard to that particular facility's contribution to the fund. Converting Ala Wai boat harbor into an independent marine park would allow it to streamline services, cut costs, and increase revenues. As a result, the marine park will retain a percentage of its user fees, commercial operator fees, lease fees, and percentages and use the funds to maintain its own facilities, while turning over a percentage of the gross receipts back to the State to retire the debt and contribute to the support of the other recreational boating facilities of the State.

Such a program would be mutually beneficial to the Ala Wai marine park and the State. Ala Wai boat harbor has already elected a marina board and has expressed an interest in taking over the day-to-day management of its harbor and thereby achieving greater independence. The State would also benefit by decreasing expenditures and streamlining state functions that could be more appropriately and cost-effectively managed by the private sector. Such a system of local community-based ownership and management for the State's other small boat harbors should be implemented gradually, after implementation of a pilot program with the Ala Wai marine park. Depending on the success of the program, the system could gradually be expanded to other appropriate harbors around the State.

The purpose of this Act is to create a ten-year pilot program within the department of land and natural resources for administrative purposes. The program will provide for the Ala Wai boat harbor to be turned over as the Ala Wai marine park to community-based management in accordance with an operating agreement to be entered into between the marina and the department.

SECTION 2. Ala Wai marine park pilot program. (a) As used in this Act, unless the context otherwise requires:

"Ala Wai marina" or "harbor" means the Ala Wai boat harbor, a state small boat harbor constructed, maintained, and operated in accordance with chapter 200, Hawaii Revised Statutes.

"Ala Wai marina board" or "marina board" means a board of nine individuals duly elected by the Ala Wai marine park community, which is comprised of local community members who represent the various user groups, slip holders, and lessees within the Ala Wai boat harbor.

"Board" means the board of land and natural resources.

"Department" means the department of land and natural resources.

"Pilot program" means the Ala Wai marine park pilot management program established under this Act.

(b) There is established within the department of land and natural resources for administrative purposes a ten-year pilot program to provide that the Ala Wai boat harbor be independently managed and administered as the Ala Wai marine park in accordance with this Act.

(c) The department and the marina board shall enter into an agreement which shall include the following provisions:

(d) The marina board shall hire an independent auditor to conduct an annual audit of the books and records of the marina board managing the Ala Wai marine park and shall submit a report of its findings and recommendations to the department. The department shall include the findings and recommendations of the independent auditor in its interim and final reports to the legislature under section 4. The marina board seeking to manage the Ala Wai marine park shall be provided reasonable access to, and may examine and inspect as may be necessary, the books and records of the department to allow for the orderly and cost-effective operation and management of the Ala Wai marine park.

SECTION 3. The auditor shall determine the amount of state debt outstanding which is attributable to the maintenance and repair of the marina facility in accordance with a schedule to be determined by the department and the marina board.

SECTION 4. The department, in consultation with the marina board, shall submit interim and final reports of its evaluation of the pilot program to the legislature, including its findings and recommendations as to whether the pilot program should be extended to other small boat harbors in the State, and any necessary implementing legislation, no later than twenty days before the convening of the regular sessions of 2006 and 2007, respectively.

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 6. This Act shall take effect upon its approval and shall be repealed on June 30, 2011.