Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred H.B. No. 2542 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the rule making authority of the Board of Land and Natural Resources to designate areas of ocean waters and navigable streams for limited commercial use.

The bill also amends provisions relating to moorage fees.

Your Committee has amended the bill by deleting the provisions relating to the Board of Land and Natural Resources rule making authority and has retained the provisions concerning moorage fees. Additionally, your Committee has amended the bill by proposing a moorage fee increase of ____ per cent beginning July 1, 2002 with an annual increase of ____ per cent until July 1, 2006. The moorage fee will thereafter be set by department rule beginning July 1, 2007. Your Committee has also amended the bill by allowing the Department of Land and Natural Resources to increase moorage fees for commercial vessels.

Your Committee strongly believes that required infrastructure improvements at state small boat harbors should be accomplished primarily through moorage fees, whether or not these facilities are privatized--and not subsidized by ordinary taxpayers. Your Committee notes that with the proposed increase, fees at the premier Ala Wai Boat Harbor location will still be about sixty per cent of the fees charged at private facilities at Keehi and Ko Olina. Your Committee intends to further pursue this matter and initiate action to adjust fees on this measure as may be appropriate.

Finally, the reason your Committee has left the percentage amounts blank for the proposed increases in moorage fees for nonresidents is because your Committee believes that the Committee on Finance is in a better position to propose a percentage increase that is consistent with the State's fiscal condition. In establishing the percentages, however, your Committee recommends that the Committee on Finance consider thirty-five and five per cent figures, respectively, for the blank percentage amounts on page 1, lines 11 and 12 of the bill.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2542, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2542, H.D. 1, and be referred to the Committee on Finance.