Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Economic Development and Technology, to which was referred H.B. No. 2542, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to increase the moorage fees at a specific per cent beginning July 1, 2002, with annual percentage increases until July 1, 2006, and by department rule beginning July 1, 2007. In addition, this measure authorizes that commercial gross revenue based fees may be increased not to exceed a maximum of three per cent of gross revenues.

Testimony supporting this measure was received from the Department of Land and Natural Resources, Ocean Tourism Coalition, Aqua Lung Pacific, Trilogy Corporation, Activities Owners Association of Hawaii, and twenty-three individuals. Opposing testimony was received from four individuals. Comments on this measure were received from five individuals.

Your Committee finds that moorage fees have remained a contentious issue. The Department of Land and Natural Resources has made repeated attempts to establish fair fee structures that are satisfactory to the stakeholders while at the same time compliant with applicable rules and regulations. Your Committee finds that the moorage fee structures imposed by this measure are unambiguous and fair.

Your Committee has amended this measure by:

In addition, your Committee reiterates the commitment of the Board of Land and Natural Resources expressed in December of 2001 that the Department would not increase moorage fees without legislative hearings.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Economic Development and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2542, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2542, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.