Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2542, H.D. 2, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to increase revenues for deposit into the boating special fund.

More specifically, the measure provides for the deposit into the boating special fund of fees and penalties relating to the regulation and use of vessels and small boat harbors, established by the Department of Land and Natural Resources. The measure also provides for an annual increase of the commercial gross revenue based fees, up to a maximum cap of three per cent of gross revenues. Finally, the measure prohibits any increase in the moorage fees for recreational vessels, without legislative approval.

Your Committee finds that moorage fees have remained a contentious issue. Your Committee further finds that small boat harbors are in desperate need of funding to improve deteriorating facilities. Your Committee believes that this measure provides a fair means of increasing revenues necessary for repair and maintenance of these facilities.

Your Committee has amended this measure by making the effective date defective.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2542, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2542, H.D. 2, S.D. 2.