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. 2710 entitled:

begs leave to report as follows:

The purpose of this bill is to make Hawaii's ocean leasing laws for aquaculture and mariculture more economically attractive to potential investors by extending certain provisions for an additional five years to 2009.

The Department of Land and Natural Resources, the Department of Business, Economic Development, and Tourism, the Department of Agriculture, Ahi Nui Tuna Farming Co., Hawaii Aquaculture Association, Oceanic Institute, Black Pearls, Inc., Cates International, and two individuals testified in support of this measure.

Act 176, Session Laws of Hawaii 1999, clarified the law relating to the leasing of state marine waters for aquaculture and mariculture purposes. Among other things, Act 176:

Since 1999, the Board of Land and Natural Resources has approved two ocean lease applications. The first lease to Cates International in 2001, for the cultivation of moi (finfish) represents the first open ocean, aquaculture lease in the nation. The Board also approved a lease to Black Pearls, Inc. for the cultivation of pearl oysters.

Your Committee has amended this bill by deleting the sunset provisions of Act 176, SLH 1999, in its entirety to make permanent the amendments to chapter 190D, HRS.

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. 2710, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2710, H.D. 1, and be referred to the Committee on Finance.