Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred H.B. No. 2710, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the sunset provision that would terminate ocean leasing activity.

Your Committee received testimony in support of the measure from the Board of Agriculture, Department of Business, Economic Development, and Tourism, Board of Land and Natural Resources, Hawaii Aquaculture Association, Oceanic Institute, and Black Pearls, Inc. Your Committee also received oral testimony in support of the measure from a private individual.

Your Committee finds that this measure would make open ocean aquaculture leasing more attractive to potential investors. The initial lease to Cates International was the first open ocean aquaculture lease in the nation and Hawaii continues to lead the nation in developing open ocean aquaculture. With recently imposed restrictions on capture fisheries in the State, and closures of some fishing areas, the potential for aquaculture and offshore fish farming to fill an economic void and expand the State's economy has never been greater.

As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2710, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.