Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1403, H.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to give the Harbors Division of the Department of Transportation greater flexibility to lease its harbor lands and facilities to a broader variety of users, subject to the approval of the Board of Land and Natural Resources.

Your Committee finds that this measure will expand the definition of activities for which the Harbors Division may lease lands under its control, which will help to diversify harbor revenue. This will help reduce the pressure to raise wharfage fees and to keep the cost of goods in Hawaii lower. As the most geographically isolated state in the nation, Hawaii is critically dependent on its harbors and harbor infrastructure for receipt of life-sustaining supplies and as an economic driver with the rapidly growing passenger cruise and ocean tourism industries.

Your Committee has amended this measure by changing its effective date from July 1, 2005, to upon approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1403, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1403, H.D. 1, C.D. 1.