Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Economic Development and Water, Land, and Agriculture, to which was referred S.C.R. No. 73 entitled:

beg leave to report as follows:

The purpose of this measure is to request the examination of the feasibility of dedicating ten per cent of general excise tax from ocean recreation businesses to the statewide boating program.

Testimony supporting this measure was received from the Hawaii Boaters Political Action Association, Ocean Tourism Coalition, Activities & Attractions Association of Hawaii, Paradise Cruise, Ltd., Island Marine, Expeditions, Octopus Reef, Blue Dolphin Charters, Aqua Lung, Prince Kuhio Maui-Molokai Sea Cruises, Capt. Beans' Cruises, Lahaina Dive and Surf, L.L.C., Frogman Charters, Capt. Andy's Sailing Adventures, and Pride Charters, Incorporated. The Departments of Taxation and Land and Natural Resources submitted comments on this measure.

Your Committees find that the Hawaii ocean recreation industry is one of the State's most productive economic sectors. However, its success relies on the maintenance and preservation of the State's natural resources and related facilities, particularly the small boat harbors. The funding levels currently provided for maintenance, repair, restoration, safety, and security of the State's small boat harbors is insufficient. Consequently, there is a substantial backlog of required improvements and repairs, which directly jeopardizes the sustainability and growth of Hawaii ocean recreation industry. Therefore, your Committees believe that this measure may result in the development of an appropriate and responsible solution.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Economic Development and Water, Land, and Agriculture that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 73, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 73, S.D. 1.