Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Water, Land, and Agriculture and Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 2097 entitled:

beg leave to report as follows:

The purpose of this measure is to place a cap of three per cent of gross revenues for moored vessels used commercially after January 1, 2004 for a use permit at small boar harbors, and to allow the deposit of all fees and penalties imposed by the Department of Land and Natural Resources into the boating special fund.

Testimony in support of this measure was received from the Ocean Tourism Coalition, Sailing Shipps Ltd dba Gemini Charters, Fair Wind, Lahaina Divers Inc., Seaport Cruises, Inc., and one individual. Testimony in opposition was received from the Department of Land and Natural Resources, Hawaii Boaters Political Action Committee, and eleven individuals.

Your Committees find that this measure would serve to augment commercial ocean tour operations by enhancing the funding of improvements to deteriorating small boat facilities. Opposing testimony were predominantly from boat live-aboards who are not affected by this measure.

As affirmed by the records of votes of the members of your Committees on Water, Land, and Agriculture and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2097 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.