Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

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. 719 entitled:

beg leave to report as follows:

The purpose of this measure is to establish a reduced rate schedule for dockage, wharfage, demurrage, and other rates and fees pertaining to all harbors, wharves, and other properties for Hawaii entrepreneurial enterprises engaged in aquaculture.

Testimony in support of this measure was submitted by the Board of Agriculture, Kona Blue Water Farms, and Cates International, Inc. The Department of Transportation offered testimony in support of the intent of this measure, but objected to the proposal to offer reduced wharfage and other rates for Hawaii aquaculture enterprises.

Your Committees find that this measure would improve accessibility to lands around State harbors at reasonable costs for commercial aquaculture. Aquaculture requires easy access to harbor facilities for such support activities as feed and equipment storage, fish packing and transport, and hatchery production of fish fingerlings for loading on a boat with minimal handling and stocking in offshore cages. Providing proactive support in Hawaii's early stages of offshore aquaculture could increase the rate of expansion of one of the State's newest, low-impact, environmentally sustainable industries, with its potential for investment dollars and job generation.

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. 719 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.