STAND

STAND. COM. REP. NO. 447

Honolulu, Hawaii

, 2005

RE: S.B. No. 1891

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 1891 entitled:

"A BILL FOR AN ACT RELATING TO BOATING,"

begs leave to report as follows:

The purpose of this measure is to amend the fee requirements for small boat harbors.

Testimony in opposition to this measure was submitted by Alii Nui, Aqua Lung Pacific, Expedition, Frogman Charters, Jack's Diving Locker, Lahaina Divers, Maui Dive Shop, Maui-Molokai Sea Cruises, Ocean Tourism Coalition, and Trilogy Excursions. Comments were also submitted by the Department of Land and Natural Resources.

The purpose of this measure is to require:

(1) Owners of commercial vessels moored in state small boat harbors to pay fees of at least three per cent of their gross revenues derived from the use of the vessel; and

(2) Fees and penalties collected through rules relating to harbors to be deposited into the Boating Special Fund.

Your Committee noted overwhelming testimony in opposition to this measure. However, all of the testimony in opposition requested that changes be made to this measure to accommodate their unique commercial boating activities industry.

Based on the testimonies received, your Committee has amended this measure by:

(1) Requiring owners to pay a fee based on a percentage of the gross revenues derived from the use of the vessel or three per cent of the gross revenues, whichever is greater;

(2) Expanding the types of fees and penalties that shall be deposited into the Boating Special Fund;

(3) Inserting an effective date of July 1, 2050 to ensure further discussions on this measure; and

(3) Making technical, nonsubstantive changes.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1891, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1891, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,

		____________________________ RUSSELL S. KOKUBUN, Chair