Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Water, Land, & Ocean Resources, to which was referred H.B. No. 1931 entitled:

begs leave to report as follows:

The purpose of this bill is to provide funding to improve, repair, and maintain the state's small boat harbors by increasing moorage fees beginning with a 50 percent increase on July 1, 2006, and ten percent thereafter on July 1 for the years 2007, 2008, 2009, and 2010; and by administrative rules after July 1, 2010.

The Hawaii Government Employees Association AFSCME, Local 152, AFL-CIO, and several individuals testified in support of this bill. The Department of Land and Natural Resources (DLNR), Ala Wai Marina Community Association, Hawaii Boaters Political Action Association, Norwegian Cruise Line America, Makai Society, and several individuals opposed this measure. The Ocean Tourism Coalition offered comments.

Currently, mooring fees are established by administrative rules with the last such increase nearly ten years ago in April, 1995. The state's small boat harbors have fallen into serious disrepair primarily because moorage fee revenues have been woefully inadequate to finance major repair and maintenance works (R&M) as well as direly needed capital improvement projects (CIP).

For at least the last four years, your Committee approved bills to statutorily increase moorage fees but action was subsequently deferred in the legislative process because of the DLNR's insistence that moorage fees would be administratively increased. As many of the state's small boat harbors are an embarassment and pose serious safety and liability risks, prompt remedial action is urgently needed.

This bill provides the option and ability to immediately proceed with required R&M as well as CIP projects should moorage fees not be timely increased by administrative rules.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Water, Land, & Ocean Resources that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1931, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1931, H.D. 1, and be referred to the Committee on Finance.