STAND. COM. REP. NO. 1189

Honolulu, Hawaii

RE:    H.B. No. 1516

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred H.B. No. 1516, H.D. 2, entitled:

"A BILL FOR AN ACT MAKING AN APPROPRIATION FOR IMPROVEMENTS AT AND THE RELOCATION OF HONOLULU MARINE, INC. TO KEEHI SMALL BOAT HARBOR,"

begs leave to report as follows:

     The purpose of this measure is to promote the maritime industry in Hawaii by appropriating funds for Honolulu Marine, Inc., to relocate the Kewalo Shipyard from Kewalo Basin to a proposed site at Keehi Lagoon.

     Testimony in support of this measure was submitted by Honolulu Marine, Inc.; the Maritime Consultants of the Pacific; the Hawaii Boaters Political Action Association; and one individual.  Testimony in opposition to this measure was submitted by the Department of Land and Natural Resources.  The Hawaii Community Development Authority submitted comments.

     The Kewalo Shipyard has been a fixture for the State's maritime industry for many years.  Honolulu Marine, Inc., employs a shipyard staff of up to seventy personnel who are involved in the maintenance and repairs of various sized vessels.  Due to development plans at its present location at Kewalo, the Shipyard needs to relocate its facilities.  Your Committee finds that the Shipyard's proposed site at Keehi Lagoon is an unimproved and vacant lot, which will need additional funds to install port security infrastructure, grade and level the property, and construct a finger pier, sea retaining walls, and bulkheads.

     Your Committee has amended this measure by replacing its contents with the provisions of S.B. No. 1242, S.D. 1, which appropriates an unspecified amount to assist Honolulu Marine, Inc. in relocating to Keehi Lagoon, including the costs to install port security infrastructure, to grade and level the property, and to construct a finger pier, sea retaining walls, and bulk heads.  The appropriation will be expended by the Department of Transportation.

     Although your Committee has concerns with the use of general funds to assist in the costs of the relocation of Honolulu Marine, Inc., it believes that the Committee on Ways and Means is the appropriate Committee to make a determination on whether general obligation bonds would be a more appropriate method of funding this project.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1516, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1516, H.D. 2, 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, Agriculture, and Hawaiian Affairs,

____________________________

RUSSELL S. KOKUBUN, Chair