STAND. COM. REP. NO.  1611-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3227

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 3227, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HARBORS,"

begs leave to report as follows:

     The purpose of this bill is to improve, develop, and modernize the State's commercial harbors by:

(1)  Establishing the Harbors Modernization Group (Group) as a subgroup of the Aloha Tower Development Corporation (ATDC) Board of Directors to implement specific harbor projects that constitute the Commercial Harbors Modernization Plan;

(2)  Authorizing the Department of Transportation (DOT) to issue revenue bonds and appropriating an unspecified amount of bond funds to finance these harbor improvements;

(3)  Extending the term from 35 years to 70 years for the disposition of public lands for maritime and maritime-related operations;

     (4)  Transferring jurisdiction over Hana harbor, except for its small boat ramp facility, from Department of Land and Natural Resources to DOT;

     (5)  Authorizing DOT to issue revenue bonds to finance improvements at the Hana pier;

     (6)  Repealing the Group on June 30, 2016; and

     (7)  Providing that any moneys or funds under the management of the Group when the Group is repealed be deposited into DOT's harbor special fund.

     DOT, ATDC, Maui County Farm Bureau, The Chamber of Commerce of Hawaii, Retail Marchants of Hawaii, and Hawaii Harbor Users Group testified in support of this bill.  DLNR submitted comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3227, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair