HB1961.DOC

SECTION 1. The Kaho‘olawe Island Reserve Commission issued the Kaho‘olawe Island Reserve Strategic Plan 2009-2013 (Strategic Plan) in September 2008. The Strategic Plan emphasizes the following goals:

(1) To increase the size, diversity, and sustainability of the trust fund by raising funds through grants, partnerships, contributions from corporations, and private individuals, entering into appropriate strategic alignments and operating agreements that generate revenue without commercial activity on-island, and to manage the organization's budget in a manner that protects the trust fund;

(2) To develop and implement a culturally appropriate five-year plan to access and stabilize cultural sites, archeological sites, and burial sites, and provide for appropriate access and cultural practices;

(3) To develop and maintain a culturally appropriate, environmentally sustainable infrastructure to provide and maintain an appropriate on-island presence for the purposes of managing and protecting the Kaho‘olawe Island Reserve (Reserve);

(4) To systematically restore the natural resources of the Reserve, including the island and its surrounding waters;

(5) To create a five-year written plan to expand the volunteer base and relationships with individuals and organizations in concert with the Protect Kaho‘olawe ‘Ohana for the purposes of cultural, natural resource, and marine resource restoration, conservation, and other native Hawaiian traditional and customary practices;

(6) To develop and implement a measurable education and communication program to deepen understanding for the children and people of Hawai‘i and the world of the natural, cultural, historical, and spiritual significance of Kaho‘olawe, and to aid in the fund development process;

(7) To establish a written and measurable enforcement program and network to protect Kaho‘olawe and its waters from illegal, inappropriate, and unsafe use; and

(8) To prepare for the transition of the Reserve to the future native Hawaiian sovereign entity.

The legislature finds that in order to support the goals of the Strategic Plan, additional funds are required for the Kaho‘olawe rehabilitation trust fund.

SECTION 2. Chapter 6K, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§6K- Molokini recreational activity surcharge. (a) Any ocean recreational activity business operator that operates a tour at Molokini island, including a tour of the reefs and reef lands off the shore of the island, shall collect a surcharge of $1 from each customer for each activity tour provided to the customer.

(b) Each ocean recreational activity business operator may retain two per cent of the amount of surcharges collected to offset administrative expenses associated with collecting the surcharge.

(c) The ocean recreational activity business operator shall remit to the Kaho‘olawe rehabilitation trust fund, established pursuant to section 6K-9.5, within sixty days after the end of the calendar month in which the surcharge is collected, an amount that represents the total surcharges collected during the calendar month less amounts retained for administrative expenses incurred by the ocean recreational activity business operator, as provided in subsection (b).

(d) The surcharges collected by the ocean recreational activity business operator pursuant to this section shall not be subject to any tax, fee, or assessment, and shall not be considered revenue of the operator.

(e) Each customer who is subject to this section shall be liable to the State for the surcharge until the surcharge has been paid to the ocean recreational activity business operator. Ocean recreational activity business operators shall have no liability to remit surcharges that have not been paid by customers. An ocean recreational activity business operator shall have no obligation to take any legal action to enforce the collection of the surcharge for which any customer is billed. However, the department may initiate a collection action against the customer. If the department prevails in a collection action, reasonable attorney's fees and costs shall be awarded.

(f) For the purposes of this section, "ocean recreational activity business operator" means any person who operates any commercial enterprise or establishment, including sole proprietorships, joint ventures, partnerships and corporations, or any other legally cognizable entity, whether for profit or not for profit, which:

(1) Engages in a recreational activity that is primarily conducted in or on the ocean, including kayaking, snorkeling, scuba diving, surfing, and windsurfing; or

(2) Provides instruction or guidance to any patron regarding the use of equipment associated with an ocean recreational activity."

SECTION 3. Section 6K-9.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created in the state treasury a trust fund to be designated as the Kaho‘olawe rehabilitation trust fund to be administered by the department with the prior approval of the commission. Subject to Public Law 103-139, and this chapter:

(1) All moneys received from the federal government for the rehabilitation and environmental restoration of the island of Kaho‘olawe or other purposes consistent with this chapter;

(2) Any moneys appropriated by the legislature to the trust fund;

(3) Any moneys received from grants, donations, or the proceeds from contributions; [~~and~~]

(4) Moneys raised pursuant to the surcharge levied under section 6K- ; and

[~~(4)~~] (5) The interest or return on investments earned from moneys in the trust fund,

shall be deposited in the trust fund and shall be used to fulfill the purposes of this chapter."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2010.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1961
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII