SB2460.DOC

SECTION 1. The Kaho‘olawe island reserve consists of the island of Kaho‘olawe plus the waters extending two nautical miles seaward from the coastline. The island is situated approximately six miles southwest of Maui and approximately four and a half miles west of Molokini. The forty-five square mile island of Kaho‘olawe and its ninety square miles of waters are managed and controlled by the Kaho‘olawe island reserve commission, which is responsible for environmental protection and conservation, revegetation, habitat restoration, the preservation of archaeological and historical resources, and the promotion of traditional and cultural practices.

The island was once inhabited by native Hawaiian subsistence farmers and fisherman. After the arrival of Europeans, Kaho‘olawe was used as a penal colony and ranch. From 1947 to 1990, the United States Navy used Kaho‘olawe for military training and bombing exercises. In 1994, the federal government appropriated $400 million for the clean-up of unexploded ordnance. The same federal appropriation provided $45 million to the State for long-term planning and environmental restoration; these funds were deposited in the State's Kaho‘olawe rehabilitation trust fund in annual increments over several years. However, the trust fund principal was never substantial enough to be a sustainable endowment where the Kaho‘olawe island reserve commission could operate solely from its interest.

Today, the trust fund balance is approximately $15 million, which is the only statutory source of revenue for the administration and operation of the Kaho‘olawe island reserve commission and its personnel and program activities.

The waters of the Kaho‘olawe island reserve are off-limits except to boaters who register with the Kaho‘olawe island reserve commission and who are then permitted to troll on two published weekends each month in waters thirty fathoms deep or greater. This regulation is due to the presence of unexploded ordnance in the reserve waters, as well as to allow the reserve waters to function as a sanctuary and nursery for all marine species managed by the Kaho‘olawe island reserve commission.

The reserve waters support a variety of listed marine species, including the green sea turtle, Hawaiian monk seal, and humpback whale, as well as some of the healthiest fish populations in the main Hawaiian islands.

The purpose of this Act is to provide a permanent statutory revenue source for the management of the Kaho‘olawe island reserve.

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 shoal marine life conservation district user fee. (a) Each permit holder shall collect a user fee of $5 from each customer for each activity tour provided to the customer.

(b) Each permit holder may retain two per cent of the amount of user fees collected to offset administrative expenses associated with collecting the user fee.

(c) The permit holder 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 user fee is collected, an amount that represents the total user fees collected during the calendar month less amounts retained for administrative expenses incurred by the permit holder, as provided in subsection (b).

(d) The user fees collected by the permit holder pursuant to this section shall not be subject to any tax, fee, or assessment, and shall not be considered revenue of the permit holder.

(e) Each customer who is subject to this section shall be liable to the State for the user fee until the user fee has been paid to the permit holder. A permit holder shall have no obligation to take any legal action to enforce the collection of the user fee 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, "permit holder" 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 holds a permit issued by the department to operate commercial activities within the Molokini shoal marine life conservation district."

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) The interest or return on investments earned from moneys in the trust fund[,]; and

(5) Any moneys collected pursuant to section 6K- ,

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:	_____________________________

THE SENATE	S.B. NO.	2460
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII