STAND. COM. REP. NO.  837

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1566

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1566 entitled:

"A BILL FOR AN ACT RELATING TO SMALL BOAT HARBORS,"

begs leave to report as follows:

     The purpose of this bill is to assist the Department of Land and Natural Resources (DLNR) in addressing needed repair and maintenance at ocean recreation facilities under their jurisdiction, given the current economic conditions facing the State.  Specifically, this measure:

(1)  Exempts the Ala Wai Boat Harbor from assessment and special improvement district requirements regarding redevelopment;

(2)  Clarifies the permissible uses of leased state boating facility properties to include ocean recreation activities;

(3)  Extends the maximum term for the disposition of public lands of state boating facilities to 65 years;

(4)  Requires any fees collected within the small boat harbors to be expended only for costs relating to the operation, upkeep, maintenance, and improvement of small boat harbors;

(5)  Allows the limited issuance of commercial use permits for vessels with assigned moorings in Ala Wai and Keehi boat harbors;

(6)  Provides for future mooring fees to be established by appraisal by a state-licensed appraiser and assigned a schedule B rate, while existing mooring holders remain in a schedule A class that shall equal schedule B rates by July 1, 2014;

(7)  Authorizes DLNR to assess and collect utility fees, including electrical and water charges, and common area maintenance fees, in small boat harbors; and

(8)  Directs DLNR to lease certain fast lands at the Ala Wai boat harbor using the request for proposals process to enter into a public-private partnership for the development, management, and operation of areas of Ala Wai boat harbor.

     Greenvision and many concerned individuals testified in opposition to this bill.  DLNR, Ocean Tourism Coalition, and a concerned individual provided comments.

     Your Committee has amended this bill by:

(1)  Changing its effective date to July 1, 2030, to encourage further discussion; and

(2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 H.B. No. 1566, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1566, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair