HB1436.DOC

PART I

SECTION 1. The legislature finds that small boat harbors are a valuable state asset that are being underutilized and that there is a need for a demonstration project to provide a model for developing a full service marina. The legislature believes that a private-public framework for the management and operation of marinas and small boat harbors in the State would improve the efficiency and effectiveness of service to the harbor users, tenants, and the surrounding community. Such private-public management would permit the development of the harbor and adjacent real property to provide maximum support for marina and small boat harbor users; it would encourage economic growth related to the marina services and recreation industry, leading to job creation, and maximize the opportunity for ocean recreation, commercial boating, and fishing.

The purpose of this Act is to establish a working group to pursue the establishment of a demonstration project for the private-public management and operation of the Honokohau marina and small boat harbor with the support and oversight of the division of boating and ocean recreation of the department of land and natural resources.

SECTION 2. (a) There is established a working group on the private-public management and operation of small boat harbors, to be placed within the department of land and natural resources for administrative purposes. The department shall provide all administrative, technical, professional, and clerical support required by the working group.

(b) The working group on the private-public management and operation of small boat harbors shall pursue the establishment of a demonstration project for the private-public management and operation of the Honokohau marina and small boat harbor, using the framework presented in part II of this Act as a starting point.

(c) The working group on the private-public management and operation of small boat harbors shall be comprised of the following members:

(1) The administrator of the division of boating and ocean recreation of the department of land and natural resources or designee;

(2) The director of business, economic development, and tourism or designee;

(3) The mayor of the county of Hawaii or designee;

(4) A representative of the governor; and

(5) Three members appointed by the governor from among the membership of the Hawaii Fishing and Boating Association; provided that these members shall represent different categories of marine users, such as charter boat operators, commercial fishermen, tour boat operators, and recreational boaters.

(d) Members of the working group on the private-public management and operation of small boat harbors shall receive no compensation for their services, but may be reimbursed for expenses, including travel costs, necessary for the performance of their duties under this Act. A majority of all members to which the board is entitled shall constitute a quorum to do business.

(e) The working group on the private-public management and operation of small boat harbors shall report its findings and recommendations, including any suggested legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2012.

(f) The working group on the private-public management and operation of small boat harbors shall cease to exist on June 30, 2012.

PART II

SECTION 3. The purpose of this part is to provide the framework for a demonstration project for the private-public management and operation of the Honokohau marina and small boat harbor by a nonprofit entity, with the support and oversight of the division of boating and ocean recreation of the department of land and natural resources.

The success of a marina is predicated upon the use of adjacent real property for complementary marina-related services. The demonstration project will provide a framework for localized harbor governance that will include designation of the harbor area as a community development district.

The area subject to the demonstration project shall be known as the Honokohau marina and shall be a development district composed of the approximately 58.81 acres of the existing Honokohau marina and small boat harbor on the island of Hawaii and the approximately 17.70 acres of adjacent fast lands located between the current Honokohau marina and small boat harbor and Queen Kaahumanu highway.

The Honokohau marina shall be managed and operated by a non-profit entity that shall be governed by a nine member board that represents different categories of marine users, such as charter boat operators, commercial fishermen, tour boat operators, and recreational boaters, who shall be appointed by the governor. The demonstration project will allow, among other things, the non-profit entity to create a sustainable business plan that has community support and to develop guidelines for the adoption of new marina management rules by the department of land and natural resources, in accordance with chapter 91, to address issues such as operations, enforcement, fee schedules, and performance standards.

SECTION 4. (a) The purpose of this section is to establish a framework for a demonstration project for the private-public management and operation of the Honokohau marina and small boat harbor.

(b) Definitions. As used in this section, unless the context otherwise requires:

"Board" means the executive board of the Honokohau marina.

"Department" means the department of land and natural resources.

"Marina" means the Honokohau marina.

(c) Honokohau marina; establishment. There is established a five year demonstration project for a private-public partnership to manage and operate the Honokohau marina, which shall be placed within the department of land and natural resources for administrative purposes. The Honokohau marina shall consist of the area known as the Honokohau small boat harbor and approximately 17.70 acres of adjacent fast lands located between the boat harbor and Queen Kaahumanu highway.

(d) Executive board or board. The responsibility for general administration and the operation of the marina shall be vested in the executive board of the Honokohau marina. The board shall have power in accordance with law to formulate policy and to exercise control over the marina.

The board shall consist of nine members appointed by the governor from among the membership of the Hawaii Fishing and Boating Association; provided that the members shall represent the different categories of marine users, including charter boat operators, commercial fishermen, tour boat operator, and recreational boaters.

The board members shall serve without compensation but may be reimbursed for travel and other necessary expenses incurred in the performance of their official duties.

The term of each board member shall be for the duration of the demonstration project. A vacancy on the board shall be filled for the remainder of the unexpired term by the governor.

(e) Board organization; quorum. The board shall elect, from its own membership, a chairperson and a vice-chairperson. A majority of all members to which the board is entitled shall constitute a quorum to do business.

(f) Duties; scope of work. The board shall establish a comprehensive program that shall include the following:

(1) Managing and operating the marina for the general public for commercial, recreational, educational, and historical purposes;

(2) Cooperating with, and providing assistance to, the department and other public and private agencies involved in developing and implementing programs related to the department;

(3) Selecting and employing a harbor master who shall be an employee of the department of land and natural resources to serve on a full-time basis and who is qualified by training and experience. The harbor master shall:

(A) Administer policies and programs approved by the board and exercise supervision over the marina's activities; and

(B) Employ, subject to chapter 76, personnel as the harbor master finds necessary to operate and maintain the marina and define their powers and duties;

(4) Adopting guidelines to carry out the purposes of this part, regarding operations, enforcement, fee schedules, and performance standards.

(g) Meetings of the board. The meetings of the board shall be open to the public as provided in section 92-3, Hawaii Revised Statutes; provided that when it is necessary for the board to receive information that is proprietary to a particular enterprise that seeks entry into or use of one of its facilities or the disclosure of which might be harmful to the business interest of the enterprise, the board may enter into an executive meeting that is closed to the public.

The board shall be subject to the procedural requirements of section 92-4, Hawaii Revised Statutes, and this shall be in addition to the exceptions listed in section 92-5, Hawaii Revised Statutes, to enable the board to respect the proprietary requirements of enterprises with which it has business dealings.

(b) The division of boating and ocean recreation of department of land and natural resources shall cooperate with and assist the board and provide support and oversight to the marina. The department shall:

(1) Transfer management of the area known as the Honokohau small boat harbor and approximately 17.70 acres of adjacent fast lands located between the boat harbor and Queen Ka'ahumanu highway to the board;

(2) Provide the marina with facilities, security, janitorial services, utilities, fiscal, and necessary legal services;

(3) Adopt rules based on the guidelines developed by the board;

(4) Assist the board in the administration of marina harbor operations pursuant to the new rules;

(5) Determine non-compliance with any statutes or rules, or with the operations and management plan, and report to the board and department;

(6) Assist in the collection and disbursement of funds and receive revenues and fees that shall be deposited into a new special fund established for the purpose of managing, operating, and developing the development district; and

(7) Contract for the development, repair, and maintenance of the harbor as determined by the board, as long as the revenues sustain the operations and development of the development district.

(i) Annual report. Beginning with the regular session of , the board shall submit a report on its activities to the legislature no later than twenty days prior to the convening of each regular session. The annual report shall include a financial overview, a description of the contracts entered into, and the progress and accomplishments of the appropriate year.

(j) Special fund. There is established in the state treasury a fund to be known as the Honokohau marina special fund, into which shall be deposited all moneys and fees from tenants or other users of the marina's parks, projects, other leased facilities, and other services and publications as well as any grants or gifts received by the marina. All moneys in the fund shall be appropriated and expended for the operation, maintenance, and management of the marina, including the harbor, adjacent fast lands, projects, facilities, services, and publications, and for the design and construction of new facilities and the renovation of or addition to existing facilities of the marina.

The board shall be the designated expending agency for the fund.

PART III

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1436
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII