STAND. COM. REP. NO.  619-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2398

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Water, Land, & Ocean Resources and Hawaiian Affairs, to which was referred H.B. No. 2398 entitled:

"A BILL FOR AN ACT RELATING TO LAND USE,"

beg leave to report as follows:

The purpose of this measure is to establish the Honokohau Marina Development District on the island of Hawaii.

Torpedo Tours; McCormick Marine Service, Inc.; the Kona Boat Club; and numerous individuals submitted testimony in support of this measure.  Gentry's Kona Marina, the Association of Hawaiian Civic Clubs, Life of the Land, Kuakini Hawaiian Civic Club of Kona, Kona Hawaiian Civic Club, and an individual opposed this measure.  The Department of Land and Natural Resources, the Hawaii Community Development Authority, the Department of Hawaiian Homelands, the Office of Information Practices, and the Department of Budget and Finance submitted comments on this measure.

     Your Committees have amended this measure by:

     (1)  Removing the 218 acres that border the harbor area to the south and the 7.25 acres that border the harbor to the north from the development district by clearly identifying these areas and stating that they are not within the development district;

     (2)  Amending the purpose section to clearly state that major reasons for the redevelopment of the harbor include:

          (A)  Eliminating the current water pollution that is spreading to the nearby culturally sensitive shoreline areas; and

          (B)  Addressing the need to improve security, safety, and environmental impacts of the area;

     (3)  Reducing the development district representation on the board to three members and changing its composition to represent:

          (A)  Owners and operators of marina businesses;

          (B)  Harbor boating tenants; and

          (C)  Cultural practitioners representing the Kaloko-Honokohau National Historical Park;

     (4)  Changing the effective date so that the establishment of the district takes effect upon approval and the establishment of the revolving fund and the exemption from the procurement code take effect on July 1, 2013; and

     (5)  Allowing for the first marina management contract to be exempt from the procurement process under chapter 103D, Hawaii Revised Statutes, for a period not to exceed three years.

     As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2398, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2398, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Water, Land, & Ocean Resources and Hawaiian Affairs,

____________________________ FAYE HANOHANO, Chair

____________________________ JERRY L. CHANG, Chair