CONFERENCE COMMITTEE REP. NO. 11-14

Honolulu, Hawaii

                 , 2014

RE:    S.B. No. 2877

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2877, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO USE PERMITS FOR SMALL BOAT HARBOR FACILITIES,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to clarify that no use permit issued to a corporation or other business entity for a state small boat harbor facility may be transferred unless specifically provided by law.  This measure also exempts transfers of stock or interest in a corporation or other business entity between immediate family members solely for the purpose of estate planning purposes from paying the passenger-carrying capacity business transfer fee to the Department of Land and Natural Resources.

     Your Committee on Conference finds that this measure seeks to clarify that use permits issued to a corporation or other business entity for a state small boat harbor facility may only be transferred if the corporation or other business entity holds a valid commercial use permit.  This measure prevents people from bypassing the waitlist for a regular mooring permit by acquiring a corporation or other business entity holding a regular mooring permit.

     Your Committee on Conference has amended this measure by:

     (1)  Upon the recommendation of the Attorney General, clarifying the definition of "controlled group" to mean parent-subsidiary corporations, brother-sister corporations, or constructive owner; and

     (2)  Changing the effective date to July 1, 2014.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2877, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2877, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ CINDY EVANS, Co-Chair	______________________________ MALAMA SOLOMON, Chair
____________________________ NICOLE E. LOWEN, Co-Chair	______________________________ DONOVAN M. DELA CRUZ, Co-Chair