STAND. COM. REP. NO.  1599-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2877

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred 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,"

begs leave to report as follows:

The purpose of this measure is to:

(1)  Specify 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;

(2)  Exempt transfers of stock or interest in a corporation or other business entity between spouses or first-generation lineal descendants from paying the passenger-carrying capacity business transfer fee to the Department of Land and Natural Resources; and

(3)  Specify that a person who is part of a controlled group possessing a valid commercial permit may transfer stock or other interest to another person without terminating the right of the corporation or business entity to retain or renew its commercial permit if the transferee retains 80 percent control of the transferor.  

The Department of Land and Natural Resources supported this measure.

     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 S.B. No. 2877, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair