STAND. COM. REP. NO. 3264

Honolulu, Hawaii

RE:    S.C.R. No. 56

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 56 entitled:

"SENATE CONCURRENT RESOLUTION AUTHORIZING THE ISSUANCE OF A LEASE COVERING A PORTION OF STATE SUBMERGED LANDS AT PIERS 24 TO 26 IN HONOLULU HARBOR, OAHU, FOR PACIFIC SHIPYARDS INTERNATIONAL,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Board of Land and Natural Resources to issue a lease, for a term coextensive with the term of the ground lease, for the fast lands adjacent to Pacific Shipyards covering a portion of state submerged lands.

     Your Committee received written comments in support of this measure from Pacific Shipyards International; the Ship Repair Association of Hawaii; Pacific Marine; four individuals representing Navatek, Ltd.; and seventy-six individuals.  Written comments in opposition to the measure were submitted by the Department of Land and Natural Resources.  The Department of Transportation submitted written comments.

     Your Committee finds that Pacific Shipyards International, which operates the only commercial ship repair facility in Honolulu Harbor, is being relocated by the State from Pier 41 to Piers 24 through 26.  Your Committee further finds that submerged lands for property bound by Piers 24 through 26 are contemplated to be used for shipyard drydock operations and vessels under repair as part of the lease agreement.  Your Committee understands that the Legislature's adoption of this measure will satisfy the requirement of section 171-53, Hawaii Revised Statutes, that the Legislature provide authorization by concurrent resolution prior to the leasing of state submerged lands.

     Your Committee has amended this measure by:

     (1)  Clarifying that the measure authorizes the Department of Transportation, with the prior approval of the Board of Land and Natural Resources, to issue the lease; and

     (2)  Providing that a certified copy of the measure be transmitted to the Director of Transportation, in addition to the Chairperson of the Board of Land and Natural Resources.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 56, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 56, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair