STAND. COM. REP. NO. 1520

Honolulu, Hawaii

, 2019

RE: S.B. No. 1257

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Water, Land, & Hawaiian Affairs, to which was referred S.B. No. 1257, S.D. 2, 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 amend the amounts of moorage and liveaboard fees for state small boat harbor facilities and the manner in which the fees are applied. Specifically, this measure:

(1) Equalizes moorage fees charged to residents and non-residents;

(2) Sets liveaboard fees at fair market value as determined by appraisal; and

(3) Applies liveaboard fees to commercial vessels that are used as a primary place of residence.

Your Committee received testimony in opposition to this measure from Hawaii Ocean News and several individuals. Your Committee received testimony commenting on this measure from the Department of Land and Natural Resources, Ocean Tourism Coalition, and Wailoa River and Reeds Bay Boating Association.

Your Committee notes that the Department of Land and Natural Resources is authorized to annually increase the liveaboard fees assessed upon recreational vessels used as a place of principal habitation. However, the Department is statutorily restrained from increasing the liveaboard fees by more than five percent annually. Due to this restriction, the Department has chosen not to increase the fee since 1991.

Your Committee has amended this measure by:

(1) Deleting language that would have set liveaboard fees for recreational vessels at the appraised fair market value;

(2) Authorizing the Department of Land and Natural Resources to annually increase liveaboard fees for recreational vessels by up to fifty percent; and

(3) Changing its effective date to July 1, 2049.

As affirmed by the record of votes of the members of your Committee on Water, Land, & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1257, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1257, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land, & Hawaiian Affairs,

____________________________

RYAN I. YAMANE, Chair