STAND. COM. REP. NO. 1660

Honolulu, Hawaii

RE: H.B. No. 1019

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1019, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO OCEAN STEWARDSHIP,"

begs leave to report as follows:

The purpose and intent of this measure is to establish the ocean stewardship special fund and ocean stewardship user fee.

More specifically, this measure:

(1) Establishes the ocean stewardship special fund;

(2) Requires that twenty percent of certain funds collected and deposited into the ocean stewardship special fund be payable to the Office of Hawaiian Affairs as ceded lands revenues;

(3) Establishes an ocean stewardship user fee to be assessed on passengers and users of certain vessels;

(4) Provides that the ocean stewardship special fund shall be abolished on June 30, 2030; and

(5) Delays collection of the ocean stewardship user fee until January 1, 2024.

Your Committee received written comments in support of this measure from the Department of Land and Natural Resources, the Office of Hawaiian Affairs, Clean The Pacific, Hawaii Reef and Ocean Coalition, Kauhako Ohana Association, Kuaaina Ulu Auamo, Malama Pupukea-Waimea, Ocean Tourism Coalition, The Nature Conservancy Hawaii, and five individuals.

Your Committee received written comments on this measure from Pacific Whale Foundation.

Your Committee finds that assessing a nominal ocean stewardship user fee will provide revenue to help make the State's reefs healthier and restore fisheries.

Your Committee has amended this measure by:

(1) Clarifying that twenty percent of certain gross revenues collected and deposited into the ocean stewardship special fund shall be payable to the Office of Hawaiian Affairs as ceded lands revenues;

(2) Requiring that any ocean stewardship user fees collected after June 30, 2030, be deposited into the general fund;

(3) Clarifying that the statutory provision establishing the ocean stewardship special fund shall be repealed on June 30, 2030; and

(4) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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 is in accord with the intent and purpose of H.B. No. 1019, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1019, H.D. 2, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair