STAND. COM. REP. NO. 565

Honolulu, Hawaii

RE: S.B. No. 1165

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred S.B. No. 1165 entitled:

"A BILL FOR AN ACT RELATING TO OCEAN RECREATION COMMERCIAL PERMITS,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Department of Land and Natural Resources to issue new ocean recreation commercial permits by public auction.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources.  Your Committee received testimony in opposition to this measure from the Ocean Tourism Coalition, Malolo Charters, Trilogy Excursions, and two individuals.

Your Committee finds that there are an increasing number of commercial ocean recreation providers requesting to operate in state waters. Your Committee believes that the fairest way to issue the limited commercial permits available under these circumstances is through public auction. The fees collected through public auction of permits to operate from state small boat harbors go toward the operation, maintenance, and management of all state small boat harbor facilities under the control of the Department of Land and Natural Resources. Ultimately, this measure would allow the Department of Land and Natural Resources to increase revenues through higher permit fees arising as a result of competitive bidding through auctions. Your Committee notes that this measure is not intended to affect existing commercial permits. In situations where unfairness to permit applicants may result if a lottery or first-come, first-served method is used, the Department of Land and Natural Resources believes that having the authority to auction new permits would provide a better opportunity for existing established operators to obtain a permit.

As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1165 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water and Land,

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LORRAINE R. INOUYE, Chair