HB649

SECTION 1. Chapter 200, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§200- Small boat harbor commercial vessel special fund. (a) There is established the small boat harbor commercial vessel special fund to be administered by the department.

(b) The following shall be deposited into the small boat harbor commercial vessel special fund:

(1) Appropriations by the legislature;

(2) The portion of fees designated under section 200‑10(c)(5) for deposit into the small boat harbor commercial vessel special fund; and

(3) Moneys derived from interest, dividends, or other sources.

(c) Moneys in the small boat harbor commercial vessel special fund shall be expended exclusively for improvements that primarily benefit commercial vessels that utilize state small boat harbors."

SECTION 2. Section 200-10, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (c) to read:

"(c) The permittee shall pay moorage fees to the department for the use permit that shall be based on but not limited to the use of the vessel, the vessel's effect on the harbor, use of facilities, and the cost of administering the mooring program; provided that:

(1) Except for commercial maritime activities in which a tariff is established by the department of transportation, moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department;

(2) For commercial maritime activities in which a tariff is established by the harbors division of the department of transportation, the department may adopt the published tariff of the harbors division of the department of transportation or establish the fee by appraisal by a state-licensed appraiser approved by the department;

(3) An application fee shall be collected when applying for moorage in state small boat harbors and shall thereafter be collected annually when the application is renewed; provided that the application fee shall be set by the department;

(4) If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly liveaboard fee that shall be two times the moorage fee that would otherwise be assessed for a vessel of the same size;

(5) If a vessel is used for commercial purposes from the vessel's permitted mooring, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly fee that shall be the greater of:

(A) [~~Three~~] Five per cent of the gross revenues derived from the use of the vessel;

(B) $1.50 per passenger carried for hire; or

provided that forty per cent of the revenues collected under this paragraph shall be deposited into the small boat harbor commercial vessel special fund established under section 200- ;

(6) The department is authorized to assess and collect utility fees, including electrical and water charges, and common-area maintenance fees in small boat harbors; and

(7) All fees established by appraisal pursuant to this subsection shall be set at fair market value."

2. By amending subsection (h) to read:

"(h) [~~All~~] Unless otherwise specified, all revenues from the foregoing operations shall be deposited in the boating special fund."

SECTION 3. Section 200-34, Hawaii Revised Statutes, is amended to read as follows:

"§200-34 Disposition of revenues. [~~All~~] Unless otherwise specified, all fees and penalties collected pursuant to sections 200-10, 200-14, 200-14.5, and 200-32, and all fees and penalties established by rules adopted pursuant to sections 200-4 and 200‑24, shall be deposited in the boating special fund."

SECTION 4. The director of finance is authorized to issue general obligation bonds, with debt service to be paid from special funds, in the sum of $32,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2025-2026 for the purpose of capital improvement projects for LNR801 - ocean-based recreation, as follows:

1. Ala Wai small boat harbor front row pier repairs Honolulu, Oahu

Design and construction for repair and reconstruction of existing finger piers along front row.

Total funding $9,000,000

2. Haleiwa small boat harbor, Oahu

Replace existing concrete marginal wharf with new pile guided aluminum framed floating dock, including water and electrical service.

Total funding $8,000,000

3. Honokohau small boat harbor, Hawaii

Asphalt paving, striping, and drainage improvements existing gravel parking areas on the north and south sides harbor.

Total funding $4,500,000

4. Maalaea small boat harbor, Maui

Maintenance dredging of harbor basin and entrance channel.

Total funding $6,000,000

5. Port Allen small boat harbor, Kauai

Pier A and B installation/retrofit of new concrete piles to stabilize piers from harbor surge.

Total funding $4,500,000

The sums appropriated for the capital improvement projects shall be expended by the department of land and natural resources.

SECTION 5. Any provision of this Act to the contrary notwithstanding, the appropriations made for capital improvement projects authorized under this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that the appropriations made to be expended in fiscal biennium 2025-2027 which are unencumbered as of June 30, 2028 shall lapse as of that date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	649
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII