STAND. COM. REP. NO. 133

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1321
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 1321 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to encourage public and
private interests to invest in research and development of open
ocean aquaculture or mariculture.

     Your Committee received testimony in support of this measure
from the Department of Agriculture, the Department of Business,
Economic Development, and Tourism, the Department of Land and
Natural Resources, the Hawaii Aquaculture Association, Black
Pearls, Inc., Makai Ocean Engineering, and the Oceanic Institute.
The Office of Hawaiian Affairs and one individual testified in
opposition to the measure.  The University's Environmental
Center, Hawaii Natural Energy Institute, and Sea Grant College
Program submitted comments.

     Your Committee finds that in 1986, the Legislature passed
the Ocean and Submerged Lands Leasing Act, Chapter 190D, Hawaii
Revised Statutes (HRS), which established procedures for the
leasing of State marine waters and submerged lands for
mariculture.  However, no lease has ever been granted under
Chapter 190D, HRS, because of limitations in the law.

     Your Committee finds that this measure would remove key
limitations and allow mariculture leases, streamline and clarify

 
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the process for a mariculture lease, and provide potential
mariculture projects with the flexibility to adapt technology and
designs to a site.

     Your Committee has amended this measure to:

     (1)  Delete section 1 which would have amended section
          171-2, HRS, relating to the definition of public lands,
          as unnecessary;

     (2)  Delete section 2 which would have amended section
          171-53, HRS, to exempt leases issued under chapter
          190D, HRS, from legislative authorization;

     (3)  Reinstate the material deleted from section 190D-33,
          HRS, requiring the portion of revenues subject to
          chapter 10, HRS, be deposited into the public land
          trust fund; and

     (4)  Make technical amendments to conform to standard
          drafting style.

     Your Committee is in support of this measure, as amended,
and believes it will foster further economic development of the
mariculture industry, while promoting environmental
sustainability.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1321, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1321,
S.D. 1, and be referred to the Committee on Water, Land, and
Hawaiian Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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