HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The State's small boat harbors and other boating
 2 facilities are important assets that are constructed, maintained,
 3 and operated for the purposes of recreational boating, landing of
 4 fish, and commercial vessel activities.  They also provide the
 5 primary means of public access to the State's ocean waters for
 6 fishing and ocean-based recreation by residents and visitors
 7 alike.
 8      The cost of operating, maintaining, and managing state small
 9 boat harbors and other boating facilities, including the
10 amortization (both principal and interest) of capital
11 improvements, is paid from the boating special fund.  The primary
12 source of special fund revenues is comprised of mooring and other
13 harbor use fees, and includes other sources such as lease rent
14 and the state marine fuel tax.  These state small boat harbors
15 and other boating facilities are centers of recreation and
16 economic activity, and as such, must be managed in a manner that
17 facilitates recreation and commercial activity, and generates
18 sufficient revenue for this purpose.
19      The legislature finds that private management and operation

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 1 of public marina facilities is a common practice in many state
 2 and local jurisdictions throughout the United States.  The
 3 legislature also finds that the leasing of state small boat
 4 harbors and other boating facilities may be a viable alternative
 5 to existing management practices to achieve streamlined services,
 6 improve facilities, and increase revenues, at a reasonable cost
 7 to users.  Existing restrictions which limit both the
 8 recreational and economic potential of these facilities should be
 9 examined and removed where appropriate.
10      The purposes of this Act are to (1) authorize the board of
11 land and natural resources to solicit proposals from private
12 marina management firms to manage, operate, and improve Ala Wai
13 small boat harbor, and other small boat harbors and boating
14 facilities as may be designated by the board, under a long-term
15 lease disposed of through negotiation; (2) clarify that leases
16 may be issued for small boat harbors and other state boating
17 facilities properties with the revenue therefrom deposited to the
18 boating special fund; and (3) remove the prohibition of
19 commercial vessel activities within Ala Wai and Keehi small boat
20 harbors.
21      SECTION 2.  Chapter 200, Hawaii Revised Statutes, is amended
22 by adding a new section to be appropriately designated and to
23 read as follows:

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 1      "200-    Disposition of state boating facilities.  (a)  A
 2 lease of all or any part of a state boating facility may be
 3 disposed of by public auction, or by negotiation pursuant to
 4 section 171-59, as appropriate.  The permissible uses under any
 5 lease disposed of under this section shall be consistent with the
 6 purpose for which the land was set aside by the governor pursuant
 7 to section 171-11.  Permissible uses may include any use that
 8 will complement or support the maritime activities of the state
 9 boating facility in order to offer the full range of services and
10 amenities existing at commercial marina facilities; provided that
11 all uses shall be subject to approval by the board on a case-by-
12 case basis.  For the purpose of this section, the term "state
13 boating facility" means a state small boat harbor, launching
14 ramp, off-shore mooring, pier, wharf, landing, or any other area
15 under the jurisdiction of the department that is used in support
16 of the state recreational boating program, and the term "lease"
17 includes month-to-month rental agreements and other tenancies.
18      (b)  All revenues from leases of state boating facilities
19 shall be deposited in the boating special fund."
20      SECTION 3.  Section 171-59, Hawaii Revised Statutes, is
21 amended to read as follows:
22      "171-59  Disposition by negotiation.(a)  A lease of
23 public land may be disposed of through negotiation upon a finding

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 1 by the board of land and natural resources that the public
 2 interest demands it.  Where the public land is being sought under
 3 this section by a sugar or pineapple company, and the company is
 4 the owner or operator of a mill or cannery, then, for the
 5 purposes of this section, the economic unit shall be that acreage
 6 of public land which when taken together with the lands already
 7 owned or controlled or available to the company, when cultivated
 8 is found by the board to be necessary for the company's optimum
 9 mill or cannery operation.  In all other cases, public land to be
10 sold under this section shall be an economic unit as provided in
11 section 171-33(3).
12      After a determination is made to negotiate the disposition
13 of a lease, the board shall:
14      (1)  Give public notice as in public auction, in accordance
15           with the procedure set forth in section 171-16(a), of
16           its intention to lease public land through negotiation
17           setting forth the minimum conditions thereunder, the
18           use for which the public land will be leased.  Any
19           person interested in securing the lease shall file an
20           application with the board not later than forty-five
21           days after the first publication of the notice;
22      (2)  Establish reasonable criteria for the selection of the
23           lessee; provided that where the intended use of the

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 1           land is agriculture, the department of agriculture
 2           shall establish the criteria;
 3      (3)  Determine the applicants who meet the criteria for
 4           selection set by the board or the department of
 5           agriculture, as the case may be, and notify all
 6           applicants of its determination.  Any applicant may
 7           examine the basis of the determination, which shall be
 8           in writing, to ascertain whether or not the conditions
 9           and criteria established by the board or the department
10           of agriculture were followed; provided that if any
11           applicant does not notify the board of the applicant's
12           objections, and the grounds therefor, in writing,
13           within twenty days of the receipt of the notice, the
14           applicant shall be barred from proceeding to seek legal
15           remedy for any alleged failure of the board to follow
16           the conditions and criteria.
17      If only one applicant meets the criteria for the selection
18 of the lessee, the board may, after notice as provided in
19 paragraph (3), [above,] dispose of the lease by negotiation.
20      If two or more applicants meet the criteria for the
21 selection of the lessee, the board shall select the lessee who
22 submits the highest offer contained in a sealed bid deposited
23 with the board.

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 1      (b)  Disposition of public lands for airline, aircraft,
 2 agricultural processing, cattle feed production, aquaculture,
 3 marine, and maritime operations may be negotiated without regard
 4 to the limitations set forth in subsection (a) and section
 5 171-16(c); provided that:
 6      (1)  The disposition encourages competition within the
 7           aeronautical, agricultural, aquaculture, and maritime
 8           industries;
 9      (2)  The disposition shall not exceed a maximum term of
10           thirty-five years; and
11      (3)  The method of disposition of public lands for cattle
12           feed production as set forth in this subsection shall
13           not apply after December 31, 1988. For the purpose of
14           this subsection "agricultural processing" means the
15           processing of agricultural products, including
16           dairying, grown, raised, or produced in Hawaii.
17      (c)  Disposition of public lands for marina or yacht club
18 purposes, including small boat harbors constructed, maintained,
19 and operated in accordance with chapter 200, may be negotiated
20 without regard to the limitations set forth in subsection (a),
21 section 171-53(c), and chapters 76, 77, 102, and 103D; provided
22 that:
23      (1)  The disposition shall not exceed a maximum term of

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 1           thirty-five years; and
 2      (2)  The disposition of Ala Wai small boat harbor, or other
 3           small boat harbors or state boating facilities as may
 4           be selected and designated for leasing by the board,
 5           may be made only to qualified marina management firms.
 6      (d)  After a determination is made to negotiate a lease for
 7 marina purposes, the board shall:
 8      (1)  Give public notice in accordance with section 171-
 9           16(c);
10      (2)  Establish reasonable criteria for the selection of the
11           lessee; and
12      (3)  Appoint a selection committee to determine which
13           proposals, if any, meet the criteria for selection set
14           by the board, and notify all applicants submitting
15           proposals of its determination.  Any applicant may
16           examine the basis of the determination, which shall be
17           in writing, to ascertain whether or not the conditions
18           and criteria established by the board were followed;
19           provided that if any applicant does not notify the
20           board of the applicant's objections, and the grounds
21           therefor, in writing, within twenty days of the receipt
22           of the notice, the applicant shall be barred from
23           proceeding to seek legal remedy for any alleged failure

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 1           of the board to follow the conditions and criteria.
 2           The board shall have the right to reject part or all of
 3           any or all proposals.
 4 If only one proposal meets the criteria for selection of the
 5 lessee, the board may, after giving notice as provided in
 6 paragraph (3), dispose of the lease for public lands, at Ala Wai
 7 small boat harbor or other designated small boat harbor or state
 8 boating facility, by negotiation.  If two or more proposals meet
 9 the criteria for selection of the lessee, the board shall select
10 the lessee who submits the best offer, in terms of proposed level
11 of services, planned capital improvements, and revenue, contained
12 in a sealed bid deposited with the board."
13      SECTION 4.  Section 200-9, Hawaii Revised Statutes, is
14 amended by amending subsection (b) to read as follows:
15      "(b)  Vessels used for purposes of recreational boating
16 activities which are also the principal habitation of the owners
17 shall occupy no more than one hundred twenty-nine berths at Ala
18 Wai boat harbor and thirty-five berths at Keehi boat harbor,
19 which is equal to fifteen per cent of the respective total
20 moorage space that was available as of July 1, 1976, at the Ala
21 Wai and Keehi boat harbors.  Notwithstanding the purposes of
22 small boat harbors, moorage for commercial vessels [and
23 commercial vessel activities] is [not] permitted in the Ala Wai

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 1 and Keehi boat harbors[; provided that commercial catamarans, for
 2 which valid permits or registration certificates have been issued
 3 by the department which allow the catamarans to operate upon
 4 Waikiki shore waters for hire, may be permitted to moor in Ala
 5 Wai boat harbor] only at facilities leased for commercial
 6 purposes[.], or at berths numbered seven through sixty-one at Ala
 7 Wai boat harbor.  Commercial vessel activities are not permitted
 8 in the Ala Wai boat harbor except for the activities of vessels
 9 assigned a berth in berths seven through sixty-one in the harbor
10 or vessels operating under a certificate of public convenience
11 and necessity."
12      SECTION 5.  No officer or employee of the State shall suffer
13 any loss of salary, seniority, prior service credit, vacation,
14 sick leave, or other employee benefit or privilege as a
15 consequence of this Act.  In the event that an office or position
16 held by an employee having tenure is abolished, the officer or
17 employee shall not thereby be separated from public employment,
18 but shall remain in the employment of the State with the same pay
19 and classification and shall be transferred to some other office
20 or position for which the officer or employee is eligible under
21 the personnel laws of the State as determined by the head of the
22 department of human resources development or the governor.
23      SECTION 6.  Statutory material to be repealed is bracketed.

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 1 New statutory material is underscored.
 2      SECTION 7.  This Act shall take effect upon its approval.
 4                           INTRODUCED BY: ________________________

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