STAND. COM. REP. NO. 838-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2571
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2571, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO STATE BOATING FACILITIES,"

begs leave to report as follows:

     The purpose of this bill is to improve the management,
operation, and facilities of state small boat harbors by:

     (1)  Authorizing the Board of Land and Natural Resources to
          lease fast and submerged lands within an existing state
          boating facility by public auction or direct
          negotiation for private development, management, and
          operation;

     (2)  Specifying that leases issued for small boat harbors
          may include any use that complements or supports the
          maritime activities of state boating facilities;

     (3)  Specifying that all revenues due to the State derived
          from leases of state boating facilities are to be
          deposited in the Boating Special Fund;

     (4)  Allowing the moorage of a limited number of commercial
          vessels in the Ala Wai and Keehi boat harbors; and

     (5)  Giving owners of commercial vessels the opportunity for
          an administrative hearing before the Department of Land
          and Natural Resources (DLNR) can revoke an owner's

 
 
                                 STAND. COM. REP. NO. 838-00
                                 Page 2

 
          commercial permit or registration authorizing
          commercial activities in boating facilities or area
          under DLNR's jurisdiction.

     DLNR, Waikiki Improvement Association, and an individual
testified in support of this measure.  Maui Commercial Boaters &
Ocean Affiliated Transportation also testified in support of this
measure, but with proposed amendments.  The Office of Hawaiian
Affairs, Ala Wai Marina Committee, and numerous individuals
testified in opposition to this measure.  Maui Classic Charters,
Inc., MCBOAT, Body Glove Cruises, Kauai Ocean Recreation Industry
Association, Surfrider Foundation, Na Pali Sea Tours, Inc.,
Activity Owners Association, Pacific Whale Foundation Eco-
Adventures, Holo Holo Charters, Inc., Captain Andy's Sailing,
Inc., Trilogy Excursions, Shaka Divers, West Maui Parasail,
Bluewater Sailing Kauai, Inc., and an individual submitted
comments on this measure.

     Your Committee had concerns that commercial permit and
registration owners have some form of recourse to appeal the
revocation of their permits by DLNR.  This bill gives owners of
commercial vessels the opportunity to a hearing before DLNR can
revoke an owner's commercial permit or commercial registration.

     Your Committee also has concerns about the safety of surfers
and other recreational users of the Ala Wai.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2571, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair