STAND. COM. REP. NO.1534

Honolulu, Hawaii

, 2003

RE: S.C.R. No. 111

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.C.R. No. 111 entitled:

"SENATE CONCURRENT RESOLUTION AUTHORIZING THE BOARD OF LAND AND NATURAL RESOURCES TO LEASE SUBMERGED AND TIDAL LANDS OF THE HONOKOHAU SMALL BOAT HARBOR to private entities FOR COMMERCIAL, RECREATIONAL, EDUCATIONAL, AND RESEARCH PURPOSES,"

begs leave to report as follows:

The purpose of this measure is to seek the Legislature's prior approval by concurrent resolution, as required by section 171-53, Hawaii Revised Statutes, to permit the leasing of submerged lands within Honokohau Small Boat Harbor.

Testimony in support of this measure was submitted by the Board of Land and Natural Resources; Honokohau Marina Partners, LLC; and a petition signed by one hundred thirteen concerned citizens. Testimony in opposition to the measure was submitted by the Office of Hawaiian Affairs, the Hawaii Government Employees Association, Hawaii's Thousand Friends, Hawaii Boaters Political Action Association, Hawaii Fishing and Boating Association, Pacific Boats and Yachts, the Ala Wai Marina Board, the Makai Society, and twenty concerned citizens.

Your Committee finds that privatization may not be the correct answer for Honokohau Small Boat Harbor's needs and that more research is needed to evaluate the quality and cost of any bid to improve the quality or cost of any applicable services. Therefore, the managed competition process, which allows for the comparison of cost and efficiency factors between private and government-operated small boat harbor facilities, would provide for a more informed decision.

Your Committee has amended the title and text of this measure to request that the Board of Land and Natural Resources abide by the managed competition criteria of Act 90, Session Laws of Hawaii 2001, before leasing submerged and tidal lands, instead of immediately privatizing the lands. Upon reading this proposed amendment, most testifiers in support and in opposition of the original measure held their positions, but the Hawaii Boaters Political Action Association, originally opposed to the measure, added its support. Your Committee wants to clarify that without the managed competition process, it does not support the leasing of state submerged and tidal lands in Honokohau Small Boat Harbor.

Your Committee is reporting out the amended measure to facilitate further discussion of the issue, even though the Office of Collective Bargaining, the Attorney General's Office, and the Department of Land and Natural Resources have not completed their research into managed competition. This measure should send a message to the administration to facilitate that research, because the flexibility in development options provided by this amended measure may achieve the most efficient utilization of available space within Honokohau Small Boat Harbor.

Your Committee also amended the measure to specifically reference section 171-53, Hawaii Revised Statutes (HRS), which addresses the reclamation and disposition of submerged lands. Section 171-53(c), HRS, allows the Board of Land and Natural Resources to lease state submerged and tidal lands, with the prior approval of the Governor and the prior authorization of the Legislature by concurrent resolution.

Your Committee also finds that it is important that any public hearings dealing with a proposed lease of submerged or tidal lands at Honokohau, and any subsequent requests for proposals, environmental assessments, environmental impact statements, or county permitting hearings should occur in the Kailua-Kona area to allow all interested and impacted parties to have sufficient notice and ability to share their input. Also, the managed competition process should allow for input from the Office of Hawaiian Affairs (OHA) on lease negotiations to ensure that any lease accommodates the access and gathering rights of Hawaiians and OHA's rights to its pro rata share of any ceded land revenue from submerged lands.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 111, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 111, S.D. 1.

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

____________________________

LORRAINE R. INOUYE, Chair