STAND. COM. REP. 963

Honolulu, Hawaii

, 2003

RE: S.B. No. 719

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 719 entitled:

"A BILL FOR AN ACT RELATING TO AQUACULTURE,"

begs leave to report as follows:

The purpose of this bill is to assist the aquaculture industry by requiring the Department of Transportation (DOT) to adopt a reduced rate schedule for dockage, wharfage, demurrage, and other rates and fees pertaining to all harbors, wharves, and other properties for Hawaii enterprises engaged in aquaculture.

The Hawaii Aquaculture Association and Cates International, Inc., testified in support of this bill. DOT supported the intent of this measure. The Department of Agriculture submitted comments.

In 1999, in an attempt to diversify Hawaii's economy, the Legislature allowed for the leasing of state marine waters for commercial aquaculture. Since that time, two leases have been authorized, and one is currently in commercial production. The current commercial operation is proving to be an enormous success with the generation of a large supply of fish with minimal environmental impact. In fact, the only commercial maritime-based aquaculture operator produces approximately 5,000 pounds of fish per week and is presently contemplating increasing production to 10,000 pounds per week to keep up with the demand.

However, your Committee finds that one unanticipated bottleneck to the expansion of aquaculture through open-ocean farming is the availability of land-based facilities at reasonable costs near harbors for critical industry support activities, such as equipment storage, fish packing, and transportation. Current uses, fees, and zoning are prohibitive for this type of activity to use appropriate sites.

Although your Committee understands the concerns raised by DOT about the difficulty of determining actual costs to DOT for the operational and maintenance fees for harbor areas that would serve aquacultural activities and realizes that these costs would fluctuate constantly, making it difficult to negotiate long-term contracts, your Committee finds that the aquaculture industry is poised to develop into a strong and viable industry. The benefits reaped from assisting in the development of this industry would far outweigh the difficulties DOT may experience in the reduction of harbor fees for aquaculture enterprises. Your Committee notes that the expansion of aquaculture would provide an economic boon to the State, with a large potential for increased investment dollars for the State and the generation of jobs.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 719 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

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

 

____________________________

JOSEPH M. SOUKI, Chair