STAND. COM. REP. NO. 2809

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2741

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred H.B. No. 2741, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO SMALL BOAT HARBORS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to clarify the law pertaining to commercial fishing vessels.

 

     Specifically, this measure:

 

     (1)  Requires a permittee of certain commercial fishing vessels to pay a fee two times the moorage fee of a recreational vessel;

 

     (2)  Allows a person to transfer stock or interest in a corporation or business entity operating a commercial fishing vessel while allowing the corporation or business entity to retain its mooring permit under certain circumstances; and

 

     (3)  Defines "commercial fishing activity."

 

     Testimony in support of this measure was submitted by one individual.  One state agency submitted comments.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee recognizes that a mooring permit is an asset to any commercial fishing operation.  Recent administrative changes have resulted in commercial fishing operations being unable to transfer their mooring permits with the sale or transfer of the business, which results in a significant decrease in the value of the business.  This measure will allow these operations to transfer their mooring permits with the business under certain circumstances.  Additionally, this measure will help level the playing field for commercial fishing operations and commercial passenger vessels.  Presently, commercial passenger vessels pay two times the slip rental or three per cent of their gross revenue, to cover boat harbor services including parking, water, cleaning, garbage collection, etc.  Increasing the fees for commercial fishing operations to two times the moorage fee assessed for recreational vessels, similar to what commercial passenger vessels pay, is fair and will help the State cover the costs of operating and maintaining small boat harbors.

 

     Another way to raise revenues to cover the costs of operating and maintaining small boat harbors is to raise liveaboard fees.  These fees are set in statute, and according to the Department of Land and Natural Resources, have not been raised since 1992.  Your Committee finds that the Department of Land and Natural Resources needs the flexibility to adjust fees through administrative rules, rather than having the fees set in statute.

 

     Your Committee has amended this measure by:

 

     (1)  Disallowing the seller's retention of its mooring permit or any other permit issued by the Department of Land and Natural Resources if the transfer of stock or interest in a corporation or business entity operating a commercial fishing vessel is to an employee, shareholder, officer of the corporation, or member of the seller's immediate family;

 

     (2)  Limiting the allowance of a person to transfer stock or interest in a corporation or business entity while retaining its mooring permit or other permits to a one‑time transfer;

 

     (3)  Adjusting liveaboard fees for permittees of vessels that are used for a place of principal habitation in state small boat harbors from $5.20 a foot of vessel length a month for state residents and $7.80 per month for nonresidents, to:

 

          (A)  Three times the moorage fees assessed per month for a recreational vessel of the same size, if the permittee is a state resident; and

 

          (B)  Three and one-half times the moorage fees assessed per month for a recreational vessel of the same size, if the permittee is a nonresident; and

 

     (4)  Specifying that the foregoing liveaboard fees shall be in lieu of, rather than in addition to, moorage fees;

 

     (5)  Deleting the requirement that moorage fees be established at a higher rate for nonresidents;

 

     (6)  Changing the effective date of the measure to July 1, 2050, to facilitate further discussions; and

 

     (7)  Making technical, nonsubstantive changes for the purposes of style, clarity, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2741, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2741, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

CLAYTON HEE, Chair