STAND. COM. REP. NO. 265-00

                                 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 Ocean Recreation and Marine Resources, to
which was referred H.B. No. 2571 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. This bill:

     (1)  Authorizes the Board of Land and Natural Resources to
          lease fast and submerged lands within an existing state
          boating facility for private development, management,
          and operation;

     (2)  Clarifies that leases issued for small boat harbors may
          include any use that will complement or support the
          maritime activities of state boarding facilities;

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

     (4)  Requires that all revenues due to the State derived
          from leases of state boating facilities be deposited
          into the Boating Special Fund.

     The Department of Land and Natural Resources (DLNR),The
Chamber of Commerce of Hawaii's Maritime Committee, Atlantis
Submarines, the Waikiki Improvement Association, the Small
Business Regulatory Review Board, and several individuals

 
 
                                 STAND. COM. REP. NO. 265-00
                                 Page 2

 
testified in support of this bill. The Ala Wai Marina Committee,
the Office of Hawaiian Affairs, the Hawaii Boaters Political
Action Association, and several individuals opposed this measure.
The Hawaii Government Employees Association offered comments. 

     Your Committee has amended this bill by:

     (1)  Requiring that before sumbmerged lands or lands beneath
          tidal waters are leased in an existing state boating
          facility, the prior approval of the Governor and the
          prior authorization of the Legislation must be
          obtained; and

     (2)  Making technical, nonsubstantive amendments.

     This bill will enable the State to begin soliciting
proposals from private companies wishing to lease space at the
Ala Wai and Keehi boat harbors.  Given the need for general
improvements of the harbors, commercializing small portions of
the harbors, will allow the State to generate revenue with no
cost to existing slipholders.                                    

     As affirmed by the record of votes of the members of your
Committee on Ocean Recreation and Marine Resources that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 2571, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2571, H.D. 1, and be referred to the Committee
on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Ocean Recreation
                                   and Marine Resources,



                                   ______________________________
                                   ROY M. TAKUMI, Chair