STAND. COM. REP. NO. 3752

Honolulu, Hawaii

RE: H.B. No. 1988

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1988, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CORAL,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Prohibit the sale, import, harvest, or export of coral products, with certain exceptions; and

(2) Require the Department of Land and Natural Resources to amend its administrative rules accordingly no later than December 31, 2024.

Your Committee received testimony in support of this measure from Coral Reef Alliance, Environmental Caucus of the Democratic Party of Hawai‘i, Moana Ohana, Legacy Reef Foundation, Clean the Pacific, Hawai‘i Reef and Ocean Coalition, Big Island "Reef Keepers" Hui, Center for Biological Diversity, Maui Divers of Hawai‘i, For the Fishes, Conservation Council for Hawai‘i, Kai Palaoa, Sierra Club of Hawai‘i Moku Lua Group, Kalanihale, Friends of Hanauma Bay, Haereticus Environmental Laboratory, Fair Wind Charters, Ocean Defenders Alliance – Hawai‘i, and nine individuals. Your Committee received testimony in opposition to this measure from Retail Merchants of Hawaii. Your Committee received comments on this measure from the Department of Land and Natural Resources, Department of the Attorney General, and Maui Divers Jewelry.

Your Committee finds that the commercial use of coral contributes to the decline and degradation of the State's coral reefs and is disrespectful to native Hawaiian cultural values, traditions, and practices, especially regarding black coral. Coral reefs, which are the foundation of the State's marine ecosystem, are already facing unprecedented stressors, including acidification, warming oceans, overfishing, and pollution. The archaic trade in coral products is not compatible with principles of sustainability and this measure will further support efforts to protect Hawaii's coral reefs.

Your Committee notes the concerns raised in testimony that this measure, as currently drafted, may exclude non-state entities from harvesting corals under Special Activity Permits issued by the Department of Land and Natural Resources for certain non-commercial scientific, management, educational, or propagation purposes. Accordingly, amendments to this measure are necessary to address this concern and to resolve certain potential constitutional challenges.

Your Committee has amended this measure by:

(1) Clarifying that it shall be unlawful for any person to import into, export from, sell in, harvest from, or offer for sale in the State any coral product, provided that the coral product is an endangered species native to Hawaii;

(2) Clarifying this restriction shall not apply to:

(A) The import into, export from, sale in, or offer for sale in the State of any coral product for certain purposes;

(B) The harvest of coral products pursuant to a special activity permit for non-commercial harvesting purposes; and

(C) Coral products expressly authorized by federal law or federal permit;

(3) Inserting an effective date of July 1, 2022; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1988, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1988, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

ROSALYN H. BAKER, Chair