STAND. COM. REP. NO. 2682

 

Honolulu, Hawaii

                   

 

RE:     S.B. No. 2367

        S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

 

Sir:

 

     Your Committee on Water, Land, Culture and the Arts, to which was referred S.B. No. 2367 entitled:

 

"A BILL FOR AN ACT RELATING TO STATE BOATING FACILITIES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Establish the State Boating Facility Management Lease Program within the Division of Boating and Ocean Recreation of the Department of Land and Natural Resources;

 

     (2)  Authorize the Board of Land and Natural Resources to lease management of the entire Ala Wai Small Boat Harbor;

 

     (3)  Repeals provisions relating to the leasing of certain fast and submerged lands of Ala Wai Boat Harbor; and

 

     (4)  Require annual reports to the Legislature.

 

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Almar Marina Management, Vida Mia, and one individual.

 

     Your Committee received testimony in opposition to this measure from the United Public Workers, AFSCME Local 646, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

 

     Your Committee received comments on this measure from one individual.

 

     Your Committee finds that the Division of Boating and Ocean Recreation of the Department of Land and Natural Resources has been unable to meet its statutory mandate of administering the Ocean Recreation Management Program, disproportionately devoting almost all of its staff and resources to the operation and management of the sixteen state small boat harbors instead.  To make matters worse, the Division remains severely underfunded, understaffed, and unable to address the deferred maintenance backlog of the small boat harbors under its jurisdiction.  Your Committee believes that engaging in alternative management options for the small boat harbors, namely public-private partnerships, would improve small boat harbor conditions, create a more inviting atmosphere for all users, and enable the Division to better devote its time and resources to the administration of the Ocean Recreation Management Program.  This measure will increase the public enjoyment and condition of the Ala Wai small boat harbor, relieve the administrative burdens of the Division, and restore administrative enforcement to safe and legal ocean activities.

 

     Your Committee acknowledges the concerns raised in testimony by the United Public Workers, AFSCME Local 646, AFL-CIO, and Hawaii Government Employees Association, AFSCME Local 152, AFL‑CIO, that the proposed privatization language is broad and that public-private partnerships initiated in consequence of the successful implementation of this measure will degrade the working rights of public workers and lead to job loss or displacement for their members who work at small boat harbors.  Amendments to this measure are therefore necessary to address these concerns.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Clarifying that the title of the proposed new section of the Hawaii Revised Statutes refers to the authorization of a state boat facility lease, rather than the establishment of a State Boating Facility Management Lease Program;

 

     (2)  Deleting language that would have established within the Department of Land and Natural Resources a State Boating Facility Management Lease Program to be implemented and administered by the Division of Boating and Ocean Recreation;

 

     (3)  Clarifying that, upon completion of boundary amendments that segregate the portion of Ala Wai Small Boat Harbor to be improved pursuant to section 5 of this measure, the Board of Land and Natural Resources may lease the remaining portion of the Harbor, including fast lands and submerged lands within its boundaries, by public auction, request for proposals, or direct negotiation for private development, management, and operation; provided that any lease entered into pursuant to this section shall expire on or before June 30, 2046;

 

     (4)  Replacing "state boating facility management lease program" with "state boating facility lease" throughout this measure;

 

     (5)  Deleting language that would have authorized the Board of Land and Natural Resources to lease fast lands and submerged lands within any existing state boating facility, by public auction, a request for proposals, or by direct negotiation pursuant to section 171-59, Hawaii Revised Statutes, and chapter 190D, Hawaii Revised Statutes, for private deployment, management, and operation, without exceptions;

 

     (6)  Inserting language requiring the Department of Land and Natural Resources to develop and implement a project to improve those portions of Ala Wai Small Boat Harbor that provide for public access to the shoreline, and to improve safe and comfortable multimodal access across the shoreline between Ala Moana Beach Park and Waikiki Beach, extending the lei of parks and creating a place‑ and aesthetically-appropriate gateway to Waikiki, as envisioned by the 2022 University of Hawaii Community Design Center Ala Wai Small Boat Harbor Vision Report;

 

     (7)  Inserting a blank appropriation amount, to be expended by the Department of Land and Natural Resources for planning and designing of improvements pursuant to section 5 of this measure;

 

     (8)  Inserting additional legislative findings, and amending section 1 to reflect its amended purpose;

 

     (9)  Inserting an effective date of January 28, 2081, to encourage further discussion; and

 

    (10)  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 Water, Land, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2367, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2367, S.D. 1, and be referred to your Committee on Ways and Means.

 

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

 

 

 

________________________________

CHRIS LEE, Chair