Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1086

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Economic Development, to which was
referred S.B. No. 1086 entitled: 


begs leave to report as follows:

     The purpose of this measure is to establish administrative
fines for violations of chapter 200, Hawaii Revised Statues
(HRS).  In addition, this measure gives the authority of the
Board of Land and Natural Resources to collect and take legal
action to collect fines, damages, and fees and costs for such
violations.  The moneys collected will be placed in the boating
special fund.

     Testimony in support of this administrative measure was
received from the Board of Land and Natural Resources.  Testimony
opposed to this measure was received from Boats/Hawaii Inc.
     Currently, violations of boating laws and rules are
primarily addressed through court proceedings, including criminal
procedures.  Your Committee finds that many types of violations,
however, could be addressed more effectively and expeditiously
through fines imposed administratively, and thus relieve the
courts of the burden of processing these violations.

     Your Committee finds that fines assessed for the violation
of boating laws and rules are deposited in the general fund of
the State.  Little opportunity exists for the recovery of damages
or other direct costs to the Boating Special Fund arising from

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                                   STAND. COM. REP. NO. 129
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such violations, other than recovery of administrative costs
associated with the disposition of abandoned vessels which can be
deducted from the proceeds of the sale of the vessel.
Unfortunately, the proceeds of such sales seldom cover even the
cost of the required public notice of sale.  The remaining costs
must be borne by the Boating Special Fund.

     Your Committee finds that the ability to assess
administrative penalties and recover other administrative fees
and costs, including the costs of damages and attorney fees,
could reduce the magnitude of this non-productive overhead cost.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1086 and recommends that it pass Second Reading and
be referred to the Committee on Judiciary.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic

                                   LORRAINE R. INOUYE, Chair

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