Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1321
                                     S.D. 2
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Ocean Recreation and Marine Resources, to
which was referred S.B. No. 1321, S.D. 2, entitled: 


begs leave to report as follows:

     The purpose of this bill is to facilitate and support the
research and development of open ocean mariculture by clarifying
statutes dealing with the leasing of state marine waters for
aquaculture and mariculture purposes.

     Testimony in favor of this bill was submitted by the
Department of Business, Economic Development, and Tourism, the
Department of Agriculture (DOA), DLNR, the University of Hawaii's
Sea Grant College Program, Black Pearls Inc., Mahalo Kai Fishing,
the Hawaii Aquaculture Association, and several concerned
commercial fishers.  The Office of Hawaiian Affairs opposed this
measure.  The Environmental Center of the University of Hawaii
and Kamehameha Schools/Bishop Estate expressed concerns regarding
specific provisions within the bill.

     Your Committee has amended this bill by:

     (1)  Requiring DLNR, prior to the granting a lease for a
          proposed activity, to take the existing uses of the
          State marine waters into detailed consideration;

                                 STAND. COM. REP. NO. 1332
                                 Page 2

     (2)  Limiting the number of state marine water leases that
          may be granted by DLNR to 10;

     (3)  Requiring DLNR, in conjunction with DOA, to submit a
          report of the actions and progress undertaken with
          regard to this bill to the Legislature prior to each
          regular session;

     (4)  Clarifying that all references to "submerged lands"
          within the bill refers to state submerged lands; and

     (5)  Making technical, nonsubstantive changes for the
          purpose of style and clarity.

     Your Committee finds that this measure will clarify existing
statutes dealing with the leasing of state marine waters and
encourage both public and private interests to invest in open
ocean mariculture within the State.

     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 S.B. No. 1321, S.D. 2, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as S.B. No. 1321, S.D. 2, 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