Honolulu, Hawaii
                                                   , 1999

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

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


     Your Committee on Finance, to which was referred S.B. No.
1321, S.D. 2, H.D. 1, entitled: 


begs leave to report as follows:

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

     The Department of Land and Natural Resources, the Department
of Agriculture, the Department of Business, Economic Development,
and Tourism, the Hawaii Aquaculture Association, the University
of Hawaii Sea Grant College Program, and an individual
testified in support of this measure.  The Office of Hawaiian
Affairs, the Hawaii Near Shore Commercial Fishermen, Black
Pearls, Inc., the University of Hawaii Environmental Center, and
two individuals commented on this measure.

     Your Committee has amended this bill by:

     (1)  Changing the repeal date from five years to June 30,
          2001, for the amendments made in this bill to the Ocean
          and Submerged Lands Leasing Law (Law), which remove
          certain limitations to allow commercial mariculture as
          a permitted use under the Law, clarify the process for
          obtaining a mariculture lease, and provide potential

                                 STAND. COM. REP. NO. 1831
                                 Page 2

          mariculture projects with the flexibility to adapt
          technology and designs to a site; and

     (2)  Making technical, nonsubstantive amendments for clarity
          and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1321, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1321,
S.D. 2, H.D. 2.
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair