Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 809
                                        S.D. 2

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


     Your Committee on Ways and Means, to which was referred S.B.
No. 809, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this measure is to allow a sole proprietor of
a catamaran operating with a valid commercial registration
certificate at Waikiki Beach to transfer the ownership and the
commercial registration to a corporate entity.

     Your Committee finds that in 1984, the Legislature approved
a measure to allow owners of commercial vessels with commercial
permits, and moored in small boat harbors, to transfer both
ownership of the vessel and the authority for the permit to a new
corporate entity.  However, Act 187, Session Laws of Hawaii 1984,
did not extend to commercial catamaran owners operating at
Waikiki Beach.

     Your Committee further understands that only two of the
seven catamaran operations currently at Waikiki Beach are sole
proprietorships, and that the measure would not affect the total
number of commercial catamaran operations.

     Your Committee has amended the measure by adding a section
that "grandfathers in" a catamaran business that was formerly a
sole proprietorship that subsequently became a corporation and
was mistakenly allowed by the Department of Land and Natural

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                                   STAND. COM. REP. NO. 601
                                   Page 2

Resources to transfer its commercial registration certificate to
the corporation.

     Your Committee believes this measure will provide these two
remaining sole proprietors with the option to make a one-time
change to corporate ownership, without adversely affecting
nearshore marine traffic or the area's ecosystem.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B.
No. 809, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 809,
S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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