Report Title:

Harbor Fees, Reduced Rates for Aquaculture


Establishes reduced rates for Hawaii enterprises engaged in aquaculture as defined in section 187A-1.


H.B. NO.









relating to aquaculture.



SECTION 1. The legislature finds that our State has vast marine resources that, with appropriate government oversight and effective business practices, can provide sustainable enterprises for Hawaii entrepreneurs engage in aquaculture. The legislature further finds that the future of aquaculture enterprises in Hawaii is in offshore activities, which require adjacent dock and wharf space at major harbor facilities. However, due to the legal requirements that major state harbors charge sufficient fees to sustain their operations and capital improvement costs, the rates set by the department of transportation are prohibitively high for use by aquaculture enterprises that are also small businesses.

Thus, the purpose of this Act is to allow the department of transportation to offer reduced rates at major state harbors for Hawaii aquaculture enterprises.

SECTION 2. Section 266-17, Hawaii Revised Statutes, is amended to read as follows:

"266-17 Rates[,]; how fixed. (a) The department of transportation shall adjust, fix, and enforce the rates assessable and chargeable by it in respect to dockage, wharfage, demurrage, and other rates and fees pertaining to harbors, wharves, and properties managed and operated by it so as to produce from the rates and fees, in respect to all harbors, wharves, and other properties, except those that are principally used for recreation or the landing of fish, revenues sufficient to:

(1) Pay when due the principal of and interest on all bonds and other obligations for the payment of which the revenue is or has been pledged, charged, or otherwise encumbered, or which are otherwise payable from the revenue or from a special fund maintained or to be maintained from the revenue, including reserves therefor, and to maintain the special fund in an amount at least sufficient to pay when due all bonds or other revenue obligations and interest thereon, which are payable from the special fund, including reserves therefor;

(2) Provide for all expenses of operation and maintenance of the properties, including reserves therefor, and the expenses of the department in connection with operation and maintenance; and

(3) Reimburse the general fund of the State for all bond requirements for general obligation bonds which are or have been issued for harbor or wharf improvements, or to refund any of the improvement bonds, excluding bonds, the proceeds of which were or are to be expended for improvements which are or will be neither revenue producing nor connected in their use directly with revenue producing properties.

(b) When weather, road closures due to special events, or road repairs do not permit the loading or unloading of passengers at Kewalo Basin, cruise boats holding a Kewalo Basin sublease approved by the State shall be allowed to use Honolulu Harbor facilities on a space available basis, and the fees for the use of facilities shall be in accordance with the Hawaii administrative rules of the department of transportation relating to fees for use of facilities for private gain.

(c) The department shall adopt a reduced rate schedule for dockage, wharfage, demurrage, and other rates and fees pertaining to all harbors, wharves, and other properties, for Hawaii enterprises engaged in aquaculture as defined in section 187A-1. These reduced rates shall be based upon actual costs to the department for the operation and maintenance of the properties, as provided in subsection (a)(2), and shall not be more than fifty per cent of the average rate charged for industrial uses."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.