Report Title:

Local commercial fishing industry; loan forgiveness; fee waiver

Description:

Recognizes the contributions of Native Hawaiians in the development of the local commercial fishing industry and the need to promote a viable and thriving commercial fishing industry and forgives all loans made to local commercial fishing operators under the boat loan programs or any other state loan program to assist fishing operators to borrow to build or repair boats for fishing.

HOUSE OF REPRESENTATIVES

H.B. NO.

2638

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to hawaii's fishing industry.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. This Act shall be known as the "Hawaii Fishing Industry Preservation Act of 2006."

SECTION 2. As early as December of 1974, the department of transportation (DOT) recognized that our state's commercial fishing industry was "sick" and in need of assistance. On April 3, 1975, the state land board joined DOT in concluding that the State needed to give every consideration to assisting the local commercial fishing industry.

Over the next several decades as the commercial fishing industry in Hawaii continued to struggle, the State of Hawaii through various programs and grants attempted to assist the industry and help plan its long term rebuilding through loans and grants.

During this time, there were rapid and dramatic changes in the short- and long-term plans for the Honolulu waterfront. The legislature enacted Act 328, Session Laws of Hawaii (SLH) 1997, which requested DOT to "recognize the accrued rights and interests of existing long-time lessees and permittees in the project area and, except for the cause, to take no action to displace them until such time as the legislature has had the opportunity to consider possible solutions to their concerns." The Act also required DOT to report to the 1998 legislature with a list of these lessees and permittees, their facility and space requirements, and recommendations on how they might be accommodated.

In 1998, DOT identified one lessee, failed to address the legislature's broader concerns, and submitted no further information.

By this time, the economy of Hawaii had stagnated and the attention of the legislature was focused on broader economic recovery issues. Since 1997, neither the legislature nor DOT have reexamined the health of the local commercial fishing industry.

On August 7, 2005, the owners of a local commercial fishing company widely recognized as industry leaders, paid for a full page newspaper statement that brought attention to the plight of the local commercial fishing industry and DOT's inadequate response to the legislature's inquiry in Act 328.

The legislature finds that:

(1) After many years of neglect by the State of Hawaii,

the majority of owners and employees in Hawaii's

commercial fishing industry are no longer from Hawaii

or native Hawaiian, and that Hawaii is in danger of

becoming too dependent on foreign owners and workers;

(2) The increasing dominance of foreign and out-of-state

owners and operators, as well as the influx of foreign

commercial fishing workers are overwhelming the local

fishing industry, posing a threat to the economy and

the cultural well being of our state;

(3) Hampered by increasing federal and state regulations,

local commercial fishermen are losing their place in

the industry to foreign and out-of-state commercial

fishermen who do not follow the same regulations and

restrictions. The result is that the fishing stock is

being depleted, adversely affecting local commercial

fishermen and local consumers; and

(4) Increased reliance on foreign and out-of-state

commercial fishermen dangerously displaces local

control over the State's food supply; and

(5) It is in the state's public interest to help secure a

locally owned, commercially viable fishing industry to

prevent reliance on producers and suppliers that have

no economic, social, or cultural ties to the people of

Hawaii.

Over the last three decades, the State has attempted to level the playing field in the commercial fishing industry by sponsoring grants and low interest loans to Hawaii-based commercial fishermen for, among other things, commercial boat construction. The legislature's intent was to assist local commercial fishermen in staying on the cutting edge in terms of economic and industry developments.

The legislature finds that these programs, although well-intentioned, have been mismanaged due in part to the lack of adequate funding, the untimely release of funding, and inadequate monitoring of repayment. This mismanagement has resulted in the unintended effect of hurting the local commercial fishing industry instead of assisting it.

The purpose of this Act is to assist the local commercial fishing industry by waiving their currently outstanding state boat loans and mooring and docking fees.

SECTION 3. As used in this Act:

"Commercial boat loan program" means boat loan programs administered by the state, including:

(1) The Hawaii fisheries new vessel construction loan program established under Act 193, SLH 1965, renamed as the Hawaii large fishing vessel purchase, construction, renovation, maintenance, and repair loan program;

(2) The Hawaii small fishing vessel purchase, construction, renovation, maintenance, and repair loan program established under Act 167, SLH 1975;

(3) The Hawaii capital loan program established under Act 76, SLH 1963; or

(3) Any similar program administered by any state department or agency,

that provided local commercial fishing operators loans to build, purchase, renovate, maintain, or repair a vessel.

SECTION 4. Any and all amounts of moneys, including principal and interest owed on a loan obtained to build, purchase, renovate, maintain, or repair a vessel under a commercial boat loan program, that are currently owed to the State of Hawaii are hereby waived and forgiven.

Any and all mooring and docking fees owed to the State of Hawaii by local commercial fishing operators that may be currently outstanding and delinquent are hereby waived and forgiven.

Ownership of any vessel subject to the loan forgiveness provided under this section shall be transferred to the local commercial fishing operator, if not already. The state shall relinquish any and all claims to the vessel.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $3,000,000, or so much thereof as may be necessary, to distribute money to local commercial fishing operators who owe the State of Hawaii on a loan obtained to build, purchase, renovate, maintain, or repair a vessel under a commercial boat loan program, or delinquent docking or mooring fees, to enable the local commercial fishing operators to repay their loans or delinquent fees to the State of Hawaii. The sum shall be appropriated as follows:

Repayment of commercial boat loan programs $

Repayment of mooring and docking fees $

The sum appropriated shall be expended by the department of business, economic development, and tourism and the department of transportation for the purposes of this section.

SECTION 6. Any party who successfully defends the legality of this Act, or any part of this Act, shall be awarded its attorneys fees and costs, including any applicable interest.

SECTION 7. This Act shall take effect upon its approval, except that section 5 shall take effect only upon the invalidation of section 4 of this Act.

INTRODUCED BY:

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