STAND. COM. REP. NO. 2468

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2877

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Madam:

 

     Your Committee on Water and Land, to which was referred S.B. No. 2877 entitled:

 

"A BILL FOR AN ACT RELATING TO USE PERMITS FOR SMALL BOAT HARBOR FACILITIES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to clarify that no use permit for a state small boat harbor facility may be transferred unless specifically provided by law.

 

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources.  Your Committee received testimony in opposition to this measure from Ocean Tourism Coalition, Maui Dive Shop, and Fair Wind Cruises.

 

     Your Committee finds that this measure seeks to clarify that use permits issued to a corporation or other business entity for a state small boat harbor facility may only be transferred if the corporation or other business entity holds a valid commercial use permit.  This measure prevents people from bypassing the waitlist for a regular mooring permit by acquiring a corporation or other business entity holding a regular mooring permit.

 

     Your Committee has amended this measure on the recommendation of the Department of Land and Natural Resources (DLNR) by:

 

     (1)  Defining the terms "control" and "transfer";

 

     (2)  Exempting transfers of stock or interest in a corporation or other business entity between immediate family members solely for estate planning purposes from paying the DLNR a business transfer fee; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2877, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2877, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Water and Land,

 

 

 

____________________________

MALAMA SOLOMON, Chair