STAND. COM. REP. NO. 569

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 795

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

 

Sir:

 

     Your Committee on Water and Land, to which was referred S.B. No. 795 entitled:

 

"A BILL FOR AN ACT RELATING TO STATE SMALL BOAT HARBOR FEES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend the various fees that the Department of Land and Natural Resources may charge for the usage of state small boat harbors and amend the way those fees are applied.

 

     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 the Ocean Tourism Coalition; PacWhale Eco-Adventures; Maui Classic Charters; Sailing Maui Inc.; Kapalua Kai Sailing, Inc.; Crystal Seahorse, Ltd.; Trilogy Excursions; Sea Paradise Scuba, Inc.; Calypso Charters; Alii Nui Charters; and one individual.

 

     Your Committee finds that the Department of Land and Natural Resource's Division of Boating and Ocean Recreation has identified approximately $300,000,000 in deferred maintenance at small boat harbors and boating facilities statewide.  Implementing the fees as prescribed in this measure would allow the Department of Land and Natural Resources to collect appropriate fee amounts if an operator attempts to circumvent the gross receipt collection method.  The fees collected would go towards funding upgrades to state small boat harbor facilities resulting in improved sanitation and maintenance of small boat harbors.

 

     Your Committee has heard concerns that the $3 per passenger fee will be far greater than three percent of gross receipts for a large number of operators who are struggling to survive and there is no recourse for harbor users to dispute the fees established by appraisal.

 

     Your Committee has amended this measure by:

 

     (1)  Reducing the passenger fee from $3 to $1.50; and

 

     (2)  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. 795, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 795, S.D. 1, and be referred to your Committee on Ways and Means.

 

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

 

 

 

________________________________

LORRAINE R. INOUYE, Chair