HB 649: Department of Land and Natural Resources; Division of Boating and Ocean Recreation; State Small Boat Harbors; Permits; Fees

A BILL FOR AN ACT

RELATING TO SMALL BOAT HARBORS.

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

     SECTION 1.  The legislature finds that the department of land and natural resources (department) division of boating and ocean recreation is responsible for ocean recreation management in state ocean waters, among other responsibilities.  Public safety and marine natural resources can be affected by a variety of environmental factors and emerging ocean recreation technologies, some of which may change rapidly and frequently.  This Act is part of a comprehensive ocean recreation management package put forth by the department to ensure effective natural resource protection by providing better management and enforcement tools.

     The legislature further finds that the department is also not adequately funded to proactively address impacts of rules-based commercial activity, such as overcrowding and marine ecosystem damage, forcing a more reactionary approach that does little to address issues.

     Therefore, the purpose of this Act is to revise fee and permitting provisions applicable to commercial ocean operators.

     SECTION 2.  Section 200-10, Hawaii Revised Statutes, is amended to read as follows:

     "§200-10  Permits and fees for state small boat harbors[;], coastal areas, and ocean waters; permit transfers.  (a)  No person shall moor a vessel in a state small boat harbor without:

     (1)  First obtaining [a use permit] written authorization from the department; [and]

     (2)  Being the owner of the vessel[.]; and

     (3)  Paying appropriate fees set by subsection (c).

     (b)  In order to obtain [a] any use permit or [a] use permit renewal, the owner of a vessel shall provide, at the owner's own expense:

     (1)  A marine surveyor's inspection or a vessel inspection by the department, no more than two years old, certifying that the vessel has been inspected and fulfills the requirements set by the department;

     (2)  Documentation that the person is the owner of the vessel.  The documentation shall meet requirements established by the department; and

     (3)  Satisfactory proof that the person has attained the age of eighteen years prior to obtaining [a] any use permit or being placed on the waitlist for [a] any use permit.

     (c)  [The] A permittee shall pay [moorage] fees to the department for [the] a use permit that shall be based on but not limited to the [use of the vessel, the vessel's effect on the harbor, use of facilities, and the cost of administering the mooring program;] impact of the permitted activity on natural resources, impact of the activity on public access to and use of state boating facilities and waters of the State, and the cost of administering the small boat harbor and coastal areas programs; provided that:

     (1)  Except for commercial maritime activities in which a tariff is established by the department of transportation, moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department;

     (2)  For commercial maritime activities in which a tariff is established by the harbors division of the department of transportation, the department may adopt the published tariff of the harbors division of the department of transportation or establish the moorage fee by appraisal by a state-licensed appraiser approved by the department;

     (3)  An application fee shall be collected when applying for [moorage in state small boat harbors] any use permit and shall thereafter be collected annually when the application is renewed; provided that the application fee shall be set by the department;

     (4)  If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly liveaboard fee that shall be two times the moorage fee that would otherwise be assessed for a vessel of the same size;

     (5)  If [a vessel is used for commercial purposes from the vessel's permitted mooring,] the permittee is carrying passengers for hire, the permittee shall pay[, in lieu of the moorage fee required by paragraph (1),] a monthly fee that shall be the greater of:

          (A)  Three per cent of the gross revenues derived from the use of the vessel;

          (B)  $1.50 per passenger carried for hire; or

          (C)  Two times the moorage fee that would otherwise be assessed for a recreational vessel of the same size;

          provided further that if a permittee is using a vessel for commercial purposes from the vessel's permitted mooring, the fee required by this paragraph shall be in lieu of the moorage fee required by paragraph (1) for that vessel;

     (6)  The department is authorized to assess and collect utility fees, including but not limited to electrical and water charges, and common-area maintenance fees in state small boat harbors; and

     (7)  All fees established by appraisal pursuant to this subsection shall be set at fair market value.

     (d)  The department shall not renew or issue [a] any use permit to a person who is not the owner of the vessel [which] that is moored or [which] that the person desires to moor in a state small boat harbor.  No use permit may be transferred unless specifically provided by law.  Any individual who is an owner of a vessel used for commercial purposes, including commercial fishing as a principal means of livelihood, and who possesses a valid [mooring] commercial use permit [or commercial permit, or both,] in accordance with the rules adopted by the chairperson pursuant to chapter 91, may transfer ownership of the vessel from personal ownership to corporate or other business ownership without terminating the right to moor or operate the vessel under the commercial use permit [or permits].  [The] Any existing use permit or permits held by the transferring individual shall be reissued in the name of the transferee corporation or other business entity.

     (e)  [For the purposes of this section, "person" means any individual, firm, partnership, corporation, trust, association, joint venture, organization, institution, or any other legal entity, and "owner" includes the legal owner of a vessel where there is no security interest held by anyone on the vessel, a buyer under a purchase money security interest, a debtor under any security interest, a demise charterer of a vessel, or a lessee or charterer of a vessel under a lease or charter which provides the lessee or charterer with exclusive right to possession of the vessel to the exclusion of the lessor or the person from whom the vessel is chartered.  "Controlled group" means parent-subsidiary corporations, brother-sister corporations, or constructive owner.  "Transfer" includes any change in control, by whatever means, of any entity that owns or controls, directly or indirectly, a use permit.]  No permittee shall be allowed to moor a leased vessel in a berth unless the terms of the lease are set at fair market value.  [A "legal owner" includes a person who holds unencumbered title to a vessel or is a secured party under a security interest in the vessel.]  An owner who is issued a mooring permit [to moor a vessel in a state small boat harbor] shall notify the department in writing of a transfer of interest or possession in the vessel within seven days of transfer.

     (f)  Any person who owns an interest in a corporation or other business entity or is part of a controlled group possessing a valid commercial use permit issued by the department, in accordance with rules adopted by the chairperson pursuant to chapter 91, may transfer any or all stock or other interest to another person without terminating the right of the corporation or business entity to retain or renew its commercial use permit or any other use permit issued to it by the department; provided that:

     (1)  The corporation or business entity has been engaged in the same commercial vessel activity, as defined in section 200-9, for a minimum of one year;

     (2)  The seller shall pay the department a business transfer fee based on the passenger-carrying capacity of the vessels owned or operated by the corporation or business entity as provided by rules adopted by the chairperson pursuant to chapter 91, except for transfers of stock or interest in a corporation or other business entity between spouses or first-generation lineal descendants; and

     (3)  In the case of a controlled group, the transferee shall retain eighty per cent control of the transferor.

     Any person possessing a commercial use permit shall be required to meet minimum revenue standards, as set forth in rules adopted by the department pursuant to chapter 91, as a condition of retaining or renewing the commercial use permit.

     When an application for renewal of a commercial use permit is made at least sixty days [prior to] before the expiration of the commercial use permit, the department shall review the application and, within thirty days of receipt of the application, shall renew the commercial use permit or notify the applicant that the application is incomplete or cannot be renewed and explain any reasons for nonrenewal.  Within thirty days of receipt of the applicant's amended application, the department shall [either] renew the commercial use permit or notify the applicant that the commercial use permit will not be renewed.

     If the holder of a commercial use permit fails to timely [obtain renewal of a] renew a commercial use permit, the holder [of the permit shall automatically be granted a] may make a written request to the department for a one-time thirty-day extension from the date of the existing commercial use permit's expiration to obtain a commercial use permit renewal.  Any extension request shall be received by the department no later than the expiration date of the commercial use permit.

     (g)  The department may designate moorage space within state small boat harbors to accommodate commercial fishing vessels and transient vessels.

     (h)  All revenues from the foregoing operations shall be deposited in the boating special fund.

     (i)  As used in this section:

     "Controlled group" means parent-subsidiary corporations, brother-sister corporations, or constructive owner.

     "Legal owner" includes a person who holds unencumbered title to a vessel or is a secured party under a security interest in the vessel.

     "Owner" includes the legal owner of a vessel where there is no security interest held by anyone on the vessel, a buyer under a purchase money security interest, a debtor under any security interest, a demise charterer of a vessel, or a lessee or charterer of a vessel under a lease or charter which provides the lessee or charterer with exclusive right to possession of the vessel to the exclusion of the lessor or the person from whom the vessel is chartered.

     "Person" means any individual, firm, partnership, corporation, trust, association, joint venture, organization, institution, or any other legal entity.

     "Transfer" includes any change in control, by whatever means, of any entity that owns or controls, directly or indirectly, a use permit."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Department of Land and Natural Resources; Division of Boating and Ocean Recreation; State Small Boat Harbors; Permits; Fees

Description:

Revises provisions relating to state small boat harbors fees and permits.  (CD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO SMALL BOAT HARBORS.

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

     SECTION 1.  The legislature finds that the department of land and natural resources (department) division of boating and ocean recreation is responsible for ocean recreation management in state ocean waters, among other responsibilities.  Public safety and marine natural resources can be affected by a variety of environmental factors and emerging ocean recreation technologies, some of which may change rapidly and frequently.  This Act is part of a comprehensive ocean recreation management package put forth by the department to ensure effective natural resource protection by providing better management and enforcement tools.

     The legislature further finds that the department is also not adequately funded to proactively address impacts of rules-based commercial activity, such as overcrowding and marine ecosystem damage, forcing a more reactionary approach that does little to address issues.

     Therefore, the purpose of this Act is to revise the way fees applicable to commercial ocean operators are assessed.

     SECTION 2.  Section 200-10, Hawaii Revised Statutes, is amended to read as follows:

     "§200-10  Permits and fees for state small boat harbors[;], coastal areas, and ocean waters; permit transfers.  (a)  No person shall moor a vessel in a state small boat harbor without:

     (1)  First obtaining [a use permit] written authorization from the department; [and]

     (2)  Being the owner of the vessel[.]; and

     (3)  Paying appropriate fees set by subsection (c).

     (b)  In order to obtain [a] any use permit or [a] use permit renewal, the owner of a vessel shall provide, at the owner's own expense:

     (1)  A marine surveyor's inspection or a vessel inspection by the department, no more than two years old, certifying that the vessel has been inspected and fulfills the requirements set by the department;

     (2)  Documentation that the person is the owner of the vessel.  The documentation shall meet requirements established by the department; and

     (3)  Satisfactory proof that the person has attained the age of eighteen years prior to obtaining [a] any use permit or being placed on the waitlist for [a] any use permit.

     (c)  [The] A permittee shall pay [moorage] fees to the department for [the] a use permit that shall be based on but not limited to the [use of the vessel, the vessel's effect on the harbor, use of facilities, and the cost of administering the mooring program;] impact of the permitted activity on natural resources, impact of the activity on public access to and use of state boating facilities and waters of the State, and the cost of administering the small boat harbor and coastal areas programs; provided that:

     (1)  Except for commercial maritime activities in which a tariff is established by the department of transportation, moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department;

     (2)  For commercial maritime activities in which a tariff is established by the harbors division of the department of transportation, the department may adopt the published tariff of the harbors division of the department of transportation or establish the moorage fee by appraisal by a state-licensed appraiser approved by the department;

     (3)  An application fee shall be collected when applying for [moorage in state small boat harbors] any use permit and shall thereafter be collected annually when the application is renewed; provided that the application fee shall be set by the department;

     (4)  If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly liveaboard fee that shall be two times the moorage fee that would otherwise be assessed for a vessel of the same size;

     (5)  If [a vessel is used for commercial purposes from the vessel's permitted mooring,] the permittee is carrying passengers for hire, the permittee shall pay[, in lieu of the moorage fee required by paragraph (1),] a monthly fee that shall be the greater of:

          (A)  Three per cent of the gross revenues derived from the use of the vessel;

          (B)  $1.50 per passenger carried for hire; or

          (C)  Two times the moorage fee that would otherwise be assessed for a recreational vessel of the same size;

               provided further that if a permittee is using a vessel for commercial purposes from the vessel's permitted mooring, the fee required by this paragraph shall be in lieu of the moorage fee required by paragraph (1) for that vessel;

     (6)  The department is authorized to assess and collect utility fees, including but not limited to electrical and water charges, and common-area maintenance fees in state small boat harbors; and

     (7)  All fees established by appraisal pursuant to this subsection shall be set at fair market value.

     (d)  The department shall not renew or issue [a] any use permit to a person who is not the owner of the vessel [which] that is moored or [which] that the person desires to moor in a state small boat harbor.  No use permit may be transferred unless specifically provided by law.  Any individual who is an owner of a vessel used for commercial purposes, including commercial fishing as a principal means of livelihood, and who possesses a valid [mooring] commercial use permit [or commercial permit, or both,] in accordance with the rules adopted by the chairperson pursuant to chapter 91, may transfer ownership of the vessel from personal ownership to corporate or other business ownership without terminating the right to moor or operate the vessel under the commercial use permit [or permits].  [The] Any existing use permit or permits held by the transferring individual shall be reissued in the name of the transferee corporation or other business entity.

     (e)  [For the purposes of] As used in this section, "person" means any individual, firm, partnership, corporation, trust, association, joint venture, organization, institution, or any other legal entity, and "owner" includes the legal owner of a vessel where there is no security interest held by anyone on the vessel, a buyer under a purchase money security interest, a debtor under any security interest, a demise charterer of a vessel, or a lessee or charterer of a vessel under a lease or charter which provides the lessee or charterer with exclusive right to possession of the vessel to the exclusion of the lessor or the person from whom the vessel is chartered.  "Controlled group" means parent-subsidiary corporations, brother-sister corporations, or constructive owner.  "Transfer" includes any change in control, by whatever means, of any entity that owns or controls, directly or indirectly, a use permit.  No permittee shall be allowed to moor a leased vessel in a berth unless the terms of the lease are set at fair market value.  A "legal owner" includes a person who holds unencumbered title to a vessel or is a secured party under a security interest in the vessel.  An owner who is issued a mooring permit [to moor a vessel in a state small boat harbor] shall notify the department in writing of a transfer of interest or possession in the vessel within seven days of transfer.

     (f)  Any person who owns an interest in a corporation or other business entity or is part of a controlled group possessing a valid commercial use permit issued by the department, in accordance with rules adopted by the chairperson pursuant to chapter 91, may transfer any or all stock or other interest to another person without terminating the right of the corporation or business entity to retain or renew its commercial use permit or any other use permit issued to it by the department; provided that:

     (1)  The corporation or business entity has been engaged in the same commercial vessel activity, as defined in section 200-9, for a minimum of one year;

     (2)  The seller shall pay the department a business transfer fee based on the passenger-carrying capacity of the vessels owned or operated by the corporation or business entity as provided by rules adopted by the chairperson pursuant to chapter 91, except for transfers of stock or interest in a corporation or other business entity between spouses or first-generation lineal descendants; and

     (3)  In the case of a controlled group, the transferee shall retain eighty per cent control of the transferor.

     Any person possessing a commercial use permit shall be required to meet minimum revenue standards, as set forth in rules adopted by the department pursuant to chapter 91, as a condition of retaining or renewing the commercial use permit.

     When an application for renewal of a commercial use permit is made at least sixty days [prior to] before the expiration of the commercial use permit, the department shall review the application and, within thirty days of receipt of the application, shall renew the commercial use permit or notify the applicant that the application is incomplete or cannot be renewed and explain any reasons for nonrenewal.  Within thirty days of receipt of the applicant's amended application, the department shall [either] renew the commercial use permit or notify the applicant that the commercial use permit will not be renewed.

     If the holder of a commercial use permit fails to timely [obtain renewal of a] renew a commercial use permit, the holder [of the permit shall automatically be granted a] may make a written request to the department for a one-time thirty-day extension from the date of the existing commercial use permit's expiration to obtain a commercial use permit renewal.  Any extension request shall be received by the department no later than the expiration date of the commercial use permit.

     (g)  The department may designate moorage space within state small boat harbors to accommodate commercial fishing vessels and transient vessels.

     (h)  All revenues from the foregoing operations shall be deposited in the boating special fund."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Land and Natural Resources; Division of Boating and Ocean Recreation; State Small Boat Harbors; Permits; Fees

Description:

Revises provisions relating to state small boat harbors fees and permits.  Effective 7/1/3000.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO SMALL BOAT HARBORS.

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

     SECTION 1.  Chapter 200, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§200-     Small boat harbor commercial vessel special fund.  (a)  There is established the small boat harbor commercial vessel special fund to be administered by the department.

     (b)  The following shall be deposited into the small boat harbor commercial vessel special fund:

     (1)  Appropriations by the legislature;

     (2)  The portion of fees designated under section 200‑10(c)(5) for deposit into the small boat harbor commercial vessel special fund; and

     (3)  Moneys derived from interest, dividends, or other sources.

     (c)  Moneys in the small boat harbor commercial vessel special fund shall be expended exclusively for improvements that primarily benefit commercial vessels that utilize state small boat harbors."

     SECTION 2.  Section 200-10, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (c) to read:

     "(c)  The permittee shall pay moorage fees to the department for the use permit that shall be based on but not limited to the use of the vessel, the vessel's effect on the harbor, use of facilities, and the cost of administering the mooring program; provided that:

     (1)  Except for commercial maritime activities in which a tariff is established by the department of transportation, moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department;

     (2)  For commercial maritime activities in which a tariff is established by the harbors division of the department of transportation, the department may adopt the published tariff of the harbors division of the department of transportation or establish the fee by appraisal by a state-licensed appraiser approved by the department;

     (3)  An application fee shall be collected when applying for moorage in state small boat harbors and shall thereafter be collected annually when the application is renewed; provided that the application fee shall be set by the department;

     (4)  If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly liveaboard fee that shall be two times the moorage fee that would otherwise be assessed for a vessel of the same size;

     (5)  If a vessel is used for commercial purposes from the vessel's permitted mooring, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly fee that shall be the greater of:

          (A)  [Three]      per cent of the gross revenues derived from the use of the vessel;

          (B)  $1.50 per passenger carried for hire; or

          (C)  Two times the moorage fee that would otherwise be assessed for a recreational vessel of the same size;

          provided that      per cent of the revenues collected under this paragraph shall be deposited into the small boat harbor commercial vessel special fund established under section 200-   ;

     (6)  The department is authorized to assess and collect utility fees, including electrical and water charges, and common-area maintenance fees in small boat harbors; and

     (7)  All fees established by appraisal pursuant to this subsection shall be set at fair market value."

     2.  By amending subsection (h) to read:

     "(h)  [All] Unless otherwise specified, all revenues from the foregoing operations shall be deposited in the boating special fund."

     SECTION 3.  Section 200-34, Hawaii Revised Statutes, is amended to read as follows:

     "§200-34  Disposition of revenues.  [All] Unless otherwise specified, all fees and penalties collected pursuant to sections 200-10, 200-14, 200-14.5, and 200-32, and all fees and penalties established by rules adopted pursuant to sections 200-4 and 200‑24, shall be deposited in the boating special fund."

     SECTION 4.  The director of finance is authorized to issue general obligation bonds, with debt service to be paid from special funds, in the sum of $           or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2025-2026 for the purpose of capital improvement projects for LNR801 - ocean-based recreation, as follows:

1.   Ala Wai small boat harbor front row pier repairs Honolulu, Oahu

          Design and construction for repair and reconstruction of existing finger piers along front row.

          Total funding                              $          

2.   Haleiwa small boat harbor, Oahu

          Replace existing concrete marginal wharf with new pile guided aluminum framed floating dock, including water and electrical service.

          Total funding                              $          

3.   Honokohau small boat harbor, Hawaii                            

          Asphalt paving, striping, and drainage improvements existing gravel parking areas on the north and south sides harbor.

          Total funding                              $          

4.   Maalaea small boat harbor, Maui

          Maintenance dredging of harbor basin and entrance channel.

          Total funding                              $          

5.   Port Allen small boat harbor, Kauai                            

          Pier A and B installation/retrofit of new concrete piles to stabilize piers from harbor surge.

          Total funding                              $          

     The sums appropriated for the capital improvement projects shall be expended by the department of land and natural resources.

     SECTION 5.  Any provision of this Act to the contrary notwithstanding, the appropriations made for capital improvement projects authorized under this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriations unencumbered as of June 30, 2028, shall lapse as of that date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

Small Boat Harbors; Commercial Vessels; DLNR; Bonds; Appropriation

Description:

Establishes the Small Boat Harbor Commercial Vessel Special Fund.  Increases moorage fees for commercial vessels.  Requires that revenue from the fee increase be used by the Department of Land and Natural Resources for improvements that primarily benefit commercial vessels that utilize state small boat harbors.  Authorizes the issuance of general obligation bonds with debt service to be paid from special funds, for repairs of various harbors.  Appropriates funds.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to small boat harbors.

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

     SECTION 1.  Chapter 200, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§200-     Small boat harbor commercial vessel special fund.  (a)  There is established the small boat harbor commercial vessel special fund to be administered by the department.

     (b)  The following shall be deposited into the small boat harbor commercial vessel special fund:

     (1)  Appropriations by the legislature;

     (2)  The portion of fees designated under section 200‑10(c)(5) for deposit into the small boat harbor commercial vessel special fund; and

     (3)  Moneys derived from interest, dividends, or other sources.

      (c)  Moneys in the small boat harbor commercial vessel special fund shall be expended exclusively for improvements that primarily benefit commercial vessels that utilize state small boat harbors."

     SECTION 2.  Section 200-10, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (c) to read:

     "(c)  The permittee shall pay moorage fees to the department for the use permit that shall be based on but not limited to the use of the vessel, the vessel's effect on the harbor, use of facilities, and the cost of administering the mooring program; provided that:

     (1)  Except for commercial maritime activities in which a tariff is established by the department of transportation, moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department;

     (2)  For commercial maritime activities in which a tariff is established by the harbors division of the department of transportation, the department may adopt the published tariff of the harbors division of the department of transportation or establish the fee by appraisal by a state-licensed appraiser approved by the department;

     (3)  An application fee shall be collected when applying for moorage in state small boat harbors and shall thereafter be collected annually when the application is renewed; provided that the application fee shall be set by the department;

     (4)  If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly liveaboard fee that shall be two times the moorage fee that would otherwise be assessed for a vessel of the same size;

     (5)  If a vessel is used for commercial purposes from the vessel's permitted mooring, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly fee that shall be the greater of:

          (A)  [Three] Five per cent of the gross revenues derived from the use of the vessel;

          (B)  $1.50 per passenger carried for hire; or

          (C)  Two times the moorage fee that would otherwise be assessed for a recreational vessel of the same size;

          provided that forty per cent of the revenues collected under this paragraph shall be deposited into the small boat harbor commercial vessel special fund established under section 200-   ;

     (6)  The department is authorized to assess and collect utility fees, including electrical and water charges, and common-area maintenance fees in small boat harbors; and

     (7)  All fees established by appraisal pursuant to this subsection shall be set at fair market value."

     2.  By amending subsection (h) to read:

     "(h)  [All] Unless otherwise specified, all revenues from the foregoing operations shall be deposited in the boating special fund."

     SECTION 3.  Section 200-34, Hawaii Revised Statutes, is amended to read as follows:

     "§200-34  Disposition of revenues.  [All] Unless otherwise specified, all fees and penalties collected pursuant to sections 200-10, 200-14, 200-14.5, and 200-32, and all fees and penalties established by rules adopted pursuant to sections 200-4 and 200‑24, shall be deposited in the boating special fund."

     SECTION 4.  The director of finance is authorized to issue general obligation bonds, with debt service to be paid from special funds, in the sum of $32,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2025-2026 for the purpose of capital improvement projects for LNR801 - ocean-based recreation, as follows:

1.   Ala Wai small boat harbor front row pier repairs Honolulu, Oahu

          Design and construction for repair and reconstruction of existing finger piers along front row.

          Total funding                               $9,000,000

2.   Haleiwa small boat harbor, Oahu

          Replace existing concrete marginal wharf with new pile guided aluminum framed floating dock, including water and electrical service.

          Total funding                               $8,000,000

3.   Honokohau small boat harbor, Hawaii                            

          Asphalt paving, striping, and drainage improvements existing gravel parking areas on the north and south sides harbor.

          Total funding                               $4,500,000

4.   Maalaea small boat harbor, Maui

          Maintenance dredging of harbor basin and entrance channel.

          Total funding                               $6,000,000

5.   Port Allen small boat harbor, Kauai                            

          Pier A and B installation/retrofit of new concrete piles to stabilize piers from harbor surge.

          Total funding                               $4,500,000

     The sums appropriated for the capital improvement projects shall be expended by the department of land and natural resources.

     SECTION 5.  Any provision of this Act to the contrary notwithstanding, the appropriations made for capital improvement projects authorized under this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that the appropriations made to be expended in fiscal biennium 2025-2027 which are unencumbered as of June 30, 2028 shall lapse as of that date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2025.

Report Title:

Small Boat Harbors; Commercial Vessels; DLNR; Bonds; Appropriation

Description:

Increases harbor fees for commercial vessels.  Requires that revenue from the fee increase be used by the Department of Land and Natural Resources for improvements that primarily benefit commercial vessels that utilize state small boat harbors.  Authorizes the issuance of general obligation bonds with debt service to be paid from special funds, for repairs of various harbors.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1154

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 649

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 649, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SMALL BOAT HARBORS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the Small Boat Harbor Commercial Vessel Special Fund;

     (2)  Increase moorage fees for commercial vessels;

     (3)  Require that revenue from the fee increase be used by the Department of Land and Natural Resources for improvements that primarily benefit commercial vessels that utilize state small boat harbors; and

     (4)  Authorize the issuance of general obligation bonds, with debt service to be paid from special funds, for repairs of various small boat harbors.

     Your Committee received testimony in opposition to this measure from Holo Holo Charters, Inc.; Splashers Ocean Adventures Inc. DBA Kona Snorkel Trips; Sea Sport Cruises, Inc.; Body Glove Hawaii; Extended Horizons Inc.; Ocean Tourism Coalition; Sea Paradise Scuba, Inc.; Sail Maui; RED Hospitality and Leisure Hawaii, LLC; Banyan Tree Divers Maui; Hula Girl Sailing; Sea Maui LLC; Fun Charters, Inc.; Sea Maui Surf; Sailing Shipps, Ltd.; Maui Chamber of Commerce; Trilogy Excursions; Cafe Jai, LLC; Maui Classic Charters; and numerous individuals.  Your Committee received comments on this measure from the Department of Budget and Finance and Department of Land and Natural Resources.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 649, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  361

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 649

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Water & Land, to which was referred H.B. No. 649 entitled:

"A BILL FOR AN ACT RELATING TO SMALL BOAT HARBORS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the Small Boat Harbor Commercial Vessel Special Fund, to be used for improvements that primarily benefit commercial vessels utilizing the State's small boat harbors;

     (2)  Increase moorage fees for commercial vessels in small boat harbors; and

     (3)  Authorize the issuance of general obligation bonds for repairs of various small boat harbors, with debt service to be paid from special funds.

     Your Committee received testimony in opposition to this measure from the Maui Hotel and Lodging Association; Calypso Charters; Ocean Tourism Coalition; Body Glove Cruises; Sea Paradise Scuba Inc.; Sail Maui; Sailing Maui Inc.; Sea Quest Hawaii; Captain Andy's Sailing Adventures; Holo Holo Charters, Inc.; Maui Classic Charters; Outfitters Kauai Ltd; Explore Kauai Scuba, LLC; and numerous individuals.  Your Committee received comments on this measure from the Department of Land and Natural Resources and Department of Budget and Finance.

     Your Committee finds that the State's small boat harbors are in need of significant repair.  Your Committee further finds that increasing the fees charged to commercial vessels who moor in small boat harbors and allocating those fees to a special fund will enable the State to make badly needed improvements to the State's small boat harbor infrastructure.

     Your Committee has amended this measure by:

     (1)  Changing the percent of gross revenues a vessel used for commercial purposes must pay in lieu of a monthly moorage fee to an unspecified amount;

     (2)  Changing the percent of total revenues collected from vessels used for commercial purposes from permitted moorings in a small boat harbor that are to be allocated to the Small Boat Harbor Commercial Vessel Special Fund to an unspecified amount;

     (3)  Changing the general obligation bond issuance and appropriation allocations to unspecified amounts;

     (4)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider increasing the percent of gross revenues paid by a commercial vessel in lieu of a monthly moorage fee to five percent, allocating forty percent of all revenues collected to the Small Boat Harbor Commercial Vessel Special Fund, and authorizing the issuance of general obligation bonds in the amount of $32,000,000, with $9,000,000 going to capital improvement projects at the Ala Wai small boat harbor, $8,000,000 going to capital improvement projects at the Haleiwa small boat harbor, $4,500,000 going to capital improvement projects at the Honokohau small boat harbor, $6,000,000 going to capital improvement projects at the Maalaea small boat harbor, and $4,500,000 going to capital improvement projects at the Port Allen small boat harbor.

     As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 649, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 649, H.D. 1, and be referred to your Committee on Finance.

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