House Committee Strikes Down Harbor Appraisal Requirement and Sets Primary Residence Fee Increase Cap

Public Input Crucial to Amendment Changes

DLNR Chief, Suzanne Case, seems to be on a rampage to increase ocean recreation user fees in various poorly thought-through rate increase proposals, many of which have attracted attention for potential ethics violations.  In a recent back-door attempt to raise fees for harbor primary residents, she went to Hawaii's legislators seeking permission to raise primary resident harbor fees by considerable amounts.  One of the proposals, SB1257, asked legislators to increase primary residence permit fees as if the tiny space on which these residents placed their homes, an empty slip, was an entire unit unto itself, like a condominium.  The spaces, often measuring less than 28' X 10' appeared to be set to be appraised as if they were full-structure, 900 sq. ft. housing units, completely ignoring the fact that the homeowner, in this case, living on his/her own vessel, has already paid for and maintains the unit at their own expense. 

Aside from the fact that the homeowners in our public harbor environment own their own homes and maintain them at their own expense, they also provide, free of charge, a valuable service to the State harbor system:  They are the eyes and ears of security for the public harbor properties, and their surrounds, forming neighborhood watch groups that coordinate their vigilance with the Honolulu Police Department.  At present, the DLNR provides no security for the harbor system.  Aside from the use of additional water at their pier, harbor primary residents do not receive any other significant value added services from the State at this time.

Members of the House Water, Land, and Hawaiian Affairs Committee received a great deal of input from the public regarding SB1257, including comments from the members of Hawaii Ocean News.  We believe that public participation helps to inform very busy legislators so that they can make fair decisions about new pending legislation.   This is why it is so important for the public to become part of the legislation and rule-making process.  We cannot expect legislators, overwhelmed with new legislative considerations, to be fully informed about every issue until, we, the public, come forward and inform them.  It's as simple as that.  In other words, if you don't want to get involved, don't grumble later on when you're negatively impacted by poorly-thought-through legislation.

Below we've reprinted this committee's most recent conclusions regarding the SB1257 proposal:

STAND. COM. REP. NO. 1520

Honolulu, Hawaii                 , 2019

RE:   S.B. No. 1257

      S.D. 2

      H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

Your Committee on Water, Land, & Hawaiian Affairs, to which was referred S.B. No. 1257, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend the amounts of moorage and liveaboard fees for state small boat harbor facilities and the manner in which the fees are applied. Specifically, this measure:

     (1)  Equalizes moorage fees charged to residents and non-residents;

     (2)  Sets liveaboard fees at fair market value as determined by appraisal; and

     (3)  Applies liveaboard fees to commercial vessels that are used as a primary place of residence.

     Your Committee received testimony in opposition to this measure from Hawaii Ocean News and several individuals. Your Committee received testimony commenting on this measure from the Department of Land and Natural Resources, Ocean Tourism Coalition, and Wailoa River and Reeds Bay Boating Association.

     Your Committee notes that the Department of Land and Natural Resources is authorized to annually increase the liveaboard fees assessed upon recreational vessels used as a place of principal habitation. However, the Department is statutorily restrained from increasing the liveaboard fees by more than five percent annually. Due to this restriction, the Department has chosen not to increase the fee since 1991.

     Your Committee has amended this measure by:

     (1)  Deleting language that would have set liveaboard fees for recreational vessels at the appraised fair market value;

     (2)  Authorizing the Department of Land and Natural Resources to annually increase liveaboard fees for recreational vessels by up to fifty percent; and

     (3)  Changing its effective date to July 1, 2049.

     As affirmed by the record of votes of the members of your Committee on Water, Land, & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1257, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1257, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

RYAN I. YAMANE, Chair

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