RELATING TO STATE BOATING FACILITIES.

SB2367

THE SENATE

S.B. NO.

2367

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO STATE BOATING FACILITIES
.

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

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SECTION 1.
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The legislature finds that the division of
boating and ocean recreation of the department of land and natural resources is
tasked with thirteen statutory mandates primarily relating to the operation and
management of state small boat harbors and the administration of the ocean
recreation program.
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However, the
legislature recognizes that, due to statutory limitations, the division has
been unable to meet its statutory mandate of administering the ocean recreation
management program, and instead has disproportionately devoted almost all of
its staff and resources to the operation and management of the sixteen state
small boat harbors, which include more than two thousand slips and numerous
boat launch ramp facilities throughout the State, leaving very few resources available
for major statutory responsibilities of regulating and managing ocean
recreation.

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The
legislature notes that the division has historically been severely underfunded
and with insufficient staff to meet its statutory mandates to manage and
maintain the sixteen small boat harbors.
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Due to inflation and increased construction
costs, the division had approximately $1,100,000,000 in deferred maintenance
costs as of 2024.
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With an annual
operational budget of roughly $30,000,000, the division is unable to address this
deferred maintenance backlog, leaving facilities in disrepair while awaiting capital
improvement project funding from the legislature.

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The
legislature further finds that it is nearly impossible to quantify ocean
recreation management program underfunding, because ocean recreation activities
are widespread throughout the ocean waters of the State.
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Furthermore, the division has not been able to
adequately administer the ocean recreation management program for the reasons
stated, resulting in increased user conflicts, ocean safety concerns, and
illegal commercial ocean activities.

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The
legislature also finds that the Ala Wai small boat harbor is the "gateway
to Waikiki" and has significant potential to provide a positive and
memorable welcome to residents and visitors as they enter Waikiki, and to be a
community space for gatherings and recreational activities.
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Engaging in alternative management options for
state small boat harbors, namely public‑private partnerships for
management of small boat harbor operations, would improve small boat harbor conditions,
create a more inviting atmosphere for all users, and enable the division to
better devote its staff time and resources to the administration of the ocean
recreation management program.

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A
prime example of a state-owned harbor under private management is the Kewalo
basin harbor under the Hawaii community development authority, which is leased
to Howard Hughes Holdings, Inc., and managed by Almar Marinas.
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The public‑private partnership at Kewalo
basin harbor has resulted in timely repairs and maintenance, as well as a
regular staff presence to monitor harbor activities and assist users, enhancing
public access to a more enjoyable space.

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Accordingly,
the purpose of this Act is to:

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(1)
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Establish a state boating facility management
lease program within the department of land and natural resources, to be
implemented and administered by the division of boating and ocean recreation,
for the Ala Wai small boat harbor on Oahu; and

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(2)
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Allow the board of land and natural
resources to lease the management of the Ala Wai small boat harbor in its
entirety, including fast lands and submerged lands within its boundaries, by public
auction, request for proposals, or direct negotiation for private development,
management, and operation.

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SECTION
2.
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Chapter 200, Hawaii Revised Statutes,
is amended by adding a new section to part I to be appropriately designated and
to read as follows:

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"
�200-
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State boating facility management
lease program; established.
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(a)
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There
is established within the department a state boating facility management lease program
to be implemented and administered by the division of boating and ocean
recreation.

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(b)
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The board may lease the
management of the Ala Wai small boat harbor in its entirety, including fast
lands and submerged lands within its boundaries, by public auction, request for
proposals, or direct negotiation for private development, management, and
operation; provided that any lease entered into pursuant to this section shall
expire on or before June 30, 2046.

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(c)
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The state boating facility management
lease program shall be exempt from the notice and legislative authorization requirements
of sections 171-53(c) and 171-60 (a).

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(d)
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No later than twenty days
prior to the convening of each regular session, the department shall submit to
the legislature a report of its findings and recommendations, including any
proposed legislation, and advise whether the state boating facility management lease
program should be continued, modified, or terminated.

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(e)
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As used in this section,
"state boating facility" has the same meaning as in section 200-2.5.
"

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SECTION

3
.
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Section
200-2.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

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"(a)

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Notwithstanding any law to the contrary,
the board may lease fast lands and submerged lands within [
an
]
any

existing state boating facility by public auction, a request for proposals, or
by direct negotiation pursuant to section 171-59 and chapter 190D, for private
development, management, and operation[
; provided that any lease of fast
lands or submerged lands pursuant to a request for proposals shall be subject
to section 200-2.6, regardless to which state boating facility the fast or
submerged lands are attached
].

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As
used in this section, the term "state boating facility" means a state
small boat harbor, launching ramp, offshore mooring, pier, wharf, landing, or
any other area under the jurisdiction of the department pursuant to this
chapter."

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SECTION

4
.
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Section
200-2.6, Hawaii Revised Statutes, is repealed.

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["
[
�200-2.6]
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Ala Wai boat harbor; leases.
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The fast lands and submerged lands of the Ala
Wai boat harbor that may be leased include the following:

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(1)
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All fast lands and submerged lands
described in the request for qualifications or request for proposals issued by
the division of boating and ocean recreation of the department on November 25,
2008;

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(2)
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The fast land described as a portion
of tax map key:
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(1) 2-3-37-12, composed
of approximately 112,580 square feet, presently used for harbor offices and
permitted vehicular parking; and

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(3)
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The fast land described as a portion
of tax map key:
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(1) 2-3-37-12, which is
a triangular area located Diamond Head of Mole B, presently used for permitted
vehicular parking.
"]

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SECTION 5.
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All employees of the division of boating and ocean recreation of the
department of land and natural resources who occupy civil service positions and
whose functions are replaced as a result of this Act shall retain their civil
service status, whether permanent or temporary.
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Employees shall be reassigned within the division of boating and ocean
recreation without loss of salary, seniority (except as prescribed by
applicable collective bargaining agreements), retention points, prior service
credit, any vacation and sick leave credits previously earned, and other
rights, benefits, and privileges, in accordance with state personnel laws;
provided that subsequent changes in status may be made pursuant to applicable
civil service and compensation laws.

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SECTION 6.
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This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

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SECTION 7.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 8.
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This Act shall take effect upon its approval; provided that section
200-
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, Hawaii Revised Statutes, shall
be repealed on June 30, 2046.

INTRODUCED BY:

_____________________________

Report Title:

BLNR;
DLNR; DOBOR; State Boating Facility Management Lease Program; Ala Wai Small
Boat Harbor; State Boating Facilities; Reports

Description:

Establishes
the State Boating Facility Management Lease Program within the Division of
Boating and Ocean Recreation of the Department of Land and Natural Resources.
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Authorizes the Board of Land and Natural
Resources to lease management of the entire Ala Wai Small Boat Harbor.
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Repeals provisions relating to the leasing of
certain fast and submerged lands of Ala Wai Boat Harbor.
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Requires annual reports to the Legislature.

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