Committee advances bill to speed special‑fund use for small boat harbor projects amid finance concerns

The House Committee on Water & Land voted to advance SB411, a measure intended to expedite capital improvements at state small boat harbors by allowing quicker use of special funds and encouraging public‑private partnerships.

Department of Land and Natural Resources representatives said they supported the bill because it would help the department move projects more quickly when CIP appropriations fall short of actual contract costs. “When we get up to the wall on the funding side of things, we have to try and scoop from our special funds to complete the project so that we can deliver it to the public,” DLNR staff told the committee, noting DP and bidding timelines complicate delivery.

The Department of Budget and Finance opposed the bill in testimony, saying it may run “contrary to certain provisions of the constitution” because the draft language could allow exceeding appropriation ceilings. Louis Oliveria, director of finance, said the department understood the bill’s intent to speed repairs but did not believe the bill as drafted was the right mechanism.

Committee members asked about leveraging volunteers and public‑private partnerships. Testimony from the Activities & Attractions Associations of Hawaii urged DLNR to “more often use the public private partnership that is allowed now by legislature” and said commercial operators were willing to help and “put money up.” DLNR said it is using special funds and has spent roughly $18 million in the last 12 months to supplement CIP and carry out repairs, citing Lahaina projects as examples.

Questions also covered fee structures and whether facilities could pass through CAM‑style charges to tenants. DLNR said it includes deferred maintenance and CAM‑type costs in mooring appraisals and mooring fees rather than as a separate charge; some extra fees (for example, electricity) are charged separately in some facilities.

The committee adopted the chair’s recommendation to pass SB411 with technical amendments and a defect date; several members recorded reservations during the vote. The bill moves to the next legislative step with the committee’s technical edits and noted reservations.

Why it matters: Small boat harbors support commercial and recreational marine activity; the bill attempts to shorten the gap between CIP appropriations and higher bid costs that can prevent projects from proceeding.

What’s next: Committee report will include technical amendments; BNF and DLNR indicated willingness to work together on procedural fixes.