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Bill

GM 1162

Informing the Legislature that on May 29, 2026, the Governor signed the following bill into law: HB649 HD1 SD1 CD1 (ACT 062).

2026 Regular Session

Hawaii HB 649 establishes a modern, fee-based regulatory framework for state harbors and coastal areas, tying permits, ownership, and use to environmental impact and administration

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Bill Summary · GM 1162

Overview

  • Jurisdiction: Hawaii
  • Bill: HB 649, HD 1, SD 1, CD 1
  • Act: Act 062 (signed into law May 29, 2026)
  • Purpose: Revise fee and permitting provisions for commercial activities and use of state small boat harbors, coastal areas, and ocean waters to improve management, resource protection, and enforcement in the context of growing commercial ocean activity.

Main purpose and intent

  • address environmental and resource-management challenges from rules-based commercial activity in state ocean areas
  • provide the Department of Land and Natural Resources (DLNR), through its Division of Boating and Ocean Recreation, with updated tools and funding mechanisms to better regulate use, overcrowding, and ecological impacts
  • establish clear, market-based and transparent fee structures linked to impacts and administration costs
  • ensure that permit transfers and ownership structures in commercial boating are properly aligned with accountability and fair value

Key provisions and changes

  • Scope and applicability

    • Applies to state small boat harbors, coastal areas, and ocean waters regulated by DLNR’s boating and ocean recreation division
    • Creates requirements for use permits and moorage in these areas
  • Permit and ownership requirements (new/updated)

    • Anyone mooring a vessel in a state small boat harbor must: obtain written authorization from DLNR, be the vessel owner, and pay the applicable fees
    • To obtain or renew a use permit, the vessel owner must provide:
    • A recent vessel inspection (within 2 years) by a marine surveyor or DLNR inspection
    • Documentation proving vessel ownership
    • Proof that the owner is at least 18 years old
  • Fees and fee structure (subsection c)

    • Fees for use permits are based on multiple factors, including:
    • Vessel use of harbor facilities and the cost of administering the programs
    • Environmental impact on natural resources and public access
    • Administrative costs for harbor and coastal programs
    • Fee-setting rules:
    • Moorage fees (non-commercial activities) generally set by appraisal by a state-licensed appraiser
    • For commercial activities, the department may adopt the Harbors Division’s tariff from the Department of Transportation (DOT) or set via appraisal
    • An application fee is charged at permit application and annually upon renewal
    • Liveaboard (recreational vessel used as a home) fee: monthly liveaboard fee equal to twice the moorage fee for a vessel of the same size
    • Commercial-use vessels: monthly fee options include 3% of gross commercial revenues, or a per-passenger fee, or twice the comparable moorage fee; if used commercially from the moored vessel, that fee can substitute for the standard moorage fee
    • Utility and common-area maintenance fees may be assessed
    • All appraisal-based fees must reflect fair market value
  • Transfers and ownership changes (sections d–f)

    • Permit renewals not allowed for non-owners of the moored vessel unless legally permitted by law
    • Commercial-use permits may transfer ownership (from individual to corporate/other entity) without losing the permit, subject to conditions:
    • The transferee entity must have engaged in the same commercial vessel activity for at least one year
    • A business transfer fee is due based on passenger-carrying capacity
    • In a controlled group, the transferee must retain at least 80% control
    • Transfers of stock/interests within a controlled group or between spouses/first-generation descendants are exempt from the transfer fee
    • Any holder of a commercial-use permit must meet minimum revenue standards as set by rules
    • Renewal review timelines:
    • If renewal requested at least 60 days before expiration, DLNR has up to 30 days to renew or provide an incomplete/denial notice
    • Applicants have up to 30 days to submit amended applications for renewal
    • If renewal is missed, the permittee may request a one-time 30-day extension
  • Designation of moorage (section g) and revenue (section h)

    • DLNR may designate moorage space for commercial fishing vessels and transient vessels
    • All revenues from these operations go to the Boating Special Fund
  • Definitions (section i)

    • Clarifies terms: “controlled group,” “legal owner,” “owner,” “transfer,” and other relevant concepts to address control, ownership, and transfer mechanics

Affected parties and impacts

  • Vessel owners seeking state small-boat-harbor access or moorage
  • Commercial ocean operators and vessel operators using state harbors
  • Entities transferring ownership or control of a vessel with a commercial permit (including corporate or partnership structures)
  • Recurring users of small boat harbors, including liveaboards
  • DLNR’s Division of Boating and Ocean Recreation
  • Public and coastal environments affected by commercial activities due to updated fees and management tools

Procedural and timeline aspects

  • Effective date: Act takes effect upon approval (May 29, 2026)
  • Renewal and transfer processes include clarified timelines (60-day renewal window, 30-day renewal decision window, 30-day extension option)
  • Revenue and fee changes apply to new and renewing permits; existing rights and duties matured prior to effective date are not retroactively altered beyond the act’s provisions
  • All new or updated statutory material is to be applied consistent with the act’s provisions and rules adopted under Hawaii Revised Statutes chapter 91

Bottom line

HB 649, CD1, SD1 introduces a comprehensive framework to modernize and fund the management of state small boat harbors and related coastal/ocean areas. It tightens ownership and usage requirements, creates a blended fee structure (appraisal-based and tariff-based) aligned with environmental and public-access impacts, facilitates controlled transfers of commercial permits, and provides clearer renewal timelines and revenue channels to support protective and administrative activities.

Compiled from official sources — confirm details with the bill’s official record.

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