House panel calls for fix of disrepairs at state parks and small boat harbors

The House Committee on Water & Land recommended favorable action Thursday on a bill to give the state Department of Land and Natural Resources more flexibility in responding to repairs and maintenance in state small boat harbors and parks.

Maui state harbors facilities include Lahaina Harbor, Māʻalaea Small Boat Harbor, Māla Wharf in Lahaina and the Kīhei Boat Ramp. State parks include ʻĪao Valley State Monument, Mākena State Park, Kula Forest Reserve (Polipoli), Waiʻānapanapa State Park, Puaʻa Kaʻa State Wayside Park, Waila Valley State Wayside Park and Kaumahina State Park.

Senate Bill 411 Senate Draft 2 would authorize the department to undertake certain capital improvements for existing facilities at state small boat harbors and parks without prior approval from the Legislature or governor. The bill requires quarterly reports and would sunset after five years.

“The Legislature finds that state small boat harbors and state parks serve as vital hubs of recreation and tourism for residents and visitors alike,” the bill says. “However, facilities at these locations suffer from significant wear due to constant use and lack of timely repair, maintenance and renovation.”

The purpose of the bill would be to:

• Provide the Division of Boating and Ocean Recreation and the Division of State Parks the flexibility to undertake necessary repairs and renovations without the delay associated with legislative approvals.
• Limit the scope of expenditures to critical repairs, renovations and replacements while excluding new construction.
• Establish a notification protocol and annual reporting requirements to ensure that the Legislature is fully informed of expenditures before and after they occur.

Dawn Chang, chair of the Board of Land and Natural Resources, submitted written testimony in support of the bill. She said the department has been chronically underfunded in its efforts to maintain public small boat harbors and parks.

The Division of Boating and Ocean Recreation manages 16 small boat harbors and ramps statewide, and the Division of State Parks handles 51 state parks, encompassing roughly 30,000 acres.

The Boating Division’s operations are almost entirely funded by the Boating Special Fund, which derives its revenues (roughly $30 million annually) from user fees, she said. In fiscal year 2024-2025, the division spent a total of $18 million of money in the fund (about 60% of available funds) on various infrastructure projects statewide.

“However, for perspective, DOBOR’s latest estimated deferred CIP balance is roughly $1 billion,” Chang said. “This estimate was recently increased due to a number of factors, including inflation and increased costs of supplies and labor.”

She cited the Wailoa dredging project on Hawaiʻi Island as one recent example of how the capital improvement project process has hindered a DOBOR project. While the Legislature appropriated $3.1 million in capital improvement project funds, the lowest project bid was $4.8 million.

“Rather than waiting for the next budgeting cycle to request the additional funding, DOBOR proactively worked to supplement the CIP funding with $1.7 million of its operational funds, which required additional time because the supplemental funding needed to follow CIP processes, during which time additional sediment accumulated and further blocked users’ access to ocean waters,” Chang said.

The Division of State Parks’ operations are funded with a combination of general funds and the State Parks Special Fund, with an annual budget of about $45 million, she said.

“Due to a series of budget reductions over decades, DSP’s operating budget was historically inadequate to provide the needed quality maintenance and management of aging facilities and infrastructure, many of which were constructed in the 1960s and early 1970s,” Chang said. “Subsequently, DSP has needed to rely upon CIP funding to execute what should have been routine repair and maintenance.”

Antoinette Davis, executive director of the Activities and Attractions Association of Hawaii, a nonprofit trade organization, supported the bill, saying that state parks and small boat harbors are essential in supporting tourism and resident recreation but suffer from “severe neglect and deferred maintenance, negatively impacting residents’ and visitors’ enjoyment and, in some cases, their safety.”

The bill would allow the department to conduct repairs and maintenance without “unnecessary bureaucratic delays.”

“Without significant changes, DLNR’s huge maintenance backlog will only grow,” she said. “This measure allows DOBOR and DSP to respond to CIP needs faster and more efficiently.”

Zachary LaPrade of Calypso Charters said Hawai‘i’s small boat harbors are “in a persistent state of disrepair.”

Deteriorated infrastructure seen first-hand includes: broken, unrepaired cleats, docks in disrepair and delayed routine maintenance “due to excessive bureaucracy.”

“Right now, even the simplest fixes, like replacing a broken dock or repairing safety-critical infrastructure are bogged down by excessive red tape,” he said. “By the time approval is granted, the damage has often worsened, increasing costs and risks.”

Chang took exception to complaints about DLNR and its maintenance and repair of state facilities.

“While the department acknowledges that facilities may need improvements, it is wholly inaccurate to attribute the condition of facilities to a lack of action or motivation by the department,” she said. “The department regularly submits CIP requests totaling tens of millions of dollars to the Legislature each year but usually receives much less than the requested amounts in the Legislature’s final CIP budget each year. Despite this severe CIP underfunding, the department has been able to keep all of its small boat harbors and state parks operational and open to the public.”

The state Department of Budget and Finance submitted testimony in strong opposition to the bill.

The department said: “It is important to point out that Article VII, Section 5, of the Hawai‘i Constitution expressly states that ‘[n]o public money shall be expended except pursuant to appropriations made by law.’ This means that expenditures for capital improvement projects need to be authorized by the Legislature. Section 5 also states that ‘[p]rovision for the control of the rate of expenditures of appropriated state moneys… shall be made by law.’ Chapter 37, HRS, Budget, provides the statutory structure and processes for expenditure of public moneys that have been authorized by the Legislature. These processes involve allotment control and approval by the Governor.”

The committee recommended passage with “aye” votes from Chair Mark Hashem, Vice Chair Rachele Lamosao and Reps. Linda Ichiyama, Dee Morikawa, Mahina Poepoe, Garner Shimizu and Kanani Souza. Voting “aye with reservations” were Reps. Della Au Belatti and Kim Coco Iwamoto. Rep. Justin Woodson was absent and excused. No committee members dissented.

The bill originated and passed through the Senate. Next, it heads to the House Finance Committee, chaired by Upcountry Rep. Kyle Yamashita and vice chaired by Rep. Jenna Takenouchi.