Haw. Code R. § 13-231-62 - Transferability of commercial use permits and catamaran registration certificates

(a) Commercial use permits and catamaran registration certificates issued to individuals.

(1) A commercial use permit issued to an individual is non-transferable, so that whenever the permittee parts with possession or transfers the title or interest in the vessel identified in the commercial use permit to another person by any arrangement, the commercial use permit shall expire except as provided herein with respect to the original permittee. The new possessor, transferee, or owner of the vessel shall have no right to use the commercial use permit. However, a sole proprietor holding a commercial use permit or catamaran registration certificate for a commercial catamaran to land on Waikiki beach and operate upon Waikiki shore waters for hire may transfer ownership of the vessel from personal ownership to corporate or other business ownership without terminating the right to operate. The existing permit or registration certificate shall be reissued in a timely manner in the name of the transferee corporation or other business entity. No commercial use permit or catamaran registration certificate for an existing Waikiki beach catamaran operation shall be denied or revoked without a prior hearing in accordance with chapter 91, Hawaii Revised Statutes;

(2) An original commercial use permittee or catamaran certificate holder who also holds a regular mooring permit, upon written application and approval by the department may retain the commercial use permit or catamaran registration certificate, provided that within thirty days the permittee moves into the small boat harbor another vessel owned by the mooring permittee pursuant to the provisions of section 13-231-13; and

(3) An original permittee holding a commercial use permit and moored elsewhere may, upon written application to and approval by the department retain the commercial use permit, provided that within thirty days the permittee resumes operation with another vessel owned by the permittee pursuant to the provisions of sections 13-231-13 and 13231-61.

(b) The following rights, conditions, and restrictions apply to commercial use permits and catamaran registration certificates issued to a corporation or other business entity.

(1) Notwithstanding section 13-231-13, a corporation or other business entity holding a valid commercial use permit or catamaran registration certificate may transfer any or all stock or interest and retain the commercial use permit or catamaran registration certificate and all other valid small boat harbor use permits in effect on the date of transfer, provided that the corporation or other business entity has been in continuous operation as evidenced by the submission of monthly reports of gross receipts for a minimum period of one full year and meets all requirements necessary for issuance of a commercial use permit or catamaran registration certificate. The department shall be notified within ten working days of:

(A) All transactions that amount to a transfer of ten per cent or more of the stock or interest in the firm by owners of record on the date of issuance of the current commercial use permit or catamaran registration certificate;

(B) The transfer of any stock or interest which results in a change of the principal stockholder or owner; and

(C) The business transfer fee is paid on or before the date of transfer; and

(2) A commercial use permit or catamaran registration certificate issued to a corporation or other business entity shall automatically expire:

(A) Upon the voluntary or involuntary dissolution of the corporation or business entity;

(B) If the vessel or vessels operated under the commercial use permit or catamaran registration certificate are sold or otherwise transferred and not replaced in accordance with the provisions of section 13-231-13(b); or

(C) If the permittee or certificate holder fails to operate the vessel for which the commercial use permit or catamaran registration certificate is issued for a period in excess of sixty days, except as provided in section 13-231-61(a)(2), and except when the permittee or certificate holder provides advance notification to the department in writing that operations will be temporarily suspended for a specific period not to exceed four months.

Notes

Haw. Code R. § 13-231-62

[Eff 2/24/94; am and comp SEP 25 2014] (Auth: HRS §§ 200-2, 200-3, 200-4, 2009, 200-10) (Imp: HRS §§ 200-2, 200-3, 200-4, 200-9, 200-10)