State to introduce legislation to address fairness in permit selection at Kahaluʻu surf spot : Maui Now

The state Division of Boating and Ocean Recreation plans to introduce legislation again in 2024 to try and address the issue of fairness when issuing permits for surf instruction companies to operate at the popular Kahaluʻu Bay surf spot on Hawaiʻi Island. This comes after a recent lottery, in which with three out of the four companies selected are owned by the same person.

DOBOR Assistant Administrator Meghan Statts said, “We knew upfront there was the possibility a single firm, with distinct individual companies established under state statutes, could be awarded all four permits. Seventeen surf companies entered the lottery, and three permits did go to three distinct companies that happen to be owned by the same individual. Under the current rules and laws, as long as the companies were legally established there is nothing, we can do to avoid what seems unfair, especially to surf schools that were not selected during the lottery.”

Statts said that while the department could not please everyone, they deemed the lottery as the fairest way to issue permits under the current rules. The action was taken after consultation with the Department of the Attorney General.

The one-year permits are conditional, based on permittees gaining land access permits from the County of Hawai‘i.

The four lottery winners selected on Nov. 17, in order of selection include:

• Kauakea LLC
• Hinaea Iliahi LLC
• Kahulu‘u Bay Surf & Sea Inc.
• Kona Town Adventures LLC

Officials with the state Department of Land and Natural Resources say commercial surf instruction at the popular bay has been contentious for years because of unpermitted companies and overcrowding.

DOBOR first adopted rules for the popular surf school spot, working in cooperation with the County of Hawai‘i, in 2016. At that time the county was going to select four commercial surf operators and the state would issue permits. The county had difficulty selecting four surf schools and asked the state to take over the process. An amendment of the rules in 2021 directed DOBOR to take on the responsibility of selecting operators and the only option for doing so under the rules, was to issue permits by lottery, according to department officials.

In 2022, DOBOR sought to have the State Legislature amend the law. The division wanted to issue permits to companies with the longest standing and in order of seniority. While House Bill 1090 was adopted, the measure was vetoed by the Governor.