HI SB2516

Defines "commercial watersports equipment" as equipment designed for use on or in water (kayaks, surfboards, stand-up paddleboards, kite-boards) for trade or business, excluding equipment used in permitted organized events like regattas.

Requires the Department of Land and Natural Resources (DLNR) to adopt rules designating areas and time periods where commercial watersports equipment may be operated.

Prohibits operation of commercial watersports equipment in Hawaii waters without a use permit issued by DLNR; requires permittees to pay fees equal to 3% of gross revenues from equipment use or $200 per month, whichever is greater.

Subjects commercial watersports equipment permits to annual DLNR review including compliance with department rules, timely state tax payment, and safety records.

Makes commercial watersports equipment permits fully transferable upon payment of a business transfer fee (no more than 6% of transfer price) with a limit of one transfer every two years, except for family business reorganizations.