HI HB789

Authorizes the Department of Land and Natural Resources to use aquatic in-lieu fee mitigation to restore, create, enhance, or preserve aquatic habitats as compensatory mitigation for prospective impacts or past damages.

Establishes two special funds: the aquatic mitigation banking special fund and the aquatic in-lieu fee mitigation special fund, both administered by the department.

Funds are sourced from mitigation bank credit sales, in-lieu fee payments, collected violations and penalties, legislative appropriations, grants and donations, and investment earnings.

Allows fund moneys to support project selection, design, acquisition, implementation, and management; administrative costs and scientific monitoring; and department personnel payroll or grants to the University of Hawaii and qualified organizations.

Exempts both special funds from the 5% central service assessment deduction and pro rata share of administrative expenses otherwise required of special funds under state law.