The state is hoping to streamline the permitting process to avoid problems at Kealakekua Bay on the Big Island.
Last month, the state revoked the license of Hawaii Pack & Paddle for operating outside the area allowed in its permit.
The investigation into the company's operations came after 16-year-old Tyler Madoff was swept out to sea following a July 4 group kayak tour. His body has never been found.
The state has informed companies who currently have permits to conduct tours at Kealakekua Bay that they will likely not be renewed. The Department of Land and Natural Resources says it simply does not have the resources to properly monitor the area.
Currently, the Boating Division handles issues on the water in the area, while Parks and Recreation handles land issues.
The new streamlined process would move all permitting responsibilities for Kealakekua Bay to the Parks and Recreation Division.