STAND. COM. REP. NO. 567

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 806
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water and Land Use, to which was referred
H.B. No. 806 entitled: 

     "A BILL FOR AN ACT RELATING TO LAND EXCHANGE,"

begs leave to report as follows:

     The purpose of this bill is to approve the exchange of
public lands in North Kona for private lands in South Kohala
owned by Hawaii International Motor Speedway. 

     Your Committee received testimony as follows:

     1.   County of Hawaii Office of the Mayor, Hawaii
          International Motor Speedway, in support; 

     2.   Office of Hawaiian Affairs, in opposition; and

     3.   Board of Land and Natural Resources, offering comment.  

     Your Committee finds that the proposed land exchange will
allow for the development of a raceway on otherwise unusable land
near the airport in North Kona, helping the island of Hawaii
capitalize on the rapidly growing motorsports industry.
Nevertheless, concerns exist about the possible impact on the
nearby Natural Energy Laboratory of Hawaii Authority facility and
whether development will constrict any future NELHA expansion
plans.  
     This matter requires further research and the proponents of
the bill should provide the legislature with additional
information, especially about the value of the land involved,
their current zoning and other issues.  

     Your Committee revised the bill by:  


 
                                 STAND. COM. REP. NO. 567
                                 Page 2

 
     1.   Changing the location of the private lands to "Kona
          coast"; 

     2.   Adding the tax map key location for the public lands
          involved; 

     3.   Removing the description of the condition of the
          private lands; 

     4.   Adding information on the proposed raceway, its
          benefits and the current status of the proposal as
          seeking private lands for purchase;  

     5.   Changing the expiration date to June 30, 2001; and 

     6.   Making technical, non-substantive changes for the
          purposes of style and clarity.  

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 806, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 806, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water and Land
                                   Use,



                                   ______________________________
                                   Romy M. Cachola, Chair